Financial Plan Fiscal Years Community College District No. 525 Joliet, Illinois

Transcription

1 Financial Plan Fiscal Years Community College District No. 525 Joliet, Illinois

2 JOLIET JUNIOR COLLEGE Community College District 525 Three Year Financial Plan Board of Trustees Andrew Mihelich, Chairman Jeff May, Vice Chairman Susan Marie Klen, Secretary Barbara K. Adams, Trustee Michael O Connell, Trustee Tina Markley, Trustee Robert Wunderlich, Trustee Keith Bryant, Student Trustee Administration Debra S. Daniels, Ed.D., President Bette Conkin, Interim Vice President, Academic Affairs Yolanda Isaacs, Ed.D. Vice President, Student Development Judy Mitchell, Ed.D. Vice President, Administrative Services

3 JOLIET JUNIOR COLLEGE COMMUNITY COLLEGE DISTRICT NO. 525 Three Year Financial Plan Page Executive Summary Projections and Assumptions Education Fund Operation and Maintenance Fund Operation and Maintenance Restricted Fund Liability, Protection and Settlement Fund Health Insurance Fund Historical Data Student Enrollment and Demographic Statistics Tuition and Fee History State Reimbursement Rates State Funding Assessed Value and Tax Levy of Taxable Property Tax Levy and Rates Total Property Value and New Construction Representative (Direct and Overlapping) Tax Rates Education Fund Revenues by Source Education Fund Expenditures by Object Operation and Maintenance Fund Revenues by Source Operation and Maintenance Fund Expenditures by Object Ratio of Debt to Assessed Value and Net General Debt per Capita Fund Balances Miscellaneous Statistics TIF District Statistics Tax Abatement Statistics Peer College Statistics Comparison of Tax Rates by College Comparison of Tuition Rates by College Comparison of Operating Revenues Sources by College Comparison of Tuition and Fees as Percentage of Operating Revenue Comparison of Operating Expenditures by Colleges Comparison of Capacity Total Staffing and Salary Comparison Comparison of Tax and State Revenue by Colleges Miscellaneous Statistics I II-1 II-6 II-10 II-13 II-16 III-1 III-2 III-3 III-4 III-5 III-6 III-7 III-8 III-9 III-10 III-11 III-12 III-13 III-14 III-15 III-16 III-17 IV-1 IV-2 IV-3 IV-4 IV-5 IV-6 IV-7 IV-8 IV-9

4 I. Executive Summary

5 JOLIET JUNIOR COLLEGE COMMUNITY COLLEGE DISTRICT NO. 525 Three-Year Financial Plan Years Ended June 30, 2015 through 2017 Executive Summary This document represents a three-year financial plan that sets forth a framework for the Board of Trustees and the administration to examine future implications of major financial decisions. This Three-Year Financial Plan is part of the annual planning cycle that integrates the college s Academic Quality Improvement Program (AQIP) with the financial resources necessary to meet these strategic planning objectives. This document is updated annually and is divided into four sections. 1) Executive Summary. Integrates the assumptions and summarizes conclusions reached in this three-year financial plan. 2) Projections and Assumptions. The three-year projections included are for all funds of the college except for those funds that are self-supporting such as the Auxiliary and Restricted Purpose Funds. 3) Historical Data. Summarizes the financial history to determine trends and to be used as a basis for many of the assumptions within the plan. 4) Peer College Statistics. Summarizes how the college compares to our peer community colleges within northeast Illinois, along with a comparison to statewide averages. Revenue Assumptions The major operating funds of the college consist of the Education and Operation and Maintenance (O&M) Funds. The major sources of revenue for these funds consist of property taxes, tuition, and state funding. The assumptions used for these categories are summarized as follows: Increase FY2015 Increase FY2016 Increase FY2017 Property Taxes 3.00% 3.50% 4.00% Tuition Rate $84/cr. hr. $92/cr. hr. $98/cr. hr. Tuition Increase $4/cr. hr. $8/cr. hr. $6/cr. hr. Enrollment 0.00% 1.00% 2.00% Reimbursable Credit Hours -2.76% -2.72% 0.00% State Funding Rate Per Cr. Hr. 9.24% 0.00% 0.00% Property Taxes. The district s property tax revenue is restricted by two factors - the Property Tax Extension Limitation Law (PTELL) and rates on individual funds. PTELL limits the district s overall tax rate by the Consumer Price Index (CPI) plus any new property in the district. The maximum overall rate under PTELL for tax year 2012 was $.2446 per $100 of equalized assessed valuation (EAV). In addition, the maximum individual fund rates are as follows: Education Fund Operation & Maintenance Fund Audit Fund Life Safety Fund Liability, Protection & Settlement Fund $.7500 per $100 of EAV $.1000 per $100 of EAV $.0050 per $100 of EAV $.1000 per $100 of EAV No Limit I-1

