November 16, 2017

New Trier Township High School District 203 Board of Education Meeting—November 16, 2017

Present:  Board President Greg Robitaille, Board Vice President Lori Goldstein, Board Members: Cathleen Albrecht, Keith Dronen, Carol Ducommun, Marc Glucksman, Patrick O’Donoghue. 
 
Administrators:  Superintendent Paul Sally; Assistant Superintendent for Finance and Operations Christopher Johnson; Secretary Superintendent Lou Anne Kelly; Assistant Superintendent for Curriculum and Instruction Peter Tragos; Principal (Winnetka) Denise Dubravec; Principal (Northfield) Paul Waechtler. Administrator Timothy Hayes (Assistant Superintendent for Student Services)
 
Significant Topics Discussed:
 
Monthly Construction Report:
Punch list in progress; 90% completed, working around student/staff occupancy; intend to finish over Winter Holiday break.  Change order #27: $483,731 (including reconciliation of subcontractor mark-ups on a subcontractor by subcontractor  basis, trade reallocations); project contingency dropped from $780k-$569k The total project cost now at $104,878,333, increased from $104,813,278.  Still negotiating on credits.  “Final, final” expected in January.
 
School Report Card:
Highlights:  % of NTHS grads in college 16 months after graduation, freshmen on track for HS graduation, ACT/SAT scores all very strong, Know who the students are who don’t meet benchmarks, working with them, and know that test scores only one component, working on making kids “life ready.”  Discussion included gender differences in math; teacher retention rate (21st in our 25-school cohort of top open enrollment suburban schools—Sally says that is mainly due to rigorous evaluation process, rather than excess retirements or leaving for other districts, and will be shown in next supervision evaluation report); financial data related to teacher salary (Board member comment that NTHS used to be in middle of the pack and now higher—Sally/Tragos responses that by far D203 has most teachers with Masters & significant experience, and also some differences in that D203 includes department/advisory heads in teaching staff, not administrative staff, and will provide historical comparisons on teacher salary at Board member request).  School Climate Survey also discussed: focus continues to be on social and emotional safety at school and online; how useful survey is, especially with low response rate and timing.
 
Residency Report:
School code has primary purpose that every student has access to education, secondarily, determining which district student should attend. Two changes from review of residency policy: 1) new verification questionnaire, 2) all incoming freshman families to provide documentation to affirm residency (neighboring districts do it, some do it every year).  Board member Ducommon prompted discussion/inquiry: Since there is linkage between number of students attending NTHS and finances, wanted more data on how many residency verifications prompt request for additional info and how resolved and at what level (e.g., by registrar, by asst principal, what escalates up the chain). Follow up question from O’Donoghue—asking if any statistics showing this is an ongoing problem, questioning whether this analysis is worth time of administration, wondered how big an issue since should be able to easily tell if mailing address inside/outside district.  Conclusion that would be worthwhile and not an administrative burden to collect data, mailing address doesn’t tell necessarily where student laying head at night on regular basis.
 
Financial Reports

• Revenue 2.3% higher than time last year; timely state payments this year; ISBE says they expect to make all payments for this fiscal year w/in the fiscal year
• On time collection of student fees as well; adopted practice of elementary districts seeking deadline before school starts, gives natural ‘deadline’
• Operating expenditures 4.8% higher; billing cycles – not a trend
• Questions from Chairman Robitaille about what part of balances in funds are unallocated.

 
Public Hearing on 2017 Final Tax Levy:

