Conejo Valley USD First Interim Report FY 2016-17 As of October - - PowerPoint PPT Presentation

Conejo Valley USD First Interim Report

FY 2016-17 As of October 31, 2016

Education Code

§ Education Code requires districts to submit reports to the County Office of Education twice a year. These reports are “Interim” reports. § 1st Interim Report for FY 2016-17 (as of 10/31/16): Board Action on 12/13/16 § 2nd Interim Report for FY 2016-17 (as of 1/31/16): Board Action on 3/7/17 § Education Code Section 42130 (a) (1) defines the certifications. § A Positive Certification: WILL MEET their financial obligations for the current and two subsequent fiscal years § A Qualified Certification: MAY NOT MEET their financial obligations for the current OR two subsequent fiscal years § A Negative Certification: WILL BE UNABLE TO MEET their financial

• bligations for the current OR two subsequent fiscal years

§ For districts filing a Qualified or Negative Certification, they must also submit two additional copies of all documentation to the County Office of Education to be forwarded to the California Department of Education (CDE) and the State Controller’s Office.

LOCAL CONTROL FUNDING FORMULA(LCFF)

§ LCFF includes: Base Grant, Grade Span Adjustment, Supplemental, add-ons of Transportation and Targeted Instructional Improvement Grants (TIGG). § Supplemental funding is based on unduplicated pupil population; English learners, economically disadvantaged, and foster youth. § Funding components: State Aid, Economic Protection Act, and propertytaxes.

2016-2017 1st Interim LCFFCalculation Base Grant Grade Span Adjustment Supplemental Grant Transportation/TIIBG TotalT arget Floor Difference Gap Funding of54.18% 2016-17 LCFF Funding $144,210,523 $5,004,555 $7,004,156 $2,048,918 $158,268,152 $146,514,690 $11,753,463 $6,368,025 $152,882,716

Revenue 1st Interim Expenses 1st Interim LCFF $152,546,900 Certificated Salaries $88,563,129 Federal $5,999,118 Classified Salaries $24,370,323 State $13,818,340 Benefits $39,863,069 Local $5,508,202 Books & Supplies $16,883,708 Transfers $8,666,335 Contract Svs/Other $17,775,620 Capital Outlay $580,184 Other Outgo $1,478,308 Total Revenue $186,538,895 Total Expense $189,514,341

Current Financial Estimates Based on First Interim

Fund Balance Breakdown

Assigned Reserve Amount Stores $159,301 Revolving Cash $43,616 Local Stabilization Reserve $3,000,000 3% Mandated Reserve $5,685,430 Total Designated Reserve $8,888,347 Unassigned Amount

One-time Mandated Block Grant

$3,907,345 Local Recurring $2,560,814 Local One-time $3,793,070 Total Undesignated $10,261,229 Total Ending Balance Amount Assigned Reserves $8,888,347 Unassigned $10,261,229 Total Ending Balance $19,149,576 Description Amount Beginning Balance $22,125,022 Estimated Income $186,538,895 Estimated Expenses $189,514,341 +/-

• 2,975,446

Net Estimated Ending Balance $19,149,576

Multi-year Projection Assumptions

Budget Assumptions 2016-17 2017-18 2018-19

LCFF GAP Funding % 54.18% 72.99% 40.36% One-time Funding $214 per ADA NA NA Statutory COLA 0.00% 1.11% 2.42% Enrollment 19,036 18,580 18,035 P-2 Funded ADA Estimate 18,665 18,366 17,927 Unduplicated Count % 23.47% 23.25% 22.96% Lottery-Unrestricted; perADA $144 $144 $144 Lottery-Restricted; perADA $45 $45 $45 Discretionary Site Allocation per Pupil (ES/MS/HS) 77.20/ 73.10/ 88.74 77.20/ 73.10/ 88.74 77.20/ 73.10/ 88.74 CalSTRS Employer Rate 12.58% 14.43% 16.28% CalPERS Employer Rate 13.888% 16.60% 18.20%

