Wilmette SD 39 reviews FY2025 draft budget; staff recommends one-year transportation renewals
May 14, 2024 | Wilmette SD 39, School Boards, Illinois
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Corey, a district staff member, presented the Wilmette School District 39 draft fiscal year 2025 budget on May 13 and told the Committee of the Whole the timeline: an initial review in May, a tentative budget request at the June board meeting (a legal requirement), public display and hearings in August, and formal adoption at the Aug. 26 board meeting.
"We're looking at $78.7 million in total revenue and $74.0 million in expenditures," Corey said, noting a projected operating surplus of $4.75 million before transfers and an estimated operating fund-balance of about 45% for FY25 — above the district target of 40%.
The presentation called out key revenue assumptions: a 5% CPI increase in the levy, $15.5 million in reported new-growth value that yields an estimated $462,000 to D39, and a net collection rate set at about 90.98%. Corey said a quarter-point change in the collection rate would be worth roughly $172,000 to the district.
Corey also reviewed several risk areas. Interest income has risen from near-zero years, with FY25 interest revenue estimated around $1.65 million, but the timing of the second property-tax installment could materially affect receipts; he estimated last year’s delayed billing cost the district about $500,000 in interest revenue. Replacement taxes were conservatively budgeted at $900,000 pending a final payment expected in July that could push estimates nearer to $945,000.
On expenditures, Corey said salaries and benefits account for roughly 80% of operating costs, and that a 1 percentage-point change in the IMRF rate would be about $80,000 in expenditure variance. He flagged special-education out-of-district placements as a volatile line: FY24 budgeted $1.6 million, FY25 estimated $1.7 million, but a single high-cost placement could push that item substantially higher.
Corey summarized capital projects and transfers: planned summer work includes a junior-high roof replacement and classroom air-conditioning work for about 12–13 rooms; he said the capital projects budget for the upcoming year is about $5.86 million and that the district would transfer about $5.8 million from operations to capital and propose a $1.5 million transfer from the education fund to operations and maintenance to supplement capital funding.
Transportation was the second substantive fiscal topic. Corey recommended one-year renewals for both regular and special-education contracts with North Shore Transit while the district monitors enrollment, fees and the new statutory bidding window (effective Jan. 1, 2024) that limits the maximum time a district may avoid re-bidding to 10 years. He said driver pay has risen about 44% since 2021, bus purchase costs have jumped (Corey cited comparison figures in the 45–56% range), fuel and insurance costs have increased, and a new Cook County paid-leave requirement will add roughly 2% to contractor labor costs.
"Given those pressures, I'm recommending one-year renewals in the neighborhood of 6.25% to 7% for next year," Corey said. He added both renewals will be placed on the board agenda next Monday for formal consideration.
Board members asked several clarifying questions about multi-year projections and external risks. One member expressed concern about proposed or pending state pension changes ("tier 2" reforms) that could shift costs to local districts; staff said they had not yet seen concrete proposals that would immediately affect the district but would continue to monitor state developments.
Action at the meeting included a motion, made and seconded, earlier in the session to approve the minutes of the April 15 Committee of the Whole and Executive Session meetings; the motion carried by voice vote. At the end of the public meeting the board moved, seconded and approved a motion to adjourn into executive session to discuss personnel, special-education individual student matters and collective negotiation; the clerk called the roll and the meeting adjourned to executive session at 4:28 p.m.
The district will return to the full board with a tentative budget vote in June and the transportation renewals are slated for a formal agenda item next Monday.
"We're looking at $78.7 million in total revenue and $74.0 million in expenditures," Corey said, noting a projected operating surplus of $4.75 million before transfers and an estimated operating fund-balance of about 45% for FY25 — above the district target of 40%.
The presentation called out key revenue assumptions: a 5% CPI increase in the levy, $15.5 million in reported new-growth value that yields an estimated $462,000 to D39, and a net collection rate set at about 90.98%. Corey said a quarter-point change in the collection rate would be worth roughly $172,000 to the district.
Corey also reviewed several risk areas. Interest income has risen from near-zero years, with FY25 interest revenue estimated around $1.65 million, but the timing of the second property-tax installment could materially affect receipts; he estimated last year’s delayed billing cost the district about $500,000 in interest revenue. Replacement taxes were conservatively budgeted at $900,000 pending a final payment expected in July that could push estimates nearer to $945,000.
On expenditures, Corey said salaries and benefits account for roughly 80% of operating costs, and that a 1 percentage-point change in the IMRF rate would be about $80,000 in expenditure variance. He flagged special-education out-of-district placements as a volatile line: FY24 budgeted $1.6 million, FY25 estimated $1.7 million, but a single high-cost placement could push that item substantially higher.
Corey summarized capital projects and transfers: planned summer work includes a junior-high roof replacement and classroom air-conditioning work for about 12–13 rooms; he said the capital projects budget for the upcoming year is about $5.86 million and that the district would transfer about $5.8 million from operations to capital and propose a $1.5 million transfer from the education fund to operations and maintenance to supplement capital funding.
Transportation was the second substantive fiscal topic. Corey recommended one-year renewals for both regular and special-education contracts with North Shore Transit while the district monitors enrollment, fees and the new statutory bidding window (effective Jan. 1, 2024) that limits the maximum time a district may avoid re-bidding to 10 years. He said driver pay has risen about 44% since 2021, bus purchase costs have jumped (Corey cited comparison figures in the 45–56% range), fuel and insurance costs have increased, and a new Cook County paid-leave requirement will add roughly 2% to contractor labor costs.
"Given those pressures, I'm recommending one-year renewals in the neighborhood of 6.25% to 7% for next year," Corey said. He added both renewals will be placed on the board agenda next Monday for formal consideration.
Board members asked several clarifying questions about multi-year projections and external risks. One member expressed concern about proposed or pending state pension changes ("tier 2" reforms) that could shift costs to local districts; staff said they had not yet seen concrete proposals that would immediately affect the district but would continue to monitor state developments.
Action at the meeting included a motion, made and seconded, earlier in the session to approve the minutes of the April 15 Committee of the Whole and Executive Session meetings; the motion carried by voice vote. At the end of the public meeting the board moved, seconded and approved a motion to adjourn into executive session to discuss personnel, special-education individual student matters and collective negotiation; the clerk called the roll and the meeting adjourned to executive session at 4:28 p.m.
The district will return to the full board with a tentative budget vote in June and the transportation renewals are slated for a formal agenda item next Monday.
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