Cotati-Rohnert Park USD Proposed Budget 2019-2020 Pre se nte d b y - - PowerPoint PPT Presentation

Cotati-Rohnert Park USD Proposed Budget 2019-2020

Pre se nte d b y Ro b e rt A. Ma ric a l Chie f Busine ss Offic ia l June 25, 2019

Proposed Budget 2019‐20

• T

he L

• c a l Co ntro l F

unding F

• rmula (L

CF F ) wa s imple me nte d in 2013-14.

• A ke y pie c e to the fo rmula is the L
• c a l Co ntro l

Ac c o unta b ility Pla n (L CAP). T he L CAP re q uire s re po rting o f g o a ls a nd re la te d e xpe nditure s tha t will a lig n with the distric t’ s b udg e t.

• Bo th the Pre limina ry L

CAP a nd Pre limina ry Budg e t must b e pre se nte d in a pub lic he a ring in a me e ting prio r to a do ptio n to a llo w fo r disc ussio n a nd pub lic input.

• T

he fina l L CAP a nd Pro po se d Budg e t a re b o th pre se nte d to nig ht fo r fina l a do ptio n a nd a ppro va l.

Proposed Budget 2019‐20

• T

he Pro po se d Budg e t fo r 2019-20 c o nta ins the mo st upda te d info rma tio n a va ila b le up to a nd inc luding the Go ve rno r’ s Ma y Re visio n pro po sa l.

• T

he Sta te L e g isla ture a nd Go ve rno r ha ve re c e ntly a g re e d o n the fina l 2019-20 Sta te Budg e t b ut the fina l b udg e t ve rsio n ha s ye t to b e sig ne d b y the Go ve rno r.

• Hig he r ST

RS ra te s tha n Ma y Re visio n, o ffse t with PE RS re duc tio n?

• Additio na l funding fo r Spe c ia l E

duc a tio n: Pre sc ho o l, AB602

• T

he se c ha ng e s will b e inc lude d in a future b udg e t re visio n.

• I

f the re a re sig nific a nt c ha ng e s tha t a re re sulting fro m the fina l sta te b udg e t the distric t will re vise the b udg e t fo r a ny sig nific a nt c ha ng e s within 45 da ys.

Proposed Budget 2019‐20

• F

isc a l re c o ve ry pla n ha s b e e n imple me nte d

• Ce rtific a te d F

T E

• -8.0 Ce rtific a te d te a c he r F

T E b a se d o n sta ffing ra tio s

• Shifting o f Spe c ia l E

d fro m c o ntra c t se rvic e s to distric t sta ff

• Co ntinue to b udg e t fo r “fla t” e nro llme nt.
• ADA will b e true d up b a se d o n mo nth 2 e nro llme nt
• He a lth ra te s hig he r tha n pro je c te d:
• +4.33%, pro je c te d +3.0%
• I

nc re a se to wo rke rs c o mp ra te s:

• Ra te s we nt up +.02%, +$68,000
• I

nc re a se to Pro pe rty & L ia b ility ra te s:

• +27% o r +$120,000
• Ro utine Re pa ir Ma inte na nc e (RRMA)must b udg e t

e xpe nditure s up to 3% o f to ta l GF

• +$495,000 inc re a se c o mpa re d to prio r ye a r
• Pro po se d b udg e t do e s me e t minimum re se rve le ve l

re q uire me nts in 2019-20 a nd two sub se q ue nt ye a rs

LCFF Sources $ 53,923,552 Federal Revenue $ 2,234,438 State Revenues $ 4,678,071 Local Revenue $ 6,142,633 Transfers In $ 600,000 Total Revenue $ 67,578,694

38.3% Certificated Salaries $ 25,951,333 11.6% Classified Salaries $ 7,835,809 30.8% Benefits $ 20,876,220 2.2% Materials & Supplies $ 1,498,835 16.8% Services & Contracts $ 11,445,890 0.0% Capital Outlay $ 0 0.4% Other Outgo/Transfer Out $ 270,290 TOTAL EXPENDITURES $ 67,878,377

