Shanan Egger will present the financial statements as of February 28, 2022. 

15 Minutes:  Dan and Shanan present the highlights of the Financial Model, particularly as it relates to the feasibility of financing a Fourth Building and refinancing EMSA's current debt.

30 Minutes:  Dialogue, Q&A

Attached for review and discussion, are the following documents:

1.  A Revised Financial Model (March 22, 2022).  

2.  An Explanatory Narrative corresponding to the March 22nd Financial Model

3.  A Summary chart detailing the construction & debt service costs of the four development scenarios.

4.  An updated Chart tracking PCTC for EMSA/U46 through the years, incorporating  the FY23 PCTC rate of $12,521.75. 

The Model does the following:

1.  Adds staff positions, primarily program, in keeping with the Principal's recommendations, staff input going beyond the December 2021 Board decisions.  

2.  Maintains teacher salaries within the "Anchoring Document" step and lane system adopted by the Board in December 2021 for FY22, going forward through FY23, FY24, FY25, and FY26.

3.  Provides for refinancing of the existing IFF financing along with full renovation of the Administration Building.  Financial assumptions have been updated to reflect a projected 18-month capital borrowing of interest during and following construction, as well as adjustment of long-term interest rate to 5.50% (taking into account changed interest rate environment since summer/fall 2021, and projecting forward conservatively to a February 2023 bond closing).  Construction estimates have also been adjusted to reflect increased construction inflation.

I am sharing a proposal letter from Longhouse Capital Advisors.  Longhouse, and its Managing Director Lindsay Wall, have been recommended as an exceptional value, municipal financial advisor by IFF's underwriter.  Longhouse has a history of success with Illinois charter schools, including three bond financings with Prairie Crossing Charter School.  Geoff Deigan has given a glowing refererence for Lindsay and her team, saying he'd never do anything like this without her/them.  She has experience with EFF as well as traditional bond underwriting.

No decision here, but wanted to continue a dialogue, and ask if the Committee would like to meet Lindsay, in April.

See attached March COO Report.  

1.  Revisions to long-term borrowing, 5 Year financial projections 

2.  Finance Committee "Pillars" Strategic Planning document

3.  Food Program IFB submitted to ISBE for its review

4.  DCEO $300,000 Grant Application forms submitted to DCEO

ISBE provided guidance on the PCTC rate on March 17, 2022.  This fulfilled a goal of our advocacy, to obtain a FY23 PCTC in the Spring, versus in the Summer, to help the School's financial planning/budgeting.  The FY23 rate at $12,521 was a 3.9% increase over FY22 and slightly exceeded projections in December 2021 Financial Model.  Based on this, EMSA will be letting returning teaching staff know their salaries will be consistent with Anchoring Chart for FY23.

Attached is a draft Internal Control Policy, created by EAB/Quattro with input from Dan Alexander, for the Committee's consideration.  Due to limited time at this Meeting, we are going to allocate further time for discussion on this topic in April.

Shanan expects to bring a draft Budget before the Committee in May, and a second draft of the Budget before the Committee in June, prior to Board review/approval in June.

Discussion of second draft of Committee Strategic Planning document

The next regular Meeting of the Finance Committee will be Tuesday, April 19th.