6 The CPI increase allowed under PTELL has averaged 2.28% over the last five years. Property taxes collected over the last five years have increased annually, on average, 4.33%, excluding debt service. For Fiscal 2013, this increase was 4.77% based on the final levy including debt service and 4.57% excluding debt service. The reason for the annual increases exceeding the CPI has been the amount of new property in the district. The current estimate indicates a 2.70% increase for Fiscal 2014, which represents a 1.70% increase in CPI and a 1.00% increase in new property. The projected increase for Fiscal 2015 is 3.00% due to CPI for the current year being 1.50% compared to last year s 1.70% and a 1.50% increase from new property. New property growth is expected to be similar to last year. For Fiscal 2016 and Fiscal 2017, a 4.0% and 4.5% increase, respectively, is used, which would require an increase in new construction. To maintain a balanced operating fund, District 525 has levied the maximum allowed under PTELL. The district has not had an operating tax rate increase since 1977, but was successful in passing a building bond referendum that increased the 2009 tax rate by $0.02. In comparison to other community colleges, JJC has the third lowest tax rate as demonstrated by the following chart. Tax Rates 2011 Levy Rate $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Kishwaukee Morton Elgin Waubonsee Kankakee Illinois Valley McHenry S. Suburban Harper Moraine Prairie State Triton DuPage Joliet Lake Oakton Tuition and Fees. Over the last ten years, credit hours have grown annually by an average 3.22%. Currently, the college has experienced a 2.2% increase in fall 2013 credit hour enrollment based on tenth day, but experienced a 5.6% decrease for the spring 2013 credit hours. Overall, the college has experienced a 2.2 % decrease in enrollment for Fiscal Due to the economy showing signs of improvement over the past two years, enrollment has dropped slightly from its high in Fiscal For these reasons, no enrollment growth has been projected for Fiscal 2015, a slight 1.00% increase in Fiscal 2016 and a conservative 2% increase in Fiscal I-2

7 Tuition and fees were increased, effective Spring 2014 from $107 to $111 per credit hour, a 3.73% increase. For Fiscal 2015, a $4 increase in tuition and fees is projected, which would make the cost $115 per credit hour. As of spring 2014, JJC s tuition and fees of $111 per credit hour is in the middle of our peer schools. These tuition and fees per credit hour range from a high of $ to a low of $ JJC is also slightly below the state average of $ for tuition and fees. For tuition charges only, JJC s current rate of $80 per credit hour is well below our peer average of $ and the state average of $ JJC s fees are the second highest due to the capital assessment fee enacted to pay for the master plan financing. The following chart represents a comparison of JJC s current tuition and fees to our peer colleges. Tuition and Fees Per Credit Hour Spring 2014 $ $ $ $80.00 $60.00 $40.00 $20.00 $0.00 State Sources. State funding is based on credit hours earned two years prior to the current year, multiplied by the current year reimbursement rate. The number of credit hours used in the state s funding formula has decreased 7.22% for Fiscal 2015 due to the enrollment experienced in Fiscal Due to the state implementing a new funding formula, the college would have experienced increase in Fiscal 2013 and 2014 except for a hold harmless adjustment. The state has indicated the hold harmless adjustment will be discontinued, but due to the state s severe fiscal crises, a 5% allowance is being factored into the reimbursement computation. Based on these factors, the college is expected to receive $7.6 million, or a 6.23% increase in Fiscal 2015 followed by a 2.7% decrease in Fiscal 2016 and then level funding in Fiscal I-3

8 Expenditure Assumptions For the operating funds (Education and Operation and Maintenance) of the college, the largest expenditure is personnel costs. Currently, personnel costs represent 80% of the total operating expenses of the college. The following summarizes the expenditure assumptions used in the three-year financial plan. % Increase FY2015 % Increase FY2016 % Increase FY2017 Salaries % % % Benefits 8.00% 8.00% 8.00% Other Expenditures 0.00% 3.00% 3.00% Utilities 5.00% 5.00% 5.00% O&M Utilities 0.00% 4.00% 4.00% Contingency Education Fund.65%.65%.65% Contingency O & M Fund 1.50% 1.50% 1.50% The college has separate union contracts that cover faculty, adjunct faculty, support and technical staff, clerical, campus police, facility services and food service employees. The increases from the current contractual agreements have been used in the projections. Benefits are factored at an 8% increase for Fiscal 2015, 2016 and The college is selffunded for its health insurance. A detail projection of that fund is included on pages II-16 and II- 17. Other expenditures are budgeted with no increase for Fiscal 2015 and an estimated inflationary rate of 3% per year for Fiscal 2016 and Contingency in the Education Fund is.65% of projected revenues. Contingency in the Operation and Maintenance Fund has been maintained at 1.50% of projected revenues. Capital Expenditures. Funding for repair and upkeep of the college s aging buildings had been severely restricted due to tax caps and no O & M rate increase since These funding restrictions caused a serious backlog of deferred maintenance. Prior strategic plans recognized this tremendous need and established the maintaining of current facilities as a quality improvement area. In 2003, the Board of Trustees initiated a comprehensive plan to address deferred maintenance issues. The plan included issuance of $9.7 million in debt certificates to reduce the backlog of deferred maintenance and the establishment of a capital assessment fee of $2 beginning in fall 2003 with increases to $3 in Fiscal 2005 and to $4 in Fiscal This fee is projected to repay the $9.7 million in debt certificates and generate annual funds to support ongoing maintenance issues. In Fiscal 2005, an additional $1 was added to the capital assessment fee to cover the cost of building a new parking lot. In addition to the operating funds, the college has received funding for capital renewal and replacement from other sources. The Operation and Maintenance Restricted Fund accounts for these funds and a detailed projection is found on pages II-10 to II-12. The amount available from this fund includes approximately $1,120,000 to $1,200,000 annually in Life Safety funds and transfers from the Operations and Maintenance fund of approximately $2,300,000 to $2,500,000 annually. The state has not funded the capital renewal grants the last five years, therefore, that revenue source has been eliminated from the projections. A new master plan was unveiled in Fiscal 2008 to create a new vision for the college that is based on a detailed analysis of existing space, growth and needs. For Fiscal 2009, the capital I-4

