Board Meeting October 9, 2013 Agenda 1. Welcome, Agenda, Approval - - PowerPoint PPT Presentation

October 9, 2013

Board Meeting

Agenda

1. Welcome, Agenda, Approval of minutes, 6:15-6:20 2. Explain Board and Communication Protocol 6:20-6:25 3. Approval of minutes 6:25-6:30 4. Treasurer’s Report 6:30-6:35 5. PTO Update 6:35-6:45 6. Principal Update 6:45-6:50 7. Budget 2013/2014 Updates 6:50-6:55 8. Budget 2014/2015 Updates, review survey 6:55-7:00 9. Public Comment 7:00-7:10 10. Executive Session 192.660 2(d):

To conduct deliberations with persons to carry out labor negotiation 7:10-7:15

11. Budget 2014/2015 Discussion 7:15-7:25 12. Budget 2014/2015 Consider motion to approve budget 7:25-8:05 13. Committee Resolutions - site and finance 8:05-8:15 14. Finance policies approval 8:15-8:25 15. Adjourn 8:25

Public Comments at Board Meetings

• Board will utilize a Public Comment process similar to those used by BSD

and other boards.

• To address the Board:

○ Fill out a comment form and hand to Board Chair at the start of the meeting ■ Board Chair will filter similar requests and prioritize those who have not previously commented. ■ Due to time limits, all requests may not be accommodated. ○ This is a one-way communication. Board will not immediately respond. ○ Commenter has two minutes to address the board. Going over the time limit reduces the opportunity others have to speak. Time will not be extended. ○ Board Secretary will note substance of comments in minutes.

• Board supports open dialogue and will host open Q&A via Town Hall

meetings held every other month.

• For more details, please review Board Public Comment Policy Document

Treasury Update

Income Statement (Jul 1st, 2013 - Sept 31st, 2013) Actuals Budget (3 mo) Income received during the period: +$ 161,161.57 TBD Expenses paid during the period

• $ 120,408.03

TBD Net Income $ 40,753.54 TBD Balance Sheet (Sept 31st, 2013) Total Assets : $ 389,022.77 Total Liabilities $ 126,733.50 Total Equity $ 262.289.27

• Budget information will be entered pending review by board tonight
• Income is mainly due to timing and amount of BSD payment vs.

expenses ○ 1st payment was for Jul-Sept; while expenses were for Aug/Sept ○ BSD has overestimated our ADMw so payments are higher than expected (taken some reserve for this)

• Otherwise do not expect large variance from breakeven budget

PTO/Fundraising Update

PTO Response to budget gap -see previous slides PTO will

• Do auction
• May do a giving drive
• Find parent volunteers to offset certain school expenses

Recommendations to Board and Principal

• Priority to Keep class sizes small or increase room size, retain good

teachers

• Request annual donation by parents
• Increase ASEP, summer camp, classes for community (Early Ed)
• Get grant writer

Principal Update

• Students – Kinder
• Staff
• Programs
• Community
• Site

Principal Update

• Action Needed

○ Finding more substitute teachers ○ Volunteer Follow Up ○ Teachers training for behavior management ○ Planning for future school site ○ Helpers for English teachers ○ Following parking and building entrance

procedures

○ Wifi in preschool room

Dibels Assessment

Dibels Assessment

Budget Changes ‘13/’14

Budget Item Changed (‘13/14) Impact (‘13/’14)

Beginning surplus (deficit) $9.6 Lost KG Scholarship student and gained paying student $4K Updated Current Enrollment numbers (KG 24 → 25, 1st 47, 2nd 23) $7.5K PreK extra ½ month Tuition adjustment; 1 student dropped $2.8K Added extended hours for TA ($2.5K) Healthcare Eligible from 8 to 9; Taking payout from 2 to 1, ($2.4K) Healthcare for CI Teachers lowered to $2400 $5.7K PreK - added person due to CI issue ($10.9K) Payroll tax & PERS impact ($4.8) CI Teacher Visa Fee (net of $1000 credit) ($2K) Ending surplus (deficit) $7K

Priorities Survey Summary

• 99 responses

Other Feedback (not previously reflected).