• Timeline: 10/16/17 Board meeting review preliminary levy, set date of public hearing; 10/18/17 levy placed on display; now holding public hearing on and adopting final tax levy to submit to County.
• Tax Levy Public Hearing procedure: Asst Superintendent Johnson gives presentation on levy, public comment, board discussion, board vote.
• 2017 levy request made in total dollars for whole district ($102,077,295), as limited by PTELL. $102,077,295 equals the 2016 tax extension times CPI (2.1%)  plus an estimate of tax revenue from new construction.  That levy does not include bond and interest (other than as discussed below with respect to the abatement of debt service on some bonds issued in 2008), which is levied separately by the county on actual bond and interest due (estimated to be $9,379,129 in 2017, down 1.9% from 2016).
• 2017 levy primarily funds 2018-2019 school year.
• Overall 2017 levy of $102,077,295 is 3.82% over prior year, including revenue from high estimate of new construction, but expect new construction and overall increase to be less once actual new construction determined; must estimate new construction high in order to capture all actual new construction because County will calculate down based on actual new construction, to be determined June 2018, but won’t calculate up if underestimate now.
• Impact on avg homeowner: avg tax bill on existing property to be 2.1% higher for D203 portion of tax bill (some tax bills will increase more, some less based on relative EAV changes). Amount of levy attributable to tax revenues from new construction will come from that new construction, not existing property so avg. bill will NOT increase 3.82% even if high estimate of new construction pans out.
• Total levy revenue pie of 2016 levy times 2.1% divided up by assessor among existing properties based on relative EAVs.  Increase in an individual homeowner’s EAV does not mean commensurate increase in taxes.  Actual taxes are of a function of both EAV and tax rate, and tax rate goes down as total EAVs go up since total tax revenues limited by PTELL .  But, an increase or decrease in EAV greater than other properties impact the pie that it’s split amongst.
• Administration added portion of report as to what levy dollars support
  • Continued commitment to excellence in education, ensure quality education received by past generations is available to present & future generations.
  • Deep, broad curriculum that suits individual interests and needs.
  • Strong student services and supports – helping students navigate finding their place in the world and face the challenges of 21st century.
  • One of country’s best post-high school counseling departments.
  • Extracurricular program that encourages high level of student participation – allowing students to pursue interests, talents, passion outside classroom.
  • Competitive salaries to attract & retain top faculty and staff.   Merit pay system.
• Strong history of fiscal stewardship;
  •  After 2003 levy District committed to no operating fund referendum for 5 years; that commitment has extended to 15 years.
    • CPI has been lowest 4-year period since the 60’s; costs increasing (employment contracts, health benefits)
  • Appropriate reserves provided protection from significant and sudden changes to revenue or expenditures (property tax freeze, or pension cost shift), and should things change allows time to assess and address changes; maintain AAA bond rating.
• Levy will allow funding district expenses that have increased, including mandated areas like Special Ed; on track to present balanced budget for 18-19 school year; continue to support excellent education, extracurricular programs, support and services for current and future students, while maintaining a balanced budget and being strong stewards of taxpayer dollars.

 
No public comment.  Board comments: O’Donoghue said he wished we didn’t have to tax in this weird way of guessing what we’ll need and mess around later with new property; would like to be clearer on here’s what we need and ask for that. Ducommon  pointed out that new property is proxy for new homes & new students.  Others pointed out that the process is dictated by the state and county and is based on our current best estimates.  O’Donoghue said he agrees with all that, doesn’t have a solution, just wished it could be a better process.  Robitaille pointed out, and O’Donoghue agreed, there is no solution Board can offer to that issue.  Johnson pointed out that State just passed its first major school funding bill in 20 years and left this portion in tact so this portion will probably remain in tact for a while.  Robitaille said in light of uncertainty we’re facing, historical cost increases, contractual commitments to staff and faculty, it’s a responsible levy.  O’Donoghue asked how you could come up with a different number and Robitaille responded can’t come up with any number that is higher and wouldn’t go any lower.  And Ducommon pointed out, and others agreed, number will be corrected by actual new property anyway and reduced.
 
Secondary part of levy discussion:  Abatement of debt service on certain bonds.  Bond and interest debt service not part of levy extension.  Historically district has abated a portion of the bond and interest levy on bonds issued for NSSED construction in 2008 and has paid out of operations budget rather than out of separate bond and interest levy.  Shows commitment to reduce taxes when possible. This abatement continues that process, amounts to about $200,000 a year.  Have to take affirmative action to abate debt service because otherwise County calculates debt service due and levies for that amount.
 
