In Attendance: Board Members-Larry Brees, Valerie Umholtz
Administrative Members-Perry Soldwedel, Matt Wilkinson
Association Members-Linda Norman

The Finance Committee met to discuss and plan the financial objectives of the District. The committee reviewed its charge: 1) To influence and improve funding decisions in the General Assembly and U.S. Congress; 2) To protect the long term interests of the District by developing scenarios for BOE consideration leading to a levy decision in December 2001 for the 2002-2003 school year; and 3) To project revenue and expenditures for the 2002-2003 school year and bring about a balanced budget for adoption in August 2002.

The primary focus of this meeting was to discuss and review levy scenarios. However, the preliminary Equalized Assessed Valuation (EAV) and New Growth Dollars (construction) estimates provided by the Supervisor of Assessment are not accurate enough to develop meaningful scenarios. Since these numbers are crucial to determine levy amounts and since accurate numbers will not be received until after December, the strategy will be to artificially inflate the extension request, allowing the District to maximize dollars available. Many districts falling under PTELL have utilized this strategy as well. Due to the Property Tax Extension Limitation Law (PTELL), once the County Clerk's Office has the final EAV, if we ask for the inflated increase, our extension dollars will be adjusted to be in compliance with PTELL. This will lower our extension dollars to reflect the Consumer Price Index (CPI) increase of 3.4% and new growth dollars allowed under PTELL. Since the numbers from the Assessor are only estimates and new property dollars may increase, the District will gain all it is entitled to in light of the uncertainties with assessed values by increasing the prior year extension anywhere from 7% to 10%. Increasing the prior year extension beyond 5% will require a Truth-In-Taxation Hearing.

Other issues that need to be addressed before levy scenarios can be developed include the
following:

1. Identifying the total IMRF and FICA expended by the District in FY'01 versus the amounts levied will help determine what is necessary to levy for FY'03. Recently, the District has been paying a reduced IMRF contribution rate as a corrective measure.

2. The City of Pekin's sales tax figures may provide an indicator as to what rate to increase the levy.

3. In FY'03 the District will make final payment of $1.4M on its bond debt. The District needs to levy an accurate amount to pay off these bonds and not have excess funds remaining. If excess funds occur, the District needs to know what the limit is that can be transferred into other funds.

The abatement was also discussed. For the past three years, the District has abated the same dollar amount of $878,587. However, with the impact of PTELL and other issues the District will need to address such as salary negotiations, life-safety, and capital projects, we need to consider possibly reducing the amount abated, thus increasing available dollars for these issues. Since the inception of PTELL in 1999, tax rates have decreased, yet the district has maintained its same dollar abatement amount. Abating less will most likely increase tax rates, but not to the level the Board has determined not to exceed.

The next finance committee meeting is scheduled for Tuesday, October 30, 2001 at 4:30 p.m. The committee will prepare levy scenarios for the Board of Education to consider for the December 2001 levy.

The Finance Committee meeting concluded at 5:10 p.m.

Thank you.

Matt Wilkinson
Business Manager