June 11, 2007
RICH TOWNSHIP HIGH SCHOOL DISTRICT 227
BUDGET AND FINANCE COMMITTEE MEETING
JUNE 11, 2007
The Budget and Finance Committee of the Board of Education of Rich Township High School District 227 met on Monday, June 11, 2007, in the Board Room at the District Administrative Center, Olympia Fields, Illinois.
Mrs. Moten called the meeting to order at 6:10 p.m.
Present: Moten (Chair), Imoukhuede (Member), Upshaw (Member 6:40 p.m.)
Also Present: Mr. Brunson, Mr. Hunigan, Mrs. Treichel, Mrs. Wolf, Mr. Hampton
Mrs. Moten turned the meeting over to Mr. Hampton.
Mr. Hampton began with a discussion on Workers’ Compensation. He noted that our school district had been a member of SELF, which had recommended that 12 school districts be terminated because of high loss claims. Each district had to vote, and the vote failed. SELF could not terminate our school district. The District is working to put in some measures to bring down our loss claims. We are partnering with St. James and Ingalls.
In December, the Board voted to approve the District’s withdrawal from SELF, which gave the District the flexibility to seek quotes. Our District has until June 30, 2007, to make a decision to stay with SELF or to go out with another workers’ compensation company. The District received three quotes from nine solicited companies. The three companies giving quotes are : WCSIT (Workers Compensation Self-Insured Trust) through The Hinz Company, American International Companies (AIG), and SELF.
WCSIT’s quote is $197,564 for $2,000,000 in coverage vs. last year’s premium of $449,673 for $1,000,000 in coverage from SELF. SELF’s quote is $460,334 for $1,000,000 in coverage. AIG’s quote is $484,203 for $1,000,000 in coverage.
Fifty districts withdrew from SELF in December. Ten districts have transferred to WCSIT (Hinz Co.). Mr. Hampton recommended that District 227 go with WCSIT. He noted that each year the District would be bringing forth a recommendation for workers’ compensation. The quotes should be received by May 1 of each year. He mentioned that WCSIT will need to do an audit of our payrolls before the final amount is calculated for the premium.
Mr. Imoukhuede mentioned that Illinois is a choice state. Individuals are not confined to the two hospitals Mr. Hampton mentioned. Mr. Hampton said this was true.
Mr. Hampton brought up a Tax Rate Objection Settlement for the years 2001 and 2002. He noted that if the IMRF and Social Security Funds have high reserves and when someone objects, the District has to send money back to the taxpayers. He noted that the District is trying to spend down the account. Mr. Hampton noted there will be a resolution at the June 18 Board meeting regarding approval of these settlements.
Mr. Hampton brought up a property tax abatement arrearage. He noted that CarMax did not submit a PIN number to the District for a tax abatement until tax year 2006. An agreement has been reached with CarMax to rebate $51,371 in arrearage. If approved, this arrearage will be paid in two installments. Mr. Hampton noted that our abatement agreements have been changed so that if a business does not submit a request for an abatement for property by November 1, the District does not have to give the business the abatement.
Mrs. Moten asked if the District had gone through all its other abatement agreements to check on the PIN numbers. Mr. Hampton noted he had talked to Mr. Izzo, our attorney, about that. Mr. Izzo is going to make sure we have been abating all PIN numbers.
Mr. Hampton noted this agreement will go to the Board for approval on Monday, June 18.
Mr. Hampton brought up Alternate Construction Project Recommendations. He noted that to date $52,019,645 had been committed to projects, leaving $1,980,355 remaining. Mr. Hampton described all the alternates which the District plans to complete.
Mr. Hunigan noted that the District needs to get on a cycle for maintenance of fields, etc.
Mr. Brunson mentioned that some schools go to advertising on fencing and then the fencing is free.
Mr. Hunigan stated he would look at the Board policy on advertising.
Mrs. Moten asked about internal work. Mr. Hampton responded that internal work is so expensive. Mr. Hunigan added that the lobby area at Rich East will be updated.
Mr. Brunson asked about the wiring in the foreign language labs. Mr. Hampton responded that Mr. Koutavas is looking at the cost.
Mrs. Upshaw noted that she has heard that the equipment in the weight room is hazardous. She felt that should be a priority on the list.
Mr. Hunigan responded that anything that is a danger to the students should be taken care of
Budget and Finance Meeting
immediately. He added that he will make sure the Board members walk through all the weight rooms to make sure they are safe.
Mr. Hampton noted that the District will begin addressing items on a year to year basis.
He added that there will be $430,000 remaining in the construction fund. He stated that he will make sure the A.D.s are addressing the needs of the various fields.
Mr. Imoukhuede asked how much of the soft cost has been spent. Mr. Hampton stated that information is in the Board packet each month.
Mrs. Moten asked about the soccer fields. She stated that the parents were upset that the students had to play elsewhere because of the fields.
Mr. Hampton stated the District is addressing this issue.
At 7:10 p.m. Mr. Imoukhuede left the meeting.
Mr. Hampton brought up the contract with the Bloom Township Treasurer’s Office. He stated that the contract expires on June 30, 2007, and it is his recommendation that the District continue the partnership. He is recommending a 3-year contract, $105,000 this year, with a 3.5% increase annually for the next two years. This is less than the District was paying for the Rich Township Treasurer’s Office. He will bring this contract before the Board on June 18, 2007.
Mr. Hunigan brought up the replacement of band equipment. He noted the District needs to put in the budget each year some dollars for replacement of band equipment. Our schools have been borrowing equipment from other high schools for competitions. The District needs to get in a cycle for replacement of the equipment.
Mr. Hunigan stated that next year he would be bringing another school to the Board for replacement of band equipment. The schools can share some of the key pieces.
Mr. Hampton noted that salaries for administrative and exempt staff employees will be going to the Board on June 18, 2007, for approval. He noted that the administrative staff has been decreased, for a savings of $386,440.
Mrs. Moten asked for a list of the summer interns at the car dealerships.
Mr. Hampton stated he is working on creating policies and procedures for the student activity accounts. He will have these policies and procedures before the July meeting.
Budget and Finance Minutes
Mr. Hunigan noted that it is possible the District will need additional help in that department.
There needs to be an accounting in the collection of any dollars.
At 7:25 p.m. Mrs. Moten adjourned the meeting.