RICH TOWNSHIP HIGH SCHOOL DISTRICT 227
Matteson, Illinois
Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020
Rich Township High School District 227 20550 South Cicero Avenue ● Matteson, Illinois 60443 ● (708) 679-5800 ● www.rich227.org
Focused on Students and Student Success
Rich Township High School District 227 Matteson, Illinois
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Official Issuing Report
Dr. Alicia Evans Assistant Superintendent of Business and Operations
Department Issuing Report
Business Office Rich Township High School District 227 ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2020
TABLE OF CONTENTS
Page
TABLE OF CONTENTS i-ii
INTRODUCTORY SECTION Transmittal Letter iii - ix Organizational Chart x Officers and Officials xi
FINANCIAL SECTION Independent Auditors' Report 1 - 4 Management's Discussion and Analysis (Unaudited) 5-15 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 16 Statement of Activities 17 Fund Financial Statements Balance Sheet - Governmental Funds 18 - 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 20 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 21 - 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 - 24 Statement of Fiduciary Assets and Liabilities - Agency Fund 25 Notes to the Financial Statements 26 - 78
Required Supplementary Information (Unaudited) Multiyear Schedules of Changes in Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund 79 - 80 Multiyear Schedule of Contributions - Illinois Municipal Retirement Fund 81 Multiyear Schedule of the District's Proportionate Share of the Net Pension Liability - Teachers' Retirement System of the State of Illinois 82 - 83 Multiyear Schedule of District Contributions - Teachers' Retirement System of the State of Illinois 84 - 85 Multiyear Schedule of Changes in Total Other Postemployment Benefits (OPEB) Liability and Related Ratios - Retiree Health Plan 86 Multiyear Schedule of the District's Proportionate Share of the Net Other Postemployment Benefit (OPEB) Liability - Teachers' Health Insurance Security Fund 87 Multiyear Schedule of District Contributions - Teachers' Health Insurance Security Fund 88 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 89 - 99 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Operations and Maintenance Fund 100 - 101 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Transportation Fund 102 - 103 (Continued) -i- Rich Township High School District 227 ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2020
TABLE OF CONTENTS
Page
FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited) (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Municipal Retirement/Social Security Fund 104 - 106 Notes to the Required Supplementary Information 107 - 112- Supplementary Financial Information Combining Balance Sheet - General Fund 113 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - General Fund 114 - 115 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Debt Service Fund 116 - 117 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Capital Projects Fund 118 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Fire Prevention and Safety Fund 119 Statement of Changes in Assets and Liabilities - Student Activity Funds 120 STATISTICAL SECTION (Unaudited) Statistical Section Contents 121 Net Position by Component - Last Three Fiscal Years 122 Changes In Net Position - Last Three Fiscal Years 123 Fund Balances of Governmental Funds - Last Three Fiscal Years 124 Governmental Funds Revenues By Source - Last Ten Fiscal Years 125 - 126 Governmental Funds Expenditures and Debt Service Ratio - Last Ten Fiscal Years 127 - 128 Governmental Funds Other Financing Sources and Uses and Net Change in Fund Balances - Last Ten Fiscal Years 129 - 130 Assessed Valuation and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 131 - 132 Property Tax Rates - All Direct and Overlapping Governments - Last Ten Tax Levy Years 133 - 134 Principal Property Taxpayers in the District - Current Tax Year and Nine Years Ago 135 Property Tax Levies and Collections - Last Ten Tax Levy Years 136 - 137 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 138 - 139 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 140 - 141 Legal Debt Margin Information - Last Ten Fiscal Years 142 - 142 Computation of Direct and Overlapping Debt 144 Demographic and Economic Statistics - Last Ten Years 145 - 146 Principal Employers - Current Year and Nine Years Ago 147 Number of Employees By Type - Last Ten Fiscal Years 148 - 149 Operating Indicators by Function - Last Ten Fiscal Years 150 - 151 School Building Information - Last Ten Fiscal Years 152 - 153 Miscellaneous Statistics 154
(Concluded) -ii- INTRODUCTORY SECTION RICH TOWNSHIP HIGH SCHOOL DISTRICT 227 20550 South Cicero Avenue Matteson, Illinois 60443 708-679-5800 * www.rich227.org ______
February 1, 2021
President, Members of the Board of Education, and Citizens Rich Township High School District 227 20550 South Cicero Ave. Matteson, Illinois 60443
The Rich Township High School District 227 Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020 is submitted herewith. The District’s Business Office Department prepared this report. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation including all disclosures rests with the District. The District believes that the data as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain understanding of the District’s financial affairs have been included.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial (which includes the required supplementary and other supplementary information), and statistical. The introductory section includes this transmittal letter, the District’s organizational chart, and a list of principal officials. The financial section includes the basic financial statements as well as the independent auditors’ report on the financial statements and schedules. The financial section also includes Management’s Discussion and Analysis (MD&A), a narrative introduction and an overview and analysis of the basic financial statements. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis.
HISTORY
The District is in south suburban Cook County, about 35 miles southwest of downtown Chicago, and covers an area of approximately 33.5 square miles. Rich Township High School District 227 consists of three campuses: Rich East, Rich Central and Rich South. The District’s boundaries include almost all of Rich Township as well as a small portion of Bloom Township. The District serves the communities of Chicago Heights, Country Club Hills, Matteson, Park Forest, Olympia Fields, Richton Park, University Park and Tinley Park.
-iii- The District has a rich history of academic success and tenacity. From its inception, the District began out of a need to create a high school for students that resided in Park Forest because no high school existed in the Village. Therefore, if a student wished to attend high school, they had to pay tuition at Bloom or Thornton high schools.
The Rich High School, now known as Rich East, was organized by referendum in 1949, by Park Forest community volunteers. The first school to open was Rich East, in 1953, located in Park Forest. The next school to open was Rich Central High School, located in Olympia Fields in 1961 and Rich South, located in Richton Park, later opened in 1972.
The Board hired its first employee, Eric R. Baber as Superintendent in 1951. The first teachers were later hired subsequently. The first class was graduated in 1956. The average achievement scores ranked in the top one percent of the nation. At that time, Rich High had been selected by educators as one of the three top schools in the entire Midwest.
Now, the Rich Township High School District currently employs 617 individuals and serves 2,737 students in grades 9 through 12 as of June 30, 2020.
BOARD OF EDUCATION GOALS
The following information provides a summary of the District 227 Goals. In 2017, the Board of Education and its administrators joined with staff, students, and community groups to create at strategic plan, which included the vision and mission statements as well and goals, targets, and strategies.
As a result of this collaborative work, the Board of Education envisions a culturally relevant, innovative school district that provides a foundation of opportunities for our students to thrive. The vision aligns with the mission to sustain a focus on students and on student success.
The following goal statements were established by the Board in 2017:
1. Develop a clear focus on students and on the quality of experiences and supports provided to students. 2. Ensure that quality teaching and learning is supported in a climate and culture of trust and positive relationships. 3. Ensure structures are in place that result in increased student, staff, and community commitment to and ownership of the direction of the District. 4. Provide development and support for professional staff transitioning from roles focused primarily on management to roles focused on leadership. 5. Develop a district-wide communication plan that is sensitive to the needs and interests of key audiences served and that makes clear what the school district is trying to accomplish.
With these goals in place, the entire school district staff is dedicated on one mission of a focus on students and student success.
-iv- School District Financial Profile
Since the spring of 2003, the Illinois State Board of Education (“ISBE”) has utilized a system for assessing a school district’s financial health. The financial assessment system is referred to as the “School District Financial Profile”, which replaces the Financial Watch List and Financial Assurance and Accountability System (FAAS). The system identifies those school districts which are moving into financial distress.
The system uses five indicators, which are individually scored and weighted, to arrive at a composite district financial profile. The indicators are as follows: fund balance to revenue ratio; expenditures to revenue ratio; days cash on hand; percent of short-term borrowing ability remaining; and percent of long-term debt margin remaining.
Each indicator is calculated, and the result is placed into a category of a four, three, two, or one, with four being the highest and best category possible. Each indicator is weighted as follows:
Fund balance to revenue ratio 35% Expenditures to revenue ratio 35% Days cash on hand 10% Percent of short-term borrowing ability remaining 10% Percent of long-term debt margin remaining 10%
The scores of the weighted indicators are totaled to obtain a district’s overall score. The highest score is 4.0 and the lowest score is 1.0. A district is then placed in one of four categories as follows:
• Financial Recognition. A school district with a score of 3.54 to 4.00 is assigned to this category, which is the best category of financial strength. These districts require minimal or no active monitoring by ISBE unless requested by the district.
• Financial Review. A school district with a score of 3.08 to 3.53 is assigned to this category, the next highest financial strength category. These districts receive a limited review by ISBE but are monitored for potential downward trends. ISBE staff also reviews the next year’s school budget for further negative trends.
• Financial Early Warning. A school district with a score of 2.62 to 3.07 is placed in this category. ISBE monitors these districts closely and offers proactive technical assistance, such as financial projections and cash flow analysis. These districts also are reviewed to determine whether they meet the criteria set forth in Article 1A-8 of the School Code to be certified in financial difficulty and possibly qualify for a Financial Oversight Panel.
• Financial Watch. A school district with a score of 1.00 to 2.61 is in this category, the highest risk category. ISBE monitors these districts very closely and offers technical assistance with, but not limited to, financial projections, cash flow analysis, budgeting, personnel inventories, and enrollment projections. These districts are also assessed to determine if they qualify for a Financial Oversight Panel.
-v- The District’s overall score for Fiscal Year 2019 was 3.9, thus placing the District in the Financial Recognition category. The District’s overall scores in Fiscal Years 2018, 2017, 2016, and 2015 were 3.9, 3.45, 3.8, and 3.8, respectively.
The estimated 2020 financial profile designation for the District is “Recognition”. The final score will be calculated by the Illinois State Board of Education.
ECONOMIC CONDITION
The District currently operates three facilities. However, on October 15, 2019, the Board, approved the closure of Rich East High School and the consolidation of the District’s three campuses into two campuses. The District will operate as one school with two campuses beginning July 1, 2020. The Board also approved new boundaries that will distribute the students equally between Rich Central and Rich South. A new mascot was also created. Rich Township High School District sports teams will be known as the Raptors.
Rich Township High School District 227’s major revenue source continues to be local property taxes. Although the 1994 Property Tax Extension Limitation Act impacts the District, it has been able to maintain favorable fund balances within all fund accounts. The Property Tax Extension Limitation Act restricts the District’s annual extended levy to the Consumer Price Index or five percent, whichever is lower. New property is exempted from the Cap and when tax increment financing (TIF) districts are retired, property will be returned to the tax rolls as if it were new construction. Currently, twelve TIF districts exist in the District boundaries.
Combined fund balances equaled $102.8 million at the end of the fiscal year. The capital projects planning began in FY20. The commercial kitchen and culinary arts lab were built during FY20. The District will begin the first phase of significant capital projects during the summer of FY21.
LOCAL DISTRICT ECONOMY
The financial health of the District is in part dependent on the strength of the local economy. Many factors impact the local economy, including rates of employment and economic growth and the level of residential and commercial development. It is not possible to predict to what extent any changes in economic conditions, demographic characteristics, population, or commercial and industrial activity will occur and what impact such changes would have on the finances of the District. The administration will continue to monitor all the impacts, then adjust budgets and spending when needed.
REPORTING ENTITY
The governing body consists of a seven-member Board of Education elected within the District’s boundaries. Based on the legislative authority codified in The School Code of Illinois, the Board of Education has the following powers: a. The corporate power to sue and be sued in all courts; b. The power to levy and collect taxes and to issue bonds; c. The power to contract for appointed administrators, teachers, and other personnel as well as for goods and services.
-vi- The District defines its reporting entity by applying the criteria set forth by the Government Accounting Standards Board (GASB) to potential component units. Briefly, a component unit is an organization for which the District is financially accountable, or other organizations that, because of the nature and significance of their relationship with the District, would cause the District’s financial statements to be misleading or incomplete if they were omitted from the reporting entity. These criteria are discussed in more detail in Note A to the financial statements. Using these criteria, management has determined that the District has no component units, nor is it a component unit of any other organization.
FINANCIAL POLICIES
The District continues to monitor its compliance with the financial policies it has adopted. For all operating funds, the District continues to submit balanced budgets with current revenues matching or exceeding current expenditures. One-time non-recurring revenues continue to not be used for operating purposes but for one-time purchases.
FINANCIAL AND RISK MANAGEMENT INFORMATION
The statements and schedules included in the financial section of this report demonstrate that the District continues to meet its responsibility for sound financial management.
Internal Controls. Management of the District is responsible for establishing and maintaining internal controls designed to ensure that the assets of the District are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management.
Single Audit Controls: As a recipient of federal and state financial assistance, the District is also responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. These internal controls are subject to periodic evaluation by management.
As a part of the District’s single audit, described earlier, tests are made to obtain reasonable assurance about weather noncompliance with the types of compliance requirements that could have a direct and material effect on a major program occurred. The results of the District’s single audit for the fiscal year ended June 30, 2020 provided no instances of material weaknesses in internal controls or violations of applicable laws and regulations that are required to be reported.
-vii- Budgeting Controls: The District maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget. Budgetary control is maintained at line-item levels and built up into program and/or cost centers before being combined to form totals by fund. All actual activity compared to budget is reported to the District’s management monthly. This monthly report compares each line-item account balance to the annual budget with accumulation to the cost center, fund, and total District levels. For internal financial reporting purposes, the District also maintains an encumbrance accounting system as one technique in accomplishing budgetary control. Encumbered amounts lapse at year- end. The District’s legal level of budgetary control is at the fund level.
Accounting System: The District’s accounting records for all governmental funds are maintained on a modified accrual basis, with revenues recorded when available and measurable and expenditures recorded when services or goods are received, and liabilities are incurred. All District funds are included in the basic financial statements, which are included in the financial section of the report. The District’s accounting records for the agency and expendable trust funds are maintained on a full accrual basis. The basic financial statements have been audited by Miller, Cooper & Co., Ltd., Certified Public Accountants.
The financial statements have been prepared in accordance with standards as set forth by the GASB. The Association of School Business Officials International has also adopted these standards. The presentation allows the reader to obtain an overview of the District’s financial operations by viewing the combined statements in the front section of the report. Detailed presentations of these combined statements are available throughout the remainder of the report.
The District is also a member of the Collective Liability Insurance Cooperative (CLIC) worker’s compensation insurance pool. The same Board of Directors controls the CLIC pools, which are composed of representatives designated by the member school districts.
Capital Assets: The capital assets of the District are those assets used in the performance of general governmental functions. As of June 30, 2020, the gross capital assets of the District amounted to $126.2 million. This amount represents the actual and historical original cost of the assets and is considerably less than their present replacement value. The District utilizes the services of an outside industrial appraisal company for the appraisal, control, and inventory of capital assets. Annual appraisals are used for updating replacement values for insurance purposes, with the District providing historical cost information. The District maintains outside third-party insurance coverage to protect the District from fire, theft, and severe financial losses.
Independent Audit. The School Code of Illinois and the District’s adopted policy require an annual audit of the books of accounts, financial records, and transactions of all funds of the District. The audit is performed by independent certified public accountants that are selected by the District’s Board of Education. This requirement has been complied with and the auditors’ report has been included in this report.
CLOSING STATEMENT
We believe that this Comprehensive Annual Financial Report will provide the citizens, taxpayers, the District’s management, and creditors with an accessible financial presentation. We hope that all readers of this report will obtain a clear and concise understanding of the District’s financial condition as of June 30, 2020.
-viii- ACKNOWLEDGMENT
Without the leadership of the President and Board of Education, preparation of this report would not have been possible.
This report could not be prepared without the efficient and dedicated services of all the members of the Business Office who assisted in the closing of the District’s financial records and the preparation of this report.
Respectfully submitted,
Dr. Johnnie Thomas District Superintendent
Alicia Evans, Ed.D. Assistant Superintendent of Business and Operations
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Rich Township HIGH SCHOOL DISTRICT 227 Organizational Chart
STAKEHOLDERS Superintendent ’s Board of Office Education
Academy/
Division Leaders
Culture &
Climate Core Teachers Coordinators ACADEMY Associate Campus Principals STUDENTS Principal
Student
Services PARENTS Pathway Teachers Business & Team Educational
Operations Services Office Office
COMMUNITY
ADMINISTRATION BUSINESS PARTNERS Superintendent ACADEMIES Johnnie Thomas Freshmen/Sophomore Academy Human Assistant Superintendent of Business & Operations Business & Communications Academy Resources Alicia Evans Fine Arts & IB Academy Office Assistant Superintendent of Educational Services Technology & Engineering Academy Health Sciences Academy Stephen Bournés Assistant Superintendent of Human Resources Family and Consumer Science Academy
Kim Echols
Principal Division Leader of Division Leader of Division Leader of Technology & Coordinator of Culture, Climate Larry Varn Student Support Services Freshmen/Sophomore Academy Engineering Academy & Communications Associate Principals LaRhonda Taylor (FAC) LaTonya Applewhite (FAC) Jackie Stone (STEM) Dr. Nigel Anderson (STEM) (Ed Service) Chynna Hampton (STEM) Mary Hawley (STEM) Division Leader of Health, Family Jason Battle (FAC) Linnea Garrett (FAC) Division Leader of Health, Division Leader of Business & & Communications Academy Mary Creer (FAC) Carl Scott (STEM) Wellness, and Athletics Communications Academy Robert LaFrance (STEM) Open (STEM) Associate Principal Omari Garrett (FAC) LaTricia Varnado (FAC) Brendan McHugh (STEM) (Operations) Keith White (STEM) Division Leader of Fine Arts & Quincy Owens (FAC) Dr. Tiffany Lowery International Baccalaureate Kimberly Gales (FAC)
Fine Arts & Communications (FAC) | Science, Technology, Engineering, & Mathematics (STEM) Rich Township High School District 227 20550 S. Cicero Avenue Matteson, Illinois 60443
Comprehensive Annual Financial Report
Officers and Officials
Fiscal Year Ended June 30, 2020
Board of Education Term Expires Andrea Bonds President 2023 Janice Preston Vice-President 2021 Cheryl Coleman Secretary 2023 Randy Alexander Member 2023 Mia Carter Member 2021 Sharon Newman Member 2021 Dr. Delores Woods Member 2021
Township School Treasurer Dr. Robert Grossi
District Administration Dr. Johnnie Thomas Superintendent Dr. Stephen Bournes Assistant Superintendent of Educational Services Dr. Kim Echols Assistant Superintendent of Human Resources Dr. Alicia Evans Assistant Superintendent of Business and Operations Jeff Bonomo Director of Curriculum and Data Glen Wysong Director of Buildings and Grounds Dr. Iyuna Harris Director of Student Support Services Ted Koutavas Director of Technology Janice Wells Director of Arts and IB Matthew Shank Director of Athletics, Activity, and Transportation Betsy Williams Coordinator of Food Services Vacant Coordinator of Public Relations Larry Varn Principal, STEM Campus Larry Varn Principal, Fine Arts and Communication Campus Dr. Tiffany Lowery Associate Principal, Operations Carl Scott Associate Principal, STEM Campus Linnea Garrett Associate Principal, Fine Arts and Communication Campus
Official Issuing Report Dr. Alicia Evans Assistant Superintendent of Business and Operations
Department Issuing Report Business Office
-xi- INDEPENDENT AUDITORS' REPORT
The Members of the Board of Education Rich Township High School District 227 Matteson, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Rich Township High School District 227 (the District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise Rich Township High School District 227’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The District's Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (Continued) -1-
The Members of the Board of Education Rich Township High School District 227 (Continued)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Rich Township High School District 227, as of June 30, 2020, and the respective changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 15, the Illinois Municipal Retirement Fund and Teachers' Retirement System of the State of Illinois Pension data on pages 79 through 85, the other postemployment benefits data on pages 86 through 88, budgetary comparison schedules and notes to the required supplementary information on pages 89 through 112, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit for the year ended June 30, 2020 was conducted for the purpose of forming opinions on the financial statements that collectively comprise Rich Township High School District 227’s basic financial statements. The other schedules listed in the table of contents as the introductory section, the supplementary financial information, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
(Continued)
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Miller Cooper & Co., Ltd.
The Members of the Board of Education Rich Township High School District 227 (Continued)
Other Information (Continued)
The supplementary financial information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information for the year ended June 30, 2020 has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended June 30, 2020 and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary financial information for the year ended June 30, 2020 is fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended June 30, 2020.
We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of Rich Township High School District 227, as of and for the year ended June 30, 2019 (not presented herein), and have issued our report thereon dated February 3, 2020, which contained unmodified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information. That audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rich Township High School District 227's basic financial statements. The Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual for the Capital Projects Fund, Debt Service Fund and Fire Prevention and Safety Fund with comparative actual amounts for the year ended June 30, 2019 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2019 basic financial statements. The Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual for the Capital Projects Fund, Debt Service Fund and Fire Prevention and Safety Fund have been subjected to the auditing procedures applied in the audit of the 2019 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual for the Capital Projects Fund, Debt Service Fund and Fire Prevention and Safety Fund are fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended June 30, 2019.
The introductory and statistical sections, as listed in the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
(Continued)
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Miller Cooper & Co., Ltd.
The Members of the Board of Education Rich Township High School District 227 (Continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2021 on our consideration of Rich Township High School District 227's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Rich Township High School District 227's internal control over financial reporting and compliance.
MILLER, COOPER & CO., LTD.
Certified Public Accountants
Deerfield, Illinois February 1, 2021
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Miller Cooper & Co., Ltd.
Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
The discussion and analysis of Rich Township High School District 227’s (the District) financial performance provides an overall review of the District’s financial activities for the year ended June 30, 2020. The management of the District encourages readers to consider the information presented herein in conjunction with the basic financial statements to enhance their understanding of the District’s financial performance. Certain comparative information between the current year and the prior year is required to be presented in the Management Discussion and Analysis.
Financial Highlights
• Total expenditures of $168.8 million exceeded revenues of $86.8 million for a change in fund balance (before other financing sources and uses) of $81.9 million. • The District began the Facilities Master Plan (FMP) construction. The FMP will occur beginning in the summers of 2020 and continuing into the fall of 2023. • As of June 30, 2020, the total fund balance for all governmental funds was $156.4 million compared to $50.4 million in the prior year. The increase in fund balance is mainly due to the increase in the Capital Projects Fund, related to the issuance of debt for capital projects. • The estimated 2020 financial profile designation for the District is “Recognition,” which will be the tenth time in the last 18 years. The final score will be calculated by the Illinois State Board of Education.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The basic financial statements are comprised of three components:
• Government-wide financial statements • Fund financial statements • Notes to the financial statements
This report also contains required supplementary information, supplementary financial information, and statistical information in addition to the basic financial statements.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the District’s assets and deferred inflows of resources, and liabilities and deferred outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
The statement of activities presents information showing how the government’s net position changed during the fiscal year being reported. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
The government-wide financial statements present the functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities). The District has no business-type activities; that is, functions that are intended to recover all or a significant portion of their costs through user fees and charges. The District’s governmental activities include instructional services (regular education, special education and other), supporting services, operation and maintenance of facilities and transportation services.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds. The District does not have any proprietary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a school district’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The District maintains seven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for all funds.
The District adopts an annual budget for each of the funds listed above. A budgetary comparison schedule has been provided for each fund to demonstrate compliance with this budget.
Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District’s own programs. The accounting used for fiduciary funds is much like that for the government-wide financial statements.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to a better understanding of the data provided in the government-wide and fund financial statements.
Required supplementary information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information that further explains and supports the financial statements.
Government-Wide Financial Analysis
Statement of Net Position:
As indicated in Table 1, net capital assets totaled $50.7. million, representing approximately 20.9% of total assets for the year ended June 30, 2020. Long-term liabilities outstanding totaled $166.3 million, or 96.4% of total liabilities. Other liabilities totaled $6.2 million, which is an increase of $5.3 million from fiscal year 2019. As a result, overall total liabilities increased by $108.9 when compared to fiscal year 2019, mainly due the issuance of bonds.
In addition to assets, the Statement of Net Position reports deferred outflows of resources. This represents a consumption of net position that applies to a future period and thus, will not be recognized as an outflow of resources (expense) until then. The District has deferred outflows of resources of $4.7 million related to pensions and deferred outflows of resources of $0.9 million related to other postemployment benefits.
In addition to liabilities, the Statement of Net Position reports deferred inflows of resources. This represents an increase of net position or fund balance that applies to a future period and so will not be recognized as revenue until that time. A deferred inflow of resources of $29.1 million resulted from the District’s legal claim to receive property taxes prior to the period that those taxes are intended to fund. Additionally, the District had deferred inflows of resources of $7.0 million related to the pensions and deferred inflows of resources of $7.1 million related to other postemployment benefits. The District has a deferred gain on refunding of bonds of $.3 million that resulted from the difference in the outstanding balance of refunded debt and its reacquisition price.