• Increased volunteering. Create a culture of contribution in various forms.
• Use meritocracy approach to reward teachers.
• Need increased communication from the Board
• Develop a plan / roadmap explaining the mid & long-term plans for the

school to tangibly demonstrate the need for fundraising and how surplus funds will be utilized.

• Explore partnerships with other charter schools to attract larger funding

sources and/or co-locate or otherwise share facilities.

• Admin help could be achieved through additional volunteer hours.
• State-wide standard tests. Where are we and how are we compared to

public schools and other charter schools?

• Is it possible to volunteer on weekends? Job does not allow it during week.
• We like after school programs but don't think we have to keep it low cost.
• Prioritize finding a bigger facility.
• More field trips related to curriculum.
• Offer Spanish.

Gap Closing Feedback

Budget Gap Closing Ideas Principal Feedback PTO Feedback Board Feedback Class Size increase No, negative conseq. No, unless large room Explore if needed KG Tuition increase Yes, if competitive Yes, last tuition year Yes Supply Fees Yes, $75-$100 OK Yes, $75 Summer School Yes, use current staff Yes, low cost, weekly Yes B/A care fee increase Add more kids, PreK Yes, if competitive Preschool Tuition increase Check if competitive Yes, if competitive Teacher Salary Retain good teachers Path to 100% of scale PERS Yes, if legal Vote Healthcare No unless large saving Reduce Minor Renovation Yes, not long term Use Parent volunteers Yes Accounting and IT Grant Writing hire writer for $2-3K ASEP Programs More, cheaper pgms Set target for PTO Cut Custodian Service No No Supplies and Textbooks Could cut $2K Corporate help? No cut due to CCSS

Budget Changes ‘14/’15

Budget Item Change (‘14/’15) Impact (‘14/’15)

2014/15 ADMw adjusted to 5.66% from 3% $13K KG Tuition increased from $5224 to $5500 $5.5K KG Class size increased from 24 to 25 in 14/15 (same as 13/14) $8K PreK extra ½ month Tuition adjustment (seems small) $3K Supply Fees increase from $50 to $75 $2.5K Healthcare for CI Teachers lowered to $2520 $6K Lunch Coordinator ($8.5K) Renovation Budget decreased $11K

Budget Decisions ‘14/’15

Budget Item Change (‘14/’15) Impact (‘14/’15) Yes/No

Teacher Salary from 90% (assumed in budget) to ~95% of scale (stretch goal of 100%; revisit budget in Jan ‘14 board meeting ($14K) Yes Teacher Salary from 90% (assumed in budget) to 100% of scale ($28K) N/A Lunch Coordinator ($8.5K) Yes Explore changes to retirement benefit from PERS to

• private. Approve to spend legal fees

(Up to $3K) Yes Explore option for Saturday School (PTO) Kick off plans for summer school ASEP Fundraising Target $4K (placeholder is $2K) $2K Before/After care tuition increase by 5% $3.3K Explore PreK Tuition Increase by additional 4% $3.8K Explore

PERS

• Background

○ PERS is the public employee retirement system ○ Employees pay 6%. In addition, employers pay a % depending on actuarial assumptions ○ Upon retirement, employees would receive retirement benefits based on a formula ○ PERS is currently in net unfunded status ○ Employer % based on making up the unfunded status and other assumptions such as cost of living increases ○ New Employees have to wait 6 months

PERS

• Current Situation

○ In 2012/2013, PERS employer rate was 18% and most staff at HCCS had to wait the 6 months. Total PERS expense: $21K ○ In 2013/2014, Rate jumped to 28% and most staff have met wait period. Expected PERS expense:$91K ○ In 2014/2015, rate expected to be 31% (10% increase). Expected PERS expense: $139K ○ PERS has a significant impact on teacher expenses ○ Kitzhaber is working with legislature to reign in increases - in spring, legislative changes resulted in a 1% decrease in the rate (from 29% to 28%)

