Park Ridge-Niles School District 64 transfers money between different funds to ensure the district can pay its staff and meet its expenses. The district has yet to receive the property tax revenue it relies on for its operations due to billing delays at the Cook County level, which is late in sending out the second installment of utility bills. property tax this year.
District 64 administrators explained that the district has enough cash to cover its expenses in the meantime and that they do not expect the delay in disbursement of property taxes to continue for long in the future. future.
Council members voted last month to move a total of $3.65 million between four different district funds to keep operations and debt payments stable.
The delay in property tax information also means the council was unable to recommend a tax levy, or the total requested by the district from ratepayers, in October, as it has done in previous years. Instead, district officials said the council can expect to begin the levy approval process in November.
Chief school affairs officer Adam Parisi said delays in the Cook County tax office led district administrators to recommend two transfers between different funds. Parisi and financial consultant Elizabeth Hennessy explained that the district’s financial situation would remain stable even after the transfers are executed.
Typically, Parisi said, property tax bills would be released in March and late summer. This year, the second set of property tax bills will be due on December 30, he said.
Due to the delay,[we] received no tax revenue and will not receive any tax revenue…until December,” Parisi told board members.
However, he said, the district has cash to deal with the delay without disrupting operational costs such as district staff salaries.
“That’s where it’s good to have some level of fund balances, because that way we’re able to support ourselves with payroll, bills and other things,” he said. he declared.
Council members voted to transfer $1.9 million from the working fund to the bond and interest fund so the district can keep track of its debts, and $1,750,000 from the education fund to the operations and maintenance fund.
Board member Tom Sotos wanted to make sure the district still had enough money to cover any unexpected contingencies that arose between the execution of the loan and the arrival of the property tax revenue. .
“If there were to be some crazy reason for this case not being resolved by December 31, how many months do we have to endure before we have to borrow?” he said.
Parisi and Hennessy told board members that it would still take some time – about eight months – before the loan became necessary and that they did not expect the delay to continue for that long.
The board approved both transfers unanimously.