As a result of the change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources noted, net position increased 6% or $1.9 million. Total net position, as of June 30, 2020, was $31.6 million. Of this total, $22.8 million was restricted. Additional information is available in the Statement of Net Position of the financial statements.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
Table 1 Condensed Statement of Net Position Government-Wide (in millions of dollars)
2020 2019 Assets: Current and other assets $191.3 $ 79.0 Capital assets 50.7 48.3 Total assets 242.0 127.3 Deferred outflows of resources: Other postemployment benefits Pension 0.9 0.3 Total deferred outflows of resources Liabilities: 4.7 7.1 Long-term liabilities 5.6 7.4 Other liabilities Total liabilities 166.3 62.7 Deferred inflows of resources: 6.2 0.9 Property taxes levied for a future period Other postemployment benefits 172.5 63.6 Pension Deferred charges 29.1 27.7 Total deferred inflows of resources 7.1 7.9 7.0 5.2 Net position: Net investment in capital assets 0.3 0.6 Restricted Unrestricted 43.5 41.4 Total net position
39.0 43.3 22.8 17.7 (30.2) (31.3) $ 31.6 $ 29.7
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
Statement of Activities:
Table 2 illustrates revenues and expenses from fiscal year 2020 that resulted in a change in net position of $1.9 million.
The District’s total revenues were $96.7 million. Taxes were 53.8% of the total, or $52.0 million.
The total cost of all programs and services was $94.8 million. The District’s expenses related to instruction accounted for 60.9% of the total, or $57.7 million. The District’s expenses in support services were 30.1% of total costs or $28.5 million. Total revenues exceeded total expenses, increasing net position by $1.9 million for the year.
Table 2 Statement of Activities (in millions of dollars)
2020 2019 Revenues: Program revenues: Charges for Services $ 0.4 $ 0.8 Grants & contributions 30.3 23.8
General revenues: Taxes 52.0 52.1 Unrestricted grants 12.1 9.6 Other Total revenues: 1.9 1.2 Expenses: 96.7 87.5 Instruction Support services 57.7 50.8 Other Interest and fees 28.5 29.1 6.5 4.4 Total expenses 2.1 0.5 Change in net position 94.8 84.8 1.9 2.7
Financial Analysis of the District’s Funds
The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District’s governmental funds reported a total combined ending fund balance of $156.4 million. Of this amount, $32.2 million constitutes unassigned fund balance. The Debt Service Fund, Capital Projects Fund and total Special Revenue funds have a combined restricted fund balance of $124.2 million.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
General Fund (Educational Account)
The largest volume of transactions are recorded in the Educational Account because the Educational Account covers all transactions that are not specifically covered in another account or fund.
Certain expenditures that must be charged to this Account include the direct costs of instructional, health and attendance services, lunch programs, all costs of administration, and related insurance costs. Certain revenues that must be credited to this Account include educational tax levies, tuition, and student fee revenue.
At the end of the current fiscal year, the Educational Account had an unassigned fund balance of $27.5 million. The unassigned fund balance at June 30, 2019 was $26.9 million. This represents an increase of approximately $0.6 million in the unassigned fund balance.
Operations and Maintenance Fund
All costs of maintaining, improving, or repairing school buildings and property, renting buildings, and property for school purposes or paying premiums for insurance on school buildings are reported in the Operations and Maintenance Fund. All salaries and insurance benefit costs of custodial and maintenance employees, including all costs of fuel, lights, natural gas, water, telephone service, custodial supplies, and equipment are included in the Operations and Maintenance Fund.
The Operations and Maintenance Fund fund balance for the current year is $3.2 million. The fund balance at June 30, 2019 was $2.9 million. This represents a decrease of $0.3 million from the previous fiscal year.
Working Cash Account of the General Fund
The Working Cash Account is created either by a separate tax levy or by the issuance of bonds. Interfund loans from the Working Cash Account may be made to any fund for which taxes are levied.
At the end of the current fiscal year, the Working Cash Account had a fund balance of $4.6 million. The ending fund balance at the end of fiscal year 2019 was $5.7 million. This represents a decrease of $1.1 million from the previous fiscal year.
Debt Service Fund
Bonds are generally issued to finance the construction on buildings and may be issued for other purposes. Taxes are levied to provide cash to retire these bonds and to pay the interest on them. To protect the bondholders, these tax collections must be accounted for in the Debt Service Fund.
At the end of the current fiscal year, the Debt Service Fund had a fund balance of $7.2 million. This fund balance can only be used to pay the District’s outstanding debt. The ending fund balance at the end of fiscal year 2019 was $3.4 million.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
Capital Projects Fund
When bonds are issued for construction purposes, the funds are deposited to the Capital Projects Fund. Monies may also be transferred into the fund from other funds for the use of capital projects. Funds can be used for the acquisition or construction and renovation of major capital facilities. At the end of the current fiscal year, the Capital Projects Fund had a fund balance of $100.9 million. The fund balance at the end of fiscal year 2019 was $1.0 million. The fund balance increased by $99.9 million from the previous fiscal year, due to the issuance of bonds and transfers into this fund for construction projects.
Transportation Fund
This fund is created if a separate tax is levied for providing resources for transporting pupils for any purpose whether the District provides the transportation itself or hires an outside company to provide the transportation services.
Costs of transportation may include the purchase of vehicles, insurance of buses, salaries, insurance benefit costs, and the costs of hiring an outside service. Monies received for transportation purposes from any source must be deposited into this fund, except for the portion of state reimbursement applicable to other funds (e.g. utility costs from the General Fund’s Operations and Maintenance Account).
At the end of the current fiscal year, the Transportation Fund had a fund balance of $4.9 million. The fund balance at the close of fiscal year 2019 was $4.1 million, an increase of $0.8 million.
Illinois Municipal Retirement/Social Security Fund
This Fund is created if a separate tax is levied for the purpose of providing resources for the District’s share of retirement benefits for covered employees or a separate tax is levied for the purpose of providing resources for the District’s share of Social Security and Medicare payments for covered employees.
At the end of the current fiscal year, the Municipal Retirement/Social Security Fund had a fund balance of $2.7 million. The ending fund balance at the end of fiscal year 2019 was also $1.1 million.
Tort Immunity and Judgment Account of the General Fund
This fund is required if taxes are levied or bonds are sold for tort immunity or tort judgment purposes. At the end of the current fiscal year, the Tort Immunity and Judgment Account had a fund balance of $1.9 million. The ending fund balance at the end of the fiscal year 2019 was $2.2 million.
Fire Prevention and Safety Fund
This fund accounts for the state-approved life safety projects financed through bond issues or local property taxes levied specifically for such purposes. At the end of the current fiscal year, the Fire Prevention and Safety Fund had a fund balance of $3.4 million. The fund balance at the end of fiscal year 2019 was $3.2 million, an increase of $0.2 million.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
The District’s total revenues were $86.8 million. Approximately 62.6% of total governmental fund revenues come from local sources, 32.5% from state sources, and 4.9% from federal sources.
General Fund Budgetary Highlights
Annual budgets are prepared on a basis consistent with accounting principles generally accepted in the United States. All annual budgets lapse at fiscal year-end. The annual budget is legally enacted and provides for a legal level of control at the fund level.
• For this fiscal year, the Board adopted and then amended the General Fund budget that reflected an operating surplus of $0.8 million before other financing sources and uses. • The General Fund ended the year with an operating surplus of $0.9 million before other financing sources and uses. • At the end of the current fiscal year, the General Fund had a fund balance of $34.0 million. The ending fund balance at the end of fiscal year 2019 was $34.8 million after other financing sources and uses.
Capital Asset and Debt Administration
Capital assets
Table 3 below illustrates capital assets, net of depreciation, which reflect an overall increase of $2.4 million when compared to 2019. This net increase is mostly related to the increase in construction in progress (which is not subject to depreciation) and the decrease in Buildings (which is subject to depreciation). Additional information is available in Note D in the Notes to the Financial Statements.
Table 3 Capital Assets (net of depreciation) (in millions of dollars)
2020 2019 Land $ 1.3 $ 1.3 Construction in progress 6.2 - Buildings 38.8 43.5 Improvements other than buildings 1.4 2.4 Equipment and furniture 3.0 1.1 Total $50.7 $48.3
Long-term liabilities
Table 4 illustrates the repayment of the District’s outstanding long-term liabilities, according to the existing debt payment schedule. As of June 30, 2020, the District had $123.6 million in general obligation debt. The District also has $4.7 million related to IMRF and TRS net pension liabilities, $30.3 million related to Other Postemployment Benefits liabilities, and approximately $7.7 million in other long- term liabilities outstanding.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
The District is subject to the Illinois School Code, which limits the amount of certain bond indebtedness to 6.9% of the most recent available equalized assessed valuation of the District. As of June 30, 2020, the statutory debt limit for the District was $66.4 million, providing a debt margin of $48.4 million.
The Illinois School Code provides exceptions to the 6.9% legal debt limit for bonds related to acquiring or improving a site or sites, construction, extending, improving and equipping school buildings, establishing a working cash fund, and certain types of funding bonds or bonds approved by 2/3 of voters on a referendum.
Additional information is available in Note E in the Notes to the Financial Statements.
Table 4 Outstanding Long-Term Liabilities (in millions of dollars)
2020 2019 General obligation bonds $123.6 $24.4 OPEB liability 30.3 28.4 Net pension liability 4.7 9.0 Other 7.7 0.9 Total long-term Liabilities $166.3 $62.7
Factors Bearing on the District’s Future
Decline in Enrollment
In May 2018, the District engaged Dr. John Kasarda, a demographer, to issue a demographic trend and enrollment projections report. The report included a ten-year forward-looking projection, with three possible scenarios. These scenarios included Series A, which assumes less than currently anticipated; Series B, occur as currently anticipated; and Series C, are greater than currently anticipated.
Currently, the District is trending towards Series C, which shows a greater than anticipated drop in enrollment. As a result of these projected declines, the District began to look for ways to become more efficient while improving learning to reverse the enrollment trend. The Rich Township High School District is working towards becoming a premier district in the South Suburbs. The administration notes that the decline may impact future staffing and Evidence Based Funding (EBF). The decrease in students also contributed to the decision to close one school.
School Consolidation
In October 2019, the Board of Education approved the closure of Rich East High School effective July 1, 2020, the decision was based on declined enrollment, along with other factors. Rich East High School will continue to be owned by the District, as the Board of Education continues to study possible usages for the building.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
The remaining school buildings, Rich Central High School and Rich South High School will be combined under one consolidated school, known as Rich Township High School District 227. There will be two campuses: Rich Central will become the Science, Technology, Engineering and Mathematics (STEM) campus and Rich South will become the Fine Arts and Communication (FAC) campus. Each campus will consist of three academics: STEM campus: Freshman/Sophomore Academy, Technology and Engineering, and Health and Family Consumer Sciences. FAC campus: Freshman/Sophomore Academy, Fine Arts and International Baccalaureate, and Business and Communications.
In addition to the change to a two-school model, the District will begin utilizing the flexible module schedule. In practice, this means flexible class times and varied student groupings. The schedule is made of modules (“mods”) of time 20 minutes. This is departure from the traditional 50-minute class blocks. Mods allow students to have a longer school day, experience multiple teachers and teaching styles in the same class and it provides students with an opportunity to be exposed to a myriad of different course selections. These changes will ultimately attract and retain students.
Debt
During FY20, the Board of Education issued $105 million in debt to finance capital projects that will improve the school environments in the two remaining schools for students and staff. The funds will be used to repair roofs, upgrade HVAC, renovate labs, toilet rooms, large groups spaces, and build teacher spaces. Other capital projects are also planned. The new debt is mixed, as it includes Debt Service Extension Base (DSEB) bonds and Alternate Revenue Bonds (ARS). The existing Series 2009 Debt Service was also refunded, which saved taxpayers $315,968.
The DSEB is an amount that limits the principal and interest that the District can levy to pay on bonds each year. The DSEB is determined by the dollar amount of principal and interest that the District was obligated to pay the year that the District became subject to tax caps.
The Alternate Revenue Bonds (ARB) are bonds with the general obligation of the municipality serving as backup security for the bonds. Specifically, the District will use operating funds to repay the obligation of these bonds. The total ARB debt is $48,254,163 and is payable through 2046. The average annual payment is $1.85 million.
All bonds are callable before the maturity date.
Property Tax Relief Grant (PTRG) and Evidence Based Funding (EBF)
In FY20, Rich Township High School District 227 received $2,414,377 in Property Tax Relief Grant proceeds that were issued through the State Board of Education. The District also received the grant in FY19. These grants are a part of the property tax relief grants awarded to eligible school districts, that exceed a threshold tax rate and that agree to abate a portion of taxes, up to a statutory limit, in the coming tax cycle. In return, qualifying districts receive a state grant in an amount that is a proportion of the tax relief provided.
Property Tax Relief Grant (PTRG) amounts received in FY20 will be included in future calculations of those districts’ Base Funding Minimum (BFM) amounts, per 18-8.15 of the School Code. Future grant amounts are subject to appropriations. Taxpayers will see minimal decreases in the fall 2021 property tax bill as a result the of PTRG.
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Rich Township High School District 227 Management’s Discussion and Analysis (Unaudited) for the Year Ended June 30, 2020
Property Tax Relief Grant Abatement
Due to lack of appropriation, there will be no new PTRG for FY20. However, beginning in FY20 any recipient of the PTRG will need to file an abatement for the year of the award and abate taxes in the same amount the following tax year in order for the PTRG to be included in the District’s BFM under Section 18-8.15 of the School Code. [105 ILCS 5/2-3.170(k)].
If the abatement is not made in the second year the PTRG will be removed from the BFM in the following year and future years. The District believes it very important to maintain the highest BFM because that will impact future state funding. The FY19 BFM was $15,874,051, the FY20 BFM was $19,664,601, the FY21 BFM is anticipated as $22,490,836 because of the PTRG and other factors. It should be noted that the District will not receive all these funds.
The District will abate taxes for the second year (FY21) in the amount of $2,501,091. This will give some relief to taxpayers in the community.
COVID-19 Impact
Illinois public school districts began to adapt to the pandemic in March of 2020, when schools closed for the first time because of the mandatory statewide stay at home order. Rich Township was ready for remote teaching and learning as the District was in the second phase of the one-to-one initiative. In July 2020, District was allocated $875,858 in CARES Act funding that will be used to prepare for staff and students to return to school.
The long-term impact of the COVID-19 is currently unknown. However, Rich Township High School District may face threats to revenues as the State grabbles with a deficit budget. Consequently, the State of Illinois will be affected by the pandemic and that will ultimately influence the revenues of all Illinois public school districts that rely upon State funding. Although ISBE was committed to making all Evidence Based Funding (EBF) payments to school districts throughout the FY20 fiscal year, it is uncertain if the State will be able to maintain EBF funding levels or if payments will continue to be made timely. Similarly, the State could adjust categorical payments in the future.
In addition to the State challenges, local revenues may also be negatively influenced. Tax bill due dates may be adjusted as a form of relief to residents and businesses. Next, tax collection percentages may decline, especially for school districts with populations of low-income residents or vulnerable businesses, which may not survive the crisis. Likewise, there could be an increase in tax appeals, which would have the greatest impact on school districts with large commercial/industrial tax bases.
Therefore, COVID-19 will impact the District, but the magnitude of COVID-19 is unknown. The administration will continue to stay abreast of any changes and adjust the budget as needed.
Requests for Information
This financial report is designed to provide the District’s citizens, taxpayers, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report, or need additional financial information, please contact the Business Office, Rich Township High School District 227, 20550 S. Cicero Avenue, Matteson, Illinois 60443.
-15- BASIC FINANCIAL STATEMENTS Rich Township High School District 227 STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES June 30, 2020
ASSETS Cash and investments $ 158,236,991 Receivables (net of allowance for uncollectibles): Property taxes 30,974,747 Replacement taxes 210,397 Intergovernmental 1,917,476 Capital assets: Land 1,334,210 Construction in progress 6,216,739 Depreciable buildings, property, and equipment, net 43,104,181 Total assets 241,994,741 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 4,738,242 Deferred outflows related to other postemployment benefits 921,283 Total deferred outflows 5,659,525 LIABILITIES Accounts payable 5,745,161 Salaries and wages payable 64,428 Interest payable 402,049 Long-term liabilities: Due within one year 4,990,977 Due after one year 161,289,949 Total liabilities 172,492,564 DEFERRED INFLOWS OF RESOURCES Deferred charges 286,464 Property taxes levied for a future period 29,163,401 Deferred inflows related to pensions 6,961,629 Deferred inflows related to other postemployment benefits 7,080,033 Total deferred inflows 43,491,527 NET POSITION Net investment in capital assets 39,006,188 Restricted for: Operations and maintenance 3,152,522 Debt service 6,767,023 Student transportation 4,913,419 Retirement benefits 2,698,835 Capital projects 3,482,503 Tort immunity 1,850,065 Unrestricted (30,200,380)
Total net position $ 31,670,175
The accompanying notes are an integral part of this statement.
-16- Rich Township High School District 227 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2020
PROGRAM REVENUES Net (Expenses) Operating Revenue and Charges for Grants and Changes in Functions / Programs Expenses Services Contributions Net Position
Governmental activities Instruction: Regular programs $ 21,398,424 $ 30,623 $ 1,794,883 $ (19,572,918) Special programs 9,658,675 - 2,071,210 (7,587,465) Other instructional programs 4,664,331 - 213,357 (4,450,974) State retirement contributions 21,957,874 - 21,957,874 - Support services: Pupils 3,838,063 - 38,301 (3,799,762) Instructional staff 1,967,253 - 125,521 (1,841,732) General administration 2,815,542 - - (2,815,542) School administration 3,812,042 - - (3,812,042) Business 964,397 331,254 1,457,732 824,589 Transportation 5,010,059 39,743 2,574,887 (2,395,429) Operations and maintenance 5,514,697 47,072 - (5,467,625) Central 4,571,231 - - (4,571,231) Other supporting services 100 - - (100) Community services 24,384 - - (24,384) Nonprogrammed charges - excluding special education 1,898,191 - - (1,898,191) Interest and fees 2,126,105 - - (2,126,105) Unallocated depreciation 4,532,889 - - (4,532,889)
Total governmental activities $ 94,754,257 $ 448,692 $ 30,233,765 (64,071,800)
General revenues: Taxes: Real estate taxes, levied for general purposes 35,248,613 Real estate taxes, levied for specific purposes 11,012,583 Real estate taxes, levied for debt service 4,218,209 Personal property replacement taxes 1,475,557 State aid-formula grants 12,142,885 Investment earnings 1,672,958 Miscellaneous 223,008 Total general revenues 65,993,813
Change in net position 1,922,013
Net position, beginning of year 29,748,162
Net position, end of year $ 31,670,175
The accompanying notes are an integral part of this statement.
-17- Rich Township High School District 227 GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2020
Operations and General Maintenance Transportation
ASSETS
Cash and investments $ 31,902,326 $ 3,088,319 $ 4,228,628 Receivables (net of allowance for uncollectibles): Property taxes 22,801,977 2,434,822 1,446,091 Replacement taxes 210,397 - - Intergovernmental 1,278,618 - 638,858
Total assets $ 56,193,318 $ 5,523,141 $ 6,313,577
LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES
LIABILITIES
Accounts payable $ 657,635 $ 72,843 $ 38,632 Salaries and wages payable 59,090 5,338 -
Total liabilities 716,725 78,181 38,632
DEFERRED INFLOWS
Property taxes levied for a future period 21,468,562 2,292,438 1,361,526
Total deferred inflows 21,468,562 2,292,438 1,361,526
FUND BALANCES
Restricted 1,850,065 3,152,522 4,913,419 Unassigned 32,157,966 - -
Total fund balance 34,008,031 3,152,522 4,913,419
Total liabilities, deferred inflows, and fund balance $ 56,193,318 $ 5,523,141 $ 6,313,577
The accompanying notes are an integral part of this statement.
-18- Municipal Retirement / Debt Capital Fire Prevention Soc. Sec. Service Projects and Safety Total
$ 2,611,443 $ 7,019,302 $ 105,918,290 $ 3,468,683 $ 158,236,991
1,494,442 2,561,087 - 236,328 30,974,747 - - - - 210,397 - - - - 1,917,476
$ 4,105,885 $ 9,580,389 $ 105,918,290 $ 3,705,011 $ 191,339,611
$ - $ - $ 4,976,051 $ - $ 5,745,161 - - - - 64,428
- - 4,976,051 - 5,809,589
1,407,050 2,411,317 - 222,508 29,163,401
1,407,050 2,411,317 - 222,508 29,163,401
2,698,835 7,169,072 100,942,239 3,482,503 124,208,655 - - - - 32,157,966
2,698,835 7,169,072 100,942,239 3,482,503 156,366,621
$ 4,105,885 $ 9,580,389 $ 105,918,290 $ 3,705,011 $ 191,339,611
-19- Rich Township High School District 227 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2020
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balance - governmental funds $ 156,366,621
Net capital assets used in governmental activities and included in the statement of net position do not require the expenditure of financial resources and, therefore, are not reported in the governmental funds balance sheet. 50,655,130
Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds:
Deferred outflows of resources related to pensions $ 4,738,242 Deferred inflows of resources related to pensions (6,961,629) (2,223,387)
Deferred outflows and inflows of resources related to other postemployment benefits are applicable to future periods and, therefore, are not reported in the governmental funds:
Deferred outflows of resources related to other postemployment benefits 921,283 Deferred inflows of resources related to other postemployment benefits (7,080,033) (6,158,750)
Deferred charges related to debt issuances are included in the statement of net position are not due and payable in the current period and, accordingly, are not included in the governmental funds balance sheet. (286,464)
Long-term liabilities included in the statement of net position are not due and payable in the current period and, accordingly, are not included in the governmental funds balance sheet.
General obligation bonds (123,560,000) Unamortized bond premiums (7,344,165) Capital leases (148,814) Compensated absences (144,767) Retirement incentive (66,146) IMRF net pension liability (1,990,511) TRS net pension liability (2,681,608) RHP total other postemployment benefit liability (1,009,578) THIS net other postemployment benefit liability (29,335,337) (166,280,926)
Interest on long-term liabilities (interest payable) accrued in the statement of net position will not be paid with current financial resources and, therefore, is not recognized in the governmental funds balance sheet. (402,049)
Net position - governmental activities $ 31,670,175
The accompanying notes are an integral part of this statement.
-20- Rich Township High School District 227 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended June 30, 2020
Municipal Operations and Retirement / General Maintenance Transportation Soc. Sec.
Revenues Property taxes $ 36,967,506 $ 3,972,773 $ 2,648,599 $ 2,471,202 Replacement taxes 1,400,557 - - 75,000 State aid 22,765,109 1,400,000 3,174,887 900,000 Federal aid 4,293,241 - - - Interest 1,118,546 - - 19,834 Other 542,722 54,446 74,532 -
Total revenues 67,087,681 5,427,219 5,898,018 3,466,036
Expenditures Current: Instruction: Regular programs 21,320,001 - - 279,576 Special programs 9,267,796 - - 244,920 Other instructional programs 4,385,449 - - 165,387 State retirement contributions 12,114,461 - - - Support services: Pupils 3,618,500 - - 187,345 Instructional staff 1,928,292 - - 33,502 General administration 2,792,100 - - 45,458 School administration 3,563,249 - - 213,757 Business 2,833,619 - - 195,923 Transportation - - 5,010,204 - Operations and maintenance - 4,746,090 - 393,270 Central 2,380,018 - - 116,804 Other supporting services 100 - - - Community services 24,384 - - - Nonprogrammed charges 1,898,191 - - - Debt service: Principal - - 60,511 - Interest and other - - 3,177 - Capital outlay 30,235 403,164 - -
Total expenditures 66,156,395 5,149,254 5,073,892 1,875,942 Excess (deficiency) of revenues over expenditures 931,286 277,965 824,126 1,590,094 Other financing sources (uses) Transfers in - - - - Transfers (out) (1,714,942) - - - Debt issuances - - - - Premium on debt issuances - - - -
Total other financing sources (uses) (1,714,942) - - -
Net change in fund balance (783,656) 277,965 824,126 1,590,094 Fund balance, beginning of year 34,791,687 2,874,557 4,089,293 1,108,741
Fund balance, end of year $ 34,008,031 $ 3,152,522 $ 4,913,419 $ 2,698,835 The accompanying notes are an integral part of this statement. -21- Debt Capital Fire Prevention Service Projects and Safety Total
$ 4,218,209 $ - $ 201,116 $ 50,479,405 - - - 1,475,557 - - - 28,239,996 - - - 4,293,241 - 491,257 43,321 1,672,958 - - - 671,700
4,218,209 491,257 244,437 86,832,857
- - - 21,599,577 - - - 9,512,716 - - - 4,550,836 - - - 12,114,461
- - - 3,805,845 - - - 1,961,794 - - - 2,837,558 - - - 3,777,006 - - - 3,029,542 - - - 5,010,204 - - - 5,139,360 - - - 2,496,822 - - - 100 - - - 24,384 - - - 1,898,191
81,545,000 - - 81,605,511 2,305,872 - - 2,309,049 - 6,665,128 - 7,098,527
83,850,872 6,665,128 - 168,771,483
(79,632,663) (6,173,871) 244,437 (81,938,626)
314,942 1,400,000 - 1,714,942 - - - (1,714,942) 77,532,042 103,222,958 - 180,755,000 5,599,215 1,522,976 - 7,122,191
83,446,199 106,145,934 - 187,877,191
3,813,536 99,972,063 244,437 105,938,565 3,355,536 970,176 3,238,066 50,428,056
$ 7,169,072 $ 100,942,239 $ 3,482,503 $ 156,366,621
-22- Rich Township High School District 227 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2020
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ 105,938,565
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense in the current period. Capital outlay $ 6,826,283 Revaluation adjustment (495,111) Depreciation expense (4,005,111) 2,326,061
Changes in deferred outflows and inflows of resources related to pensions are reported only in the statement of activities:
Deferred outflow and inflows of resources related to IMRF pension (4,258,995) Deferred outflow and inflows of resources related to TRS pension 78,179 (4,180,816)
Changes in deferred outflows and inflows of resources related to other postemployment benefits are reported only in the statement of activities:
Deferred outflow and inflows of resources related to RHP 163,450 Deferred outflow and inflows of resources related to THIS 1,279,197 1,442,647
Accrued interest reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as expenditures in the governmental funds. (325,495)
Deferred inflows of resources related to bond refundings are applicable to future periods and, therefore, are not reported in the governmental funds. 286,464
Governmental funds report the effect of premiums and discounts when the debt is issued. However, these amounts are deferred and amortized in the statement of activities. This is the amount of the current year, net effect of these differences. (6,900,216)
(Continued)
-23- Rich Township High School District 227 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2020
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.
