Five Year Financial Forecast

November 15, 2021

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Financial Forecasting

• What is the Five Year Financial Forecast?A comprehensive, interactive planning process that can be updated to assist the District in making important financial decisions as assumptions change.

• How are we going to use the plan?• Budget Planning

• Tax Levy Determination

• Scenario & Trend Analysis

• Annual Update and Reassessment

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Data Elements

• District’s FY22 Budget

• Annual Financial Reports (AFRs) for the past five years

• Consumer Price Index

• Equalized Assessed Valuations & New Construction

• Salary & Benefits information

• Enrollment / Staffing

• State Evidence Based Funding & Categorical reimbursements

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Property Tax Assumptions

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Property Tax Assumptions

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Other Revenue Assumptions

• Early Property taxes deferred into next school year • Results in a budget loss of current year revenue by not including

any increase from the most recent levy

• Fund balances are restated and reduced

• Investment Income – additional 20% reduction

• CPPRT – adjusted to FY22 IDOR estimate

• Regular State and Federal Funding flat

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Expense Assumptions• Salaries

• Continuation of existing contracts

• CPI based increases

• No change in FTE

• Health Insurance: 8% for FY23 then 5% annually

• Other expense 2% annually

• Continued Annual B&I abatement from the Education Fund

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Assumption SensitivityLargest Revenue Drivers (90%)

• CPI: 1% ∆ ≈ +/- $2.6 million

• New Property: $1million ∆ ≈ +/- $49,000

• Proration of new EBFM: 1% ∆ ≈ +/- $125,000

Largest Expense Drivers (77%)

• Salaries: 1% ∆ ≈ +/- $1.9 million

• Health Insurance: 1% ∆ ≈ +/- $325,000

vRestatement of Fund

Balances without

June Taxes

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BUDGET PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED

FY 2022 FY 2023 % ∆ FY 2024 % ∆ FY 2025 % ∆ FY 2026 % ∆ FY 2027 % ∆

REVENUE

Local $268,966,507 $275,722,405 2.51% $290,032,709 5.19% $296,779,965 2.33% $303,650,161 2.31% $310,645,877 2.30%

State $22,237,533 $22,737,533 2.25% $22,737,533 0.00% $22,737,533 0.00% $22,737,533 0.00% $22,737,533 0.00%

Federal $14,361,229 $11,334,429 -21.08% $9,591,904 -15.37% $9,547,979 -0.46% $9,529,079 -0.20% $9,529,079 0.00%

Other $0 $0 $0 $0 $0 $0

TOTAL REVENUE $305,565,269 $309,794,367 1.38% $322,362,146 4.06% $329,065,477 2.08% $335,916,773 2.08% $342,912,489 2.08%

EXPENDITURES

Salary and Benefit Costs $235,677,492 $244,693,336 3.83% $255,948,113 4.60% $264,455,387 3.32% $272,900,939 3.19% $281,651,601 3.21%

Other $70,622,706 $68,581,642 -2.89% $69,380,897 1.17% $69,028,283 -0.51% $69,121,227 0.13% $70,372,710 1.81%

TOTAL EXPENDITURES $306,300,198 $313,274,978 2.28% $325,329,011 3.85% $333,483,670 2.51% $342,022,166 2.56% $352,024,310 2.92%

SURPLUS / DEFICIT ($734,929) ($3,480,611) ($2,966,865) ($4,418,193) ($6,105,393) ($9,111,821)

OTHER FINANCING SOURCES / USES

Other Financing Sources $4,093,460 $3,062,345 $2,724,825 $1,213,250 $98,150 $98,150

Other Financing Uses ($4,093,460) ($3,062,345) ($2,724,825) ($1,213,250) ($98,150) ($98,150)

TOTAL OTHER FIN. SOURCES / USES $0 $0 $0 $0 $0 $0

SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($734,929) ($3,480,611) ($2,966,865) ($4,418,193) ($6,105,393) ($9,111,821)

BEGINNING FUND BALANCE $117,749,930 $117,015,001 $113,534,389 $110,567,525 $106,149,332 $100,043,938

AUDIT ADUSTMENTS TO FUND BALANCE $0 $0 $0 $0 $0 $0

PROJECTED YEAR END BALANCE $117,015,001 $113,534,389 $110,567,525 $106,149,332 $100,043,938 $90,932,117

FUND BALANCE AS % OF EXPENDITURES 38.20% 36.24% 33.99% 31.83% 29.25% 25.83%

FUND BALANCE AS # OF MONTHS OF EXPEND. 4.58 4.35 4.08 3.82 3.51 3.10

203 West Hillside RoadNaperville, IL 60540

(630) 420-6300

Naperville203.org

@Naperville203

@naperville203

@napervilledistrict203

@Naperville Community Unit School District 203