The Oak Park District 97 school board is studying proposed sizes for its April 2017 operating fund referendum, with final decisions expected to be made later this month.
During the Dec. 6 meeting, board members received their first looks at referendum size options and their potential tax impacts on Oak Park residents. During the last several months, the district has said the referendum is needed due to increasing enrollment and flat revenues.
“We’re up 1,000 kids since 2007,” board member Graham Brisben said. “We hit a record enrollment by breaking the 6,000-student mark for the first time since the 1970s. We have a fund balance below 25 percent and are running a deficit this fiscal year. If we take no action, we will be having a negative fund balance in 2018 and nowhere to go from there without something changing.”
According to Brisben, the district’s fiscal policy requires at least a fund balance of 25 percent. Brisben added the district’s tax levying power is driven by the consumer price index, which has remained largely flat in recent years, rather than total enrollment.
Under scenario A, District 97 would be able to achieve a target fund balance of 15 percent by increasing its operating fund levy by $10,141,755 up to $63,271,903. To achieve this, the district estimates an increase of $562 to a current $10,000 annual property tax bill.
Under scenario B, the district could achieve a 30 percent target fund balance by increasing its operating fund levy by $13,878,192 up to $67,008,340, which would add $770 to a current $10,000 annual property tax bill.
Scenario C could achieve a 45 percent target fund balance by increasing the district’s operating fund levy by $16,146,742 up to $69,276,890. Under scenario C, a current $10,000 annual property tax bill would increase by $895.
“It’s a sobering reality, but it’s a reality we’re going to confront with brutal facts,” Brisben said.
In addition to seeking an operating fund referendum, the district also revealed several facilities and capital investment needs due to take place between 2018 and 2021.
Non-mandated maintenance at all district buildings, which includes Americans with Disabilities Act work and upgrades to fire alarms, lighting systems, power distribution, plumbing repairs and roof repairs, is estimated to total $37,588,500.
Enhanced learning spaces, capacity expansions at school buildings and air conditioning work could total $19,963,702. This work could include converting existing non-classroom space into renovated learning spaces and additional classrooms built at Lincoln and Longfellow elementary schools.
“You see things like fire alarms and roofs; none of these items are currently on our [required] life-safety report, but the architect’s review of things said they really should be replaced within five years,” board member Bob Spatz said. “They are anticipatable, highly recommended required work.”
According to Brisben, the district could tie its operating fund referendum together with its facilities needs or run two referendums on the same ballot. The board could also focus April 2017 solely on the operating fund referendum and pursue a facilities referendum at a later date.
“It would be great if we could get consensus on are we running one or two referendums, what size operating referendum and what size [facilities] referendum [later this month],” Spatz said.
Oak Park District 97 will have a special board meeting Dec. 19 to discuss which operating fund scenario to proceed with and discuss facilities needs. The district also has regular board meetings scheduled for Dec. 20 and Jan. 10.
Once a plan is chosen, the district has a Jan. 17 filing deadline to place its referendum question or questions on the April 2017 ballot.
Twitter: @steveschering