PERS

• Recommendation:

○ Discuss alternatives with lawyers - currently budgeted $2,500 Without significant changes, PERS becomes an expensive burden on HCCS

Reserve Accounts & Targets

• Reserves serve as an “emergency fund” for
• rganizations. Two types:

○ Operating: Unrestricted net assets that boards maintain for use in emergencies to sustain financial

• perations in the unanticipated event of significant

unbudgeted increases in operating expenses and/or losses in operating revenues. ○ Capital: Assets reserved for long-term capital investment projects or large and anticipated expenses that will be incurred in the future.

Operating Reserve Considerations

• The recommended minimum level for charitable
• rganizations is to hold 3 months of expenses (25% of

annual expenses) as an operating reserve.

• We should set a 25% operating reserve goal. Will take

several years to achieve.

• Our cumulative operating surplus is the foundation of

the operating reserve.

• Balancing our budget becomes challenging in 2015/16

due to end of private kindergarten. Need to build reserve funds now to provide future flexibility.

• We should not utilize the operating reserve to fund the

budget gap.

Operating Reserve Scenarios & Recommendation

Recommend Scenario #1

• Allows continued growth in

Operating Reserves.

• Supports Long Term

financial stability.

• Enables us to focus more

fund raising efforts on Capital Reserves and special challenges / stretch goals.

Capital Reserve Recommendation

• HCCS will require a new school facility as we grow.
• These funds will be used to pay architect fees, upgrade,

renovation/remodel costs, traffic study, rezoning, etc. for a new facility.

• Targeting $50,000 - $100,000 for HCCS as a starting point based
• n properties we surveyed and our architect’s estimates. As we

have more information about potential sites, we will be able to provide a higher degree of precision. Establish $75,000 as a preliminary goal

• Fund the $75,000 target over the next three years.
• Recommended 2014 / 15 Capital Reserve Funding Target =

$25,000 ($75,000 * 0.333)

Communication Plan

• Review draft of letter to parents
• Set date for budget town hall meeting

Executive Session

• EXECUTIVE SESSION 192.660 2(d)
• To conduct deliberations with persons to

carry out labor negotiation

• This is a closed session of the board with

the Principal.

• If holding session, the Board will

reconvene public meeting after 5 minutes.

Committee Structure-Proposal

• Board makes resolution to start -See Board Committee

Proposal

• Committee members have equal vote
• 1 or 2 board members on each umbrella committee
• Propose 2 umbrella committees:Finance and

Development, Site Management

• Committee lead reports update/recommendations to

board for board decision

• Minutes of committee follow public meeting law

Site Committee Proposal

• Scope:

○ Site Maintenance, improvement, safety ○ Long Term Site plan (including new site search) ○ IT Infrastucture (Network, phone, Apps, Website)

• Subcommittees:

○ Site Maintenance and improvement ○ Safety ○ IT and Phone network ○ Website ○ LT plan including new site or expand at existing site

• 1 or 2 board members on the committee
• Committee lead report//recommend to board for

decision

Finance Committee Proposal

• Scope:

○ Review and analyze budget, audit, human resources, records/procedures, insurance, ○ Develop policies, procedures, reports and recommendations

• Subcommittees:

○ Grants ○ Audit & general finance/budget ○ Additional sources of revenues

• 1 or 2 board members on Site and Finance umbrella

committee

• Committee lead report//recommend to board for

decision

Fiscal Policy Proposal

• Policy draft indicates procedures and

responsibilities of finance team, administration and staff.

Upcoming Events

Oct 14, 15 - Parent/teacher conferences Oct 15 - Q1 report due to BSD Oct 21 - Pauly Rogers will be completing their audit of 2012/2013 Oct 28 - Joint PTO/Principal/board town hall budget meeting

New Business

• need to discuss allocation methodology for private vs

public programs