9 assessment fee was increased an additional $9 to a total of $14 per credit hour with an additional $2 increase in Fiscal 2010 and a $1 increase in Fiscal This additional revenue is projected to repay the $70 million in alternate revenue bonds. In 2013, an update to the college s master plan was approved and during Fiscal 2014, the capital assessment fee was increased an additional $4 to a total of $21 per credit hour. This additional revenue is projected to repay the $45 million in alternate revenue bonds that were issued to build a multipurpose building and an expansion of the Romeoville Campus. Operating costs are projected to increase $1,210,000 in Fiscal 2016 upon completion of the multipurpose building and expansion of the Romeoville Campus and by $710,000 for the completion of the City Center building in Fiscal These costs have been factored into the financial plan. Other Funds Included in the projections and assumptions sections are projections for other funds that have a significant impact on the overall financial health of the college. Liability, Protection and Settlement Fund. These projections are shown on pages II-13 to II- 15. This fund is supported by a separate tax levy which funds the tort liability, property insurance and unemployment insurance. The fund is projected to show a small surplus in Fiscal 2015 and 2016, with a small deficit in Fiscal As of June 30, 2013, the fund balance was $1,351,296. A reasonable fund balance is needed to provide a safety net for any future claims and/or settlements. Health Insurance Fund. The college is self-insured for employee health costs. Other funds of the college are charged a premium based on the number of employees and these charges are deposited into this fund to pay actual health costs. The three-year projections assume an 8% increase for Fiscal 2015, 2016 and Based on national trends in health care costs, there would be a deficit over the next three years, but reserves currently represent approximately 25% of projected health claim costs, which will enable the college to cover these deficits through Fiscal If the projections are carried out to Fiscal 2019, or sooner if health claim costs accelerate, the college along with its employees, will need to fund a larger than expected increase in health costs. I-5

10 Fund Balances The college has a policy of a balanced operating budget with which it has complied with over the last 40 years. Any significant excess in the operating funds are transferred by board resolution each year to be used for future instructional and academic equipment purchases or major capital projects. In addition, the college maintains a working cash fund to be used to pay expenses until property taxes are received. As of June 30, 2013, these reserves were as follows: Operating reserves $ 21,964,627 Working Cash fund $ 6,222,719 Instructional and academic equipment reserve $ 1,917,026 Operations & Maintenance Restricted Reserve for RAMP match $ 1,510,000 Life safety projects 703, Bond issue 3,378, Bond issue 21,766,834 Deferred Maintenance 23,923,923 Total Operations & Maintenance Restricted $ 51,283,403 The history of the college s fund balances is detailed on page III-14. Annual property taxes received, which is the major source of revenue, are currently $52.5 million. The receipt of annual property taxes does not begin until June of each year. Due to the timing of property tax receipts, the college needs to maintain adequate reserves to fund expenses during the first 11 months of the year. The reserves listed above total $56.2 million, excluding debt service, which represents 107% of the annual property tax receipts. If this ratio decreases below 75%, cash flow needs in the last quarter of the fiscal year may require short-term borrowing. Strategic Planning Strategic Planning is a systematic and on-going activity which the college uses to anticipate and respond to major decisions facing it during a three-year period beyond the present. Strategic planning looks at the organization as a whole, is oriented towards the future, supports the mission, is externally directed, spans organizational boundaries, deals with greater levels of uncertainty, and is about creating public value. The goal of the strategic planning process is to provide JJC with tools and plans to anticipate and respond to change in its external environment. The Strategic Planning process at JJC coincided with the Facilities Master Planning process. Linking College Goals and Priorities The goals of the current strategic plan are: Increase student success and completion. We are committed to improving the student experience by increasing access and affordability, strengthening academic programs, providing needed learning facilities, I-6

11 expanding student services and activities, and strengthening programs that support high school students readiness for college. Develop programs that anticipate and respond to labor market demand including the growing number of fields that require an understanding of sustainability. We are committed to offering degrees and certificates that are closely aligned with current and future labor market needs. Increase and strengthen resource development and utilization. We are committed to pursuing and implementing additional financial resources for the college to account for decreased public funding while continuing to provide excellent learning opportunities. Address the needs of the growing minority, underrepresented and underprepared student populations. We are committed to supporting services, programs and activities that respond to the growth of diverse and minority population in our district. Expand the use of technology and sustainable methods. We are committed to developing and advancing technology that meet the growing demands of our global society. Future The purpose of this three-year financial plan is to examine and set forth financial issues that the Board of Trustees and the administration of the college should plan for and address. In summary, the issues can be defined as follows: Addressing potential impact of the state s fiscal crisis on the college s budget Realistic projections in property tax revenues Accommodating staff and resource needs to address enrollment Responsible reserves Continued implementation of the master plan and addressing its impact on operating costs Three major revenue sources are available to District 525: state funding, property taxes and tuition. State funding in the past two years has not increased due to the state s budget constraints. Based on the state s current economic condition, state funding is not expected to be a major source of revenue to address future needs. The second source of revenue is property taxes. This source is restricted by overall tax cap legislation and individual fund rates. The district tax rate has not been increased since 1977 and is the third lowest when compared to our peer districts. The last request for an increase in the rate was not supported by the taxpayers. Therefore, except for growth in new construction that has been factored into these projections, property taxes are not expected to be a source to address future needs. I-7

12 The third source of revenue is tuition and fees. Tuition and fee revenue increases are a combination of rate increases and enrollment growth. Enrollment growth is restricted by the current staffing and low population growth in the district; therefore modest growth is assumed until resources are available, so enrollment growth will not be a viable source of revenue to address the needs as defined above. What remains are tuition and fee increases. Tuition and fee increases have been factored into the projections with an effort to keep costs within state averages and affordable to the student. The tuition and fee increases that are being used are the amounts necessary to fund current operations along with deferred maintenance and technology replacements. As more needs are addressed, future increases in tuition may be required. Summary The preceding projections are a basis for discussion and further planning as the college addresses the future needs of District 525 residents. In order to implement the strategic planning initiatives, make the infrastructure needs that will accommodate growth, and maintain progressive educational resources at JJC, additional and greater financial resources will be required. Only with additional resources will Joliet Junior College be able to continue to move forward in the new millennium as an academically challenging, viable and vibrant community college. This document, therefore, will serve as the basis for further discussion and will be part of Joliet Junior College s annual budget building process. I-8

