NORMAL - The Unit 5 school board heard several pieces of good financial news Wednesday.
It was told the district: netted savings of more than $1.6 million over the last two years by conserving energy; has improved its state-defined financial profile; and has at least four options to meet anticipated cash flow problems related to operating expenses driven up by increasing enrollment.
In a 24-month period Unit 5 saved $2.1 million, or almost 29 percent, in its energy costs by making conservation changes, said its energy adviser, Bruce Boswell.
That's the equivalent of removing almost 6,000 cars from the road or planting more than 12,000 trees, he said.
"Every school in the district showed positive data," Boswell said.
After deducting conversion-related expenses, the district saved about $1.6 million.
The new geothermal heating and cooling systems contributed to that, he said, adding that there is still room for improvement.
The district's auditor brought more good news, saying the district's financial profile as calculated by the Illinois State Board of Education improved from the financial early warning level to financial review, which is second to the top of the four-level scale.
Its score moved from 2.9 to 3.25 out of 4.
"I'm encouraged by last year's results," said the district's auditor, Tom Peffer, of Gorenz and Associates Ltd.
Board member Scott Lay said it's not likely the district will ever reach the top level of recognition because the district is growing so quickly. It carries bond debt to meet the needs of its every growing enrollment, he said.
The district grew by 40 percent, or 3,100 students, over the last 10 years, Peffer said.
One of the district's biggest challenges, Peffer noted, is cash flow. At different times during the year, it has to do some short-term borrowing, which costs money in interest. He said increasing the working cash fund or reserves could help.
Currently the district has an average of 2.2 months in reserves. Peffer said having three to four months in reserves would save the district money from borrowing to cover cash flow shortages. Late aid payments from the state, for example, can put the district in the red until money comes in.
Cash flow also was a key area of concentration for the district's financial consultant, PMA Financial Network Inc., based in Warrenville, in its report focusing on operating expenses.
The consultants gave the district four possible options to meet operating expenses expected to grow if new buildings are built. Lay said continuing to watch expenditures is a factor that to be considered with all of them.
Operating costs would increase if the school district goes ahead with a plan for more than $100 million in construction and renovation over the next five years.
Options could include property tax increases of 10 cents per $100 equalized assessed valuation, 15 cents or 20 cents per $100 EAV. Those options would raise the tax on a $200,000 home by $66 to $132 a year, Chief Financial Officer/Treasurer Jim Gillmeister said earlier.
A fourth option could include a $10 million working cash bond sale which would add 11 cents to 14 cents per $100 EAV to the tax rate, but only for five years.
