Wilmette School District 39 board members approved a $71.4 million 2015-16 operational budget recently, with officials saying roughly $4 million of that having fueled a construction and rehab schedule that started over the summer.
Board officials said the $71.4 million represents the lion’s share of the proposed 2015-16 spending, containing funds for education and transportation costs, day-to-day operating and maintenance costs, pension obligations, legal costs and working cash supplies. It is about $4.9 million higher than the 2014-15 proposed budget, which stood at $66.5 million, according to district figures.
Business Manager Gail Buscemi said Aug. 25 that the increase was almost entirely due to construction projects over the two school years, including work at Romona, Highcrest and Central schools. The projects, including the replacement of Romona School’s aging boilers, and an addition of four classrooms there, began in June and will be completed in December, officials said.
“It also reflects increases – salary and benefits, technology equipment purchases and other increases in purchased services,” she said Aug. 25.
Buscemi said the district expects operational revenues to stand at $68.03 million, up from the 2014-15 proposed budget revenue figure of $65.6 million. The majority of district revenue comes from local property taxes, officials said.
The remainder of the budget covers non-operational costs, including construction, life and safety work, and repayment of the district’s bond debt.
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The non-operating budget spending estimate of $6.5 million is higher than the proposed 2014-15 non-operating budget of $2.6 million, again, largely due to the construction projects, Buscemi said.
She noted that much of the non-operational spending consists of transfers from operational funds, which must be listed again in that portion of the budget because state law requires that it be shown there, she explained.
For instance, she said, non-operational spending includes the same planned $4.1 million for capital construction projects that is provided for in the operations and maintenance section of the operating budget.
Similarly, next year’s debt repayment is set at $2.3 million – but again, as with the capital projects costs, much of that amount, about $990,000 is already accounted for in operational spending and only reflected in the non-operational figures for accounting purposes, she said.
The overall operational budget will decrease district operational fund balances by about $3.4 million, leaving them at about $32.8 million as of June 30, 2016, Buscemi said. The portion of the non-operating fund that covers bond debt repayment will increase slightly, to $1.95 million from $1.9 million, Buscemi said.
During their most recent meeting, board members also approved a loan of up to $2 million between the district’s education and operations funds, in order to pay for the ongoing construction projects. Buscemi said the loan, which the district could technically take three years to repay to its education fund, will actually be paid as soon as District 39 receives the first portion of its 2015 taxes in March of next year.
Buscemi said Aug. 25 that although such inter-fund loans aren’t uncommon for school districts to undertake, the district hasn’t undertaken one for at least the past six years. She also said that since end of year balances for 2014-15 were higher than expected, the district would probably be able to make a lower inter-fund loan.
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Budgets and balances
Where: Wilmette School District 39
What: 2015-16 operational budget
Spending, Revenue: $71.4 million, $68.03 million respectively.
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