Issuance of general obligation bonds $ (180,755,000) Principal repayments - general obligation bonds 81,545,000 Capital leases 60,511 Compensated absences, net 118,123 Retirement incentive, net 54,378 IMRF pension liability, net 4,293,243 TRS pension liability, net 1,457 RHP other postemployment benefit liability, net 28,635 THIS other postemployment benefit liability, net (2,011,544) $ (96,665,197)
Change in net position - governmental activities $ 1,922,013
The accompanying notes are an integral part of this statement. (Concluded)
-24- Rich Township High School District 227 Agency Funds STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2020
Student Activity Funds
ASSETS
Cash $ 289,716
LIABILITIES
Due to student groups $ 289,716
The accompanying notes are an integral part of this statement.
-25- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Rich Township High School District 227 (the District) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as Generally Accepted Accounting Principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the District's accounting policies are described below.
1. Reporting Entity
The District is located in Cook County, Illinois. The District is governed by an elected Board of Education. The Board of Education maintains final responsibility for all personnel, budgetary, taxing, and debt matters.
The District includes all funds of its operations that are controlled by or dependent upon the District, as determined on a basis of financial accountability. Financial accountability includes appointment of the organization's governing body, imposition of will, and fiscal dependency. The accompanying financial statements include only those funds of the District, as there are no organizations for which it has financial accountability.
The District is also not included as a component unit in any other governmental reporting entity, as defined by GASB pronouncements.
2. Fund Accounting
The accounts of the District are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.
Funds are classified into the following categories: governmental and fiduciary.
Governmental funds are used to account for all or most of the District's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the servicing of general long-term debt (debt service fund), and the acquisition or construction of major capital facilities (capital projects funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. The District considers all governmental funds to be major.
-26- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Fund Accounting (Continued)
Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the District.
3. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all the nonfiduciary activities of the District. The effect of interfund activity has been eliminated from these statements. Governmental activities normally are supported by taxes and intergovernmental revenues and local fees.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) amounts paid by recipient of goods or services offered by the program and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements.
a. General Fund
The General Fund includes the Educational Account, the Working Cash Account, and the Tort Immunity and Judgment Account. The Educational Account is the District's primary operating account. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Working Cash Account is for the financial resources held by the District to be used as temporary interfund loans for working capital requirements. Money loaned by the Working Cash Account to other funds must be repaid upon the collection of property taxes in those fund(s) loaned to. As allowed by the School Code of Illinois, this Fund may be permanently abolished and become part of the Educational Account or it may be partially abated to any fund in need, as long as the District maintains a balance in the Working Cash Account of at least .05% of the District's current equalized assessed valuation. The Tort Immunity and Judgment Account is used to account for revenues derived from a specific property tax levy and expenditures of these monies are for risk management activities.
-27- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Government-Wide and Fund Financial Statements (Continued)
b. Special Revenue Funds
The special revenue funds are used to account for and report the proceeds of specific revenue sources (other than those accounted for in the debt service fund, capital projects fund, or fiduciary funds) that are legally restricted or committed to expenditures for specified purposes.
Each of the District's special revenue funds has been established as a separate fund in accordance with the fund structure required by the state of Illinois for local educational agencies. These funds account for local property taxes restricted to specific purposes. A brief description of the District's special revenue funds is as follows:
Operations and Maintenance Fund - accounts for all revenues and for expenditures made for operations, repair, and maintenance of the District's building and land. Revenues consist primarily of local property taxes and unrestricted state funds
Transportation Fund - accounts for all revenues and expenditures made for student transportation. Revenues are derived primarily from local property taxes, state reimbursement grants, and unrestricted state funds.
Municipal Retirement/Social Security Fund - accounts for the District's portion of pension contributions to the Illinois Municipal Retirement Fund, payments to Medicare, and payments to the Social Security System for noncertified employees. Revenues to finance contributions are derived primarily from local property taxes, personal property replacement taxes and unrestricted state funds.
c. Debt Service Fund
The Debt Service Fund - accounts for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. The primary revenue source is local property taxes levied specifically for debt service and transfers from other funds.
d. Capital Projects Fund
The Capital Projects Fund - accounts for financial resources to be used for the acquisition of construction of major capital facilities. Revenues are derived from bond proceeds or transfers from other funds.
-28- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Government-Wide and Fund Financial Statements (Continued)
d. Capital Projects Fund (Continued)
The Fire Prevention and Safety Fund - accounts for state-approved life safety projects financed through bond issues or property taxes levied specifically for such purposes.
e. Fiduciary Funds
The Fiduciary Funds account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds.
Agency Funds - includes Student Activity Funds. These funds are custodial in nature (assets equal liabilities) and do not involve the measurement of results of operations. Although the Board of Education has the ultimate responsibility for activity funds, they are not local education agency funds. The Student Activity Funds account for assets held by the District which are owned, operated, and managed generally by the student body, under the guidance and direction of adults or a staff member, for educational, recreational, or cultural purposes. They account for activities such as student yearbook and student clubs and council.
Convenience Accounts - account for assets that are normally maintained by a local education agency, as a convenience, for its faculty, staff, etc.
4. Measurement Focus, Basis of Accounting, and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues and additions are recorded when earned, and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e. intended to finance). Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.
-29- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
4. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e. when they are both "measurable and available". "Measurable" means that the amount of the transaction can be determined, and "available" mean collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. The District considers most revenues available if they are collected within 60 days after year-end. Revenues that are paid to the District by the Illinois State Board of Education are considered available if they are vouchered by year- end. Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and interest on general long-term debt, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
Property taxes, corporate personal property replacement taxes, interest, and intergovernmental revenues associated with the current fiscal period are all considered to be susceptible to accrual and are recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.
The District reports unearned and unavailable revenue on its financial statements. Unearned and unavailable revenue arises when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. In subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim to the resources, the liability or deferred inflow of resources for unearned or unavailable revenue is removed from the balance sheet and revenue is recognized. Governmental Funds also defer revenue recognition in connection with resources received, but not yet earned.
The fiduciary fund statements are reported using the accrual basis of accounting.
-30- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
5. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of net position and the governmental funds balance sheet may report deferred outflows of resources. Deferred outflows of resources represent a consumption of net position / fund balance that applies to a future period. At June 30, 2020, the District has deferred outflows of resources related to pensions and other postemployment benefits. In addition to liabilities, the District may report deferred inflows of resources. Deferred inflows of resources represent the acquisition of resources that is applicable to a future reporting period. At June 30, 2020, the District reported deferred inflows of resources related to deferred charges, pensions, other postemployment benefits, and property taxes levied for a future period.
6. Budgetary Data
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted at the fund level for the governmental funds. The annual budget is legally enacted and provides for a legal level of control at the fund level. All annual budgets lapse at fiscal year-end.
7. Deposits and Investments
The Illinois Compiled Statutes require the District to utilize the services of the Bloom Township Treasurer (the Treasurer). Investments are stated at fair value. Changes in fair value are included in investment income.
8. Personal Property Replacement Taxes
Personal property replacement tax revenues are first allocated to the Municipal Retirement/Social Security Fund, with the balance allocated at the discretion of the District.
9. Capital Assets
Capital assets, which include land, buildings, improvements other than buildings, and equipment, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial individual or group cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.
-31- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
9. Capital Assets (Continued)
Depreciation of capital assets is provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:
Assets Years
Buildings 50 Improvements other than buildings 20 Equipment 5 - 20
Construction in progress is stated at cost and includes engineering, design, material, and labor costs incurred for planned construction. No provision for depreciation is made on construction in progress until the asset is completed and placed in service.
10. Accumulated Unpaid Vacation and Sick Pay
Non-certified and certified employees who work a twelve-month year are entitled to be compensated for vacation time. Vacation time is accrued throughout the year for all employees. Classified employees may carry over 12 days. All other employees will lose accumulated vacation days if not used. At June 30, 2020, accumulated unpaid vacation pay was $144,767.
Non-certified and certified employees receive a specified number of sick days per year depending on years of service in accordance with the agreement between the Board of Education and the Education Association. Unused sick leave days are accumulated. Upon retirement from the District, certified and non-certified employees receive creditable service time for accumulated sick days for TRS and IMRF, respectively. Employee sick leave is recorded when paid. Due to the nature of the policies on sick leave, no liability has been recorded as of June 30, 2020.
11. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts and losses on refunding bonds are deferred and amortized over the life of the applicable bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.
-32- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
11. Long-Term Obligations (Continued)
In the fund financial statements, governmental funds recognize bond premiums and discounts, losses on refunding, and bond issuance costs during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
12. Use of Estimates
In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of the financial statements, and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.
13. Fund Balance
The governmental funds report five components of fund balance: nonspendable, restricted, committed, assigned, and unassigned.
a. Nonspendable - includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. The nonspendable in form criteria includes items that are not expected to be converted to cash. The District has no nonspendable fund balances at June 30, 2020.
b. Restricted - refers to amounts that are subject to outside restrictions such as creditors, grantors, contributors, laws and regulations of other governments, or imposed by law through enabling legislation. Special revenue funds, as well as debt services funds and capital project funds, are by definition restricted for those specified purposes.
c. Committed - refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the District's highest level of decision-making authority (the Board of Education). The Board of Education commits fund balances by passing a resolution. Amounts committed cannot be used for any purpose unless the District removes or changes the specific use by taking the same type of formal action it employed to previously commit those funds. The District has no committed fund balances at June 30, 2020.
-33- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
13. Fund Balance (Continued)
d. Assigned - refers to amounts that are constrained by the District's intent to be used for a specific purpose, but are neither restricted or committed. Intent may be expressed by the individual the Board of Education delegates the authority to assign amounts to be used for specific purposes. No individual has been delegated the authority as of June 30, 2020. The District has no assigned fund balances at June 30, 2020.
e. Unassigned - refers to all spendable amounts not contained in the other four classifications described above. In funds other than the General Fund, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
Unless specifically identified, expenditures act to reduce restricted balances first, then committed balances, next assigned balances, and finally they act to reduce unassigned balances. Expenditures for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified.
The Restricted fund balance in the General Fund is comprised of $1,850,065, representing the unspent portion of the Tort Immunity levy. The remaining restricted fund balances are for the purposes of the restricted funds described in Note A-3.
14. Restricted Net Position
For the government-wide financial statements, net position is reported as restricted when constraints placed on net position are either: (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments, (2) imposed by law through constitutional provisions, or (3) imposed by enabling legislation. All of the District's restricted net position was a result of enabling legislation.
When both restricted and unrestricted net resources are available for use, it is the District's policy to use restricted resources first, and then unrestricted resources, as they are needed.
-34- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
15. Pensions and Other Postemployment Benefits
For purposes of measuring the net pension and other postemployment benefits (OPEB) liabilities, deferred outflows of resources and deferred inflows of resources related to pensions/OPEB, and pension/OPEB expense, information about the fiduciary net position of the pension/OPEB plan and additions to/deductions from the pension/OPEB plan's fiduciary net position have been determined on the same basis as they are reported by the pension/OPEB plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are stated at fair value.
NOTE B - DEPOSITS AND INVESTMENTS
The District's investment policy is in line with State Statutes. The investments that the District may purchase are limited by Illinois law to the following: (1) securities that are fully guaranteed by the U.S. government as to principal and interest; (2) certain U.S. government agency securities; (3) interest-bearing savings accounts, interest-bearing certificates of deposit or time deposits or any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act; (4) short-term discount obligations of corporations organized in the United States with assets exceeding $500,000,000; (5) interest-bearing bonds of any county, township, city, village, incorporated town, municipal corporation or school district; (6) fully collateralized repurchase agreements; (7) the State Treasurer's Illinois and Prime Funds; and (8) money market mutual funds and certain other instruments.
1. Cash and Investments Under the Custody of the Township Treasurer
As explained in Note A, the Illinois Compiled Statutes require the District to utilize the services of the Bloom Township School Treasurer (the Treasurer). As such, the Treasurer is the lawful custodian of these school funds. The Treasurer is appointed by the Township Treasurer's Board of Trustees, an independently elected body, to serve the school districts in the township. The investment policies are established by the Treasurer, as prescribed by the Illinois Compiled Statutes. The Treasurer is the direct recipient of property taxes, replacement taxes, and most state and federal aid, and disburses school funds upon lawful order to the school board. The Treasurer invests excess funds at his discretion, subject to the legal restrictions.
District cash and investments (other than the student activity, convenience, distributive, and imprest cash funds) are part of a common pool for all the school districts and cooperatives within the township. The Treasurer maintains records that segregate the cash and investment balances by district or cooperative. Income from investments is distributed based upon the District's percentage participation in the pool. Cash for all funds, including cash applicable to the Debt Service Fund and the Municipal Retirement/Social Security Fund, is not deemed available for purposes other than those for which these balances are intended.
-35- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE B - DEPOSITS AND INVESTMENTS (Continued)
1. Cash and Investments Under the Custody of the Township Treasurer (Continued)
The Treasurer's office operates as a nonrated, external investment pool. The value of the District's investment in the Treasurer's pool is determined by the District's proportionate share of the value of the investments held by the Treasurer's office.
The weighted-average maturity of all pooled marketable investments held by the Treasurer was 2.6 years at June 30, 2020. The Treasurer also holds money market-type investments and deposits with financial institutions, including certificates of deposit. The value of cash and investments held by the Treasurer's office was $632,309,368 at June 30, 2020. The District's proportionate share of all pooled cash and investments is approximately 25.36% as of June 30, 2020.
Because all cash and investments are pooled by a separate legal government agency (Treasurer), categorization by risk category is not determinable. Further information about whether investments are insured, collateralized, or uncollateralized may be obtained from the Treasurer's financial statements, which are available by writing to the Bloom Township Schools Treasurer, 3311 Chicago Road, South Chicago Heights, Illinois 60411.
2. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, a periodic review of the investment portfolio is performed to ensure performance is consistent with the safety, liquidity, rate of return, diversification and overall performance the District needs.
3. Cash and Investments in the Custody of the District
At June 30, 2020, the carrying value of the District's student activity fund was $289,716 and the carrying value of other District held accounts was $168,800. All of the cash in the custody of the District was deposited with a financial institution.
-36- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE B - DEPOSITS AND INVESTMENTS (Continued)
4. Custodial Credit Risk
With respect to deposits, custodial credit risk is the risk that, in the event of a bank failure, the District's deposits may not be returned to it. The District's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured by collateral in the event of default or failure of the financial institution holding the funds. At June 30, 2020, the bank balances of the District's deposits with financial institutions totaled $480,228. Of this amount, $28,877 was uninsured and uncollateralized at June 30, 2020.
NOTE C - PROPERTY TAXES
The District must file its tax levy resolution by the last Tuesday in December of each year. The tax levy resolution was approved by the Board on December 17, 2019. The District's property tax is levied each year on all taxable real property located in the District and it becomes a lien on the property on January 1 of that year. The owner of real property on January 1 (the lien date) in any year is liable for taxes of that year.
Tax rate ceilings are applied at the fund level. These ceilings are established by state law subject to change only by the approval of the voters of the District.
The District's annual property tax levy is subject to Property Tax Extension Limitation Act (PTELA), which is applied in the aggregate to the total levy (excluding certain levies for the repayment of debt). PTELA limits the increase in total taxes billed to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI) for the preceding year. The amount can be exceeded to the extent there is "new growth" in the District's tax base. The new growth consists of new construction, annexations, and tax increment finance district property becoming eligible for taxation.
The Cook County Assessor is responsible for the assessment of all taxable real property within Cook County except for certain railroad property, which is assessed directly by the state. One-third of the county is reassessed every year by the Assessor.
The Illinois Department of Revenue has the statutory responsibility for ensuring uniformity of real property assessments throughout the state. Each year, the Illinois Department of Revenue furnishes the county clerks with an adjustment factor to equalize the level of assessment between counties at one-third of market value. This factor (the equalization factor) is then applied to the assessed valuation to compute the valuation of property to which the tax rate will be applied (the equalized assessed valuation). The equalization factor for Cook County was 2.9160 for 2019.
-37- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE C - PROPERTY TAXES (Continued)
The County Clerk adds the equalized assessed valuation of all real property in the county to the valuation of property assessed directly by the state (to which the equalization factor is not applied) to arrive at the base amount (the assessment base) used to calculate the annual tax rates, as described above. The equalized assessed valuation was $962,400,168 for the extension of the 2019 tax levy.
Property taxes are collected by the Cook County Collector/Treasurer who remits them to the School Treasurer. Taxes levied in one year become due and payable in two installments on March 1 and August 1 during the following year. The first installment is an estimated bill, and is fifty-five percent of the prior year's tax bill. The second installment is based on the current levy, assessment, and equalization, and any changes from the prior year.
The portion of the 2019 property tax levy not received by June 30 is recorded as a receivable, net of estimated uncollectible amounts of 5%. The receivable collected within the current year or due and expected to be collected soon enough thereafter to be used to pay liabilities of the current period, less the taxes collected soon enough after the end of the previous fiscal year, are recognized as revenue. Net taxes receivable less the amount expected to be collected within 60 days are reported as deferred inflow of resources - property taxes levied for a future period.
-38- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE D - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2020 was as follows:
Balance Revaluation Balance June 30, 2019 Additions Disposals Adjustments * June 30, 2020 Capital assets, not being depreciated Land $ 1,334,210 $ - $ - $ - $ 1,334,210 Construction in progress - 6,216,739 - - 6,216,739
Total capital assets, not being depreciated 1,334,210 6,216,739 - - 7,550,949
Capital assets, being depreciated Building 103,797,331 285,296 - (1,921) 104,080,706 Improvements other than buildings 5,324,096 219,258 - (126,795) 5,416,559 Equipment 8,868,371 104,990 - 161,383 9,134,744
Total capital assets, being depreciated 117,989,798 609,544 - 32,667 118,632,009
Less accumulated depreciation for: Building 60,307,934 3,039,637 - 2,056,720 65,404,291 Improvements other than buildings 2,957,846 126,857 - 915,936 4,000,639 Equipment 7,729,159 838,617 - (2,444,878) 6,122,898
Total accumulated depreciation 70,994,939 4,005,111 - 527,778 75,527,828
Total capital assets, being depreciated, net 46,994,859 (3,395,567) - (495,111) 43,104,181
Governmental activities capital assets, net $ 48,329,069 $ 2,821,172 $ - $ (495,111) $ 50,655,130
-39- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE D - CAPITAL ASSETS (Continued)
Depreciation has not been allocated by function / program and is reported as Unallocated Depreciation on the Statement of Activities.
* Revaluation adjustment in the current year due to the District performing a physical inventory and updating its capital asset records to agree to the inventory results.
NOTE E - LONG-TERM LIABILITIES
1. General Obligation Bonds
The following is the long-term liability activity for the District for the year ended June 30, 2020.
Balance Retired / Balance July 1, 2019 Issued Defeased June 30, 2020
General obligation bonds $ 24,350,000 $ 180,755,000 $ 81,545,000 $ 123,560,000 Unamortized bond premium 443,949 7,122,191 221,975 7,344,165 Capital leases 209,325 - 60,511 148,814 IMRF net pension liability 6,283,754 3,867,400 8,160,643 1,990,511 TRS net pension liability 2,683,065 560,317 561,774 2,681,608 RHP total other postemployment benefit liability 1,038,213 87,336 115,971 1,009,578 THIS net other postemployment benefit liability 27,323,793 2,640,089 628,545 29,335,337 Compensated absences 262,890 533,779 651,902 144,767 Retirement incentive 120,524 22,885 77,263 66,146
Total $ 62,715,513 $ 195,588,997 $ 92,023,584 $ 166,280,926
-40- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE E - LONG-TERM LIABILITIES (Continued)
1. General Obligation Bonds (Continued)
Due within one year: General obligation bonds $ 4,675,000 Capital leases 148,814 Compensated absences 144,767 Retirement incentive 22,396
Total $ 4,990,977
The following is a summary of activity in bonds payable for the year ended June 30, 2020:
Interest Original Face Carrying Issuance, Purpose, and Maturity Rates Issue Amount Amount General Obligation Limited School Bonds Series 2011A, refunding bonds, matures December 2022 4.00% $ 5,935,000 $ 5,935,000 $ 5,935,000
General Obligation Refunding School Bonds Series 2015, refunding bonds, matures December 2024 2.00 - 3.00% 6,990,000 6,990,000 6,825,000
General Obligation Limited Tax Refunding Bonds Series 2016, refunding bonds, matures December 2021 1.50 - 4.00% 16,435,000 16,435,000 5,045,000
General Obligation Limited Tax Refunding Bonds Series 2020B, refunding bonds, matures December 2040 4.00% 47,440,000 47,440,000 47,440,000
General Obligation School Bonds (Alternate Revenue Source) Series 2020C, building bonds, matures 3.25 - 4.00% 27,895,000 27,895,000 27,895,000 December 2046
-41- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE E - LONG-TERM LIABILITIES (Continued)
1. General Obligation Bonds (Continued)
Interest Original Face Carrying Issuance Rates Issue Amount Amount General Obligation Limited Tax Refunding Bonds Series 2020D, refunding bonds, matures December 2034 2.80% $ 27,140,000 $ 27,140,000 $ 27,140,000
General Obligation School Bonds (Alternate Revenue Source) Series 2020E, refunding bonds, matures December 2031 2.80% 3,280,000 3,280,000 3,280,000
Total general obligation bonds $ 135,115,000 $ 135,115,000 $ 123,560,000
At June 30, 2020, the District's future cash flow requirements for retirement of bond principal and interest were as follows:
Year Ending June 30 Principal Interest Total
2021 $ 4,675,000 $ 4,541,244 $ 9,216,244 2022 4,920,000 4,159,705 9,079,705 2023 4,045,000 3,983,225 8,028,225 2024 4,200,000 3,838,185 8,038,185 2025 4,330,000 3,702,580 8,032,580 Thereafter 101,390,000 35,621,255 137,011,255
Total $ 123,560,000 $ 55,846,194 $ 179,406,194
These payments will be made from amounts budgeted from the debt service tax levies in future periods. There is $7,169,072 in the Debt Service Fund at June 30, 2020 to service the outstanding bonds payable.
-42- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE E - LONG-TERM LIABILITIES (Continued)
1. General Obligation Bonds (Continued)
The District is subject to the Illinois School Code, which limits the bond indebtedness to 6.9% of the most recent available equalized assessed valuation of the District. As of June 30, 2020, the statutory debt limit for the District was $66,405,612. The llinois School Code provides exceptions to the 6.9% legal debt limit for bonds related to acquiring or improving a site or sites, constructing, extending, improving and equipping school buildings, establishing a working cash fund, and certain types of funding bonds or bonds approved by 2/3 of voters on a referendum. The 2020B, 2020C, 2020 D, and 2020 E bonds are covered by these exclusions.
