"Raising the bar toward a future of excellence!"

August 14, 2008

RICH TOWNSHIP HIGH SCHOOL DISTRICT 227

BUDGET AND FINANCE/PROPERTY COMMITTEE MEETING

AUGUST 14, 2008

 

 

The Budget and Finance/Property Committee of the Board of Education of Rich Township High School District 227 met on Thursday, August 14, 2008, in the Board Room at the District Offices, Olympia Fields, Illinois.

 

Mrs. Upshaw called the Budget and Finance Committee meeting to order at 6:35 p.m.

 

Mrs. Norwood called the Property Committee meeting to order at 6:35 p.m.

 

Present: Budget and Finance – Upshaw, Imoukhuede, Moten (6:40 p.m.)

 

Present: Property – Norwood, Brookins, Moten (6:40 p.m.)

 

 

Mr. Hampton went over the 2007-08 budget and the tentative 2008-09 budget.  He explained the types of funds, noting that the Tort fund is now called the 80 Fund.  Mr. Hampton then described the sources of revenue for the school district, noting that 68.6% of the revenue comes from property taxes.

 

Mrs. Brookins asked about the vocational education source of revenue.  Mr. Hampton stated that these funds come through Mr. Hysell’s office from the Perkins grant and other grants.  Mrs. Brookins asked for a copy of the budget for vocational education funds.  Mr. Hampton responded that he would have that information for next week’s packet.

 

Mr. Hampton noted that the total revenue over expenses for Fiscal Year 08 is $3,960,859. 

 

There were questions regarding whether the increase in insurance rates had been considered when the new budget was drawn up.  Mr. Hampton said the budget reflects the new insurance rates.  He noted that the insurance committee will be meeting after school has been in session for awhile.

 

Mrs. Norwood asked about negotiations.  Mr. Hampton noted that the budget also reflects the increases which will be part of the new union agreement.

 

Mrs. Brookins asked if the switchers and routers were included in the budget.  Mr. Hampton responded that the amounts for the switchers and routers were split over three years.  One year is included in the budget.

 

Mr. Hampton reported that total revenues for Fiscal Year 2009 are projected to be $68,466,000, and total expenditures for Fiscal Year 2009 are projected to be $65,581,000.

Mr. Hampton noted that the amount of revenue over expenditures for Fiscal Year 09 is projected to be $2,885,000.  In the Operating Funds only, total revenue for Fiscal Year

Budget/Property Meeting

Page 2

August 14, 2008

 

 

2009 is projected to be $59,564,000, and total expenditures are projected to be $58,024,000, for a total of revenue over expenditures of $1,540,000. Last year the taxes were not received until December.  They are expected in October of this year.

 

Mr. Hampton added that eventually the IMRF fund will be condensed in the Ed. Fund.

 

There were questions regarding attendance for the District.  Mr. Hampton noted that attendance was based on the best three months on the year.

 

Mr. Hunigan added that the District is developing a goal to improve attendance in the District.

 

Mrs. Moten asked about foreclosures in the District.  Mr. Hampton responded that the three highest towns for foreclosures in our area are Richton Park, Matteson and Country Club Hills.

 

Mr. Hampton also went over the Sources of Expenditures for the District.  He noted that 76.2% of expenditures are in salaries and benefits. 

 

Mr. Hampton listed several items which the District can do to continue to be in line with revenues vs. expenditures.

 

 

Mr. Hampton updated the Committee members regarding construction.  He stated that he will schedule another joint Budget/Property Committee Meeting at the end of September or early October to fine tune the numbers in terms of how far under budget the District is in its construction work and which alternate projects can be accomplished.  He noted that there are other projects which may be added to the current list of alternate projects.

 

Mr. Hunigan added that the administration will be making recommendations to the Board on the alternate projects.

 

Mrs. Norwood asked about the flat screen televisions for the weight rooms.

 

Mr. Hampton responded that he has asked the company to work with him in terms of supplying the T.V.s.

 

Mr. Hunigan added that the District never wants to get itself back into the position it was in 4 or 5 years ago.  The District will be on a cycle for replacement.