2016-17 1st Interim 2017-18 MYP 2018-19 MYP Revenue LCFF $152,546,900 $155,229,101 $153,963,184 Federal $5,999,118 $5,999,118 $5,999,118 State $13,818,340 $9,544,776 $9,423,937 Local $5,508,202 $5,441,852 $5,405,085 Incoming Transfers $8,666,335 $8,239,609 $7,958,730 Total Income $186,538,895 $184,454,456 $182,750,053 Expenses Certificated Salaries $88,563,129 $88,407,261 $87,910,776 Classified Salaries $24,370,323 $24,728,602 $25,038,117 Benefits $39,863,069 $42,457,516 $44,714,628 Books/Supplies $16,883,708 $8,631,192 $8,596,525

• Cont. Svcs./Other Exp.

$17,775,620 $17,840,818 $17,909,275 Capital Outlay $580,184 $80,184 $80,184 Other Outgo $1,478,308 $1,558,258 $1,642,206 Total Expense $189,514,341 $183,703,831 $185,891,712 Ending Balance $19,149,576 $19,900,201 $16,758,542

2016-17 1st Interim 2017-18 MYP 2018-19 MYP

Beginning Balance $22,125,022 $19,149,576 $20,125,456

Total Income $186,538,895 $184,454,456 $182,750,053 Total Expense $189,514,341 $183,478,576 $185,663,637

+/- $-2,975,446 $750,625 $-3,141,659 Ending Balance $19,149,576 $19,900,201 $16,758,542 Designated Funds Stores/Revolving Cash $202,917 $202,917 $202,917 Fiscal Stabilization Reserve $3,000,000 $3,000,000 $3,000,000 3% Mandated Reserve $5,685,430 $5,511,115 $5,576,751 Total Designated $8,888,347 $8,714,032 $8,779,668 Undesignated Funds One-time Block Grant $3,907,345 $3,897,345 $3,897,345 Local one-time $3,793,070 $3,793,070 $3,793,070 Local Recurring $2,560,814 $3,495,754 $288,459 Total Undesignated $10,261,229 $11,186,169 $7,978,874 Net Est. Ending Balance $19,149,576 $19,900,201 $16,758,542

Funds Outside the General Fund

Other Funds Beginning Balance Est. Income Est. Expenses Net Est. End Balance Adult Education $629,915 $4,441,842 $4,243,084 $826,673 Measure I (B&M) $16,490,577 $169,016 $6,809,120 $9,850,473 Measure I Endowment $8,421,141 $20,000 $2,988,765 $5,452,376 Child Care $141,112 $5,174,309 $5,309,770 $5,651 Child Nutrition $71,479 $4,343,642 $4,343,779 $71,342 Developer Fees $1,250,443 $752,000 $327,933 $1,674,510 Health & Welfare* $2,078,756 $25,788,163 $25,182,399 $2,684,520 Private Purpose Trust $1,419 $39,125 $38,975 $1,569 Surplus Property $58,546 $(40,000) $10,000 $8,546 TOPASS $4,606,743 $1,218,471 $999,015 $4,826,199 TOPASS Foundation $456,732 $200 $455,029 $1,903 Worker Compensation* $6,796,888 $2,113,366 $1,545,435 $7,364,819

*Includes reserve for claims

Final Thoughts

• The District’s current financial position is positive and the District’s ability to

manage its cash flow is effective, although the District must take advantage of bridge loans to cover schedule gaps from State funding.

• State funding remains below 2008 levels and GAP is dependent on the State’s

economy.

• Proposition 30/55 has been extended
• Future one-time unrestricted funds are not guaranteed
• The District is taking measures to secure reserve funding by building a reserve

larger than the required 3%. Currently, an additional $3m is set aside for about a total of 5%

• Government Finance Officers Association recommends 17%
• Statewide average is 15%
• The District must continue to be prudent in the development of its budget in

relation to declining ADA, fluctuating COLA, rising minimum wage, and rising pension and salary costs.