** Salaries + Benefits = 81% of Total General Fund Expenditures

COTATI-ROHNERT PARK USD GENERAL FUND - COMBINED 2017-18 2018-19 2019-20 2020-21 2021-22 Unaudited

• Est. Unaudited

Proposed Projected Projected Actuals Actuals Budget Budget Budget REVENUES: Revenue Limit 49,711,729 $ 52,548,884 $ 53,923,552 $ 55,473,833 $ 56,972,304 $ Federal Revenue 2,470,354 $ 2,492,168 $ 2,234,438 $ 2,234,438 $ 2,234,438 $ State Revenue 5,516,192 $ 5,689,489 $ 4,678,071 $ 4,342,102 $ 4,348,701 $ Local Revenue 7,226,746 $ 6,786,497 $ 6,142,633 $ 6,112,567 $ 6,112,456 $ Transfers In 521,000 $ 994,377 $ 600,000 $ 600,000 $ 500,000 $ TOTAL REVENUES 65,446,022 $ 68,511,415 $ 67,578,694 $ 68,762,940 $ 70,167,899 $ EXPENDITURES: Certificated Salaries 24,950,212 $ 26,115,802 $ 25,951,333 $ 26,327,628 $ 26,709,378 $ Classified Salaries 7,073,783 $ 7,591,882 $ 7,835,809 $ 7,956,481 $ 8,079,011 $ Employee Benefits 18,577,135 $ 19,752,370 $ 20,876,220 $ 21,938,343 $ 22,275,756 $ Books and Supplies 1,643,875 $ 2,044,250 $ 1,498,835 $ 1,579,702 $ 1,602,444 $ Services and Other Operating Exp 12,364,934 $ 13,598,965 $ 11,445,890 $ 11,488,948 $ 11,664,403 $ Capital Outlay 213,177 $ 8,002 $

• $
• $
• $

Other Outgo 252,008 $ 245,527 $

• $
• $
• $

Transfers Out 774,050 $ 205,473 $ 270,290 $ 270,290 $ 250,000 $ TOTAL EXPENDITURES 65,849,174 $ 69,562,271 $ 67,878,377 $ 69,561,392 $ 70,580,992 $ Beginning Balance 3,289,952 $ 2,886,800 $ 1,835,945 $ 1,536,262 $ 737,810 $ Net Increase (Decrease) in Fund Balance (403,152) $ (1,050,856) $ (299,683) $ (798,452) $ (413,093) $ Ending Balance 2,886,800 $ 1,835,944 $ 1,536,262 $ 737,810 $ 324,717 $

District Reserve Percentage 4.38% 2.64% 2.26% 1.06% 0.46%

Components of Ending Fund Balance: Nonspendable: (a) Revolving Cash 5,000 $ 5,000 $ 12,391 $ 12,391 $ 12,391 $ b) Prepaid Exp/Other 191,384 $ 13,223 $

• $

(b) Restricted 545,277 $ 559,862 $ 710,097 $ 208,071 $

• $

(c) Committed

• $
• $
• $
• $
• $

(d) Assigned: Assigned Reserve 2,145,140 $ 1,257,860 $ 813,774 $

• $
• $
• $
• $
• $
• $
• $

(e) Unassigned /Unappropriated Reserve for Economic Uncertainties

• $
• $
• $
• $
• $

Unassigned/Unappropriated $ $

• $

517,348 $ 312,326 $ Special Reserve Fund (17) 2,665,497 $ 2,774,147 $ 2,774,147 $ 2,742,497 $ 2,787,497 $

AB 1200 Reserve Percentage (Must be min. 3% )

4.0% 4.0% 4.1% 4.7% 4.4%

Reserve Level 4% 4% 4% 4% 4%

Proposed Budget 2018‐19

Areas of Financial Concern

• Sta te T

e a c he rs Re tire me nt (ST RS) I mpa c t: Ba se d o n Ma y Re visio n, 2019-20 inc re a se is e stima te d to c o st a n a dditio na l $78,287. Ra te s will c o ntinue to inc re a se a nnua lly until 2020-21 a nd will pe a k a t 19.10%

• Pub lic E

mplo ye e s Re tire me nt Syste m (PE RS): 2019-20 inc re a se e stima te d to c o st a dditio na l $235,315. Ra te s a re a lso e xpe c te d to inc re a se a nnua lly a nd pe a k in 2023-24 a t 26.4%.