During the fiscal year ended June 30, 2020, the District issued $75,000,000 of General Obligation School Bonds Series 2020A, $47,440,000 of General Obligation Refunding Bonds Series 2020B, $27,895,000 of General Obligation School Bonds Series 2020C, $27,140,000 of General Obligation Refunding Bonds Series 2020D, and $3,280,000 of General Obligation School Bonds Series 2020E. The issuances of Series 2020B and Series 2020D were used to refund the remaining principal and interest maturities on Series 2020A, and the issuances of Series 2020C and Series 2020E were used to refund the remaining principal and interest maturities of Series 2009. These transactions resulted in a difference in cash flows between the old and new debt of $315,968. The economic gain (present value of the difference in cash flows of the debt service on the old and new debt) was $291,572.
2. Capital Leases
The District has entered into various capital lease agreements for copiers and buses. The leases expire at various dates through July 2020 and require annual payments of principal and interest ranging from $63,688 to $89,657. The obligations for the copier lease are repaid from the Debt Service Fund, with funding provided by the General Fund (Educational Account). The obligation for the bus lease will be repaid from the Transportation Fund.
At June 30, 2020, the District's future cash flow requirements for retirement of leases payable principal and interest were as follows:
Year Ending June 30 Principal Interest Total
2021 $ 148,814 $ 4,531 $ 153,345
Total $ 148,814 $ 4,531 $ 153,345
The gross amount of capital assets recorded under capital leases for equipment purchased is $722,754.
-43- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE F - OPERATING LEASES
The District leased various drivers education vehicles through November 2020. Total costs for such leases were approximately $45,000 for the year ended June 30, 2020. Future minimum rental commitments under these leases are as follows: Year Ending June 30 Total
2021 $ 14,131
NOTE G - INTERFUND TRANSFERS
The District transferred $314,942 from the General (Educational Account) Fund to the Debt Service Fund for the purpose of making payments of principal and interest on the District's alternate revenue bonds.
The District also transferred $1,400,000 from the General (Working Cash Account) Fund to the Operations and Maintenance Fund. This transfer represented an abatement of the General (Working Cash Account) Fund. The $1,400,000 was then transferred from the Operations and Maintenance Fund to the Capital Projects Fund for the purpose of building improvements and repairs.
NOTE H - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and natural disasters. The District purchases coverage against such risks and participates in the following public risk pools: Educational Benefit Cooperative (EBC), for health benefits claims and the Collective Liability Insurance Cooperative (CLIC) for workers' compensation claims and property damage and injury claims. The District pays annual premiums to the pools for insurance coverage. The arrangements with the pools provide that each will be self- sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain levels established by the pools. Complete financial statements for CLIC can be obtained from its Treasurer, 624 Kenilworth, Grayslake, Illinois 60030 and a complete set of financial statements for EBC can be obtained from its Treasurer.
The District continues to carry commercial insurance for all other risks of loss, including professional liability insurance.
Settled claims have not exceeded commercial coverage for the past three fiscal years.
-44- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES
1. Teachers' Retirement System of the State of Illinois
General Information About the Pension Plan
Plan Description The District participates in the Teachers’ Retirement System of the State of Illinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago. TRS members include all active nonannuitants who are employed by a TRS-covered employer to provide services for which teacher licensure is required. The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action with the Governor’s approval. The TRS Board of Trustees is responsible for the System’s administration.
TRS issues a publicly available financial report that can be obtained at www.trsil.org/financial/cafrs/fy2019; by writing to TRS at 2815 W. Washington, PO Box 19253, Springfield, IL 62794; or by calling (888) 678-3675, option 2.
Benefits Provided TRS provides retirement, disability, and death benefits. Tier I members have TRS or reciprocal system service prior to January 1, 2011. Tier I members qualify for retirement benefits at age 62 with five years of service, at age 60 with 10 years, or age 55 with 20 years. The benefit is determined by the average of the four highest consecutive years of creditable earnings within the last 10 years of creditable service and the percentage of average salary to which the member is entitled. Most members retire under a formula that provides 2.2 percent of final average salary up to a maximum of 75 percent with 34 years of service.
Tier II members qualify for retirement benefits at age 67 with 10 years of service, or a discounted annuity can be paid at age 62 with 10 years of service. Creditable earnings for retirement purposes are capped and the final average salary is based on the highest consecutive eight years of creditable service rather than the highest four. Disability provisions for Tier II are identical to those of Tier I. Death benefits are payable under a formula that is different from Tier I.
Essentially all Tier I retirees receive an annual three percent increase in the current retirement benefit beginning January 1 following the attainment of age 61 or on January 1 following the member’s first anniversary in retirement, whichever is later. Tier II annual increases will be the lesser of three percent of the original benefit or one-half percent of the rate of inflation beginning January 1 following attainment of age 67 or on January 1 following the member’s first anniversary in retirement, whichever is later.
-45- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
General Information About the Pension Plan (Continued)
Benefits Provided (Continued) Public Act 100-0023, enacted in 2017, creates an optional Tier III hybrid retirement plan, but it has not yet gone into effect. Public Act 100-0587, enacted in 2018, requires TRS to offer two temporary benefit buyout programs that expire on June 30, 2021. One program allows retiring Tier I members to receive a partial lump-sum payment in exchange for accepting a lower, delayed annual increase. The other allows inactive vested Tier I and II members to receive a partial lump-sum payment in lieu of a retirement annuity. Both programs began in 2019 and are funded by bonds issued by the state of Illinois.
Contributions The state of Illinois maintains the primary responsibility for funding TRS. The Illinois Pension Code, as amended by Public Act 88-0593 and subsequent acts, provides that for years 2010 through 2045, the minimum contribution to the System for each fiscal year shall be an amount determined to be sufficient to bring the total assets of the System up to 90 percent of the total actuarial liabilities of the System by the end of fiscal year 2045.
Contributions from active members and TRS contributing employers are also required by the Illinois Pension Code. The contribution rates are specified in the pension code. The active member contribution rate for the year ended June 30, 2019, was 9.0 percent of creditable earnings. The member contribution, which may be paid on behalf of employees by the employer, is submitted to TRS by the employer.
On-behalf Contributions to TRS
The State of Illinois makes employer pension contributions on behalf of the employer. For the year ended June 30, 2020, State of Illinois contributions recognized by the District were based on the state’s proportionate share of the collective net pension liability associated with the District, and the District recognized revenue and expenses of $20,721,238 in the governmental activities based on the economic resources measurement basis and revenues and expenditures in the amount of $11,787,609 in the General Fund based on the current financial resources measurement basis.
-46- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
General Information About the Pension Plan (Continued)
Contributions (Continued) 2.2 Formula Contributions
Employers contribute 0.58 percent of total creditable earnings for the 2.2 formula change. The contribution rate is specified by statute. Contributions for the year ended June 30, 2020, were $152,883, and are deferred because they were paid after the June 30, 2019 measurement date.
Federal and Special Trust Fund Contributions
When TRS members are paid from federal and special trust funds administered by the employer, there is a statutory requirement for the employer to pay an employer pension contribution from those funds. Under Public Act 100-0340, the federal and special trust fund contribution rate is the total employer normal cost beginning with the year ended June 30, 2018.
Previously, employer contributions for employees paid from federal and special trust funds were at the same rate as the state contribution rate to TRS and were much higher.
For the year ended June 30, 2020, the employer pension contribution was 10.66 percent of salaries paid from federal and special trust funds. For the year ended June 30, 2020, salaries totaling $384,366 were paid from federal and special trust funds that required employer contributions of $40,973.
Early Retirement Cost Contributions
Under GASB Statement No. 68, contributions that an employer is required to pay because of a TRS member retiring are categorized as specific liability payments. The District is required to make a one-time contribution to TRS for members granted salary increases over 6 percent if those salaries are used to calculate a retiree's final average salary.
-47- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
General Information About the Pension Plan (Continued)
Contributions (Continued) Early Retirement Cost Contributions (Continued)
A one-time contribution is also required for members granted sick leave days in excess of the normal annual allotment if those days are used as TRS service credit. For the year ended June 30, 2020, the District paid $14,991 to TRS for employer contributions due on salary increases in excess of 6 percent and $0 for sick leave days granted in excess of the normal annual allotment.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2020, the District reported a liability for its proportionate share of the net pension liability (first amount shown below) that reflected a reduction for state pension support provided to the District. The state’s support and total are for disclosure purposes only. The amount recognized by the District as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the District were as follows:
District’s proportionate share of the net pension liability $ 2,681,608 State’s proportionate share of the net pension liability associated with the District 190,847,120
Total $ 193,528,728
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018, and rolled forward to June 30, 2019. The District’s proportion of the net pension liability was based on the District’s share of contributions to TRS for the measurement year ended June 30, 2019, relative to the contributions of all participating TRS employers and the state during that period. At June 30, 2019, the District’s proportion was 0.0033062122 percent, which was a decrease of 0.0001360493 percent from its proportion measured as of June 30, 2018.
-48- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2020, the District recognized the following pension expense/expenditures and revenue pertaining to the District's employees: Governmental General Activities Fund State on-behalf contributions - revenue and expense/expenditure $ 20,721,238 $ 11,787,609 District TRS pension expense 71,144 152,883
Total TRS expense/expenditure $ 20,792,382 $ 11,940,492
At June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources
Differences between expected and actual experience $ 43,971 $ - Net difference between projected and actual earnings on pension plan investments 4,248 - Change of assumptions 60,086 51,473 Changes in proportion and differences between District contributions and proportionate share of contributions 416,841 1,500,494
Total deferred amounts to be reported in pension expense in the future periods 525,146 1,551,967
District contributions subsequent to the measurement date 152,883 -
Total deferred amounts related to pensions $ 678,029 $ 1,551,967
-49- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
The District reported $152,883 as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Net Deferred Inflows Year ended June 30: of Resources
2021 $ 98,568 2022 435,139 2023 338,684 2024 147,184 2025 7,246
$ 1,026,821
Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50 percent Salary increases varies by amount of service credit Investment rate of return 7.00 percent, net of pension plan investment expense, including inflation
In the June 30, 2019 actuarial valuation, mortality rates were based on the RP-2014 White Collar Table with appropriate adjustments for TRS experience. The rates are based on a fully-generational basis using projection table MP-2017. In the June 30, 2018 actuarial valuation, mortality rates were also based on the RP-2014 White Collar Table with appropriate adjustments for TRS experience. The rates were used on a fully-generational basis using projection table MP-2014.
-50- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions (Continued)
The long-term (20-year) expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class that were used by the actuary are summarized in the following table:
Long-Term Target Expected Real Asset Class Allocation Rate of Return
U.S. equities large cap 15.0 % 6.3 % U.S. equities small/mid cap 2.0 7.7 International equities developed 13.6 7.0 Emerging market equities 3.4 9.5 U.S. bonds core 8.0 2.2 U.S. bonds high yield 4.2 4.0 International debt developed 2.2 1.1 Emerging international debt 2.6 4.4 Real estate 16.0 5.2 Real return 4.0 1.8 Absolute return 14.0 4.1 Private equity 15.0 9.7
Total 100.0 %
-51- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
1. Teachers' Retirement System of the State of Illinois (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Discount Rate
At June 30, 2019, the discount rate used to measure the total pension liability was 7.00 percent, which was the same as the June 30, 2018 rate. The projection of cash flows used to determine the discount rate assumed that employee contributions, employer contributions, and state contributions will be made at the current statutorily- required rates.
Based on those assumptions, TRS’s fiduciary net position at June 30, 2019 was projected to be available to make all projected future benefit payments of current active and inactive members and all benefit recipients. Tier I’s liability is partially funded by Tier II members, as the Tier II member contribution is higher than the cost of Tier II benefits. Due to this subsidy, contributions from future members in excess of the service cost are also included in the determination of the discount rate. All projected future payments were covered, so the long-term expected rate of return on TRS investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the District’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the District’s proportionate share of the net pension 1iability calculated using the discount rate of 7.00 percent, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00 percent) or 1-percentage-point higher (8.00 percent) than the current rate: Current Discount 1% Decrease Rate 1% Increase (6.00%) (7.00%) (8.00%)
District's proportionate share of the net pension liability $ 3,275,349 $ 2,681,608 $ 2,193,435
TRS Fiduciary Net Position
Detailed information about the TRS’s fiduciary net position as of June 30, 2019 is available in the separately issued TRS Comprehensive Annual Financial Report. -52- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund
Plan Description
The District's defined benefit pension plan for regular employees provides retirement and disability benefits, postretirement increases, and death benefits to plan members and beneficiaries. The District's plan is managed with the Illinois Municipal Retirement Fund (IMRF), the administrator of an agent multi-employer public pension fund. A summary of IMRF's pension benefits is provided in the Benefits Provided section below. Details of all benefits are available from IMRF. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan's fiduciary net position, and required supplementary information. That report is available for download at www.imrf.org.
Benefits Provided
IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP).
All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011, are eligible for Tier I benefits. Tier I employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier I employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier I, the pension is increased by 3% of the original amount on January 1 every year after retirement.
Employees hired on or after January 1, 2011, are eligible for Tier II benefits. For Tier II employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier II, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of 3% of the original pension amount, or 1/2 of the increase in the Consumer Price Index of the original pension amount.
-53- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Employees Covered by Benefit Terms
As of December 31, 2019, the following employees were covered by the benefit terms:
Retirees and beneficiaries currently receiving benefits 414 Inactive plan members entitled to but not yet receiving benefits 222 Active plan members 232
Total 868
Contributions
As set by statute, the District’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The District’s annual contribution rate for calendar year 2019 was 8.63%. For the fiscal year ended June 30, 2020 the District contributed $805,468 to the plan. The District also contributes for disability benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by IMRF’s Board of Trustees, while the supplemental retirement benefits rate is set by statute.
Net Pension Liability
The District’s net pension liability was measured as of December 31, 2019. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The following are the methods and assumptions used to determine total pension liability at December 31, 2019:
Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Price Inflation 2.50% Salary Increases 3.35% to 14.25% Investment Rate of Return 7.25%
-54- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Actuarial Assumptions (Continued)
Retirement Age Experience-based table of rates, specific to the type of eligibility condition. Last updated for the 2017 valuation pursuant to an experience study of the period 2014-2016.
Mortality For non-disabled retirees, the IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projections scale MP- 2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table, applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.
Long-term Expected Rate of The long-term expected rate of return on pension plan investments was Return determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
-55- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Actuarial Assumptions (Continued)
Long-term Expected Rate of Return (Continued) Portfolio Long-Term Target Expected Real Asset Class Percentage Rate of Return Domestic Equity 37% 5.75% International Equity 18% 6.50% Fixed Income 28% 3.25% Real Estate 9% 5.20% Alternative Investments 7% 3.60% - 7.60% Cash Equivalents 1% 1.85%
Total 100%
Single Discount Rate
A Single Discount Rate of 7.25% was used to measure the total pension liability. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members’ contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects:
a. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and
b. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met).
For the purpose of the most recent valuation, the expected rate of return on pension plan investments is 7.25%, the municipal bond rate is 2.75% (based on the daily rate closest to but not later than the measurement date of the "20- Year Municipal GO AA index"), and the resulting single discount rate is 7.25%.
-56- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Changes in Net Pension Liability
The following table shows the components of the change in the District's net pension liability for the calendar year ended December 31, 2019: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2018 $ 44,622,754 $ 38,339,000 $ 6,283,754 Changes for the year: Service cost 878,824 - 878,824 Interest on the total pension liability 3,180,105 - 3,180,105 Difference between expected and actual experience of the total pension liability (191,529) - (191,529) Changes of assumptions - - - Contributions - employer - 719,604 (719,604) Contributions - employees - 393,320 (393,320) Net investment income - 7,275,711 (7,275,711) Benefit payments, including refunds of employee contributions (2,397,285) (2,397,285) - Other (net transfer) - (227,992) 227,992 Net changes 1,470,115 5,763,358 (4,293,243)
Balances at December 31, 2019 $ 46,092,869 $ 44,102,358 $ 1,990,511
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the plan’s net pension 1iability (asset), calculated using a Single Discount Rate of 7.25%, as well as what the plan's net pension liability (asset) would be if it were calculated using a Single Discount Rate that is 1% lower or 1% higher than the current rate: Current 1% Lower Discount 1% Higher (6.25%) Rate (7.25%) (8.25%)
Net pension liability (asset) $ 7,662,241 $ 1,990,511 $ (2,701,577)
-57- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2020 the District recognized pension expense of $778,765. At June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Deferred Amounts to be Recognized in Pension Expense in Future Periods Differences between expected and actual experience $ - $ 200,353 Change of assumptions 255,001 - Net difference between projected and actual earnings on pension plan investments 3,322,329 5,209,309
Total deferred amounts to be recognized in pension expense in the future periods 3,577,330 5,409,662
Pension contributions made subsequent to the measurement date 482,883 -
Total deferred amounts related to pensions $ 4,060,213 $ 5,409,662
The District reported $482,883 as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date that will be reported as a reduction of the net pension liability in the reporting year ended June 30, 2021.
-58- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
2. Illinois Municipal Retirement Fund (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Year Ended Outflows June 30, Resources
2021 $ (467,774) 2022 (638,000) 2023 183,634 2024 (910,192) 2025 - Thereafter -
Total $ (1,832,332)
3. Summary of Pension Items
Below is a summary of the various pension items:
TRS IMRF Total Deferred outflows of resources: Employer contributions $ 152,883 $ 482,883 $ 635,766 Experience 43,971 - 43,971 Assumptions 60,086 255,001 315,087 Proportionate share 416,841 - 416,841 Investments 4,248 3,322,329 3,326,577
$ 678,029 $ 4,060,213 $ 4,738,242
Net pension liability $ 2,681,608 $ 1,990,511 $ 4,672,119
Pension expense $ 20,792,382 $ 778,765 $ 21,571,147 -59- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE I - PENSION LIABILITIES (Continued)
3. Summary of Pension Items (Continued)
TRS IMRF Total Deferred inflows of resources: Investments $ - $ 5,209,309 $ 5,209,309 Experience - 200,353 200,353 Assumptions 51,473 - 51,473 Proportionate share 1,500,494 - 1,500,494
$ 1,551,967 $ 5,409,662 $ 6,961,629
4. Social Security/Medicare
Employees not qualifying for coverage under the Illinois Teachers' Retirement System or the Illinois Municipal Retirement Fund are considered "nonparticipating employees". These employees and those qualifying for coverage under the Illinois Municipal Retirement Fund are covered under Social Security/Medicare. The District paid the total required contribution for the current fiscal year.
NOTE J - OTHER POSTEMPLOYMENT BENEFITS
1. Teachers' Health Insurance Security (THIS)
General Information about the Other Postemployment Plan
Plan Description The District participates in the Teacher Health Insurance Security Fund (THIS), a cost-sharing, multiple-employer defined benefit post-employment healthcare plan that was established by the Illinois legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago.
The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the THIS Fund and amendments to the plan can be made only by legislative action with the Governor’s approval. The plan is administered by the Illinois Department of Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to TRS who are not employees of the state to make a contribution to the THIS Fund.
-60- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
General Information about the Other Postemployment Plan (Continued)
Plan Description (Continued) The publicly available financial report of the THIS Fund may be found on the website of the Illinois Auditor General: http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp. The current reports are listed under “Central Management Services” (http://www.auditor.illinois.gov/Audit-Reports/CMS-THISF.asp). Prior reports are available under “Healthcare and Family Services” (http://www.auditor.illinois.gov/Audit- Reports/HEALTHCARE-FAMILY-SERVICES-Teacher-Health-Ins-Sec-Fund.asp).
Benefits Provided The THIS Fund provides medical, prescription, and behavioral health benefits, but it does not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants not enrolled in Medicare may participate in the state-administered participating provider option plan or choose from several managed care options. Annuitants who are enrolled in Medicare Parts A and B may be eligible to enroll in a Medicare Advantage plan.
Contributions On behalf contributions to the THIS Fund
The State of Illinois makes employer retiree health insurance contributions on behalf of the District. In the fund financial statements, the State contributions are intended to match contributions to the THIS Fund from active members, which were 1.24 percent of pay during the year ended June 30, 2020. In the government-wide financial statements, State of Illinois contributions also include a proportional allocation of the State's OPEB expense (based on the portion of the District's share of the expense compared to all School Districts in aggregate). For the year ended June 30, 2020, the District recognized revenue and expenses of $1,236,636 in the governmental activities based on the economic resources measurement basis and revenues and expenditures in the amount of $326,852 in the General Fund based on the current financial resources measurement basis for State of Illinois contributions on behalf of the District's employees.
-61- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
General Information about the Other Postemployment Plan (Continued)
Contributions (Continued) District contributions to the THIS Fund
The District also makes contributions to the THIS Fund. The District THIS Fund contribution was 0.92 percent during the year ended June 30, 2020. For the year ended June 30, 2020, the District paid $242,503 to the THIS Fund, which was 100 percent of the required contribution. These amounts are deferred because they were paid after the June 30, 2019 measurement date.
The percentage of employer required contributions in the future will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2020, the District reported a liability for its proportionate share of the net OPEB liability (first amount shown below) that reflected a reduction for state OPEB support provided to the District. The state’s support and total are for disclosure purposes only. The amount recognized by the District as its proportionate share of the net OPEB liability, the related state support, and the total portion of the net OPEB liability that was associated with the District were as follows:
District’s proportionate share of the net OPEB liability $ 29,335,337 State’s estimated proportionate share of the net OPEB liability associated with the District * 39,723,789
Total $ 69,059,126
* The State’s proportionate share of the net OPEB liability (NOL) associated with the District is not available in the actuarial report and therefore the amount reported above is an estimate calculated by allocating the State’s total NOL for the entire plan (per the actuary) based on the District’s proportionate share of the NOL to all the school districts participating in the Plan. Additionally, the amounts included below related to sensitivity of the healthcare rate, discount rate and amortization of deferred inflows and outflows are based on a similar allocation methodology.
-62- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
The net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2018, and rolled forward to June 30, 2019. The District’s proportion of the net OPEB liability was based on the District’s share of contributions to THIS for the measurement year ended June 30, 2019, relative to the projected contributions of all participating THIS employers and the state during that period. At June 30, 2019, the District’s proportion was 0.105990 percent, which was a decrease of 0.002278 percent from its proportion measured as of June 30, 2018.
For the year ended June 30, 2020, the District recognized the following for OPEB expense/expenditure and revenue pertaining to the District's employees: Governmental General Activities Fund
State on-behalf contributions - OPEB revenue $ 1,236,636 $ 326,852 and expense/expenditure District OPEB pension expense 973,671 242,503
Total OPEB expense/expenditure $ 2,210,307 $ 569,355
-63- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
For the year ended June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources
Differences between expected and actual experience $ - $ 486,797 Change of assumptions 11,121 3,362,785 Net difference between projected and actual earnings on OPEB plan investments - 960 Changes in proportion and differences between District contributions and proportionate share of contributions 606,634 1,974,214
Total deferred amounts to be recognized in OPEB expense in future periods 617,755 5,824,756
District contributions subsequent to the measurement date 242,503 -
Total deferred amounts related to OPEB $ 860,258 $ 5,824,756
-64- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
The District reported $242,503 as deferred outflows of resources related to OPEB resulting from District contributions subsequent to the measurement date that will be recognized as a reduction of the net OPEB liability in the reporting year ended June 30, 2021. Other amounts reported as deferred inflows of resources and deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows:
Net Deferred Inflows of Year ending June 30: Resources
2021 $ 1,122,749 2022 1,122,749 2023 1,122,673 2024 1,122,516 2025 674,517 Thereafter 41,797
Total $ 5,207,001 Actuarial Assumptions
The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Entry Age Normal, used to measure the Total OPEB Liability
Contribution Policy Benefits are financed on a pay‐as‐you basis. Contribution rates are defined by statute. For fiscal year end June 30, 2019, contribution rates are 1.24% of pay for active members, 0.92% of pay for school districts, and 1.24% of pay for the State. Retired members contribute a percentage of premium rates. The goal of the policy is to finance current year costs plus a margin for incurred but not paid plan costs.
Asset Valuation Method Market value
-65- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Actuarial Assumptions (Continued)
Investment rate of return 0.00%, net of OPEB plan investment expense, including inflation, for all plan years.
Inflation 2.50 percent
Salary increases Depends on service and ranges from 9.50% at 1 year of service to 4.00% at 20 or more years of service. Salary increase includes a 3.25% wage inflation assumption.
Retirement Age Experience‐based table of rates that are specific to the type of eligibility condition. Last updated for the June 30, 2018, actuarial valuation.
Mortality Retirement and Beneficiary Annuitants: RP‐2014 White Collar Annuitant Mortality Table, adjusted for TRS experience. Disabled Annuitants: RP‐ 2014 Disabled Annuitant Table. Pre‐Retirement: RP‐2014 White Collar Table. All tables reflect future mortality improvements using Projection Scale MP‐2017.
Healthcare Trend Rate Actual trend used for fiscal year 2019. For fiscal years on and after 2020, trend starts at 8.00% and 9.00% for non‐Medicare cost and Medicare costs, respectively, and gradually decreases to an ultimate trend of 4.50%. Additional trend rate of 0.31% is added to non‐Medicare cost on and after 2022 to account for the Excise Tax.