Board first voted unanimously to abate debt service (about $200,000) on NSSED bonds issued in 2008, and then unanimously voted on and approved by all members: a 2017 tax levy of $102,077,295 to be divided up among different funds as follows:

• Educational Fund:                                               $88,358,107
• Ops & Maintenance:                                $ 7,655,797
• Transportation:                                                                             $ 1,429,082
• Municipal Retirement:     $ 2,551,932
• Social Security:                                                                $ 2,082,377

 
Public Hearing on Drivers Ed Fee & Banked Time
Waivers repeat requests set to expire 2019, get onto spring legislative agenda for another 5 years:  Drivers Ed Fee wavier—increases max to $500 (offset for total cost /student) from $250.  Banked Time waiver – New Trier seeks to continue to waive the requirements that minutes must be accumulated between the regularly scheduled sessions for staff development of more than three hours, but less than five. NTHS needs to waive this requirement due to the ‘paired day’ structure of professional development in which they use two consecutive schools days (early release/late arrival).  No public comment.
 
Summer 2018 Projects
Original list has been reduced, with several projects recommended for completion. The proposed work will be funded through issuance of working cash bonds (around $6,895,849, but not to exceed $7M), athletic tournament funds and a $1M donation (for the tennis court work).  The projects now estimated to cost total of $7,895,849 and consist of athletic and parking lot improvements to Northfield campus (west parking lot, tennis courts and stadium restrooms, concessions and press box) and administrative improvements to Winnetka campus (offices for administrative services, social work and psych, and technology).  The Project as discussed in September also included bleacher expansion in Northfield and adviser office improvements in Winnetka, but those projects are now recommended for postponement.  Ducommon glad to see some estimates have come down since September and are more precise but sad bleacher expansion not included.  Johnson said of all the improvements, the bleacher expansion was the one that would be least used, so that’s why it was taken out.  If can bring other costs down, Johnson said may be possible to bring back bleacher expansion.  O’Donoghue questioned what he thought was a high price ($1.5M for 4 acres) of west parking lot.  Johnson/Dave Conway (Facilities Manager) response:  Complete resurface, rebuild of that lot (including stone underneath), which had not been done since the 1990s, and even when done then didn’t do any subsurface work so stone underneath lot from 1960s and since in a flood plain, it is saturated. Also taking out island and putting in 71 spaces lost because of tennis courts.  And stormwater retention required where changing elevation (not whole lot, as originally thought). Meant to be a conservative plan, hope when drill into details with Northfield about what’s required can get price down, emphasized that these are estimates right now. O’Donoghue emphasized that he still thinks price is high for parking lot.
 
Public Hearing: Resolution on Issuance of Working Cash Fund Bonds not to exceed $7,000,000 for Summer 2018 Projects
To fund projects discussed above.  No public comments.
Keeps options open, not obligating to do anything; in December Board will vote on resolution to sell the bonds (either in public or private).  If Board votes in December to sell bonds, then Johnson to sell bonds in January.
 
Other Items of Interest:
 
Board Member Reports:
Finance committee meeting
Board discussed that the committee discussed the Winnetka TIF situation and are adopting a wait & see approach with the village council. [There was no discussion of the substance of the issue, found this article which indicates that if Winnetka creates a TIF district, NTD203 may lose some tax dollars http://www.chicagotribune.com/suburbs/winnetka/news/ct-wtk-tif-district-discussion-tl-1109-20171106-story.html
 
State legislative update: Property tax freeze bill passed house, tabled by Senate, could come up again in January.  Monitoring very closely.
 
Consent Agenda

• Bill List for the Period, October 1-31, 2017
• Personnel Report
• Board Policy 7-305 - Second Reading regarding Participation in Extracurricular Activities and Interscholastic Competition
• Ratification of Change Order #27
• New Course Proposals
• Network Server & Storage Upgrades (Pulled from agenda ultimately approved) –

 
Voted on:  The following w/all Board members voting ‘yes’: 2018-19 School Calendar modification, 2017 Tax Levy, Abate portion for bond & interest levy; Drivers Ed Fee/Banked time, Consent Agenda ( all yes – as amended)
 
Next meeting:  December 18, 2017
 
Observer:  Cindy Levine                                                                                                                                                  Meeting Length:  3 hr.