13 II. Projections and Assumptions

14 Education Fund II-1

15 JOLIET JUNIOR COLLEGE EDUCATION FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Factors Assessed Valuation 20,818,247,143 19,737,548,883 18,670,894,035 17,924,058,274 17,565,577,108 17,565,577,108 17,741,232,879 CPI 2.70% 1.50% 3.00% 1.70% 1.50% 2.00% 2.00% Tax Rate New Property % increase 1.83% 1.51% 0.90% 1.50% 1.50% 1.50% 2.00% Increase in EAV 97.70% 94.81% 94.60% 96.00% 98.00% % % Total Tuition Hours 369, , , , , , ,899 Tuition Rate Variable Tuition Hours , , , Credit hour % increase % 98.98% 95.91% 97.28% % % % Tuition rate increase % % % % % % % Apportionment hours paid 270, , , , , , ,132 % Increase in App. Hrs % % % 97.47% 97.24% 97.28% % Ave. Apportionment rate % Increase in App. Rate % % -7.29% 3.45% 9.24% 0.00% 0.00% Expenditure Factors Salaries % % % Adm Salaries % % % Support Staff Salaries % % % Clerical Salaries % % % Faculty Salaries % % % FT Fac Overloads/Extra Pay % % % PT Fac Summer/Fall/Spring % % % Other Salaries % % % Student Salaries % % % Employee Benefits % % % Other Expenses % % % Utilities % % % New positions and initiatives Contingency as a percentage of total revenues 0.65% 0.65% 0.65% II-2 ]

16 JOLIET JUNIOR COLLEGE EDUCATION FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Local Government Current Taxes 26,549,977 27,106,629 28,612,254 29,240,000 30,117,200 31,171,302 32,418,154 Back Taxes 207, ,499 77, , ,000 A 165,000 A 170,000 A Other 13,120 15,689 14,953 11,000 11,000 A 11,000 A 11,000 A 26,771,034 27,287,817 28,704,324 29,411,000 30,288,200 31,347,302 32,599,154 State Government ICCB State Grant 7,071,381 7,071,381 7,086,664 7,146,016 7,591,032 7,384,195 7,384,195 ICCB - ARRA funding ICCB - CTE 689, , , , ,000 C 656,500 C 669,630 C ICCB - CTE - IET C - C - C CPPT 2,058,866 1,894,010 1,935,192 1,650,000 1,674,750 I 1,708,245 I 1,742,410 I Early Sch Leavers C - C - C 9,819,576 9,672,822 9,674,857 9,446,016 9,915,782 9,748,940 9,796,235 Federal Government SEOG/Pell/Indirect Cost 38,795 46,779 72,326 30,000 30,000 A 30,000 A 30,000 A Tuition and Fees Tuition 28,144,958 28,375,257 28,564,295 27,650,000 29,032,500 T 32,115,475 T 34,894,162 T Tuition - New faculty Tuition - Variable ,250 T 598,690 T 637,735 T Health Care Cont Ed Fee C - C - C Course Fees , , , ,000 C 171,700 C 175,134 C Technology Fee 1,882, Charge back 120,709 82,916 80, , ,000 T 116,150 T 126,200 T 30,148,679 28,480,466 28,814,159 27,920,000 29,606,750 33,002,015 35,833,230 Interest 70,750 65,603 65, , ,000 E 150,000 E 200,000 E Other Revenues 351, , , , ,000 A 300,000 A 300,000 A Transfer from other funds , , , ,000 Total Ed Fund Revenues 67,200,554 65,906,433 67,824,734 67,238,743 70,430,732 74,768,257 78,948,619 II-3 ]

17 JOLIET JUNIOR COLLEGE EDUCATION FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Salaries Adm Salaries 4,049,106 3,496,019 3,621,347 4,183,434 4,275,470 4,382,356 4,513,827 Support Staff Salaries 6,306,724 6,359,100 6,422,001 6,905,713 7,057,639 7,234,080 7,451,102 Clerical Salaries 3,803,700 3,765,481 3,677,416 3,822,952 3,907,057 4,004,733 4,124,875 Faculty Salaries 15,823,763 16,694,957 17,411,741 18,313,243 18,862,640 19,428,519 20,011,375 FT Fac Overloads/Extra 5,125,773 5,437,583 5,633,629 5,725,959 5,897,738 6,074,670 6,378,403 PT Faculty 7,047,296 6,848,245 6,153,192 5,800,150 5,974,155 6,153,379 6,461,048 Other Salaries 587, , , , , , ,021 Early Retirement , , , , ,000 Student Salaries 386, , , , , , ,641 43,130,418 43,528,758 43,910,185 45,982,141 47,220,953 48,546,919 50,241,293 Employee Benefits Employee Benefits 6,758,189 7,232,488 7,957,605 9,132,105 9,862,673 10,651,687 11,503,822 FICA and Medicare 956, , , ,000 1,055,160 1,139,573 1,230,739 Other/Wellness/Med exams 53,992 57,201 58,690 61,500 62,423 I 63,671 I 64,944 I 7,768,532 8,198,587 8,885,778 10,170,605 10,980,256 11,854,931 12,799,505 Other Expenses 4,320,678 4,201,442 4,086,048 4,913,075 4,913,075 5,060,467 5,212,281 Utilities (575.XXX) 6, ,000 3,150 3,308 3,473 Technology 1,410, Capital Outlay Tech Fee Instructional 50,395 2, , , ,000 Academic Support Student Services - 12, Public Service General Administration 3, Institutional Support 19, ,201 15, , , ,000 II-4 ]