Aging Factors Based on the 2013 SOA Study "Health Care Costs ‐ From Birth to Death".
Expenses Health administrative expenses are included in the development of the per capita claims costs. Operating expenses are included as a component of the Annual OPEB Expense. -66- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Discount Rate
The State, the District and active members contribute 1.24 percent, 0.92 percent, 1.24 percent of pay, respectively for fiscal year 2019. Retirees contribute a percentage of the premium rate. The State also contributes an additional amount to cover plan costs in excess of contributions and investment income. Because plan benefits are financed on a pay‐as‐you‐go basis, the single discount rate is based on a tax‐exempt municipal bond rate index of 20‐year general obligation bonds with an average AA credit rating as of the measurement date. A single discount rate of 3.62 percent at June 30, 2018, and 3.13 percent at June 30, 2019, was used to measure the total OPEB liability. The decrease in the single discount rate, from 3.62 percent to 3.13 percent, caused the total OPEB liability for the entire plan to increase by approximately $2,296 million as of June 30, 2019.
Investment Return
During plan year end June 30, 2019, the trust earned $397,000 in interest, and the market value of assets at June 30, 2019, is $68 million. Given the low asset value and pay‐as‐you‐go funding policy, the investment return assumption was set to zero.
Money‐Weighted Rate of Return
The annual money‐weighted rate of return was estimated based on monthly investment performance, net of investment expenses, adjusted for changing amounts actually invested. The annual money‐weighted rate of return was 2.038% for plan year end June 30, 2019, and 1.301% for plan year end June 30, 2018.
Sensitivity of the District’s Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate
The following presents the District’s proportionate share of the net OPEB liability calculated using the discount rate of 3.13 percent, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.13 percent) or 1-percentage-point higher (4.13 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (2.13%) (3.13%) (4.13%)
District's proportionate share of the net OPEB liability $ 35,271,722 $ 29,335,337 $ 24,646,866 -67- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
1. Teachers' Health Insurance Security (THIS) (Continued)
Other Postemployment Benefit (OPEB) Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Sensitivity of the District’s Proportionate Share of the Net OPEB Liability to Changes in the Healthcare Trend Rate
The following table shows the District’s net OPEB liability as of June 30, 2019, using current trend rates and sensitivity trend rates that are either one percentage point higher or lower. The key trend rates are 8.00% in 2020 decreasing to an ultimate trend rate of 4.81% in 2027, for non‐Medicare coverage, and 9.00% in 2020 decreasing to an ultimate trend rate of 4.50% in 2027 for Medicare coverage. Current Healthcare 1% Decrease* Trend Rate 1% Increase **
District's proportionate share of the net OPEB liability $ 23,700,559 $ 29,335,337 $ 36,945,816
* One percentage point decrease in healthcare trend rates are 7.00% in 2020 decreasing to an ultimate trend rate of 3.81% in 2027, for non‐Medicare coverage, and 8.00% in 2020 decreasing to an ultimate trend rate of 3.50% in 2027 for Medicare coverage.
** One percentage point increase in healthcare trend rates are 9.00% in 2020 decreasing to an ultimate trend rate of 5.81% in 2027, for non‐Medicare coverage, and 10.00% in 2020 decreasing to an ultimate trend rate of 5.50% in 2027 for Medicare coverage.
2. Retiree Health Plan (RHP)
Plan Description
The District administers a single-employer defined benefit healthcare plan ("the Retiree Health Plan"). The benefits, benefit levels, employee contributions and employer contributions are governed by the District and may be amended by the District through its employment contracts. The plan does not issue a separate financial report.
-68- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
Plan Description (Continued)
Classified (non-certified) employees who contribute to the Illinois Municipal Retirement Fund (IMRF) are eligible for post-retirement medical coverage. For retirement benefits, Tier I employees must have worked at least 8 years and must be at least 55 years old. Tier II employees become eligible at age 62 with 10 years of service.
Certified employees who contribute to the Teachers' Retirement Service (TRS) are eligible to continue on the District's medical and dental plans.
Benefits Provided
Classified (non-certified) employees are entitled to a bonus pool equal to $350 times the number of years the employee has worked in District 227. The bonus pool funds may be used to pay for post-retirement health insurance offered by the District. Alternatively, the bonus pool funds may be provided in a lump sum (with tax consequences) at the end of the employee’s tenure with the District.
If a certified teacher retires after 12 years of service to the District, the Board will pay a stipend totaling up to $15,000. This stipend would be used to pay for post-retirement medical coverage. If a certified teacher retires after 20 years of service to the District, the Board will increase the stipend to $20,000.
Retirees and spouses are allowed to continue to participate in the medical and dental insurance programs if they pay the premium associated with such coverage or if they direct their bonus pool fund or stipend to pay for such coverage.
Coverage for medical and dental benefits stops at age 65 for all retirees.
Employees Covered by Benefit Terms
As of June 30, 2019 (most recent information available) the following employees were covered by the benefit terms:
Actives 509 Inactives entitled to but not yet receiving benefit payments - Inactives currently receiving benefit payments 23
Total 532
-69- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
Contributions
In conjunction with the preparation of the annual actuarial valuation for the Plan, the Plan's actuary calculates the District's actuarially determined contribution (ADC) for the District's next fiscal year. For fiscal year 2020, the District contributed $115,971 toward the cost of the postemployment benefits for retirees, which was 0.40% of covered payroll.
Total OPEB Liability
The total OPEB liability was determined by an actuarial valuation performed as of July 1, 2018 using the following actuarial methods and assumptions:
Actuarial valuation date July 1, 2018 Measurement date June 30, 2019 Actuarial cost method Entry Age Normal
Actuarial assumptions: Discount rate 2.66% Inflation 2.00% Projected salary increases 2.00% Healthcare inflation rate Initial: 4.50% Constant for all years
Mortality rates IMRF employees and retirees: Rates from the December 31, 2018 IMRF actuarial valuation report. TRS employees and retirees: Rates from the June 30, 2018 Teachers' Retirement System Actuarial Valuation Report.
Election at Retirement: 5% of employees are assumed to elect retiree medical coverage at retirement.
-70- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
Total OPEB Liability (Continued)
Marital Status: 5% of IMRF employees electing retiree coverage are assumed to be married and to elect spousal coverage with males three years older than females. Actual spouse data was used for current retirees.
Retirees' Share of Benefit-Related 100% of the amount of the cost in excess of the District's contribution. Costs
Discount Rate
The District does not have a dedicated trust to pay retiree healthcare benefits. The discount rate as of June 30, 2020 was 2.66%, which is the S&P Municipal Bond 20-Year High-Grade Rate Index as of June 30, 2020.
Changes in the Total OPEB Liability
The following table shows the components of the change in the District's net OPEB liability for the fiscal year ended June 30, 2020 based upon a rollforward actuarial valuation from the actuarial valuation performed July 1, 2018 to the fiscal year end:
-71- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
Changes in the Total OPEB Liability (Continued)
Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (A) (B) (A) - (B) Balances at July 1, 2019 $ 1,038,213 $ - $ 1,038,213 Changes for the year: Service cost 46,740 - 46,740 Interest on the total OPEB liability 27,348 - 27,348 Difference between expected and actual experience of the total OPEB liability - - - Changes of assumptions 12,414 - 12,414 Contributions - employer - - - Contributions - employees - - - Net investment income - - - Benefit payments, including refunds of employee contributions (115,971) - (115,971) Other (net transfer) 834 - 834 Net changes (28,635) - (28,635)
Balances at June 30, 2020 $ 1,009,578 $ - $ 1,009,578
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the plan’s total OPEB 1iability, calculated using a Single Discount Rate of 2.66%, as well as what the plan's total OPEB liability would be if it were calculated using a Single Discount Rate that is 1% lower or 1% higher than the current rate: Current 1% Lower Discount Rate 1% Higher (1.79%) (2.66%) (3.79%)
Total OPEB liability $ 1,068,789 $ 1,009,578 $ 954,382
-72- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rate
The following presents the plan’s net OPEB liability, calculated using a Healthcare Trend Rate range of 4.50%, as well as what the plan's net OPEB liability would be if it were calculated using a Healthcare Trend Rate range that is 1% lower or 1% higher than the current range: Current Healthcare 1% Lower Trend Rate 1% Higher
Total OPEB liability $ 932,261 $ 1,009,578 $ 1,099,079
OPEB Income and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2020 the District recognized OPEB benefit of $75,984. At June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Deferred Amounts to be Recognized in OPEB Expense in Future Periods Differences between expected and actual experience $ - $ 159,060 Change of assumptions 61,025 1,096,217
Total deferred amounts to be recognized in OPEB expense in the future periods $ 61,025 $ 1,255,277
-73- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
2. Retiree Health Plan (RHP) (Continued)
OPEB Income and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows in these reporting years:
Net Deferred Year Ended Inflows of June 30, Resources
2021 $ 150,072 2022 150,072 2023 150,072 2024 150,072 2025 150,072 Thereafter 443,892
Total $ 1,194,252
-74- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE J - OTHER POSTEMPLOYMENT BENEFITS (Continued)
3. Summary of OPEB Items
Below is a summary of the various OPEB items at June 30, 2020:
THIS RHP Total Deferred outflows of resources: Assumptions $ 11,121 $ 61,025 $ 72,146 Employer contributions 242,503 - 242,503 Experience - - - Proportionate share 606,634 - 606,634
$ 860,258 $ 61,025 $ 921,283
OPEB liability $ 29,335,337 $ 1,009,578 $ 30,344,915
OPEB expense (benefit) $ 2,210,307 (75,984) $ 2,134,323
Deferred inflows of resources: Assumptions $ 3,362,785 $ 1,096,217 $ 4,459,002 Experience 486,797 159,060 645,857 Investments 960 - 960 Proportionate share 1,974,214 - 1,974,214
$ 5,824,756 $ 1,255,277 $ 7,080,033
NOTE K - CONTINGENCIES
1. Litigation
The District is a defendant in various lawsuit and other pending matters, such as real estate tax appeals. Although the eventual outcome and related liability, if any, is not determinable at this time, in the opinion of the District's management, the resolution of these matters will not have a material adverse effect on the financial condition of the District. No provision has been made in the accompanying financial statements for settlement costs.
-75- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE K - CONTINGENCIES (Continued)
2. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be insignificant.
3. COVID-19
The direct and indirect impacts of the COVID-19 pandemic on the District's enrollment, vendors, operations, and financing arrangements are currently unknown, as is the duration and severity of any impacts that the District may experience. Additionally, taxpayers in Cook County have been granted an extension on the second installment payment for property tax (due August 1, 2020). Taxpayers were given to October 1, 2020 to remit property tax payments without penalty, which will affect the timing of the District receiving those property taxes, and overall cash flows. The District is monitoring the situation. While the District’s evaluation is ongoing, management is currently unable to quantify the full effects that this pandemic will have on its operations, cash flows, and financial position; however, they may be significant. No adjustments have been made to these financial statements as a result of this uncertainty.
NOTE L - TAX ABATEMENTS
The District may enter into property tax abatement agreements with local businesses as provided by Section 18-165 of the Illinois Property Tax Code (the Code). Per the Code, school districts may grant property tax abatements of a business’ property tax bill for the purpose of attracting and retaining businesses within the District. The abatements may be granted to the property of any commercial business located within the District’s boundaries.
The District currently has three tax abatement obligations as follows:
1. Consolidated Collision Center
In 2011, the Board agreed to abate taxes at the rate of 50% on the property for a period of ten years. The abatements are passed annually by the Board after verifying that the taxpayers have met conditions as outlined in the agreement. Such conditions include the taxpayers refraining from filing tax rate objections or otherwise challenging the rate of taxes levied and extended by the District and refraining from filing an assessment complaint in any form during the ten-year term of the agreement. The property owner is also prohibited from filing a petition to detach the property from the territorial boundaries of the District or from otherwise cooperating with or encouraging a detachment petition filed by another with respect to the property. -76- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE L - TAX ABATEMENTS (Continued)
1. Consolidated Collision Center (Continued)
Tax abatements reduce the amount of real estate taxes collected on the property and remitted to the District. For the year ended June 30, 2020, the District’s tax revenue was reduced by approximately $15,700 as a result of the agreement.
2. Water Werks and Harvey's Corner
In 2017, the Board agreed to abate taxes at the rate of 50% on the properties for a period of five years, beginning with the 2017 tax year for taxes collected in 2018. The abatements are passed annually by the Board after verifying that the taxpayers have met conditions as outlined in the agreement. Such conditions include the taxpayers’ obligation to pay real estate taxes billed on the property within 90 days and refraining from filing tax rate objections or otherwise challenging the rate of taxes levied and extended by the District.
Tax abatements reduce the amount of real estate taxes collected on the property and remitted to the District. For the year ended June 30, 2020, the District’s tax revenue was reduced by approximately $54,970 as a result of the agreement.
3. Tinley Park Hotel
In 2018, the Board agreed to abate taxes at the rate of 50% on the property for a period of ten years, beginning with the 2018 tax year for taxes collected in 2019. The abatements are passed annually by the Board after verifying that the taxpayers have met conditions as outlined in the agreement. Such conditions include the taxpayers’ obligation to pay real estate taxes billed on the property within 90 days and refraining from filing tax rate objections or otherwise challenging the rate of taxes levied and extended by the District.
Tax abatements reduce the amount of real estate taxes collected on the property and remitted to the District. For the year ended June 30, 2020, the District’s tax revenue was reduced by approximately $255,126 as a result of the agreement.
NOTE M - CONSTRUCTION COMMITMENTS
The District has contracts for construction projects which have been approved by the Board of Education at June 30, 2020. Future commitments under these contracts approximate $6,917,000 at June 30, 2020.
-77- Rich Township High School District 227 NOTES TO THE FINANCIAL STATEMENTS June 30, 2020
NOTE N - JOINT AGREEMENTS
The District is a member of the Special Education Cooperative of South Cook County (SPEED), a joint agreement that provides certain special education services to residents of many school districts. The District believes that, because it does not control the selection of the governing authority, and because of the control over employment of management personnel, operations, scope of public service, and special financing relationships exercised by the joint agreement governing boards, these are not included as component units of the District.
NOTE O - SUBSEQUENT EVENTS
Management has evaluated subsequent events through February 1, 2021, the date that these financial statements were available to be issued. Management has determined that no events have occurred subsequent to the statement of financial net position date that require disclosure in the financial statements.
-78- REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) Rich Township High School District 227 MULTIYEAR SCHEDULES OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Illinois Municipal Retirement Fund Six Most Recent Fiscal Years
2020 2019 2018
Total pension liability Service cost $ 878,824 $ 814,398 $ 878,512 Interest on the total pension liability 3,180,105 3,107,935 3,145,267 Difference between expected and actual experience of the total pension liability (191,529) (419,271) (907,239) Assumption changes - 1,244,525 (1,369,228) Benefit payments and refunds (2,397,285) (2,313,540) (2,112,496) Net change in total pension liability 1,470,115 2,434,047 (365,184) Total pension liability, beginning 44,622,754 42,188,707 42,553,891 Total pension liability, ending $ 46,092,869 $ 44,622,754 $ 42,188,707
Plan fiduciary net position Contributions, employer $ 719,604 $ 925,795 $ 849,874 Contributions, employee 393,320 390,422 360,334 Net investment income 7,275,711 (2,370,855) 6,644,681 Benefit payments, including refunds of employee contributions (2,397,285) (2,313,540) (2,112,496) Other (net transfer) (227,992) (203,710) (1,187,263) Net change in plan fiduciary net position 5,763,358 (3,571,888) 4,555,130 Plan fiduciary net position, beginning 38,339,000 41,910,888 37,355,758 Plan fiduciary net position, ending $ 44,102,358 38,339,000 $ 41,910,888
Net pension liability $ 1,990,511 $ 6,283,754 $ 277,819
Plan fiduciary net position as a percentage 95.68 % 85.92 % 99.34 % of the total pension liability
Covered valuation payroll $ 8,256,615 $ 8,139,348 $ 7,783,701
Net pension liability as a percentage of covered valuation payroll 24.11 % 77.20 % 3.57 %
Note 1: Actuarial valuations are as of December 31, which is six months prior to the end of the fiscal year.
Note 2: The District implemented GASB 68 beginning with its fiscal year ended June 30, 2015; therefore, 10 years of information is not available. -79- 2017 2016 2015
$ 847,587 $ 899,388 $ 971,904 2,932,959 2,816,133 2,610,869
1,163,541 (80,490) (492,461) (103,073) 48,434 1,543,254 (2,148,013) (1,942,900) (1,677,751) 2,693,001 1,740,565 2,955,815 39,860,890 38,120,325 35,164,510 $ 42,553,891 $ 39,860,890 $ 38,120,325
$ 917,513 $ 877,778 $ 928,478 357,788 357,368 361,632 2,421,696 175,815 2,051,554
(2,148,013) (1,942,900) (1,677,751) 715,405 106,523 27,018 2,264,389 (425,416) 1,690,931 35,091,369 35,516,785 33,825,854 $ 37,355,758 $ 35,091,369 $ 35,516,785
$ 5,198,133 $ 4,769,521 $ 2,603,540
% 87.78 % 88.03 % 93.17 %
$ 7,933,017 $ 7,728,050 $ 7,791,702
% 65.53 % 61.72 % 33.41 %
-80- Rich Township High School District 227 MULTIYEAR SCHEDULE OF CONTRIBUTIONS Illinois Municipal Retirement Fund Six Most Recent Fiscal Years
Actuarially Contribution Covered Actual Contribution Determined Actual Deficiency Valuation as a % of Year Contribution Contribution (Excess) Payroll Covered Valuation Payroll
2020 $ 712,546 * $ 719,604 $ (7,058) $ 8,256,615 8.72 % 2019 912,421 925,795 (13,374) 8,139,348 11.37 2018 849,980 849,874 106 7,783,701 10.92 2017 882,945 917,513 (34,568) 7,933,017 11.57 2016 877,906 877,778 128 7,728,050 11.36 2015 901,500 928,478 (26,978) 7,791,702 11.92
* Estimated based on contribution rate of 8.63% and covered valuation payroll of $8,256,615 (most recent information available).
Note: The District implemented GASB 68 beginning with its fiscal year ended June 30, 2015; therefore, 10 years of information is not available.
-81- Rich Township High School District 227 MULTIYEAR SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Teachers' Retirement System of the State of Illinois Six Most Recent Fiscal Years
2020 2019
District's proportion of the net pension liability 0.003306212200 % 0.003442261500 %
District's proportionate share of the net pension liability $ 2,681,608 $ 2,683,065
State's proportionate share of the net pension liability associated with the District 190,847,120 183,801,207
Total $ 193,528,728 $ 186,484,272
District's covered-employee payroll $ 26,178,676 $ 24,609,391
District's proportionate share of the net pension liability as a percentage of its covered- employee payroll 10.24 % 10.90 %
Plan fiduciary net position as a percentage of the total pension liability 39.60 % 40.00 %
NA - Information not available.
Note 1: Actuarial valuations are as of June 30 of the fiscal year prior to the fiscal year in which the net pension liability is reported.
Note 2: The District implemented GASB 68 beginning with its fiscal year ended June 30, 2015; therefore, 10 years of information is not available.
-82- 2018 2017 2016 2015
0.000057008118 % 0.0070056941 % 0.0042716842 % 0.0046057867 %
$ 4,355,314 $ 5,530,018 $ 2,798,383 $ NA
165,129,046 224,924,460 146,315,280 NA
$ 169,484,360 $ 230,454,478 $ 149,113,663 $ NA
$ 24,161,948 $ 26,889,469 $ 22,723,110 $ NA
18.03 % 20.57 % 12.32 % NA %
39.30 % 36.40 % 41.50 % 43.00 %
NA - Information not available.
-83- Rich Township High School District 227 MULTIYEAR SCHEDULE OF DISTRICT CONTRIBUTIONS Teachers' Retirement System of the State of Illinois Six Most Recent Fiscal Years
2020 2019 2018
Contractually required contribution $ 151,836 $ 142,734 $ 221,073
Contributions in relation to the contractually required contribution 149,731 143,023 234,871
Contribution deficiency (excess) $ 2,105 $ (289) $ (13,798)
District's covered-employee payroll $ 26,359,068 $ 26,178,676 $ 24,609,391
Contributions as a percentage of covered-employee payroll 0.57 % 0.55 % 0.95 %
NA - Information not available
Note 1: Actuarial valuations are as of June 30 of the fiscal year prior to the fiscal year in which the net pension liability is reported.
Note 2: The District implemented GASB 68 beginning with its fiscal year ended June 30, 2015; therefore, 10 years of information is not available. -84- 2017 2016 2015
$ 262,957 $ 151,108 $ NA
271,310 149,680 NA
$ (8,353) $ 1,428 $ NA
$ 24,161,948 $ 26,889,469 $ 22,723,110
1.12 % 0.56 % NA %
-85- Rich Township High School District 227 MULTIYEAR SCHEDULE OF CHANGES IN TOTAL OTHER POSTRETIREMENT BENEFITS (OPEB) LIABILITY AND RELATED RATIOS Retiree Health Plan Three Most Recent Fiscal Years
Fiscal year ended June 30, 2020 2019 2018
Total OPEB liability Service cost $ 46,740 $ 46,657 $ 120,697 Interest on the total OPEB liability 27,348 95,868 91,204 Difference between expected and actual experience of the total OPEB liability - (199,154) 201,252 Assumption changes 12,414 (48,574) - Benefit payments and refunds (115,971) (106,703) (137,632) Other changes 834 (1,261,394) - Net change in total OPEB liability (28,635) (1,473,300) 275,521 Total OPEB liability, beginning 1,038,213 2,511,513 2,235,992 Total OPEB liability, ending $ 1,009,578 $ 1,038,213 $ 2,511,513
Plan fiduciary net position Contributions, employer $ - $ - $ - Contributions, employee - - - Net investment income - Benefit payments, including refunds of employee contributions - - - Other (net transfer) - Net change in plan fiduciary net position - - - Plan fiduciary net position, beginning - - - Plan fiduciary net position, ending $ - $ - $ -
Net OPEB liability $ 1,009,578 $ 1,038,213 $ 2,511,513
Plan fiduciary net position as a percentage of the total OPEB liability 0.00 % 0.00 % 0.00 %
Covered Valuation Payroll $ 29,107,810 $ 29,107,810 $ 28,111,289
Net OPEB liability as a percentage of covered valuation payroll 3.47 % 3.57 % 8.93 %
Note: The District implemented GASB 75 beginning with its fiscal year ended June 30, 2018 therefore 10 years of information is not available. -86- Rich Township High School District 227 MULTIYEAR SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET OTHER POSTEMPLOYMENT BENEFIT (OPEB) LIABILITY Teachers' Health Insurance Security Fund Three Most Recent Fiscal Years
Fiscal year ended June 30, 2020 2019 2018 District's proportion of the net OPEB liability 0.105990 % 0.103712 % 0.104328 %
District's proportionate share of the net OPEB liability $ 29,335,337 $ 27,323,793 $ 27,072,557
State's proportionate share of the net OPEB liability associated with the District 39,723,789 36,689,961 35,552,994
Total $ 69,059,126 $ 64,013,754 $ 62,625,551
District's covered-employee payroll $ 26,178,676 $ 24,609,391 $ 24,161,948
District's proportionate share of the net OPEB liability as a percentage of its covered-employee payroll 112.06% 111.03% 112.05%
Plan fiduciary net position as a percentage of the total OPEB liability 0.25% -0.07% -0.17%
Note 1: Actuarial valuations are as of June 30, of the fiscal year prior to the fiscal year in which the net OPEB liability is reported.
Note 2: The District implemented GASB 75 beginning with its fiscal year ended June 30, 2018 therefore 10 years of information is not available.
-87- Rich Township High School District 227 MULTIYEAR SCHEDULE OF DISTRICT CONTRIBUTIONS Teachers' Health Insurance Security Fund Three Most Recent Fiscal Years
Fiscal year ended June 30,
2020 2019 2018
Contractually required contribution $ 240,844 $ 216,563 $ 202,960
Contributions in relation to the contractually required contribution 239,665 216,355 201,601
Contribution deficiency $ 1,179 $ 208 $ 1,359
District's covered-employee payroll $ 26,359,068 $ 26,178,676 $ 24,609,391
Contributions as a percentage of covered-employee payroll 0.91% 0.83% 0.82%
Note 1: Actuarial valuations are as of June 30, of the fiscal year prior to the fiscal year in which the net OPEB liability is reported.
Note 2: The District implemented GASB 75 beginning with its fiscal year ended June 30, 2018 therefore 10 years of information is not available.