• T

he ST RS a nd PE RS ra te s in the 2019-20 b udg e t we re b a se d o n Ma y Re visio n. T he fina l sta te b udg e t sho uld inc lude re vise d ra te s fo r b o th ST RS a nd PE

• RS. ST

RS is e xpe c te d to inc re a se +.4% fro m Ma y Re visio n a nd PE RS will de c re a se -1.012% fro m Ma y Re visio n.

• E

stima te d o ve ra ll +$27,000 inc re a se in c o st. Bo th ST RS a nd PE RS ra te s will b e a djuste d in o ur 2019-20 b udg e t in a future re visio n.

• Ple a se note tha t ST

RS a nd PE RS c ost inc re a se s will c ontinue to a c c ount for the la rg e st sha re of inc re a se d c osts to the budg e t

Proposed Budget 2019‐20

Areas of Financial Concern

• Co ntinue d impa c t o f ST

RS/ PE RS inc re a se s

• E

nro llme nt tre nds

• COL

A o nly funding driving L CF F inc re a se s

• Co mpe ting inte re sts fo r a va ila b le re so urc e s:
• Co nta ining Spe c ia l E

duc a tio n Co sts

• F

uture sa la ry ne g o tia tio ns

• F

unding future te c hno lo g y ne e ds

• I

nc re a se s in g e ne ra l c o st o f do ing b usine ss

• Una ntic ipa te d e xpe nditure s
• Building up (o r just ma inta ining ) GF

re se rve

Budget Adoption Reserve Requirement

• Budg e t Ado ptio n Re se rve Re q uire me nts: Se na te Bill (SB) 858 inc lude d the

trig g e ring la ng ua g e fo r the re se rve c a p, b ut a lso re q uire s tha t fo r the a do pte d b udg e ts, sc ho o l distric ts must a dd so me ste ps to the pub lic he a ring .

• Sc ho o l distric ts ne e d to de te rmine the to ta l a mo unt o f a ssig ne d a nd

una ssig ne d e nding fund b a la nc e s fo r the b udg e t ye a r a nd de te rmine the a mo unt in the re se rve tha t is a b o ve the minimum re q uire me nt.

• Are a s to disc uss:
• T

he minimum re se rve le ve l re q uire d

• T

he a mo unt o f a ssig ne d a nd una ssig ne d e nding fund b a la nc e tha t e xc e e ds the minimum

• Re a so ns fo r the re se rve b e ing g re a te r tha n the minimum

Budget Adoption Reserve Requirement

Budget Adoption Reserve Requirement

• Sta te me nt o f re a so ns fo r the distric t re se rve b e ing a b o ve the sta te

minimum inc lude :

• Curre nt le ve l o f re se rve wo uld fund le ss tha n 2 mo nths o f pa yro ll
• Unc e rta inty o f future e nro llme nt tre nds
• Unc e rta inty a nd vo la tility o f spe c ia l e duc a tio n c o sts
• Ne e de d to ma inta in po sitive c a sh flo w to re duc e b o rro wing c o sts
• T
• ma inta in o r upg ra de b o nd ra ting
• Distric t ha s no t se ttle d ne g o tia tio ns fo r 2019-20
• T
• susta in c urre nt a nd future ST

RS a nd PE RS c o st inc re a se

• Hig he r re se rve le ve l is ne e de d with full funding o f L

CF F with COL A b e ing the

• nly inc re a se in sta te funding re ve nue s
• T
• pre ve nt c utting c urre nt sta ffing a nd pro g ra ms whe n the ne xt e c o no mic

do wnturn ha ppe ns

Next Steps

• Adjust b udg e t fo r c ha ng e s fro m the fina l sta te

b udg e t

• 2019-20 E

nro llme nt: De te rmine impa c t o n b udg e t, if a ny

• Adjust b udg e t fo r fina l sta ffing pe r sta ffing ra tio

fo rmula , inc luding filling o pe n po sitio ns

• Adjust b e g inning fund b a la nc e b a se d o n Una udite d

Ac tua ls

• Co ntinue to mo nito r a nd re vise b udg e t thro ug ho ut

the ye a r b a se d o n mo st c urre nt info rma tio n