18 JOLIET JUNIOR COLLEGE EDUCATION FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Other Open positions savings Cost Savings Committee New initiatives 343, , ,889 Non Tuition Expense 1,519,608 1,375,697 1,772,087 1,577,520 1,656,396 T 1,832,289 T 1,990,822 T Dual Credit Tuition 2,661,810 3,132,557 3,459,200 2,750,000 2,887,500 T 3,194,125 T 3,470,486 T Union Tuition Waiver 133, , , , , , ,499 Tuition Charge Back 149, , , , ,500 T 243,915 T 265,019 T Bank Charges/Credit Card 291, , , , ,325 C 378,068 C 385,630 C Other - misc and bad debts 426, , , , , , ,802 5,182,174 5,475,569 6,191,697 5,549,570 6,170,049 6,763,109 7,303,147 Contingency , , , ,166 Transfers Out Childcare Farm 7,851 7, Renaissance Center 231, ,641 59, Food Service 80,507 82, Foundation 143, , , , , , ,695 O&M Restricted fund 2,500,000 3,950,000 4,000, Debt Service O&M master plan costs ,210,000 1,968,400 Auxiliary transfers 475, ,438,130 4,344,242 4,599, , ,971 1,811,646 2,588,095 Total Ed Fund Expenditures 65,329,949 65,764,541 67,673,644 67,592,727 70,407,254 74,626,373 78,785,960 Surplus (Deficit) 1,870, , ,090 (353,984) 23, , ,659 A Projection based on prior years history. C Increase based on credit hour increase E Interest rates are estimated. Increase is projected once market stabilizes. I Increase based on inflation (CPI) T Increase based on tuition and credit hour increases. II-5 ]

19 Operation and Maintenance Fund II-6

20 JOLIET JUNIOR COLLEGE OPERATION MAINTENANCE FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Factors Assessed Valuation 20,818,247,143 19,737,548,883 18,670,894,035 17,924,058,274 17,565,577,108 17,565,577,108 17,741,232,879 CPI 2.70% 1.50% 3.00% 1.70% 1.50% 2.00% 2.00% Tax Rate New Property % increase 1.83% 1.51% 0.90% 1.50% 1.50% 1.50% 2.00% Increase in EAV 97.70% 94.81% 94.60% 96.00% 98.00% % % Expenditure Factors Salaries % % % Adm Salaries % % % Support Staff Salaries % % % Clerical Salaries % % % Service Staff % % % Student Salaries % % % Employee Benefits % % % Other expenses % % % Utilities % % % Capital Outlay 300, , ,000 Debt Service Per debt schedule Per debt schedule Per debt schedule Contingency 1.50% 1.50% 1.50% of total revenues of total revenues of total revenues II-7 3/26/2014

21 JOLIET JUNIOR COLLEGE OPERATION MAINTENANCE FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Revenue Actual Projected Projected Local Government Current Taxes 13,378,883 13,970,299 14,955,715 14,970,000 15,419,100 15,958,769 16,597,119 Back Taxes 120,723 84,050 38,439 65,000 65,000 65,000 65,650 Other ,499,606 14,054,349 14,994,154 15,035,000 15,484,100 16,023,769 16,662,769 Fees ,547 5, Interest Facilities Rental 281, , , , , , ,000 Transfer from other funds ,210,000 1,968,400 Total O&M Revenues 13,781,672 14,340,346 15,255,580 15,281,000 15,730,100 17,479,769 18,877,169 II-8 3/26/2014

22 JOLIET JUNIOR COLLEGE OPERATION MAINTENANCE FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Expenditures Actual Projected Projected Salaries Adm Salaries 612, , , , , , ,320 Support Staff Salaries 792, , , , , , ,524 Clerical Salaries 420, , , , , , ,981 Service Staff 4,119,450 4,377,130 4,304,534 4,746,444 4,850,866 4,957,585 5,106,312 Less vacancies (100,000) Student Salaries 204, , , , , , ,970 6,149,313 6,341,158 6,244,685 6,701,809 6,946,945 7,105,043 7,316,106 Employee Benefits Employee Benefits 1,262,061 1,447,990 1,604,707 1,852,986 2,001,225 2,161,323 2,334,229 Other/Wellness/Med. exams ,262,061 1,447,990 1,604,707 1,852,986 2,001,225 2,161,323 2,334,229 Other Expenses 1,044,611 1,091,454 1,208,177 1,439,702 1,439,702 1,497,290 1,557,182 Utilities 1,901,818 2,053,476 2,217,550 2,542,003 2,542,003 2,643,683 2,749,430 Capital Outlay 256, , , , , , ,000 Master Plan Operating Cost Multi-purpose/Field House , ,600 Romeoville expansion - 270, ,800 City Center , ,210,000 1,968,400 North Campus Lease Pmt 483, , , Debt Service, Energy note Contingency , , , ,158 Transfers Out To O&M Restricted 1,900,000 2,250,000 2,650,000 2,200,000 2,300,000 2,400,000 2,500,000 To Bond & Interest 226, ,126,825 2,250,000 2,650,000 2,200,000 2,300,000 2,400,000 2,500,000 Total O&M Expenditures 13,224,059 14,041,157 14,668,923 15,281,000 15,765,827 17,604,536 19,058,505 Surplus (Deficit) 557, , ,657 - (35,727) (124,767) (181,335) II-9 3/26/2014