 

 

Budget/Property Meeting

Page 3

August 14, 2008

 

 

Mr. Jason Jackson from Flex Media gave a presentation on the possible installation of a Flex Media fence at Rich East.  He noted the fence would be supplied at no cost to the District.  In addition, the District would receive $5,000 in year 2 and $5,000 in year 3 of the contract.  The money for the fence and the additional funds would come from selling of ads for the fence.  The fence can be moved around the various athletic fields.  If someone runs into it, it flexes.  Mr. Jackson stated he needs to know if the Board is behind the installation of the fence.  The company needs to sell 25 to 30 ads for the fencing.

 

Mrs. Moten asked about the $5,000.  Mr. Jackson said it was the standard amount.

 

Mr. Hunigan asked about the type of advertising on the fence.  Mr. Jackson said that the company knows the audience the school district would have and would take that into consideration. 

 

Mr. Imoukhuede asked if the Board could review the product before it is put up at East

 

Mr. Jackson responded that would be fine.

 

Mr. Imoukhuede asked if something happens if the fence belongs to Flex Media.

 

Mr. Jackson noted that the company does have a liability policy but the District would also be responsible.

 

Mr. Imoukhuede asked if Flex Media would supply an insurance policy stating they were additionally insuring the fence.

 

Mr. Jackson responded that he can provide that.  He reminded the Committee members that Flex Media already had a signed contract from Mr. Daniels. 

 

Mr. Hampton noted that there was an article in the paper that talked about the District’s partnership with Flex Media.  Rich East had not gone through the proper channels.  This fence is a great idea for the school district.  That is why Mr. Jackson is coming out to talk to the Board.

 

Mrs. Norwood asked where Mr. Daniels got the information about Flex Media.  Mr. Hampton responded that he got it from one of the conferences he had attended.

 

Mrs. Moten said we should have this type of fence for all three schools.  Mr. Jackson responded that he did not think Flex Media could find 75 advertisers for the three fences.  It was hard to find the 13 they have found so far for East.

Budget/Property Committee

Page 4

August 14, 2008

 

 

Mr. Hunigan added that this type of situation deals with the concept of advertising.  He felt the Board wants to have control over advertising.

 

Mrs. Norwood added that the District was not opposed to advertising about food.

 

Mrs. Moten and Mrs. Norwood stated that the fences should be at all three schools.

 

Mr. Jackson said he was not opposed to having the fence at all three schools, but he wanted to get one in place first.  He said it is a three-year commitment for each advertiser.

 

Mr. Hunigan noted that the administration will bring the matter to the Board in September.

 

 

Mr. Hampton brought up Worker’s Compensation.  He said that the company the District used last year (Workers Compensation Self-Insurance Trust) had quoted the District a premium based on one school.  The company covered the cost of the difference in premium for 2007-2008.  The premium has increased this year to $328,850 from $197,564.  This new quote is a 22% decrease of what the District’s actual cost should have been for the 2007-08 school year.  Mr. Hampton noted that this decrease in premium shows that the District is moving in the right direction in relation to its worker’s compensation insurance. 

 

At 7:49 p.m. Mr. Imoukhuede moved and Mrs. Moten seconded the following:

 

It is moved that the Budget and Finance Committee and the Property Committee of the Board of Education of Rich Township High School District 227 go into closed session to discuss the purchase, lease or acquisition of real property for the use of the District, including discussing whether a particular parcel should be acquired.

 

Results of the roll call vote were as follows:

 

Aye: Brookins, Imoukhuede, Moten, Norwood, Upshaw

Nay: None

                                                            Motion carried.

 

 

At 8:30 p.m. Mr. Imoukhuede moved and Mrs. Moten seconded the following:

 

Budget and Property Meeting

Page 5

August 14, 2008

 

 

It is moved that the Budget and Finance Committee and the Property Committee of the Board of Education of Rich Township High School District 227 reconvene its meeting.

 

Results of the roll call vote were as follows:

 

Aye: Brookins, Imoukhuede, Moten, Norwood, Upshaw

Nay: None

 

                                                            Motion carried.

 

 

At 8:31 p.m. Mr. Imoukhuede moved and Mrs. Moten seconded the following:

 

It is moved that the Budget and Finance Committee and the Property Committee of the Board of Education of Rich Township High School District 227 adjourn its meeting.

 

Results of the roll call vote were as follows:

 

Aye: Brookins, Imoukhuede, Moten, Norwood, Upshaw

Nay: None

 

                                                            Motion carried.

 

 

 

____________________________________            ______________________________

Chair, Budget and Finance Committee              Chair Property Committee