calistoga joint unified school district 2010-2011 unaudited actuals financial report graphics...
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CALISTOGA JOINT UNIFIED SCHOOL DISTRICT
2010-2011
UNAUDITED ACTUALS FINANCIAL REPORT
Graphics courtesy of School Services of California
Superintendent: Dr. Esmeralda Mondragon
Governing Board: Marty Hunt, President To be determined, Clerk Marco DiGiulio, Trustee Indira Lopez, Trustee Jeff Maxfield, Trustee
Superintendent: Dr. Esmeralda Mondragon
Governing Board: Marty Hunt, President To be determined, Clerk Marco DiGiulio, Trustee Indira Lopez, Trustee Jeff Maxfield, Trustee Presented for approval on September 19, 2011
By Teri Malvino, Director of Business ServicesPresented for approval on September 19, 2011By Teri Malvino, Director of Business Services
Financial ReportingRequirements
Fiscal YearJuly 1, 2010 – June 30, 2011
1st InterimJuly 1 – October 31
Due to COEDecember 15
2nd InterimJuly 1 – January 31
Due to COEMarch 15
Unaudited Actuals
July 1- June 30
Due to COESeptember 15
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GOALS DRIVE BUDGETDistrict Strategic Goals
Ensure Academic Excellence for All Students
Develop a Positive and Unified School Community Culture
Maintain and Improve Facilities
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2010 - 2011
ALLFUNDS
SUMMARY
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ALL FUNDS
REVENUESDoes include other financing sources/uses
Funds 2009-10 Actuals
2010-11 Actuals
Difference
General 11,971,532 11,244,932 <726,600>
Cafeteria 438,802 442,131 3,329
Deferred Maintenance
3,402 94,091 90,689
Special Reserve - Non Capital Outlay
835 586 <249>
Building Fund 5,962 5,962
Developer Fees 65,234 34,686 <30,548>
Special Reserve - Facilities Fund
5,840 7.197 1,357
Bond Interest and Redemption Fund
232,710 220,940 <11,770>
Retiree Benefit Fund
14,298 52,992 38,694
General Fund
$ 199,150 Property Taxes (Rev Limit Sources)
$ 117,801 Federal
$ - 756,397 State- 33,233 Spec Ed (Prior Yr.)
- 36,830 Transportation- 17,714 Spec Ed Trans.- 40,923 EIA (Econ. Impact Aid)
- 70,758 State (Prior Yr.)- 145,577 K-3 CSR- 13,456 Lottery- 465,374 All Other State+ 67,468 Mandated Cost Reimbursement
$ - 287,154 Local Income- 211,509 Sp Ed Prop Tax- 18,133 Interest Income- 5,000 Summer Sch.- 20,000 ASES/Career- 8,000 After Sch/ASES- 12,000 Daycare- 12,512 Donations
Deferred Maintenance
$ 42,507 State Match$ 50,179 Extreme Hardship (Roof Project/CHS)
Developer Fees
$ - 28,171 School Impact Fees
Bond Interest & Redemption
$ - 11,770 Property Tax &Interest Income
Retiree Benefit Fund
$ 38,694 Interest Income
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ALL FUNDS
EXPENDITURESDoes include other financing sources/uses
Funds 2009-10 Actuals
2010-11 Actuals
Difference
General 10,929,677 10,689,293 <240,384>
Cafeteria 420,837 500,833 79,996
Deferred Maintenance
256,019 41,114 <214,905>
Special Reserve - Non Capital Outlay
0 0 0
Building Fund 0 429,572 429,572
Developer Fees 148,301 197,750 49,449
Special Reserve - Facilities Fund
<43,219> <10.336> <32,883>
Bond Interest and Redemption Fund
219,037 222,495 3,458
Retiree Benefit Fund
3,182 4,387 1,205
General Fund
$ - 27,669 Salary/Benefits
$ - 307,296 Equipment/Services2009-10 Busses2009-10 Truck
$ - 130,494 Transfers In/Out- 89,340 Def. Maint.- 40,309 Retiree Trust
$ 225,075 Services/Other
Cafeteria - Point of Sale System
Deferred Maintenance2009-10 CJSHS Roof Project
Building FundGOB Sale & Pre-construction
Developer FeesCOP Gallis Property payment
Special Reserve-Facilities2008-09 Payables closed
Bond Interest/Redemption FundPrincipal & Interest payments
Retiree Benefit FundPARS Administration fees
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2010 - 2011
GENERALFUND(FUND 01)
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Basic Aid vs. Revenue Limit
2007-08 2008-09 2009-10 2010-11 $-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000 $8,379,555 $9,250,324 $9,228,759 $9,326,500
$4,87
1,614
$4,74
6,942
$4,47
8,592
$4,33
1,944
(Data from Unaudited Actuals - Form RL)
Basic Aid Revenue Limit
General Fund
Unrestricted and Restricted
PROPERTY TAX REVENUE (Revenue Limit Sources)
$9,805,825
87%
FEDERAL$532,729
5%
STATE$711,803
6%
LOCAL / OTHER$194,574
2%
2010 – 2011Unaudited Actuals
$11,244,932
General Fund
Unrestricted and Restricted
Cer-tifi-
cated Salari
es$5,324,85850%
Clas-sified Salari
es$1,921,12718%
Em-ploye
e Bene-
fits$1,709,85116%
Books &
Sup-plies
$487,0325%
Ser-vices/Utili-ties
$1,242,75711% Capital Outlay
$35,670Less than 1%
Other$-32,002
Less than 0%
Salaries and benefits ($8,955,836) vs. Total Outgo ($10,689,293) = 84%Salaries and benefits ($8,955,836) vs. Total Revenue ($11,244,932) = 80%
Salaries and benefits ($8,955,836) vs. Total Unrestricted Property Tax Revenue ($9,805,825) = 91%
2010-11Unaudited Actuals