23 Operation and Maintenance Restricted Fund II-10

24 JOLIET JUNIOR COLLEGE OPERATION AND MAINTENANCE RESTRICTED FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Factors Assessed Valuation 20,818,247,143 19,737,548,883 18,670,894,035 17,924,058,274 17,565,577,108 17,565,577,108 17,741,232,879 CPI 2.70% 1.50% 3.00% 1.70% 1.50% 2.00% 2.00% Tax Rate New Property % increase 1.83% 1.51% 0.90% 1.50% 1.50% 1.50% 2.00% Increase in EAV 97.70% 94.81% 94.60% 96.00% 98.00% % % Tuition Hours 369, , , , , , ,899 Less Adult Ed hours 19,072 18,784 16,856 17,100 17,100 17,271 17,616 Less Dual Credit & Union 35,499 36,756 42,755 37,500 37,500 37,875 38, , , , , , , ,650 Capital Assessment Fee Credit hour % increase 7.34% -1.02% -4.09% -2.72% 0.00% 1.00% 2.00% Expenditure Factors State Grants 350, , ,000 Debt Payments Per Schedule Per Schedule Per Schedule II-11

25 JOLIET JUNIOR COLLEGE OPERATION AND MAINTENANCE RESTRICTED FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Local Government Current Taxes 1,104,610 1,040,804 1,115,748 1,090,000 1,122,700 1,161,995 1,208,474 Back Taxes 7,083 8,988 2, TIF reimbursement - Channahon 121, , , , , , ,000 1,233,279 1,163,519 1,249,866 1,200,000 1,232,700 1,276,995 1,328,474 Capital Assessment Fee 5,289,418 5,199,076 4,944,165 5,300,000 6,026,643 6,086,909 6,208,648 State/Federal Grants 7,699, , Ramp Project ,523,000 24,000, Debt Proceeds ,000, Other Income and Interest 1,456, ,021 25, , , ,000 Transfer In From O & M - Surplus & Cap 1,900,000 2,250,000 2,650,000 2,200,000 2,300,000 2,400,000 2,500,000 From Ed Fund 2,500,000 3,950,000 4,000, ,400,000 6,200,000 6,650,000 2,200,000 2,300,000 2,400,000 2,500,000 Total Revenues 20,078,667 13,353,616 12,869,729 58,223,000 33,659,343 9,863,904 10,137,122 Expenditures Capital Expenditures 2,682,094 2,794,066 2,714,306 28,667,850 26,980,000 3,148,000 3,148,000 Bond Project Expenditures 52,955,539 44,101,623 16,254,150 23,540,000 45,000, Transfer Out To Bond & Interest 2008 issue 4,063,731 4,156,233 4,097,501 4,979,850 6,170,100 6,313,413 6,310,938 To Bond & Interest 2013 issue ,322,125 2,322,125 2,322,125 To Bond & Interest 1,169,750 1,164,750 1,168,350 1,170, Total Expenditures 60,871,114 52,216,672 24,234,307 58,358,000 80,472,225 11,783,538 11,781,063 Surplus (Deficit) (40,792,447) (38,863,056) (11,364,578) (135,000) (46,812,882) (1,919,634) (1,643,941) Beginning Fund Bal 142,303, ,511,037 62,647,981 51,283,403 51,148,403 4,335,521 2,415,887 Ending Fund Bal 101,511,037 62,647,981 51,283,403 51,148,403 4,335,521 2,415, ,946 II-12

26 Liability, Protection and Settlement Fund II-13

27 JOLIET JUNIOR COLLEGE LIABILITY, PROTECTION AND SETTLEMENT FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Factors Assessed Valuation 20,818,247,143 19,737,548,883 18,670,894,035 17,924,058,274 17,565,577,108 17,565,577,108 17,741,232,879 CPI 2.70% 1.50% 3.00% 1.70% 1.50% 2.00% 2.00% Tax Rate New Property % increase 1.83% 1.51% 0.90% 1.50% 1.50% 1.50% 2.00% Increase in EAV 97.70% 94.81% 94.60% 96.00% 98.00% % % Expenditure Factors Faculty Salary Allocation 0.00% 0.00% 0.00% Campus Police Salary Allocation 0.00% 0.00% 0.00% Employee Benefits % % % Legal % % % Insurance % % % II-14

28 JOLIET JUNIOR COLLEGE LIABILITY, PROTECTION AND SETTLEMENT FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Revenue Actual Projected Projected Local Government Current Taxes 795, , , , , , ,301 Back Taxes 19,654 1,622 4,082 6,000 5,880 5,880 5,939 Other , , , , , , ,240 Other Revenues Total Revenues 815, , , , , , ,240 Expenditures Salaries Office Salary Allocation 54,568 55,870 47,315 51,306 53,358 55,493 57,712 Employee Benefits Employee Benefits 12,432 9,055 10,599 12,181 13,155 14,208 15,345 Unemployment Insurance 128,220 77,981 26, , , , ,165 FICA and Medicare ,652 87,036 37, , , , ,510 Legal 141,800 9,307 5, , , , ,339 Insurance 489, , , , , , ,428 Claims and Settlements 82,500 54,751 40,375 25,000 10,000 10,000 10,000 Other - - 1, Total Expenditures 909, , , , , , ,989 Surplus (Deficit) (94,018) 152, ,689-6, (749) II-15

