Conejo Valley USD Second Interim Report FY 2016-17 As of January - PowerPoint PPT Presentation

Conejo Valley USD Second Interim Report FY 2016-17 As of January 31, 2017

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 1/31/17): 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 obligations for the current OR two subsequent fiscal years

Gap Funding Target Entitlement* Current Year Funding = $158,268,152 Total LCFF Gap Gap x Gap Funding % $5,256,149 LCFF Funding $153,012,004 $11,753,463 x 55.28 % $6,497,314 *Once fully funded, COLA becomes primary

Transfers Local Revenue $8,666,335 $6,174,823 5% 3% State $14,004,466 8% Federal $6,008,253 3% LCFF $152,676,188 81% Total Revenue $187,530,065

Other Outgo Capital Outlay Contract Svs/Other $442,476 Expenses $1,885,978 $18,024,338 0% 1% 10% Books & Supplies $17,057,881 9% Certificated Salaries $88,077,623 46% Benefits $39,721,708 21% Classified Salaries $24,677,126 13% Total Expenses $189,887,130

Description Amount Beginning Balance $22,125,022 Estimated Income $187,530,065 Estimated Expenses $189,887,131* Net Estimated Ending Balance $19,767,956 *Includes carryover of $5,841,474

Stores Revolving Cash $159,301 $43,616 1% 0.22% Recurring $2,757,390 Local Stabilization Reserve 14% $3,000,000 15% One-time (Local) $4,196,635 21% 3% Mandated Reserve $5,696,614 29% One-time (Mandated Block Grant) $3,914,400 20% Fund balance Breakout

Multi-year Projection Assumptions Budget Assumptions 2016-17 2017-18 2018-19 LCFF GAP Funding % 55.28% 23.67% 53.85% One-time Funding (per ADA) $214 $48 0 Statutory COLA 0.00% 1.48% 2.40% 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 CalSTRS Employer Rate ($11m) 12.58% 14.43% 16.28% CalPERS Employer Rate ($3m) 13.888% 15.80% 18.70% Cost of step and column $1.5m Cost of 1% salary increase (not included) $1.2m

2016-17 2017-18 2018-19 2nd Interim Est. Est. Revenue LCFF $152,676,188 $152,187,803 $153,561,310 Federal $6,008,253 $6,001,846 $6,001,846 State $14,004,466 $10,559,755 $9,563,286 Local $6,174,823 $6,015,473 $5,998,706 Incoming Transfers $8,666,335 $8,360,098 $8,266,058 Total Income $187,530,065 $183,124,975 $183,391,206 Expenses Certificated Salaries $88,077,623 $87,921,755 $87,425,270 Classified Salaries $24,677,126 $25,035,405 $25,344,920 Benefits $39,721,708 $42,184,452 $44,707,442 Books/Supplies $17,057,881 $8,704,624 8,669,957 Cont. Svcs./Other Exp. $18,024,339 $18,264,537 $18,332,994 Capital Outlay $442,476 $40,000 $40,000 Other Outgo $1,885,978 $1,888,736 $1,985,957 Total Expense $189,887,131 $184,039,508 $186,506,541 Operating Surplus/Deficit ($914,533) ($3,115,335)

2016-17 2017-18 2018-19 1 st Interim MYP MYP Beginning Balance $22,125,022 $19,767,956 $18,853,423 Surplus/Deficit ($2,357,066) ($914,533) ($3,115,335) Ending Balance $19,767,956 $18,853,423 $15,738,088 Stores/Revolving Cash $202,917 $202,917 $202,917 Fiscal Stabilization Reserve $3,000,000 $3,000,000 $3,000,000 3% Mandated Reserve $5,696,614 $5,521,185 $5,595,196 One-time Block Grant $3,914,400 $3,904,400 $3,904,400 One-time Local $4,196,635 $4,196,365 $3,035,575 Local Recurring $2,757,390 $2,028,286 ($1,161,060)

Other Funds Beginning Est. Est. Net Est. Other Funds Balance Income Expenses End Balance Adult Education $629,915 $4,441,842 $4,257,242 $814,515 Measure I (Capital) $16,490,577 $214,016 $7,405,343 $9,299,250 Measure I Endowment $8,421,141 $20,000 $4,847,373 $3,593,768 Child Care $141,112 $5,218,032 $5,344,354 $14,790 Child Nutrition $71,479 $4,373,311 $4,373,448 $71,342 Developer Fees $1,250,443 $860,000 $509,118 $1,601,325 Health & Welfare* $2,078,757 $25,880,234 $25,570,226 $2,388,765 Private Purpose Trust $1,419 $39,625 $39,475 $1,569 Surplus Property $58,546 $(39,400) $13,000 $6,147 TOPASS $4,606,743 $1,440,991 $1,081,287 $4,966,447 TOPASS Foundation $456,732 $3,000 $455,029 $4,703 Worker Compensation* $6,796,888 $2,124,499 $1,727,488 $7,193,898 *Includes reserve for claims

Summary • Based on Education Code: the District’s current financial certification is POSITIVE. • The District’s ability to manage its cash flow requires borrowing due to tax payment schedules. • The District’s reserve is currently about 5%. • Government Finance Officers Association recommends 17% • Statewide average is 15% • Challenges: • Expenses are out-pacing revenue • Declining ADA = loss of revenue • Fluctuating COLA = uncertainty and does not keep pace with expenses • Rising minimum wage • Rising pension costs • Competitive employee salaries (not included in the multi-year projection)