Batavia Illinois – The 5th Ward

All things budget and the district earned the highest financial rating!  Stable enrollment despite growth and ICE related legislation ask.

Related docs:  https://go.boarddocs.com/il/bps101/Board.nsf/goto?open&id=DLJKGP51D365

Opening and Recognitions

• [00:00:11] Call to Order and Agenda: The meeting began with the Pledge of Allegiance and an amendment to the agenda to move a discussion item to the end of the meeting.
• [00:01:37] Student Recognition (Howie’s Heroes): The Board celebrated two elementary students for outstanding character. A fifth-grade student was recognized for inclusivity by sitting with a peer who was alone at lunch, while a first-grade student was honored for positive behavior and helping peers.
• [00:05:38] Public Comments: Several community members, including a retired teacher, a local official from a neighboring municipality, and parents, addressed the Board regarding immigration enforcement. Speakers urged the Board to adopt a policy designating schools as “ICE-free” zones, requesting specific protocols for warrants and staff training to protect students.

Partner Reports

• [00:18:37] Association Report: A representative for the teachers’ union expressed support for a resolution regarding immigration enforcement to ensure student safety. The representative also requested formal input from staff regarding potential changes to cell phone policies and highlighted union participation in community food drives.
• [00:21:22] Student Ambassadors: Student representatives provided updates on athletics (cross country state records, e-sports success, and football playoffs) and club activities.
• [00:27:57] Student Concern on AI: The ambassadors raised a specific concern regarding Artificial Intelligence (AI). They noted that AI usage is prevalent and difficult to police, expressing that it is detrimental to education and creates grading challenges for teachers.

Professional Learning Project: BPSU

• [00:33:31] Program Overview: Administrators presented on “BPSU” (Batavia Public Schools University), a professional learning program derived from contract bargaining. It functions as a two-year hybrid master’s-level program focused on teacher leadership and collaboration.
• [00:36:54] Curriculum and Impact: The program runs two cohorts simultaneously, covering topics like classroom improvement, PLCs (Professional Learning Communities), and action research projects.
• [00:46:03] Recruitment and Retention: The program serves as a retention tool, allowing staff to advance in compensation without incurring debt for external degrees. Participating teachers shared testimonials about how the program improved their leadership skills and built community across the district.

Budget Project: Annual Financial Audit

• [01:08:12] Audit Opinion: An external auditor presented the Annual Financial Report, issuing a “clean, unmodified opinion,” which is the highest level of assurance indicating no issues with internal controls.
• [01:10:55] Financial Performance: The General Fund (Education, Operations, and Maintenance) saw an operating increase of $9.1 million, driven by higher-than-anticipated property tax collections and expenditures coming in below budget. After transfers to the Capital Projects fund, the net increase was $5.6 million.
• [01:13:58] Debt and Rating: Long-term debt decreased by 68% to $4.09 million. The district achieved a 4.0 Financial Profile score from the state, the highest possible rating.
• [01:12:58] Recommendations: The auditor noted a minor budget variance due to the timing of construction payments and advised maintaining strong cybersecurity controls.

Committee Updates

• [01:15:47] Foundation and Engagement: The local education foundation is rebranding and streamlining grant applications for teachers. Board members discussed the efficacy of the current school visitation process, with several expressing a desire to return to assigning specific Board representatives to specific schools to build deeper relationships.

Budget Project: Five-Year Financial Forecast

• [01:24:20] Forecast Context: The Chief School Business Official (CSBO) presented a forecast used to plan for the future and maintain credit ratings. Assumptions include a CPI of roughly 2.5% and stable/declining enrollment.
• [01:29:37] Revenue Analysis: 90% of district revenue comes from local sources. The district is a “Tier 4” district (considered adequately funded), so it receives no new Tier funding from the state.
  • State Funding Loss: The district expects to lose $1.2 million in state funding due to proration in “mandated categoricals” (reimbursements for transportation and special education).
• [01:31:19] Expenditure Drivers: Costs are rising due to inflation in purchased services (custodial, transportation, food service), medical insurance, and construction.
• [01:32:20] Capital Projects (Warm, Safe, Dry): The district is transferring $14 million from the fund balance (reserves) to the Capital Projects fund this year to pay for the “Warm, Safe, Dry” facilities plan.
  • Cost Escalation: Due to construction inflation, the estimated cost of these projects has risen from $48 million to over $52 million.
• [01:36:08] Deficit Warning: The forecast predicts deficit spending in 2030 and 2031.
  • Fund Balance Threat: If current spending trends and capital project transfers continue, the district’s fund balance is projected to drop below the Board-mandated minimum of 25% of annual revenue by 2029.
  • Management Strategy: The CSBO emphasized the need to manage “levers” such as staffing and capital outlay to avoid future borrowing.