29 Health Insurance Fund II-16

30 JOLIET JUNIOR COLLEGE HEALTH INSURANCE FUND PROJECTIONS Years Ended June 30, 2015 through 2017 Actual Projected Projected Revenue Factors Investment Balance 1,500,000 1,500,000 1,500,000 1,500,000 1,535,000 1,432,310 1,099,438 Interest Rate 1.12% 0.84% 0.69% 0.67% 1.00% 2.00% 3.00% Premium Increase % % % % % % % Expenditure Factors Healthcare Claims % % % Drug Claims/Workers Comp % % % Reinsurance Premium % % % Other % % % Revenue Premiums 8,820,318 9,472,444 10,263,216 11,600,000 12,528,000 13,530,240 14,612,659 Dental buy-up premiums 52,823 54,922 50,748 54,000 58,320 62,986 68,024 Employee contribution - 198, , , , , ,184 Cobra ,885 35,000 35,000 35,000 35,000 Interest 16,872 12,616 10,291 10,000 15,350 28,646 32,983 8,890,013 9,738,396 10,662,006 12,156,000 13,196,670 14,261,672 15,401,851 Expenditures Employee Benefits Healthcare Claims 7,370,109 7,197,611 7,889,488 8,579,000 9,436,900 10,380,590 11,418,649 Drug Claims 1,522,176 1,466,537 1,618,562 1,900,000 2,090,000 2,299,000 2,528,900 Workers Comp Claims 808, , , , , , ,770 9,700,900 9,426,733 10,244,733 11,149,000 12,263,900 13,490,290 14,839,319 Reinsurance Premiums 328, , , , , , ,190 Administrative fees 410, , , , , , ,694 Total Expenditures 10,440,493 10,181,706 11,083,523 12,121,000 13,299,360 14,594,544 16,018,203 Surplus (Deficit) (1,550,480) (443,310) (421,517) 35,000 (102,690) (332,872) (616,353) II-17

31 III. Historical Data

32 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 STUDENT ENROLLMENT AND DEMOGRAPHIC STATISTICS Fall Enrollment Gender Attendance Enrollment Status Head % % Full Part Continuing Re- Ave. Fall Count Change FTE Change Male Female Time Time Student New Transfer Admit Age 2013 (1) 16, % 9, % 46% 54% 35% 65% 55% 26% 2% 17% (1) 15, % 9,431 (1.93%) 44% 56% 39% 61% 60% 18% 2% 20% (1) 15,322 (2.26%) 9,617 (1.91%) 43% 57% 42% 58% 62% 16% 3% 19% (1) 15, % 9, % 44% 56% 44% 56% 61% 17% 3% 19% (1) 15, % 9, % 44% 56% 44% 56% 58% 20% 3% 19% (1) 14, % 8, % 41% 59% 43% 57% 59% 23% 1% 17% (1) 13, % 7, % 41% 59% 41% 59% 59% 23% 1% 17% (1) 12,924 (0.75%) 7, % 42% 58% 39% 61% 56% 25% 2% 17% , % 7, % 41% 59% 38% 62% 56% 24% 2% 18% ,751 (3.73%) 7, % 40% 60% 37% 63% 55% 25% 1% 19% Year Average 2.53% 3.22% 5 Year Average 3.75% 2.46% (1) Credit hour data is as of 10th day and was before the dual credit courses were entered into the system. N/A - Information not available. III-1

33 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 TUITION AND FEE HISTORY Capital Fiscal Tuition Student Technology Assessment ICCB Average Year Per Cr.Hr. Fee Fee Fee Total % Tuition and Fees % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % III-2

34 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 STATE REIMBURSEMENT RATES (2) (1) Actual Amounts Received ICCB Average Rates Fiscal Credit Hours % Credit Hours % Ave. Reimb % % Ave. Reimb % Year Earned Inc.(Dec) Paid Inc.(Dec) Rate Inc.(Dec) Dollars Inc.(Dec) Rate Inc.(Dec) ,679 (7.22%) ,079 (0.85%) % 7,146, % % ,387 (6.67%) 340, % (10.09%) 7,081, % N/A ,842 (1.05%) 306, % (11.62%) 7,071, % N/A N/A , % 270, % (12.46%) 7,071,381 (4.00%) % , % 246, % % 7,365, % % , % 232, % % 6,809, % % , % 217, % % 6,273, % % , % 216, % (5.83%) 6,186,546 (3.43%) % , % 211, % (5.96%) 6,406,356 (1.52%) % , % 201, % (6.27%) 6,505,564 (5.08%) % , % 199, % % 6,853, % % , % 186, % (3.84%) 6,351,221 (3.39%) % , % 186, % % 6,573, % % , % 179, % % 5,872, % % (1) Excludes restricted hours under new funding formula. (2) Includes 2.5% mid-year budget reduction for FY09 III-3

35 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 STATE FUNDING (1) Education Fund Credit Hour 7,146,016 7,048,510 6,994,843 6,994,843 7,290,831 6,735,316 6,273,417 6,186,546 6,083,517 6,853,970 Square Footage - 32,637 76,538 76,538 74,886 73,788 76,411 69,237 70,969 69,030 Hold Harmless ,839 - Career & Technical Education 669, , , , , , , , , ,182 Performance Based Total 7,815,397 7,734,148 7,778,812 7,760,710 7,987,773 7,160,401 6,649,440 6,549,463 6,758,407 7,128, % -0.57% 0.23% -2.84% 11.55% 7.68% 1.53% -3.09% -5.19% -4.32% Operation & Maintenance Deferred Maintenance Capital Renewal ,956 ADA Grant Capital Appropriation Total , % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% % Restricted Purposes Current Workforce Workforce Development Business & Industry , , , , , , ,544 99,068 Education to Careers ,957 Welfare to Work ,452 Advanced Technology Instructional Equip Technology Support Staff Tech Skills Retirees Health Insurance Special Populations Student Support Services P-16 Initiative , , ,837 62,524 Additional Designated Student Success , Special Initiative ,000 Community College On-line Total , , , , , , , , % % 1.33% 7.36% 4.11% % % 42.31% -8.13% % Total All Funds 7,815,397 7,734,148 7,910,747 7,890,913 8,109,054 7,276,891 6,876,105 6,897,251 7,002,788 7,759, % -2.23% 0.25% -2.69% 11.44% 5.83% -0.31% -1.51% -9.75% -9.99% (1) Includes 2.5% mid-year budget reduction for FY09 III-4

