STATE PRAISES YORKVILLE SCHOOLS

May 5, 2009
By ROWENA VERGARA

YORKVILLE -- Five years after landing on the state's financial watch list, the Yorkville School District has received the state's top distinction of fiscal responsibility.

The district was recently placed in the "financial recognition" range for its 2008 fiscal year. That is highest possible category given by the Illinois State Board of Education, and the first time the district has been named to this category.

The State Board analyzes a district's fund balances and debt, and assesses a numerical score. According to the 2009 School District Financial Profile report, the Yorkville district scored 3.70 in 2008, well above its score of 3.25 in 2007, which moved Yorkville out of the "review" range.

The financial profile report said the district improved its score by passing two tax-rate referendums in the past seven years. The district was also praised for being proactive in its planning and cost management.

About five years ago, the district struggled with its financial health as it dealt with burgeoning residential development, facing growth of about 10 percent a year. "We were growing and had no funds to keep hiring staff," Superintendent Thomas Engler said Monday, reflecting on the last several years.

In 2002, the School Board approved issuing more than $2 million in working cash bonds to access money in the district's Insurance Reserve fund, so it could end all borrowing from banks. Two years later, the district had not borrowed to meet cash flow, Engler said. "It took us awhile, but we got to our goal," he said.

Business manager Asif Dada said the district's conservative spending and out-of-the box cost reduction strategies have helped improve overall financial stability. The soon-to-open Autumn Creek Elementary School is one example. The school will be furnished with donated desks and other furniture in good condition.

The district has also researched various grant opportunities to generate funding, negotiated with vendors and altered the way it pays for electricity and gas, Dada said. At the end of 2008, the district had $6.4 million in its education fund, compared to a $2 million fund balance at the end of 2007, he said.