-88- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ 36,155,769 $ 36,155,769 $ 34,629,966 $ (1,525,803) $ 36,145,012 Special education levy 2,856,766 2,856,766 2,337,540 (519,226) 2,733,179 Corporate personal property replacement taxes 1,268,839 1,193,839 1,400,557 206,718 1,289,636 Regular tuition from pupils or parents 173,157 173,157 30,623 (142,534) 202,345 Interest on investments 779,920 779,920 1,118,546 338,626 984,073 Sales to pupils - lunch 109,537 109,537 80,146 (29,391) 109,536 Sales to pupils - breakfast 21,581 21,581 22,370 789 21,581 Sales to pupils - a la carte 160,001 160,001 105,772 (54,229) 160,000 Sales to pupils - other - 92,631 - (92,631) - Sales to adults 92,631 77,659 72,192 (5,467) 92,836 Other food service 77,659 - 50,774 50,774 79,958 Admissions - athletic 11,857 11,857 - (11,857) 6,558 Fees 6,348 - - - 6,348 Book store sales - 6,348 - (6,348) - Refund of prior years' expenditures 74,881 74,881 129,977 55,096 74,881 Proceeds from vendors' contracts 2,118 2,118 - (2,118) 4,429 Other 75,622 75,622 50,868 (24,754) 57,191
Total local sources 41,866,686 41,791,686 40,029,331 (1,762,355) 41,967,563
State sources
Evidence Based Funding Formula 5,077,709 5,088,971 9,242,885 4,153,914 8,642,292 Special Education - Private Facility Tuition 250,912 250,912 445,741 194,829 288,213 Special Education - Orphanage - Individual 647,334 647,334 687,943 40,609 647,335 Special Education - Orphanage - Summer Individual 1,000 1,000 15,237 14,237 521 CTE - Secondary Program Improvement (CTEI) 44,435 44,435 75,981 31,546 105,687 Bilingual Education - Downstate - T.P.I. & T.B.E. 17,685 17,685 - (17,685) - State Free Lunch & Breakfast 23,600 23,600 12,834 (10,766) 21,434 Driver Education 104,000 104,000 108,951 4,951 94,868 Technology - Technology for Success 4,000 4,000 - (4,000) - Other restricted revenue from state sources 10,250 10,250 61,076 50,826 - On-Behalf Payments to TRS from the State 18,153,578 18,153,578 12,114,461 (6,039,117) 11,602,295
Total state sources 24,334,503 24,345,765 22,765,109 (1,580,656) 21,402,645
(Continued)
-89- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Federal sources
National School Lunch Program $ 1,282,860 $ 1,282,860 $ 659,464 $ (623,396) $ 877,347 School Breakfast Program 283,500 283,500 216,387 (67,113) 283,201 Summer Food Service Program - - 569,047 569,047 - Child and Adult Care Food Program 6,500 6,500 - (6,500) 6,548 Title I - Low Income 1,093,736 1,093,736 1,488,233 394,497 554,004 Title IV - Student Support & Academic Enrichment Grant 63,450 63,450 38,301 (25,149) 65,389 Federal Special Education - IDEA Flow Through 532,371 532,371 773,292 240,921 89,762 Federal Special Education - IDEA Room & Board 38,998 38,998 10,910 (28,088) - CTE - Perkins-Title IIIE Tech Prep 1,400 1,400 137,376 135,976 142,389 CTE - Other 83,348 83,348 - (83,348) - Title II - Teacher Quality 240,264 240,264 64,445 (175,819) 143,081 Medicaid Matching Funds - Administrative Outreach 40,000 40,000 88,251 48,251 63,364 Medicaid Matching Funds - Fee-For-Service Program 100,000 100,000 49,836 (50,164) 112,946 Other Restricted Revenue from Federal Sources - - 197,699 197,699 -
Total federal sources 3,766,427 3,766,427 4,293,241 526,814 2,338,031
Total revenues 69,967,616 69,903,878 67,087,681 (2,816,197) 65,708,239
Expenditures
Instruction
Regular programs Salaries 14,715,482 14,685,482 15,285,649 (600,167) 14,361,912 Employee benefits 2,931,263 2,927,132 3,095,095 (167,963) 2,870,541 On-Behalf Payments to TRS from the State 18,153,578 18,153,578 12,114,461 6,039,117 11,602,295 Purchased services 704,849 977,377 1,477,106 (499,729) 210,834 Supplies and materials 778,365 837,308 958,751 (121,443) 348,285 Capital outlay 160,500 86,000 - 86,000 - Other objects - - 15,289 (15,289) 3,409 Non-capitalized equipment 130,000 204,709 114,700 90,009 45,501
Total 37,574,037 37,871,586 33,061,051 4,810,535 29,442,777
(Continued)
-90- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Special education programs Salaries $ 5,534,691 $ 5,092,695 $ 5,283,941 $ (191,246) $ 5,454,860 Employee benefits 575,851 575,951 1,071,874 (495,923) 978,220 Purchased services 29,000 182,000 40,391 141,609 25,064 Supplies and materials 70,000 165,000 148,879 16,121 90,368 Other objects - - 103 (103) - Non-capitalized equipment 55,000 80,000 193,584 (113,584) 51,180
Total 6,264,542 6,095,646 6,738,772 (643,126) 6,599,692
Remedial and Supplemental programs K-12 Salaries 71,447 - 84,464 (84,464) 97,735 Employee benefits 17,331 - 20,131 (20,131) 19,851 Purchased services 208,088 - 5,855 (5,855) 169,569 Supplies and materials 51,893 - 12,406 (12,406) 122,669 Capital outlay - - - - 30,734 Non-capitalized equipment 53,000 - 59,156 (59,156) 115,785
Total 401,759 - 182,012 (182,012) 556,343
CTE programs Salaries 589,564 589,564 485,087 104,477 570,899 Employee benefits 135,333 135,333 113,358 21,975 130,643 Purchased services 20,040 50,595 64,188 (13,593) 50,149 Supplies and materials 109,881 90,708 32,141 58,567 74,282 Capital outlay 34,500 30,500 30,132 368 109,490 Non-capitalized equipment 21,805 44,605 55,819 11,214 43,617
Total 911,123 941,305 780,725 183,008 979,080
Interscholastic programs Salaries 2,488,803 2,538,803 2,559,412 (20,609) 2,437,550 Employee benefits 148,131 148,131 183,673 (35,542) 142,717 Purchased services 239,550 239,550 332,106 (92,556) 197,657 Supplies and materials 388,200 388,200 278,358 109,842 198,831 Other objects 143,500 143,500 86,498 57,002 142,222 Non-capitalized equipment 6,070 6,070 28,483 (22,413) -
Total 3,414,254 3,464,254 3,468,530 (4,276) 3,118,977
(Continued)
-91- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Summer school programs Salaries $ 138,695 $ 138,695 $ 130,615 $ 8,080 $ 137,882 Employee benefits 1,779 1,779 2,790 (1,011) 1,702
Total 140,474 140,474 133,405 7,069 139,584
Drivers education programs Salaries 120,781 120,781 42,428 78,353 116,697 Employee benefits 1,745 1,745 636 1,109 1,684 Purchased services 47,600 47,600 45,573 2,027 45,644 Supplies and materials 450 450 103 347 211
Total 170,576 170,576 88,740 81,836 164,236
Bilingual programs Salaries - - - - 2,160 Employee benefits - - - - 245
Total - - - - 2,405
Regular K-12 Programs Private Tuition 93,901 93,901 258,436 (164,535) 103,706
Special Education K-12 Programs Private Tuition 2,316,693 2,316,693 2,406,271 (89,578) 2,136,549
Total instruction 51,287,359 51,094,435 47,117,942 3,998,921 43,243,349
Support services
Pupils
Attendance and social work services Salaries 51,794 51,794 219,287 (167,493) 236,266 Employee benefits 248,059 248,059 54,543 193,516 56,047 Purchased services 9,000 18,000 - 18,000 - Supplies and materials 9,000 17,700 8,803 8,897 10,457
Total 317,853 335,553 282,633 52,920 302,770
(Continued) -92- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Guidance services Salaries $ 916,278 $ 916,278 $ 897,919 $ 18,359 $ 887,655 Employee benefits 170,882 170,882 180,842 (9,960) 164,960 Purchased services 218,615 223,324 200,623 22,701 233,508 Supplies and materials 17,000 17,000 10,646 6,354 9,778
Total 1,322,775 1,327,484 1,290,030 37,454 1,295,901
Health services Salaries 103,886 103,886 112,138 (8,252) 97,636 Employee benefits 9,079 9,079 9,037 42 8,185 Purchased services 48,800 68,800 122,136 (53,336) 74,032 Supplies and materials 6,900 6,900 11,936 (5,036) 1,363
Total 168,665 188,665 255,247 (66,582) 181,216
Psychological services Salaries 146,941 146,941 63,633 83,308 137,152 Employee benefits 10,007 10,507 1,654 8,853 8,916 Purchased services - - 88,483 (88,483) 95 Supplies and materials 6,000 6,000 95 5,905 -
Total 162,948 163,448 153,865 9,583 146,163
Speech pathology and audiology services Salaries 131,533 131,533 105,883 25,650 122,788 Employee benefits 31,412 31,412 27,829 3,583 30,324 Purchased services 5,075 5,075 19,209 (14,134) 1,767 Supplies and materials 3,000 5,000 1,955 3,045 2,484 Non-capitalized equipment 3,000 6,050 - 6,050 -
Total 174,020 179,070 154,876 24,194 157,363
Other support services - pupils Salaries 714,231 714,231 294,979 419,252 655,482 Employee benefits 114,671 114,671 77,138 37,533 110,697 Purchased services 61,000 61,000 23,627 37,373 329 Supplies and materials 38,750 38,750 93,192 (54,442) 36,364
Total 928,652 928,652 488,936 439,716 802,872
Total pupils 3,074,913 3,122,872 2,625,587 497,285 2,886,285
(Continued) -93- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Instructional staff
Improvement of instruction services Salaries $ 421,834 $ 437,839 $ 943,643 $ (505,804) $ 982,581 Employee benefits 11,557 6,702 199,637 (192,935) 235,173 Purchased services 630,572 639,288 426,960 212,328 467,997 Supplies and materials 27,450 55,750 43,239 12,511 37,680 Other objects 3,000 3,000 - 3,000 2,111 Non-capitalized equipment - - 1,106 (1,106) -
Total 1,094,413 1,142,579 1,614,585 (472,006) 1,725,542
Educational media services Salaries 242,187 185,782 135,232 50,550 214,390 Employee benefits 21,243 21,243 16,333 4,910 20,507 Supplies and materials 31,500 31,500 10,180 21,320 16,176 Non-capitalized equipment 15,000 15,000 - 15,000 -
Total 309,930 253,525 161,745 91,780 251,073
Assessment and testing Salaries 5,000 5,000 - 5,000 - Employee benefits 500 500 - 500 - Purchased services 75,203 85,710 139,981 (54,271) 4,494 Supplies and materials 15,000 15,000 11,981 3,019 12,080
Total 95,703 106,210 151,962 (45,752) 16,574
Total instructional staff 1,500,046 1,502,314 1,928,292 (425,978) 1,993,189
General administration
Board of education services Purchased services 429,000 429,000 698,004 (269,004) 460,400 Supplies and materials 15,000 15,000 4,629 10,371 2,783 Other objects 10,500 10,500 21,352 (10,852) 3,275 Non-capitalized equipment - - 2,336 (2,336) -
Total 454,500 454,500 726,321 (271,821) 466,458
(Continued) -94- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Executive administration services Salaries $ 396,742 $ 496,742 $ 452,340 $ 44,402 $ 357,339 Employee benefits 38,012 38,012 107,562 (69,550) 74,508 Purchased services 46,500 46,500 36,514 9,986 40,231 Supplies and materials 21,000 21,000 10,127 10,873 8,595 Other objects 25,500 25,500 11,505 13,995 18,738
Total 527,754 627,754 618,048 9,706 499,411
Special area administrative services Salaries 342,525 376,525 280,876 95,649 371,902 Employee benefits 66,921 80,406 66,072 14,334 76,455 Purchased services 6,300 6,300 14,109 (7,809) 4,833 Supplies and materials 2,000 5,000 2,163 2,837 793
Total 417,746 468,231 363,220 105,011 453,983
Tort immunity services Salaries 1,007,098 1,007,098 1,013,302 (6,204) 1,005,387 Purchased services 1,044,191 1,044,191 1,064,122 (19,931) 1,049,567
Total 2,051,289 2,051,289 2,077,424 (26,135) 2,054,954
Total general administration 3,451,289 3,601,774 3,785,013 (183,239) 3,474,806
School administration
Office of the principal services Salaries 2,347,349 2,347,349 2,262,091 85,258 2,229,373 Employee benefits 684,431 684,431 555,048 129,383 677,028 Purchased services 28,299 28,299 12,364 15,935 7,179 Supplies and materials 32,000 92,000 39,675 52,325 42,697 Other objects 12,000 12,000 2,674 9,326 619
Total 3,104,079 3,164,079 2,871,852 292,227 2,956,896
(Continued) -95- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Other support services - school administration Salaries $ 439,713 $ 439,713 $ 584,161 $ (144,448) $ 479,211 Employee benefits 101,694 101,694 107,236 (5,542) 98,169 Purchased services 780 780 - 780 100
Total 542,187 542,187 691,397 (149,210) 577,480
Total school administration 3,646,266 3,706,266 3,563,249 143,017 3,534,376
Business
Direction of business support services Salaries 163,200 163,200 164,800 (1,600) 165,231 Employee benefits 5,180 5,180 36,566 (31,386) 34,957 Purchased services 4,500 4,500 412 4,088 149 Supplies and materials 2,250 2,250 13,939 (11,689) 1,815 Other objects 1,200 1,200 1,038 162 1,113
Total 176,330 176,330 216,755 (40,425) 203,265
Fiscal services Salaries 199,934 199,934 184,549 15,385 176,624 Employee benefits - - 51,060 (51,060) 52,579 Purchased services 223,520 223,520 219,776 3,744 221,942 Supplies and materials 24,000 24,000 31,889 (7,889) 22,100
Total 447,454 447,454 487,274 (39,820) 473,245
Operation and maintenance of plant services Purchased services 3,000 3,000 23,457 (20,457) - Non-capitalized equipment 6,000 6,000 - 6,000 -
Total 9,000 9,000 23,457 (14,457) -
(Continued) -96- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Food services Salaries $ 767,071 $ 767,071 $ 970,821 $ (203,750) $ 936,875 Employee benefits 127,035 127,035 121,038 5,997 122,633 Purchased services 64,590 188,090 52,766 135,324 50,359 Supplies and materials 847,100 877,600 886,069 (8,469) 830,448 Capital outlay 30,000 - - - - Other objects 3,000 3,000 340 2,660 1,120 Non-capitalized equipment - - 4,500 (4,500) -
Total 1,838,796 1,962,796 2,035,534 (72,738) 1,941,435
Internal services Purchased services 84,000 84,000 70,282 13,718 82,410 Supplies and materials 500 2,000 317 1,683 - Capital outlay 91,000 - - - 1
Total 175,500 86,000 70,599 15,401 82,411
Total business 2,647,080 2,681,580 2,833,619 (152,039) 2,700,356
Information services Salaries 84,999 84,999 57,697 27,302 - Employee benefits - - 5,915 (5,915) - Purchased services 112,250 112,250 114,999 (2,749) 64,365 Supplies and materials 3,850 3,850 8,630 (4,780) 18 Other objects - - 561 (561) -
Total 201,099 201,099 187,802 13,297 64,383
Staff services Salaries 321,577 322,738 327,514 (4,776) 319,083 Employee benefits 206,054 206,054 271,278 (65,224) 197,240 Purchased services 201,157 201,157 179,492 21,665 156,837 Supplies and materials 22,000 22,000 21,284 716 12,660 Non-capitalized equipment - - 2,180 (2,180) -
Total 750,788 751,949 801,748 (49,799) 685,820
(Continued)
-97- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Data processing services Salaries $ 419,615 $ 424,115 $ 423,764 $ 351 $ 418,078 Employee benefits 115,280 115,730 117,845 (2,115) 111,237 Purchased services 263,159 518,159 553,207 (35,048) 341,254 Supplies and materials 206,139 198,139 165,970 32,169 88,334 Non-capitalized equipment 75,000 145,000 129,682 15,318 127,863
Total 1,079,193 1,401,143 1,390,468 10,675 1,086,766
Total central 2,031,080 2,354,191 2,380,018 (25,827) 1,836,969
Other supporting services Supplies and materials - 1,500 100 1,400 -
Total - 1,500 100 1,400 -
Total support services 16,350,674 16,970,497 17,115,878 (145,381) 16,425,981
Community services Purchased services 32,000 28,600 22,117 6,483 2,211 Supplies and materials 6,000 10,000 2,267 7,733 7,420
Total 38,000 38,600 24,384 14,216 9,631
Payments to other districts and government units Payments for special education programs - tuition Other objects 1,719,000 1,719,000 1,867,398 (148,398) 1,931,329
Payments for other programs - tuition - - 30,793 (30,793) -
Total payments to other districts and other government units 1,719,000 1,719,000 1,898,191 (179,191) 1,931,329
Total expenditures 69,395,033 69,822,532 66,156,395 3,688,565 61,610,290
Excess of revenues over expenditures 572,583 81,346 931,286 872,368 4,097,949
(Continued)
-98- Rich Township High School District 227 General Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Other financing uses
Permanent transfer from working cash fund - abatement $ (1,400,000) $ (1,400,000) $ (1,400,000) $ - $ - Transfer to debt service fund for principal on capital leases - - - - (83,908) Transfer to debt service fund for interest on capital leases - - - - (5,749) Transfer to debt service fund for principal on revenue bonds - - (200,000) (200,000) (190,000) Transfer to debt service fund for interest on revenue bonds - - (114,942) (114,942) (123,720)
Total other financing uses (1,400,000) (1,400,000) (1,714,942) (314,942) (403,377)
Net change to fund balance $ (827,417) $ (1,318,654) (783,656) $ 534,998 3,694,572
Fund balance, beginning of year 34,791,687 31,097,115
Fund balance, end of year $ 34,008,031 $ 34,791,687
(Concluded)
-99- Rich Township High School District 227 Operations and Maintenance Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ 4,297,530 $ 4,297,530 $ 3,976,655 $ (320,875) $ 4,198,005 Leasing levy (36,600) (36,600) (3,882) 32,718 (35,734) Rentals 62,903 62,903 47,072 (15,831) 66,787 Other - - 7,374 7,374 -
Total local sources 4,323,833 4,323,833 4,027,219 (296,614) 4,229,058
State sources
Evidence Based Funding Formula 1,400,000 1,400,000 1,400,000 - -
Total state sources 1,400,000 1,400,000 1,400,000 - -
Total revenues 5,723,833 5,723,833 5,427,219 (296,614) 4,229,058
Expenditures
Support services
Business
Operation and maintenance of plant services Salaries 2,484,008 2,484,008 2,312,061 171,947 2,276,939 Employee benefits 542,248 542,248 564,375 (22,127) 536,677 Purchased services 624,550 694,550 718,810 (24,260) 622,084 Supplies and materials 1,298,000 1,320,500 1,128,331 192,169 1,148,228 Capital outlay 715,000 622,500 403,164 219,336 350,954 Non-capitalized equipment 32,000 32,000 22,513 9,487 47,082
Total business 5,695,806 5,695,806 5,149,254 546,552 4,981,964
Total support services 5,695,806 5,695,806 5,149,254 546,552 4,981,964
Total expenditures 5,695,806 5,695,806 5,149,254 546,552 4,981,964
Excess (deficiency) of revenues over expenditures 28,027 28,027 277,965 249,938 (752,906)
(Continued)
-100- Rich Township High School District 227 Operations and Maintenance Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Other financing sources (uses)
Permanent transfer from working cash fund - abatement $ - $ - $ 1,400,000 $ (1,400,000) $ - Transfer to capital projects fund - - (1,400,000) 1,400,000 -
Total other financing sources (uses) - - - - -
Net change in fund balance $ 28,027 $ 28,027 277,965 $ 249,938 (752,906)
Fund balance, beginning of year 2,874,557 3,627,463
Fund balance, end of year $ 3,152,522 $ 2,874,557
(Concluded) -101- Rich Township High School District 227 Transportation Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ 1,678,592 $ 1,678,592 $ 2,648,599 $ 970,007 $ 1,888,472 Regular transportation fees from other districts - in state - - 39,743 39,743 5,528 Other local fees - 313 - (313) - Other 313 - 34,789 34,789 65,461
Total local sources 1,678,905 1,678,905 2,723,131 1,044,226 1,959,461
State sources
Evidence Based Funding Formula 600,000 600,000 600,000 - - Transportation - Regular and Vocational 1,510,076 1,510,076 485,417 (1,024,659) 1,307,104 Transportation - Special Education 1,496,995 1,496,995 2,089,470 592,475 1,646,298
Total state sources 3,607,071 3,607,071 3,174,887 (432,184) 2,953,402
Total revenues 5,285,976 5,285,976 5,898,018 612,042 4,912,863
Expenditures
Support services
Business
Pupil transportation services Salaries 12,938 12,938 12,880 58 12,939 Employee benefits - - 3,794 (3,794) - Purchased services 5,118,046 5,118,046 4,983,825 134,221 5,538,226 Supplies and materials 15,999 15,999 9,705 6,294 13,128
Total support services 5,146,983 5,146,983 5,010,204 136,779 5,564,293
(Continued) -102- Rich Township High School District 227 Transportation Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Debt service
Capital leases Principal payments on long-term debt $ 63,945 $ 63,945 $ 60,511 $ 3,434 $ 63,688 Bonds and other - interest - - 3,177 (3,177) -
Total debt service 63,945 63,945 63,688 257 63,688
Total expenditures 5,210,928 5,210,928 5,073,892 137,036 5,627,981
Excess (deficiency) of revenues over expenditures $ 75,048 75,048$ 824,126 749,078$ (715,118)
Fund balance, beginning of year 4,089,293 4,804,411
Fund balance, end of year $ 4,913,419 4,089,293$
(Concluded) -103- Rich Township High School District 227 Municipal Retirement / Social Security Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ 684,229 $ 684,229 $ 1,197,162 $ 512,933 $ 767,517 Social security/Medicare only levy 723,648 723,648 1,274,040 550,392 808,911 Corporate personal property replacement taxes - 75,000 75,000 - 75,000 Interest on investments - - 19,834 19,834 4,214
Total local sources 1,407,877 1,482,877 2,566,036 1,083,159 1,655,642
State sources
Evidence Based Funding Formula 900,000 900,000 900,000 - 950,086
Total state sources 900,000 900,000 900,000 - 950,086
Total revenues 2,307,877 2,382,877 3,466,036 1,083,159 2,605,728
Expenditures
Instruction
Regular programs 235,929 235,929 279,576 (43,647) 221,808 Special education programs 241,592 241,592 243,737 (2,145) 244,214 Remedial and supplemental programs K-12 1,363 1,363 1,183 180 1,420 Vocational educational programs 10,272 10,272 6,816 3,456 8,011 Interscholastic programs 166,042 166,042 154,506 11,536 153,133 Summer school programs 6,131 6,131 3,450 2,681 5,814 Drivers education programs 1,827 1,827 615 1,212 1,693 Bilingual programs - - - - 31
Total instruction 663,156 663,156 689,883 (26,727) 636,124
(Continued) -104- Rich Township High School District 227 Municipal Retirement / Social Security Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Support services
Pupils
Attendance and social work services $ 25,875 $ 25,875 $ 10,931 $ 14,944 $ 17,432 Guidance services 17,902 17,902 12,592 5,310 15,592 Health services 1,356 1,356 1,602 (246) 1,391 Psychological services 6,079 6,079 924 5,155 5,712 Speech pathology and audiology services 5,727 5,727 1,475 4,252 5,545 Other support services -pupils 235,732 235,732 159,821 75,911 228,023
Total pupils 292,671 292,671 187,345 105,326 273,695
Instructional staff
Improvement of instruction services 45,685 45,685 24,454 21,231 32,146 Educational media services 27,423 27,423 9,048 18,375 26,589 Assessment and testing 355 355 - 355 -
Total instructional staff 73,463 73,463 33,502 39,961 58,735
General administration
Executive administration services 18,392 18,392 19,078 (686) 17,650 Special area administrative services 18,977 18,977 26,380 (7,403) 17,993
Total general administration 37,369 37,369 45,458 (8,089) 35,643
School administration
Office of the principal services 174,098 174,098 205,466 (31,368) 159,854
Other support services - school administration 7,184 7,184 8,291 (1,107) 6,793
Total school administration 181,282 181,282 213,757 (32,475) 166,647
Business
Direction of business support services 4,872 4,872 2,630 2,242 2,634 Fiscal services 31,519 31,519 31,332 187 30,331 Operation and maintenance of plant services 415,653 415,653 393,270 22,383 394,751 Pupil transportation services - - 202 (202) - Food services 277,948 277,948 161,759 116,189 155,533
Total business 729,992 729,992 589,193 140,799 583,249
(Continued) -105- Rich Township High School District 227 Municipal Retirement / Social Security Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Central
Information services $ 487 $ 487 $ 10,176 $ (9,689) -$ Staff services 55,911 55,911 33,555 22,356 32,957 Data processing services 127,211 127,211 73,073 54,138 73,050
Total central 183,609 183,609 116,804 66,805 106,007
Other support services 7,217 7,217 - 7,217 -
Total support services 1,505,603 1,505,603 1,186,059 319,544 1,223,976
Total expenditures 2,168,759 2,168,759 1,875,942 292,817 1,860,100
Excess of revenues over expenditures $ 139,118 $ 214,118 1,590,094 $ 1,375,976 745,628
Fund balance, beginning of year 1,108,741 363,113
Fund balance, end of year $ 2,698,835 $ 1,108,741
(Concluded)
-106- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
1. LEGAL COMPLIANCE AND ACCOUNTABILITY - BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted at the fund level for the governmental funds. The annual budget is legally enacted and provides for a legal level of control at the fund level. All annual budgets lapse at fiscal year-end.