36 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 ASSESSED VALUE AND TAX LEVY OF TAXABLE PROPERTY (Unaudited) Last Ten Fiscal Years Year Current Percent of Tax Assessed Tax Levy Year Taxes of Levy Levy Rates Valuation % $ % Collected Collected $ 18,670,894,035 (5.40%) $ 51,623, % $ 51,169, % ,737,548,883 (5.19%) 48,671, % 48,042, % ,818,247,143 (2.30%) 47,296, % 46,950, % ,307,945, % 45,724, % 45,253, % ,200,304, % 40,198, % 39,834, % ,698,629, % 37,422, % 37,269, % ,805,881, % 34,538, % 34,429, % ,299,377, % 31,949, % 31,862, % ,519,932, % 28,962, % 28,888, % ,425,003, % 26,246, % 26,208, % Ten Year Average Increase 5.47% 7.65% 99.38% Five Year Average Increase (0.95%) 6.71% 99.03% Note: Assessed value is computed by various county's clerks offices and is equal to approximately one-third of the estimated actual value. Sources: Cook, Grundy, Kankakee, Kendall, LaSalle, Livingston and Will County Clerk's Office. III-5

37 JOLIET JUNIOR COLLEGE COMMUNITY COLLEGE DISTRICT NO. 525 TAX LEVY AND RATES Tax Levy Year Average Assessed Valuation: Will 15,544,164,034 16,518,909,440 17,379,370,763 17,815,228,170 17,771,973,559 16,534,910,793 14,863,882,795 12,966,280,219 11,440,850,848 10,334,582,383 Grundy 1,833,949,279 1,843,748,706 1,865,970,346 1,930,688,896 1,912,013,367 1,836,955,036 1,762,421,854 1,225,476,232 1,117,433,947 1,204,880,224 Cook 778,150, ,592,313 1,000,721,301 1,011,849, ,449, ,389, ,823, ,914, ,489, ,774,892 Kendall 352,676, ,284, ,694, ,300, ,060, ,371, ,933, ,546, ,958, ,100,868 Livingston 139,132, ,716, ,139, ,237, ,139, ,999, ,631,215 95,746,805 93,133,816 90,907,947 LaSalle 22,250,453 22,731,762 22,773,620 13,072,938 10,173,110 9,534,600 8,819,385 8,069,408 7,741,892 7,430,640 Kankakee 570, , , , , , , , , ,271 18,670,894,035 19,737,548,883 20,818,247,143 21,307,945,484 21,200,304,630 19,698,629,345 17,805,881,791 15,299,377,998 13,519,932,907 12,425,003,225 % Increase EAV -5.40% -5.19% -2.30% 0.51% 7.62% 10.63% 16.38% 13.16% 8.81% 10.50% 5.47% Tax Rates Education O & M Bond & Int Audit L P & S Life Safety Total Limiting Rate Tax Extensions Education 28,974,434 27,449,763 26,868,215 26,171,376 24,941,905 21,786,022 19,752,667 18,134,412 16,309,227 15,123,489 O & M 15,145,028 14,147,138 13,543,827 12,543,661 12,551,285 12,032,315 11,489,213 10,682,105 9,817,101 8,977,814 Bond & Int 5,412,553 5,081,176 4,858,538 5,039, Audit 92,962 97, ,106 85,145 83,591 94,207 87,272 76,431 67,601 62,683 L P & S 868, , , ,820 1,582,802 2,507,902 2,299,755 2,215,435 1,998,347 1,739,891 Life Safety 1,129,871 1,053,979 1,121,023 1,065,406 1,039,320 1,001, , , , ,878 Total 51,623,161 48,671,918 47,296,757 45,724,841 40,198,903 37,422,299 34,538,141 31,949,879 28,962,921 26,246,755 % Increase in extension 6.06% 2.91% 3.44% 13.75% 7.42% 8.35% 8.10% 10.31% 10.35% 5.77% 7.65% III-6

38 JOLIET JUNIOR COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 525 TOTAL PROPERTY VALUE AND NEW CONSTRUCTION Levy Total Assessed Increase % New % Year Value (EAV) (Decrease) Change Construction of EAV CPI 2012 $ 18,670,894,035 (1,066,654,848) (5.40%) $ 168,626, % 3.00% ,737,548,883 (1,080,698,260) (5.19%) 297,439, % 1.50% ,818,247,143 (489,698,341) (2.30%) 380,327, % 2.70% ,307,945, ,640, % 388,314, % 0.10% ,200,304,630 1,501,675, % 671,697, % 4.10% ,698,629,345 1,892,747, % 797,153, % 2.50% ,805,881,791 2,506,503, % 986,857, % 3.40% ,299,377,998 1,779,445, % 910,492, % 3.30% ,519,932,907 1,094,929, % 874,285, % 1.90% ,425,003,225 1,180,899, % 650,714, % 2.40% Sources: Will, Grundy, Kankakee, Kendall, LaSalle, Livingston and Cook County Clerk's Office. III-7