Project: Enrollment and Capacity Study

• [01:43:36] Enrollment Trends: Enrollment is stable but slowly declining due to lower birth rates in the county. While the district is capturing a larger share of the local market, the total number of births is down significantly.
• [01:51:58] Housing Yields: New developments are generating fewer students per home than historical averages, with multi-family units showing a sharp decline in student generation.
• [01:53:48] Functional Capacity: The district’s functional capacity is 5,970 students, with current utilization between 85% and 90%.
• [01:56:17] Conclusion on Closures: The study concluded that the district does not have enough excess capacity to close a school building.

Project: School Report Card Review

• [02:00:15] Performance Data: One elementary school received an “Exemplary” designation, while others were “Commendable”. ELA growth was strong, but Math growth on the state assessment was lower than desired, conflicting with internal testing data.
• [02:13:29] Areas of Focus: The Board reviewed data on chronic absenteeism (currently around 14%) and achievement gaps for low-income students and English Learners.

Budget Project: 2025 Tax Levy Estimate

• [02:30:12] Levy Request: The administration recommended a tax levy of $92 million, which represents a 7.4% increase over the previous year’s extension.
• [02:31:55] Truth in Taxation: Because the request exceeds a 5% increase, the district is legally required to hold a public Truth in Taxation hearing.
• [02:33:18] Drivers of Increase:
  • EAV Growth: Equalized Assessed Value (property value) in the district increased by 11%.
  • TIF Expiration: The “TIF 1” district in downtown expired, returning approximately $14.8 million in taxable value to the tax rolls. The levy must capture this new value.
• [02:37:10] Tax Rate Decrease: Despite the higher levy amount, the overall tax rate is projected to decrease by approximately 10% (from roughly 5.2 to 4.6).
• [02:39:02] Debt Payoff: The primary reason for the rate decrease is that the district will pay off its final long-term debt this year, meaning it will collect $4.1 million less for debt service next year.
• [02:39:02] Taxpayer Impact: The owner of a median-value home (which rose to $441,000) is expected to see the school portion of their tax bill decrease by approximately $302.

Curriculum Project: CKLA Adoption

• [02:43:26] Proposal: The Board voted to place a new English Language Arts resource, Amplify CKLA, on public display for adoption.
• [02:45:15] Rationale: A committee determined previous resources did not meet state literacy standards. The new curriculum focuses on complex text, oral language, and background knowledge (e.g., history and science themes).
• [02:56:07] Budget Implication: It was noted this adoption carries a high price tag, involving both upfront costs and ongoing expenses for consumables and digital licenses.

Administrative and Policy Updates

• [03:01:44] Board Tours: The Board agreed to schedule building tours for late January or spring, allowing administration to plan the itinerary to highlight renovations and student programs.
• [03:08:59] Approval Templates: The Board discussed adding transparency to approval templates, specifically requesting details on “face-to-face time” for consultants and distinguishing between one-time and recurring costs.
• [03:13:51] Immigration Policy (ICE): The Board agreed to fast-track the adoption of a policy regarding immigration enforcement on school grounds to align with new state legislation.
  • Plan: The Policy Committee will meet on December 2nd to review the policy, aiming for adoption in December.
  • Procedures: The Board emphasized that while they vote on policy, the administration must ensure strong procedures (such as staff training) are in place to support it.

Closing

• [03:46:37] Final Comments: The Superintendent highlighted community charitable efforts, noting record participation in holiday “Adopt a Family” programs and food drives. Board members expressed interest in future discussions regarding adding student representatives to the Board.

Author: Jim Fahrenbach