The Board of Education follows these procedures in establishing the budgetary data reflected in the financial statements:
a) The Administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.
b) Public hearings are conducted and the proposed budget is available for inspection to obtain comments.
c) By September 30, the budget is legally adopted through passage of a resolution. By the last Tuesday in December of each year, a tax levy ordinance is filed with the County Clerk to obtain tax revenues.
d) Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authorized to transfer up to a legal level of 10% of the total budget between functions within a fund; however, any revisions that alter the total expenditures of any fund must be approved by the Board of Education after the public hearing process mandated by law.
e) Formal budgetary integration is employed as a management control device during the year for the governmental funds.
f) The budget amounts shown in the financial statements are as originally adopted by the Board of Education on August 20, 2020 and amended by the Board of Education on June 16, 2020.
2. EXPENDITURES IN EXCESS OF BUDGET
The following funds had expenditures in excess of budgets at June 30, 2020:
Funds Amount
Debt Service $ 78,946,432 Capital Projects 2,865,128
The debt service fund excess is due to the refunding was not budgeted.
-107- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
3. CHANGES OF ASSUMPTIONS - TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
Changes of Assumptions
For the 2019, 2018, 2017, and 2016 measurement years, the assumed investment rate of return was 7.00 percent, including an inflation rate of 2.50 percent and a real return of 4.50%. Salary increases were assumed to vary by service credit, but the rates of increase in the 2018 measurement year were slightly higher.
For the 2015 and 2014 measurement years, the assumed investment rate of return was 7.50 percent, including an inflation rate of 3.00 percent and real return of 4.50 percent. Salary increases were assumed to vary by service credit. Various other changes in assumptions were adopted based on the experience analysis for the three-year period ending June 30, 2014.
4. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2019 IMRF CONTRIBUTION RATE*
Valuation Date:
Notes Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported.
Methods and Assumptions Used to Determine the 2019 Contribution Rate:
Actuarial Cost Method Aggregate Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period Non-Taxing bodies: 10-year rolling period. Taxing bodies (Regular, SLEP, and ECO groups): 24-year closed period. Early Retirement Incentive Plan liabilities: a period up to 10 years selected by the Employer upon adoption of ERI. SLEP supplemental liabilities attributable to Public Act 94-712 were financed over 19 years for most employers (three employers were financed over 28 years and four other were financed over 29 years). Asset Valuation Method 5-year smoothed market; 20% corridor
-108- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
4. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2019 IMRF CONTRIBUTION RATE* (Continued)
Methods and Assumptions Used to Determine the 2019 Contribution Rate: (Continued)
Wage Growth 3.25% Price Inflation 2.50%
Salary Increases 3.35% to 14.25%, including inflation Investment Rate of Return 7.50% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2017 calculation pursuant to an experience study of the period 2014-2016.
Mortality For non-disabled retirees, an IMRF mortality table was used with fully generational projections scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Other Information:
Notes There were no benefit changes during the year.
* Based on Valuation Assumptions used in the December 31, 2017 actuarial valuation.
Change in Assumptions:
For the 2019 and 2018 measurement years, the assumed investment rate of return was 7.25 percent, including an inflation rate of 2.50 percent and a real return of 4.75%.
For the 2017, 2016, 2015 and 2014 measurement years, the assumed investment rate of return was 7.50 percent, including an inflation rate of 2.50 percent and a real return of 5.00%. -109- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
5. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2019 THIS CONTRIBUTION RATE
Valuation Date:
Notes Actuarially determined contribution rates are calculated as of June 30 each year, 12 months prior to the fiscal year in which contributions are reported. Valuation Date June 30, 2018 Measurement Date June 30, 2019 Fiscal Year End June 30, 2020
Methods and Assumptions Used to Determine the 2019 Contribution Rate:
Actuarial Cost Method Aggregate Entry Age Normal Asset Valuation Method Market value Investment Rate of Return 0%, net of OPEB plan investment expense, including inflation, for all plan years. Single equivalent discount rate 3.13% Price Inflation 2.50% Salary Increases Depends on service and ranges from 9.50% at 1 year of service to 4.00% at 20 or more years of service. Salary increase includes a 3.25% wage inflation assumption.
Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the June 30, 2018, actuarial valuation.
Mortality Retirement and Beneficiary Annuitants: RP-2014 White Collar Annuitant Mortality Table, adjusted for TRS experience. Disabled Annuitants: RP-2014 Disabled Annuitant Table. Pre-Retirement: RP-2014 White Collar Table. All tables reflect future mortality improvements using Projection Scale MP-2017.
Healthcare Cost Trend Rates Actual trend used for fiscal year 2019. For fiscal years on and after 2020, trend starts at 8.00% and 9.00% for non-Medicare cost and Medicare costs, respectively, and gradually decreases to an ultimate trend of 4.50%. Additional trend rate of 0.31% is added to non-Medicare cost on and after 2022 to account for the Excise Tax.
Aging Factors Based on the 2013 SOA Study "Health Care Costs - From Birth to Death"
-110- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
5. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2019 THIS CONTRIBUTION RATE (Continued)
Expenses Health administrative expenses are included in the development of the per capita claims costs. Operating expenses are included as a component of the Annual OPEB Expense.
Change in Assumptions: The Discount Rate was changed from 3.56% used in the fiscal year 2018 valuation to 3.62% for fiscal year 2019, and from 3.62% used in the fiscal year 2019 valuation to 3.13% in fiscal year 2020, which is the Fixed income municipal bonds with 20 years to maturity that include only federally tax-exempt municipal bonds as reported in Fidelity Index’s“20-Year Municipal GO AA Index".
6. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2020 RHP CONTRIBUTION RATE
Valuation Date:
Valuation Date July 1, 2018 Measurement Date June 30, 2019 Fiscal Year End June 30, 2020
Methods and Assumptions Used to Determine the 2020 Contribution Rate:
Actuarial Cost Method Entry Age Normal Amortization Method Straight-line Remaining Amortization Period 9.84 years Municipal Bond Index 2.66%
Asset Valuation Method Market value Investment Rate of Return Not applicable Price Inflation 2.00% Salary Increases 2.00%
Retirement Rates IMRF Employees: Rates from the December 31, 2018 IMRF Actuarial Valuation Report. Election at Retirement 5% of employees are assumed to elect retiree medical coverage at retirement.
-111- Rich Township High School District 227 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020
6. SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATION OF THE 2020 RHP CONTRIBUTION RATE (Continued)
Methods and Assumptions Used to Determine the 2020 Contribution Rate: (Continued)
Mortality IMRF Employees and Retirees: Rates from the December 31, 2018 IMRF Actuarial Valuation Report. Healthcare Cost Trend Rates PPO plan - 3.85, Initial, 4.50% Ultimate HMO plan - 2.38%, Initial, 4.50% Ultimate Change in Assumptions: The Discount Rate was changed from 2.79% used in the Fiscal Year 2019 valuation to 2.66%, which is the S&P Municipal Bond 20 Year High-Grade Rate Index as of June 30, 2020. In 2019, The Discount Rate was changed from 3.90% used in the Fiscal Year 2018 valuation to 2.79%, which was the S&P Municipal Bond 20 Year High-Grade Rate Index as of June 30, 2019.
-112- SUPPLEMENTARY FINANCIAL INFORMATION Rich Township High School District 227 General Fund COMBINING BALANCE SHEET June 30, 2020
Tort Immunity Working Educational and Judgment Cash Account Account Account Total
ASSETS
Cash and investments $ 25,456,592 $ 1,847,650 $ 4,598,084 $ 31,902,326 Receivables (net of allowance for uncollectibles): Property taxes 21,645,499 964,061 192,417 22,801,977 Replacement taxes 210,397 - - 210,397 Intergovernmental 1,278,618 - - 1,278,618
Total assets $ 48,591,106 $ 2,811,711 $ 4,790,501 $ 56,193,318
LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES
Accounts payable $ 627,940 $ 29,695 $ - $ 657,635 Salaries and wages payable 34,824 24,266 - 59,090
Total liabilities 662,764 53,961 - 716,725
DEFERRED INFLOWS
Property taxes levied for a future period 20,379,712 907,685 181,165 21,468,562
Total deferred inflows 20,379,712 907,685 181,165 21,468,562
FUND BALANCES
Restricted - 1,850,065 - 1,850,065 Unassigned 27,548,630 - 4,609,336 32,157,966
Total fund balance 27,548,630 1,850,065 4,609,336 34,008,031
Total liabilities, deferred inflows, and fund balance $ 48,591,106 $ 2,811,711 $ 4,790,501 $ 56,193,318
-113- Rich Township High School District 227 General Fund COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended June 30, 2020
Tort Immunity Working Educational and Judgment Cash Account Account Account Total
Revenues Property taxes $ 34,913,666 $ 1,718,893 $ 334,947 $ 36,967,506 Replacement taxes 1,400,557 - 1,400,557 State aid 22,765,109 - - 22,765,109 Federal aid 4,293,241 - - 4,293,241 Interest 1,092,522 26,024 - 1,118,546 Other 542,722 - - 542,722
Total revenues 65,007,817 1,744,917 334,947 67,087,681
Expenditures Current: Instruction: Regular programs 21,320,001 - - 21,320,001 Special programs 9,267,796 - - 9,267,796 Other instructional programs 4,385,449 - - 4,385,449 State retirement contributions 12,114,461 - - 12,114,461 Support services: Pupils 2,625,587 992,913 - 3,618,500 Instructional staff 1,928,292 - - 1,928,292 General administration 1,707,589 1,084,511 - 2,792,100 School administration 3,563,249 - - 3,563,249 Business 2,833,619 - - 2,833,619 Central 2,380,018 - - 2,380,018 Other supporting services 100 - - 100 Community services 24,384 - - 24,384 Nonprogrammed charges 1,898,191 - - 1,898,191 Capital outlay 30,235 - - 30,235
Total expenditures 64,078,971 2,077,424 - 66,156,395
Excess (deficiency) of revenues over expenditures 928,846 (332,507) 334,947 931,286 (Continued)
-114- Rich Township High School District 227 General Fund COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended June 30, 2020
Tort Immunity Working Educational and Judgment Cash Account Account Account Total
Other financing uses
Transfers (out) $ (314,942) $ - $ (1,400,000) $ (1,714,942)
Total other financing uses (314,942) - (1,400,000) (1,714,942)
Net change in fund balance 613,904 (332,507) (1,065,053) (783,656)
Fund balance, beginning of year 26,934,726 2,182,572 5,674,389 34,791,687
Fund balance, end of year $ 27,548,630 $ 1,850,065 $ 4,609,336 $ 34,008,031
(Concluded) -115- Rich Township High School District 227 Debt Service Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 - Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ 4,663,550 $ 4,663,550 $ 4,218,209 $ (445,341) $ 4,295,899
Total local sources 4,663,550 4,663,550 4,218,209 (445,341) 4,295,899
Total revenues 4,663,550 4,663,550 4,218,209 (445,341) 4,295,899
Expenditures
Debt service
Bonds and other - interest 837,440 837,440 1,081,107 (243,667) 965,919
Total debt service - interest 837,440 837,440 1,081,107 (243,667) 965,919
Principal payments on long-term debt 4,065,000 4,065,000 81,545,000 (77,480,000) 4,063,908
Other debt service Purchased services 1,000 1,000 501 499 2,950 Other objects 1,000 1,000 1,224,264 (1,223,264) -
Total 2,000 2,000 1,224,765 (1,222,765) 2,950
Total debt service 4,904,440 4,904,440 83,850,872 (78,946,432) 5,032,777
Total expenditures 4,904,440 4,904,440 83,850,872 (78,946,432) 5,032,777
Deficiency of revenues over expenditures (240,890) (240,890) (79,632,663) (79,391,773) (736,878)
(Continued)
-116- Rich Township High School District 227 Debt Service Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 - Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Other financing sources
Debt issuance $ - $ - $ 77,532,042 $ 77,532,042 $ - Premium on debt issuance - - 5,599,215 5,599,215 - Transfer to pay principal on capital leases - - - - 83,908 Transfer to pay interest on capital leases - - - - 5,749 Transfer to pay for principal on revenue bonds - - 200,000 200,000 190,000 Transfer to pay for interest on revenue bonds - - 114,942 114,942 123,720
Total other financing sources - - 83,446,199 83,446,199 403,377
Net change in fund balance $ (240,890) $ (240,890) 3,813,536 $ 4,054,426 (333,501)
Fund balance, beginning of year 3,355,536 3,689,037
Fund balance, end of year $ 7,169,072 $ 3,355,536
(Concluded)
-117- Rich Township High School District 227 Capital Projects Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 - Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
Interest on investments $ - $ - $ 491,257 $ 491,257 $ 30,744
Total local sources - - 491,257 491,257 30,744
Total revenues - - 491,257 491,257 30,744
Expenditures
Support services
Facilities acquisition and construction services Purchased services 230,000 1,730,000 1,597,273 132,727 197,791 Capital outlay 2,070,000 2,070,000 5,067,855 (2,997,855) 1,232,208
Total support services 2,300,000 3,800,000 6,665,128 (2,865,128) 1,429,999
Total expenditures 2,300,000 3,800,000 6,665,128 (2,865,128) 1,429,999
Deficiency of revenues over expenditures (2,300,000) (3,800,000) (6,173,871) (2,373,871) (1,399,255)
Other financing sources
Debt issuance - 105,000,000 103,222,958 (1,777,042) - Premium on debt issuance - - 1,522,976 1,522,976 - Transfer in 1,400,000 1,400,000 1,400,000 - -
Total other financing sources 1,400,000 106,400,000 106,145,934 (254,066) -
Net change in fund balance $ (900,000) $ 102,600,000 99,972,063 $ (2,627,937) (1,399,255)
Fund balance, beginning of year 970,176 2,369,431
Fund balance, end of year $ 100,942,239 $ 970,176
-118- Rich Township High School District 227 Fire Prevention and Safety Fund SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended June 30, 2020 With Comparative Actual Amounts for the Year Ended June 30, 2019 2020 Original and Variance Original Final From 2019 Budget Budget Actual Final Budget Actual
Revenues
Local sources
General levy $ (40,800) $ (40,800) $ 201,116 $ 241,916 $ (38,480) Interest on investments - - 43,321 43,321 64,719
Total revenues (40,800) (40,800) 244,437 285,237 26,239
Expenditures
Support services
Facilities acquisition and construction services Capital outlay 600,000 600,000 - 600,000 -
Total expenditures 600,000 600,000 - 600,000 -
Excess (deficiency) of revenues over expenditures $ (640,800) $ (640,800) 244,437 $ 885,237 26,239
Fund balance, beginning of year 3,238,066 3,211,827
Fund balance, end of year $ 3,482,503 $ 3,238,066
-119- Rich Township High School District 227 AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT ACTIVITY FUNDS Year Ended June 30, 2020
Balance Balance July 1, 2019 Increases Decreases June 30, 2020
Assets Cash $ 350,218 $ 437,453 $ 497,955 $ 289,716
Liabilities Due to student groups $ 350,218 $ 437,453 $ 497,955 $ 289,716
-120- STATISTICAL INFORMATION (Unaudited) Statistical Section
This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time. 122 - 130
Revenue Capacity
These schedules contain information to help the reader assess the District's most significant local revenue source, the property tax. 131 - 137
Debt Capacity
These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. 138 - 144
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place. 145 - 147
Operating Information
These schedules contain information about the District's service and resources to help the reader understand how the District's financial information relates to the services the District provides and the activities it performs. 148 - 154
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
-121- Rich Township High School District 227 NET POSITION BY COMPONENT LAST THREE FISCAL YEARS
2020 2019 2018
Governmental activities
Net investment in capital assets $ 39,006,188 $ 43,284,744 $ 54,091,147 Restricted 22,864,367 17,742,387 19,679,592 Unrestricted (30,200,380) (31,278,969) (8,746,511)
Total governmental activities net position $ 31,670,175 $ 29,748,162 $ 65,024,228
Note 1 - Prior to 2018, the District reported on the Regulatory basis of accounting. As such, this schedule will be built prospectively until ten years of information is available.
Note 2 - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis and may not be comparable to other years.
-122- Rich Township High School District 227 CHANGES IN NET POSITION LAST THREE FISCAL YEARS
2020 2019 2018 Expenses Instruction: Regular programs $ 21,398,424 $ 18,219,569 $ 17,315,925 Special programs 9,658,675 9,574,021 8,961,606 Other instructional programs 4,664,331 4,531,444 4,636,460 State retirement contributions 21,957,874 18,550,367 18,153,578 Support services: Pupils 3,838,063 4,226,525 3,796,542 Instructional staff 1,967,253 2,084,703 2,093,060 General administration 2,815,542 2,548,184 2,530,259 School administration 3,812,042 3,852,795 4,055,424 Business 964,397 2,964,128 3,016,125 Transportation 5,010,059 5,629,215 4,857,380 Operations and maintenance 5,514,697 5,577,281 5,359,217 Central 4,571,231 2,236,398 1,919,982 Other supporting services 100 - 50,875 Community services 24,384 9,631 36,278 Nonprogrammed charges 1,898,191 1,931,329 1,914,893 Interest and fees 2,126,105 453,510 486,696 Unallocated depreciation 4,532,889 2,420,920 2,403,296 Total expenses 94,754,257 84,810,020 81,587,596 Program Revenues Charges for services Instruction: Regular programs 30,623 215,251 194,669 Other instructional programs - - 6,446 Support services: Business 331,254 463,911 502,742 Transportation 39,743 70,989 39,255 Operations and maintenance 47,072 66,787 79,608 Operating grants and contributions 30,233,765 23,797,717 26,386,304 Total program revenues 30,682,457 24,614,655 27,209,024 Net expense (64,071,800) (60,195,365) (54,378,572) General revenues Taxes: Real estate taxes, levied for general purposes 35,248,613 38,777,624 38,894,890 Real estate taxes, levied for specific purposes 11,012,583 7,689,258 7,295,494 Real estate taxes, levied for debt service 4,218,209 4,295,899 4,319,168 Personal property replacement taxes 1,475,557 1,364,636 1,252,751 State aid-formula grants 12,142,885 9,592,378 6,151,664 Investment earnings 1,672,958 1,083,750 808,958 Miscellaneous 223,008 136,501 195,826 Total general revenues 65,993,813 62,940,046 58,918,751 Change in net position $ 1,922,013 $ 2,744,681 $ 4,540,179
Note 1 - Prior to 2018, the District reported on the regulatory basis of accounting. As such, this schedule will be built prospectively until ten years of information is available.
Note 2 - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis and may not be comparable to other fiscal years.
-123- Rich Township High School District 227 FUND BALANCES OF GOVERNMENTAL FUNDS LAST THREE FISCAL YEARS
2020 2019 2018
General Fund Restricted $ 1,850,065 $ 2,182,572 $ 2,286,096 Unassigned 32,157,966 32,609,115 26,530,271
Total general fund 34,008,031 34,791,687 28,816,367
All other governmental funds Restricted 122,358,590 15,636,369 17,393,496
Total all other governmental funds 122,358,590 15,636,369 17,393,496
Total $ 156,366,621 $ 50,428,056 $ 46,209,863
Note 1 - Prior to 2018, the District reported on the regulatory basis of accounting. As such, this schedule will be built prospectively until ten years of information is available.
Note 2 - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis of accounting and may not be comparable to other fiscal years.
-124- Rich Township High School District 227 GOVERNMENTAL FUNDS REVENUES BY SOURCE LAST TEN FISCAL YEARS
2020 2019 2018 2017
Local Sources Property taxes $ 50,479,405 $ 50,762,781 $ 50,509,552 $ 52,004,838 Replacement taxes 1,475,557 1,364,636 1,252,751 1,497,175 Earnings on investments 1,672,958 1,083,750 808,958 685,666 Other local sources 671,700 953,439 1,018,546 1,262,658
Total local sources 54,299,620 54,164,606 53,589,807 55,450,337
State sources Evidence Based Funding / general state aid 12,142,885 8,642,292 6,151,664 4,381,875 Other state aid 16,097,111 16,663,841 23,204,411 13,778,541
Total state sources 28,239,996 25,306,133 29,356,075 18,160,416
Federal sources 4,293,241 2,338,031 3,181,893 3,242,327
Total $ 86,832,857 $ 81,808,770 $ 86,127,775 $ 76,853,080
Note - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis of accounting. 2017 and prior were reported on the regulatory basis of accounting.
-125- 2016 2015 2014 2013 2012 2011
$ 53,414,015 $ 52,104,657 $ 51,597,144 $ 51,030,172 $ 49,988,343 $ 50,030,741 1,347,817 1,464,135 1,399,315 1,335,214 1,248,531 1,411,655 799,119 496,896 205,351 549,942 617,783 549,153 1,327,577 1,392,422 1,232,073 1,465,257 1,070,756 2,244,474
56,888,528 55,458,110 54,433,883 54,380,585 52,925,413 54,236,023
4,380,518 4,356,536 4,921,949 5,398,768 8,999,121 9,552,656 15,282,517 11,695,090 13,886,941 12,345,513 11,875,500 11,121,047
19,663,035 16,051,626 18,808,890 17,744,281 20,874,621 20,673,703
3,338,228 2,593,493 2,702,650 3,540,632 3,345,755 3,981,642
$ 79,889,791 $ 74,103,229 $ 75,945,423 $ 75,665,498 $ 77,145,789 $ 78,891,368
-126- Rich Township High School District 227 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS
2020 2019 2018 2017 Current: Instruction Regular programs $ 21,599,577 $ 18,325,398 $ 17,584,195 $ 17,097,172 Special programs 9,512,716 9,391,699 8,961,606 6,020,514 Other instructional programs 4,550,836 4,419,857 4,636,460 7,909,440 State retirement contributions 12,114,461 11,602,295 18,153,578 9,594,528
Total instruction 47,777,590 43,739,249 49,335,839 40,621,654
Supporting Services Pupils 3,805,845 4,163,715 3,796,542 3,150,406 Instructional staff 1,961,794 2,051,924 2,093,060 1,298,444 General administration 2,837,558 2,506,714 2,530,259 3,663,202 School administration 3,777,006 3,701,023 4,055,424 4,270,693 Business 3,029,542 2,888,853 3,016,125 3,955,150 Transportation 5,010,204 5,564,293 4,793,692 4,786,167 Operations and maintenance 5,139,360 5,025,761 4,933,009 4,784,702 Central 2,496,822 1,942,976 1,919,982 2,118,241 Other supporting services 100 - 50,875 51,146
Total supporting services 28,058,231 27,845,259 27,188,968 28,078,151
Community services 24,384 9,631 36,278 20,607
Nonprogrammed charges 1,898,191 1,931,329 1,914,893 2,280,142
Total current 77,758,396 73,525,468 78,475,978 71,000,554 Other: Debt service: Principal 81,605,511 4,063,908 4,138,683 3,968,761 Interest 2,309,049 968,869 1,058,822 1,098,575 Capital outlay 7,098,527 1,984,866 622,058 342,943
Total other 91,013,087 7,017,643 5,819,563 5,410,279
Total $ 168,771,483 $ 80,543,111 $ 84,295,541 $ 76,410,833
Debt service as a percentage of noncapital expenditures 51.90% 6.41% 6.21% 6.66%
Note - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis of accounting. 2017 and prior were reported on the regulatory basis of accounting. -127-
2016 2015 2014 2013 2012 2011
$ 18,874,162 $ 16,986,674 $ 18,389,095 $ 17,720,370 $ 20,807,409 $ 19,384,363 6,638,366 5,132,872 5,214,205 5,781,751 7,568,161 8,725,836 7,407,858 5,426,003 4,872,991 6,502,062 6,335,692 5,102,433 10,028,353 7,835,469 8,759,562 7,046,745 7,247,742 6,823,951
42,948,739 35,381,018 37,235,853 37,050,928 41,959,004 40,036,583
2,903,897 2,947,886 3,671,714 3,743,539 5,334,972 6,305,849 1,237,967 1,525,063 1,476,511 1,509,052 1,448,964 933,371 4,516,152 4,144,430 4,573,689 4,692,812 3,895,188 4,109,514 5,222,255 5,149,632 4,250,380 3,600,018 4,151,523 4,568,783 3,391,245 3,445,169 3,766,031 3,141,651 3,169,197 3,346,276 4,454,896 4,818,656 4,081,716 3,693,401 3,630,886 4,120,809 4,787,252 4,802,169 4,657,871 4,696,520 5,967,536 4,646,837 1,804,467 1,897,630 1,240,081 754,411 801,060 898,522 - 103 62,529 55,735 70,566 82,562
28,318,131 28,730,738 27,780,522 25,887,139 28,469,892 29,012,523
26,761 43,472 30,944 49,449 6,144 984
2,419,104 2,420,734 4,018,139 3,004,307 3,704,062 3,644,900
73,712,735 66,575,962 69,065,458 65,991,823 74,139,102 72,694,990
3,897,174 3,795,475 3,655,495 2,166,921 2,243,639 3,376,010 1,488,255 1,879,554 2,027,228 3,471,030 3,676,948 2,302,651 1,972,575 613,109 224,922 548,736 2,033,035 -
7,358,004 6,288,138 5,907,645 6,186,687 7,953,622 5,678,661
$ 81,070,739 $ 72,864,100 $ 74,973,103 $ 72,178,510 $ 82,092,724 $ 78,373,651
6.81% 7.85% 7.60% 7.87% 7.40% 7.25%
-128- Rich Township High School District 227 GOVERNMENTAL FUNDS OTHER FINANCING SOURCES AND USES AND NET CHANGE IN FUND BALANCES - LAST TEN FISCAL YEARS
2020 2019 2018 2017
Excess (deficiency) of revenues over expenditures $ (81,938,626) $ 1,265,659 $ 1,832,234 $ 442,247
Other financing sources (uses) Debt issuance 180,755,000 - - - Premium on debt issuance 7,122,191 - - - Transfers in 1,714,942 403,377 3,491,450 - Transfers out (1,714,942) (403,377) (3,491,450) -
Total 187,877,191 - - -
Net change in fund balances $ 105,938,565 $ 1,265,659 $ 1,832,234 $ 442,247
Note - In 2019, the District began reporting on an accrual basis of accounting. 2018 was reported on the modified cash basis of accounting. 2017 and prior were reported on the regulatory basis of accounting.
