River Forest District 90 adopts tentative levy, reviews financial projections
According to district administrators, the total tax increase is expected to be 3.02 percent, which factors in the triannual property reassessment, a 2.1 percent increase due to in inflation and revenues generated from new construction in the village.
"[This rate] is based on the applicable consumer price index of 2.1 percent, and estimating the amount of new property that we anticipate for tax year 2017," finance director
According to a district memo, the total tax levy is expected to reach
Administrators also presented a five-year outlook on the district's operating fund projections.
"You'll see in the last year of 2021-22, the total combined projected fund balances are less than one year of expenditures," Cozzi said. "Lots of school districts use six months [as a target reserve level]."
According to Cozzi, the district has outstanding working cash fund bonds that are due to be paid off in 2024, which would enable the district to borrow more money around the time fund balances decrease.
"Your plan has always been to extend out and sell working cash fund bonds after the [current] ones are set to retire in 2024," Cozzi said. "You'd sell those [new bonds] in 2023. That keeps taxpayers' tax bills for the debt service portion level. You're not in a dire situation, but continuing down this path would not be sustainable."
According to Cozzi, the district can accommodate approximately
"[The district] has always had debt up to that debt service extension base to make sure that levy is the same every year, so taxpayers don't see that fluctuation on their tax bill," Cozzi said.
According to Superintendent
"We want to make sure everyone was aware we'll be putting a very sharp eye to our staffing recommendations in March," Condon said. "We just need to be very thoughtful of [student-to-teacher ratios]. If we want to continue the high-quality education we provide, some of these costs will be unavoidable."
According to Board President
"It's not like we have a lot of fat here," Martire said. "We are a tightly run district. Administrative costs are well in line."
While the district is dipping into its reserves, officials note the five-year projections show a healthy outlook for
"Our projections are for five years," Cozzi said. "After that, we don't know what's going to happen. We're in deficit spending now. Unless something changes, we're tapping into reserves, but we have the ability to issue working cash fund bonds. That could sustain us for a while. The reason you do long-range financial planning projections is so you can see when that cliff is coming."
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