Unit 5 Chief Financial Officer Marty Hickman presented the district's proposed $222 annual budget to the school board on Wednesday in the board's first meeting since classes began.
This year marks the first that sees increased property tax funding from the district’s 2023 referendum in play.
Hickman said this will bring in about another $20 million for the district’s education fund. This revenue gain is slightly offset by a decrease in tax rates for debt financing that also lessens the impact of the tax burden on the public.
Unit 5 will dig substantially into debt service funds this year in order to pay off bonds, totaling about $38 million. Hickman said there may be some issues with prorated state funding for transportation later in the year, but if matters turn out well, the district may not dip into working cash reserves at all in the new budget.
Overall, Hickman sees Unit 5 in good financial shape in the near future, even with the possibility of economic downturns.
“Barring something really major and unexpected, it’s really going to help put us on solid financial footing,” said Hickman, referring to revenue from the recent trend of high property value growth in the district. Property tax revenue is projected to rise 9% this year.
“It’s inevitable, these things run in cycles, that there will be a downturn. Things will slow. But we’ll be better prepared for it next time around.”
While the budget proposal took the stage on Wednesday, the board will not act on the spending plan until its next meeting in September, when more complete information is available. The board also will hold a public hearing on the budget next month.
120-plus summer projects ready for new school year
Also on Wednesday, the board heard an update from Director of Operations Joseph Adelman, who said 122 major facilities projects were completed over the summer, not counting many smaller requests, at a cost of about $800,000.
While summer activities reduced the window to complete work, many notable improvements were finished this past summer. A total of 10 portable classrooms have been added across sites like Parkside Elementary, Towanda Elementary, and Cedar Ridge Elementary.
An accomplishment that met with praise from the board was the addition of two stage security entrances to the district’s three junior high schools, closely resembling Unit 5's two high schools.
The district’s warehouse and special maintenance staff consists of 22 people, and work windows were shortened by summer school activities, but Director of Facilities Tom Rockwell said a great deal was accomplished.
“On top of our summer projects, also we have our daily work orders. It was a very busy summer with summer school and summer activities,” Rockwell said. “So there were also over 400 work orders that were completed this summer.”
The school board praised not only the completion of projects, but the efficiency of their execution.
When a boiler was replaced at Towanda Elementary, it was estimated both to cut that school’s utilities dramatically, but also free up parts to make repairs elsewhere in the district. Maintenance to outdoor recreational space and interior facilities like gyms and pools also were completed ahead of the start of classes.