-129- 2016 2015 2014 2013 2012 2011
$ (1,180,948) $ 1,239,129 $ 972,320 $ 3,486,988 $ (4,946,935) $ 517,717
------
------
$ (1,180,948) $ 1,239,129 $ 972,320 $ 3,486,988 $ (4,946,935) $ 517,717
-130- Rich Township High School District 227 ASSESSED VALUATION AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN TAX LEVY YEARS
Tax Assessed Valuation Year Residential Farms Commercial Industrial Railroad
2019 $ N/A $ N/A $ N/A $ N/A $ N/A 2018 678,300,496 961,290 248,520,205 40,744,026 4,591,319 2017 698,373,488 904,016 245,197,478 42,623,338 4,304,637 2016 644,455,498 856,797 236,843,113 35,348,616 4,937,450 2015 617,962,663 801,302 230,721,255 33,609,635 4,698,408 2014 642,533,701 864,754 232,763,562 33,754,343 4,178,866 2013 674,081,460 879,332 198,774,408 82,725,702 3,885,098 2012 737,200,420 878,019 214,772,289 89,197,816 2,963,869 2011 824,279,449 881,215 220,112,137 95,055,393 3,159,798 2010 1,054,936,839 913,100 253,593,956 109,643,513 3,126,210
Source of information: Cook County Clerk Farm, commercial, industrial, and railroad breakout not available for tax year 2019.
-131- Total Total Estimated Assessed Direct Actual Value Rate Value
$ 962,400,168 6.28 $ 2,887,200,504 973,117,336 6.04 2,919,352,008 991,402,957 5.92 2,974,208,871 922,441,474 6.23 2,767,324,422 887,793,263 6.46 2,663,379,789 914,095,226 6.22 2,742,285,678 960,346,000 5.83 2,881,038,000 1,045,012,413 5.30 3,135,037,239 1,143,487,992 4.69 3,430,463,976 1,422,213,618 3.70 4,266,640,854
-132- Rich Township High School District 227 PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN TAX LEVY YEARS
2019 2018 2017 2016 District direct rates Educational 4.0941 3.8233 4.1228 3.3701 Tort immunity 0.1954 0.2302 0.2118 0.2618 Operations and maintenance 0.4925 0.4812 0.5125 0.5296 Special education 0.2931 0.2832 0.3727 0.3851 Bond and interest 0.5191 0.5128 0.5034 0.5412 Transportation 0.2931 0.3776 0.0860 0.7551 Life safety 0.0479 - - 0.0963 Illinois municipal retirement 0.1466 0.1416 0.0272 0.0897 Leasing educational facilities 0.0010 - - 0.0455 Working cash 0.0390 0.0437 0.0466 0.0481 Social security 0.1563 0.1510 0.0330 0.1077
Total direct 6.2781 6.0446 5.9160 6.2302
Percent of Total Tax Bill 35.92% 33.85% 34.88% 34.81%
Overlapping rates Cook County 0.4540 0.4890 0.4960 0.5330 Cook County Forest Preserve 0.0590 0.0600 0.0620 0.0630 Metropolitan Water Reclamation District 0.0389 0.3960 0.4020 0.4060 Cosildated Elections 0.0300 - 0.0310 - Rich Township 0.2760 0.2750 0.2620 0.2840 Rich Township General Assistance 0.0550 0.0500 0.0460 0.0500 Rich Township Road & Bridge 0.1100 0.1050 0.0970 0.1030 The Village & Olympia Fields Library 2.1150 2.1100 2.0110 2.1200 Olympia Fields Park District 0.9110 0.8580 0.7720 0.8110 School District Number 162 6.6580 6.9930 6.4130 6.8150 Community College District No. 515 0.4920 0.4770 0.4540 0.4810
Total overlapping 11.1989 11.8130 11.0460 11.6660
Total direct and overlapping rate 17.4770 17.8576 16.9620 17.8962
Source: Cook County Clerk Note: Tax rates are per $100 of assessed value.
-133- 2015 2014 2013 2012 2011 2010
3.5000 3.2041 3.5000 3.4131 3.1820 2.7317 0.2800 0.2546 0.2725 0.2019 0.0770 - 0.5500 0.5080 0.5500 0.4899 0.4256 0.3162 0.4000 0.3183 0.3280 0.0001 - - 0.5968 0.5973 0.5682 0.5892 0.5389 0.4330 0.7003 0.8435 0.2624 0.2351 0.1702 0.0857 0.1000 0.0924 0.0005 0.0001 - - 0.0539 0.1061 0.0790 0.1764 0.1617 0.0591 0.1000 0.0924 0.0219 0.0001 - - 0.0500 0.0462 0.0500 0.0488 0.0463 0.0495 0.1326 0.1591 0.1974 0.1470 0.0851 0.0295
6.4636 6.2220 5.8299 5.3017 4.6868 3.7047
34.49% 34.69% 34.81% 35.27% 35.22% 35.32%
0.5520 0.5680 0.5600 0.5310 0.4620 0.4230 0.0690 0.0690 0.0690 0.0630 0.0580 0.0510 0.4260 0.4300 0.4170 0.3700 0.3200 0.2740 0.0340 - 0.0310 - 0.0250 - 0.2960 0.3020 0.3040 0.2920 0.2580 0.2020 0.0520 0.0480 0.0460 0.0390 0.0340 0.0260 0.1060 0.1010 0.0940 0.0850 0.0740 0.0580 2.2320 2.1090 1.9670 1.7400 1.5370 1.1910 0.9130 0.8520 0.7830 0.6790 0.5920 0.4580 7.1100 6.7760 6.2090 5.5230 4.9050 3.8080 0.4870 0.4580 0.4390 0.4100 0.3570 0.2930
12.2770 11.7130 10.9190 9.7320 8.6220 6.7840
18.7406 17.9350 16.7489 15.0337 13.3088 10.4887
-134- Rich Township High School District 227 PRINCIPAL PROPERTY TAXPAYERS IN THE DISTRICT CURRENT YEAR AND NINE YEARS AGO June 30, 2020
Percentage of 2019 Total 2019 Equalized Equalized Assessed Assessed Taxpayer Type of Business Valuation Valuation
Realty American L.P. Real Estate Properties $ 16,676,315 1.73% GCAA Attn Manheim Tax Vehicle Remarketing Services 14,222,134 1.48% Wal Mart Real Estate Business Services Sector Industry 13,226,384 1.37% Wal Mart Trust Business Services Sector Industry 8,406,525 0.87% Ryan LLC PTS Business Consulting 7,080,876 0.74% Engineered Polymer Sol Engineered Polymer Solutions 5,642,667 0.59% Mablebrook Partnership Subsidiary 4,890,543 0.51% Carmax Automobile Sales 4,861,850 0.51% Menards, Inc Home Impovement 4,668,708 0.49% Timber Ridge Mobile Hh Real Estate 5,597,154 0.58%
Total $ 85,273,156 8.87%
Total EAV 2019 $962,400,168
Percentage of 2010 Total 2010 Equalized Equalized Assessed Assessed Taxpayer Type of Business Valuation Valuation
Wal Mart Prop Tax Business Services Sector Industry $ 3,967,494 0.28% GCAA Attn Manheim Tax Vehicle Remarketing Services 3,247,615 0.23% WEC 98C LLC Real Estate 3,214,290 0.23% New Plan Excel Prop Tr Real Estate 3,249,973 0.23% Holiday Inn Select Hospitality 2,929,796 0.21% Realty American LP Real Estate Properties 2,378,193 0.17% Sear Roebuck & Co. Retail 2,287,516 0.16% Ace Hardware Corp Home Impovement 2,218,244 0.16% Simon Prop Grp LP Real Estate Properties 2,296,099 0.16% St James Hospital Health Services 2,191,358 0.15%
Total $ 27,980,578 1.97%
Total EAV 2010 $1,422,213,618
Cook County Clerk's and Assessors Office
-135- Rich Township High School District 227 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN TAX LEVY YEARS
Collected Within the Taxes Levied Fiscal Year of the Levy Collections in Levy For the Percentage Subsequent Year Levy Year Amount of Levy Years
2019 $ 60,420,397 $ 26,424,630 43.73% $ - 2018 58,380,646 27,137,646 46.48% 25,256,415 2017 58,370,609 27,473,026 47.07% 24,861,842 2016 57,313,512 27,591,904 48.14% 24,624,156 2015 57,224,883 26,703,375 46.66% 25,218,138 2014 56,875,020 26,679,866 46.91% 25,268,171 2013 55,842,646 26,281,001 47.06% 25,559,610 2012 55,090,884 25,962,050 47.13% 25,220,976 2011 52,394,296 24,578,079 46.91% 25,264,221 2010 52,428,525 25,433,011 48.51% 24,316,515
Source of information: District Business Office
-136- Total Collections to Date Percentage Amount of Levy
$ 26,424,630 43.7% 52,394,061 89.7% 52,334,869 97.4% 52,216,061 95.8% 51,921,513 99.4% 51,948,037 96.7% 51,840,611 95.8% 51,183,026 94.6% 49,842,300 97.8% 49,749,526 97.5%
-137- Rich Township High School District 227 RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS
General Per Capita Obligation Capital Personal Year Bonds Leases Total Income*
2020 $ 123,560,000 $ 148,814 $ 123,708,814 $ 59,961 2019 24,350,000 209,325 24,559,325 59,874 2018 24,350,000 293,233 24,643,233 59,241 2017 28,330,000 511,916 28,841,916 58,442 2016 36,005,000 732,000 36,737,000 56,609 2015 37,250,000 - 37,250,000 54,427 2014 37,250,000 - 37,250,000 48,184 2013 40,555,000 - 40,555,000 48,069 2012 46,730,000 - 46,730,000 48,299 2011 49,728,931 53,931 49,782,862 47,904
Note: See Demographic and Economic Statistics table for personal income and population data.
* Per Capita Income U.S. Census
-138- Percentage Outstanding of Personal Debt per Income Population Capita
0.05% 75,222 $ 1,645 0.24% 75,655 325 0.24% 76,166 324 0.20% 76,503 377 0.15% 76,929 478 0.15% 77,202 483 0.13% 77,278 482 0.12% 77,151 526 0.10% 76,740 609 0.10% 77,159 645
-139- Rich Township High School District 227 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS
Less: Amounts Net General Add: Available General Equalized Fiscal Bonded Bond in Debt Bonded Assessed Year Debt Premiums Service Fund Debt Valuation
2020 $ 123,560,000 $ 7,344,165 $ 7,169,072 $ 123,735,093 $ 962,400,168 2019 24,350,000 443,949 3,355,536 21,438,413 973,117,336 2018 24,350,000 209,325 3,554,796 21,004,529 991,402,957 2017 24,350,000 293,233 3,877,995 20,765,238 922,441,474 2016 28,330,000 511,916 3,962,631 24,879,285 887,793,263 2015 36,005,000 732,000 3,908,467 32,828,533 914,095,226 2014 37,250,000 - 4,561,193 32,688,807 960,346,000 2013 37,250,000 - 4,229,645 33,020,355 1,045,012,413 2012 40,555,000 - 4,103,307 36,451,693 1,143,487,992 2011 46,730,000 - 4,131,426 42,598,574 1,422,213,618 2010 49,728,931 53,931 3,888,093 45,894,769 1,460,033,202
-140- Percentage of Net General Bonded Debt Net General to Estimated Estimated Bonded Debt Actual Valuation Population Per Capita
12.86% 75,222 $ 1,645 2.20% 75,655 283 2.12% 76,166 276 2.25% 76,503 271 2.80% 76,929 323 3.59% 77,202 425 3.40% 77,278 423 3.16% 77,151 428 3.19% 76,740 475 3.00% 77,159 552 3.14% 77,159 595
-141- Rich Township High School District 227 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS
Legal Debt Margin Calculation for Fiscal Year 2020
Assessed Valuation $ 962,400,168
Debt Limit - 6.9% of 0.069 Assessed Valuation $ 66,405,612
Total Debt Outstanding (Face Amount) $ 123,708,814
Less: Exempted Debt $ (105,755,000)
Net Subject to 6.9% Limit 17,953,814
Total Debt Margin $ 48,451,798
Fiscal Year
2020 2019 2018 2017
Debt Limit $ 66,405,612 $ 67,145,096 $ 68,406,804 $ 68,406,804 Total Net Debt Applicable to Limit 17,953,814 21,879,325 25,753,233 21,963,233
Legal Debt Margin $ 48,451,798 $ 45,265,771 $ 42,653,571 $ 46,443,571
Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 33% 38% 32% 41%
The llinois School Code provides exceptions to the 6.9% legal debt limit for bonds related to acquiring or improving a site or sites, constructing, extending, improving and equipping school buildings, establishing a working cash fund, and certain types of funding bonds or bonds approved by 2/3 of voters on a referendum. The 2020B, 2020C, 2020 D, and 2020 E bonds are covered by these exclusions.
-142- 2016 2015 2014 2013 2012 2011
$ 63,648,461 $ 61,257,735 $ 63,072,571 $ 66,263,874 $ 72,105,856 $ 78,900,671 25,971,616 27,750,735 37,175,000 37,250,000 40,555,000 46,730,000
$ 37,676,845 $ 33,507,000 $ 25,897,571 $ 29,013,874 $ 31,550,856 $ 32,170,671
16% 14% 16% 12% 12% 10%
-143- Rich Township High School District 227 COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2020
Debt Overlapping Net Direct and Governmental Jurisdiction Outstanding Percent Overlapping Debt
Overlapping Debt: County Cook County $ 2,803,851,750 0.614% $ 17,215,650 Cook County Forest Preserve 86,265,000 0.614% 529,667
School Districts School District 159 13,069,542 100.000% 13,069,542 School District 160 12,609,487 57.295% 7,224,606 School District 161 4,180,000 1.674% 69,973 School District 162 18,945,000 100.000% 18,945,000 School District 163 25,750,000 100.000% 25,750,000 School District 194 10,650,000 1.284% 136,746 Prairie State Community Collage District #515 8,490,000 30.260% 2,569,074
Park Districts Country Club Hills Park District 610,665 39.841% 243,295 Frankfort Square Park District 2,102,947 7.137% 150,087 Olympia Fields Park District 346,425 96.760% 335,201 Tinley Park Park District 1,023,000 5.185% 53,043
Municipalities City of Chicago Heights 57,425,000 1.440% 826,920 City of Country Club Hills 38,275,000 39.738% 15,209,720 Village of Matteson 3,544,450 100.000% 3,544,450 Village of Olympia Fields 160,000 89.529% 143,246 Village of Park Forest 1,340,000 81.118% 1,086,981 Village of Tinley Park 12,570,000 6.134% 771,044 Village of University Park 1,785,000 1.599% 28,542
Miscellaneous Metropolitan Water Reclamation District 2,590,665,000 0.538% 13,937,778 Richton Park Library District 4,120,000 100.000% 4,120,000
Total Overlapping Debt 125,960,564
Rich Township High School District 227 123,560,000 100.000% 123,560,000
Total Direct and Overlapping Debt $ 249,520,564
Source: City of Chicago Heights CAFR, Village of Park Forest CAFR, Village of Matteson
Note: Percent applicable to the School District is calculated using assessed valuation of the School District area value contained within the noted government unit. -144- Rich Township High School District 227 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN YEARS
City of Country Village of Matteson Village of Olympia Year Club Hills Population Population Fields Population
2019 16,482 19,448 4,790 2018 16,599 19,460 4,825 2017 16,770 19,402 4,875 2016 16,916 19,247 4,915 2015 17,028 19,278 4,951 2014 17,112 19,251 4,974 2013 17,132 19,245 4,977 2012 17,099 19,205 4,968 2011 16,853 19,138 4,946 2010 16,541 19,009 5,988
Information presented is the most recent available
Source of information:
* Per Capita Income U.S. Census Bureau **Illinois Department of Employment Security
-145- Per Capita Average Village of Park Village of Richton Park Personal Unemployment Forest Population Population Income* Rate**
21,210 13,292 $ 59,961 5.30% 21,387 13,384 59,874 5.26% 21,604 13,515 59,241 6.40% 21,796 13,629 58,442 7.46% 21,954 13,718 56,609 7.66% 22,084 13,781 54,427 9.88% 22,128 13,796 48,184 12.28% 22,109 13,770 48,069 11.30% 22,074 13,729 48,299 12.84% 21,975 13,646 47,904 12.76%
-146- Rich Township High School District 227 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO
2019
Percent of Employer Employees Total Employment
Universal Protection Service, Inc. 4,000 34.82% YRC Freight 1,600 13.93% Ford Motor Company 1,200 10.45% Panduit Corporation 1,200 10.45% Ludeman Center 769 6.69% ABF Freight Systems Inc. 700 6.09% Rich Township High School District 227 619 5.39% Manheim Chicago 500 4.35% Prairie State College 500 4.35% Applied Acoustics International 400 3.48%
Total 11,488 100%
2010
Percent of Employer Employees Total Employment
Saint James Hospital 2,200 22.39% Ford Motor Company 1,920 19.54% Roadway Express 1,300 13.23% Ludeman's Center 1,000 10.18% UGN, Inc. 750 7.63% Prairie State College 681 6.93% Morgan Marshall Industries 600 6.11% Chicago Heights Steel 600 6.11% Manheim Chocago 425 4.33% Bank Finanical 350 3.56%
9,826 100%
Source of information: Municipal CAFR's and District 227 records
-147- Rich Township High School District 227 NUMBER OF EMPLOYEES BY TYPE LAST TEN FISCAL YEARS
2020 2019 2018 2017 2016 Administration: Superintendent 1 1 3 2 3 Assistant Superintendents 3 2 1 1 - District Administrators 22 28 14 9 14 Principals and assistants 9 9 11 11 12 Total administration 35 40 29 23 29
Teachers: High School 157 145 152 157 159 Instrumental music 2 3 3 2 3 Special education and bilingual 65 64 67 67 73 Psychologists 1 3 3 3 2 Social workers and counselors 19 18 18 17 16 Total teachers 244 233 243 246 253
Other supporting staff: Custodians 30 33 32 30 32 Food Service 38 37 40 41 45 Certified Exempt 115 121 111 115 117 Non-Certified Exempt 22 19 20 20 24 Maintenance 7 6 6 6 6 Secretarial 47 54 55 52 53 Special Staff 25 20 18 18 20 Student Mgt. Personnel 11 9 13 19 18 Teacher Aides 43 44 54 50 57 Total support staff 338 343 349 351 372
Total staff 617 616 621 620 654
Source of information: Various District Office Departments
-148- 2015 2014 2013 2012 2011
2 3 2 1 1 - 2 2 2 2 12 14 7 8 8 15 12 9 12 12 29 31 20 23 23
142 160 162 210 210 3 3 3 3 3 59 60 58 67 67 2 3 4 3 3 16 15 17 16 16 222 241 244 299 299
31 33 31 29 29 46 44 44 45 45 121 112 79 90 90 24 30 23 23 23 6 8 7 7 7 52 53 55 56 56 18 19 25 28 28 20 18 21 17 17 59 57 57 81 81 377 374 342 376 376
628 646 606 698 698
-149- Rich Township High School District 227 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS
Cost Cost Fiscal Operating Per Percentage of Per Year Enrollment Expenditures Pupil Change Expenditures * Pupil
2020 2,737 $ 62,638,836 $ 21,704 1.54% $ 87,166,403 $ 30,203 2019 2,886 68,387,777 22,560 -26.82% 80,543,111 27,908 2018 2,997 66,930,405 21,369 2.63% 84,295,541 28,127 2017 3,369 65,449,566 20,807 -0.72% 76,410,833 22,681 2016 3,587 59,375,691 20,958 10.23% 81,070,739 22,601 2015 3,447 55,135,718 18,814 2.16% 72,864,100 21,138 2014 3,608 56,376,748 18,407 7.43% 74,973,103 20,780 2013 3,986 54,777,916 17,040 6.69% 72,178,510 18,108 2012 3,842 61,170,755 15,900 0.27% 82,092,724 21,367 2011 4,019 71,549,700 15,857 -45.16% 78,373,651 19,501 2010 4,117 67,721,309 23,019 7.96% - 26,573
Source of information: Various District Office Departments * Expenditures in 2020 excludes $81,605,000 debt refunding
-150- Percentage of Students Receiving Pupil - Free or Percentage Teaching Teacher Reduced Price- Change Staff Ratio Meals
6.88% 244 18.0 75.00% -20.93% 233 17.0 79.00% 19.36% 243 18.0 81.00% 0.35% 246 21.0 80.00% 6.47% 253 19.0 79.00% 1.70% 222 19.0 76.00% 12.86% 241 20.0 80.00% -18.00% 244 22.0 68.00% 8.73% 299 18.0 75.00% -36.27% 299 19.0 74.00% 14.90% 299 11.1 33.00%
-151- Rich Township High School District 227 SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS
2020 2019 2018 2017 2016 2015
Rich Central High School Square Feet 238,550 238,550 238,550 238,550 238,550 238,550 Arces 49.85 49.85 49.85 49.85 49.85 49.85 Capacity (Students) 1,625 1,625 1,625 1,625 1,625 1,625 Enrollment 988 1,070 1,088 1,230 1,277 1,283
Rich East High School Square Feet 201,150 201,150 201,150 201,150 201,150 201,150 Arces 56.10 56.10 56.10 56.10 56.10 56.10 Capacity (Students) 1,354 1,354 1,354 1,354 1,354 1,354 Enrollment 821 901 940 1,033 1,165 1,054
Rich South High School Square Feet 214,795 214,795 214,795 214,795 214,795 214,795 Arces 49.03 49.03 49.03 49.03 49.03 49.03 Capacity (Students) 1,389 1,389 1,389 1,389 1,389 1,389 Enrollment 928 915 969 1,106 1,155 1,110
Source of information: Various District Office Departments
-152- 2014 2013 2012 2011
238,550 238,550 238,550 238,550 49.85 49.85 49.85 49.85 1,625 1,625 1,625 1,625 1,277 1,539 1,446 1,503
201,150 201,150 201,150 201,150 56.10 56.10 56.10 56.10 1,354 1,354 1,354 1,354 1,145 1,168 1,148 1,173
214,795 214,795 214,795 214,795 49.03 49.03 49.03 49.03 1,389 1,389 1,389 1,389 1,186 1,279 1,248 1,343
-153- Rich Township High School District 227 MISCELLANEOUS STATISTICS June 30, 2020
Location: South Suburban, Chicagoland
Date of Organization: 1953
Number of Schools: 3
Area Served: 34 Square Miles
Median Home Value: $135,600
Student Enrollment: 2,737
Certified Teaching Staff: 253
Pupil/Teacher Ratio: 10.8
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