$10,689,293
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2010 - 2011
SUPPLEMENTAL INFORMATION
• 2010-2011 Key Achievements
• State COLA vs. CJUSD
• Enrollment vs. Average Daily Attendance
• 2011-2012 Budget Assumptions
• School Services Fiscal Report Basic Aid Reserves – How much is enough
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2010 – 2011
• Measure A approved by voters
• Bonds issued:– $6.5M General Obligation Bonds– $1.5M Clean Renewable Energy Bonds
• Pre-construction phase in progress
• CJUSD & SHUSD develop UVSSJPA Up Valley Support Services Joint Powers Authority
Leverage higher level of services for greater efficiency and effectiveness
• Point of Sale System implemented
• Technology in the classroomFoster 21st Century learning
• Medical Administration Authority (MAA) Capture revenue reimbursement for mandated
services
• Deferred Maintenance–fully funded
• Routine Maintenance–fully funded
• 1.75% off-schedule salary compensation
KEYACHIEVEMENTS
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CJUSD is fortunate to be a Basic Aid District
Fiscal Year
State COLA
Calistoga Settlement
One-Time Bonus
1993-94 -0.56% 1.00% 3.00%
1994-95 0.00% 3.00% 4.00%
1995-96 2.73% 2.00% 2.00%
1996-97 3.21% 3.50%
1997-98 2.65% 3.00%
1998-99 3.95% 3.63%
1999-00 1.41% 3.20%
2000-01 3.17% 8.52%
2001-02 3.87% 2.80%
2002-03 2.00% 1.89%
2003-04 -1.20% 4.50% 0.50%
2004-05 2.41% 3.80%
2005-06 4.23% 5.50%
2006-07 5.92% 6.90%
2007-08 4.53% 6.15%
2008-09 -2.67% 7.30%
2009-10 -7.64% 0.00%
2010-11 -0.39% 0.00% 1.75%13
Enrollment vs.
Average Daily Attendance
ATTENDANCE MATTERS
06-07 07-08 08-09 09-10 10-11325
345
365
385
405
425
445
465
485
CES En-rollment
CES ADA
CJSHS Enrollment
CJSHS ADA
District WideEnrollment
vs.Average Daily Attendance
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11760
780
800
820
840
860
880
900
920
940
960
980
Enrollment ADA
2011 - 2012BUDGET
ASSUMPTIONSNapa Co. property tax revenues to be increased 1.5% over 2010-11 ActualsNo increase to Sonoma Co. property tax revenueState Categorical COLA based on School Services Dartboard
2010-11 Basic Aid “Fair Share” reductions budgeted in 2011-12Deferred Maintenance – fully fundedRoutine Restricted Maintenance – fully funded
PARS and STRS Golden Handshake budgeted in 2011-12
District will continue to focus on implementation of Strategic Plan Objectives
Step and Column budgeted in 2011-12
10% Reserve for Economic Uncertainty (REU)
Maintain 1-time $220,000 REU set-aside
GOB pre-construction costs to be budgeted to Fund 21
District is committed to continue conservative budgeting 16
School Services of California Issue #43, October 2010
Basic Aid Reserves—How Much is Enough?Over the past three decades, we have often written about the level of reserves needed in basic aid districts and why they need to be higher than those of revenue limit districts. Most of the advice we have given has been offered during more “normal” times than these. We, therefore, want to update our advice and the rationale for that advice in light of current economic times and the practical considerations necessary to cope with those conditions.
Basic Aid Reserves During Good TimesDuring good times, when revenue limit districts get their historical average of about a 4% increase in revenues and basic aid districts get their historical average of about 6.5% in increased property taxes, our advice to basic aid districts is very straightforward. We think that, in addition to the standard 3% reserve for economic uncertainties maintained by all districts, basic aid districts need to put aside a separate basic aid reserve equal to about 1/3 of the difference between the district’s revenue limit funding level and its basic aid funding level.
As a revenue limit district transitions to basic aid, we recommend that in the first year the district set aside at least 1/3 of the excess revenues provided by property taxes. So, if the district gets $3 million above its revenue limit funding level, we recommend that you reserve $1 million and spend no more than $2 million. In the second year, if the district gets another $3 million, for a total of $6 million, another $1 million should be added to the reserve and no more than $5 million would be spent. As you can see, reserves only have to be set aside once and, therefore, spending increases proportionally each year after the first year.
Districts that have followed our recommendations typically carry a standard 3% reserve for economic uncertainties and another 33% in the basic aid reserve. Our reason for recommending the higher reserve is that basic aid districts have no protection when property taxes decline until they once again become a revenue limit district. (Revenue limit districts have some degree of protection because they are funded on the greater of current– or prior-year ADA.) Any negative changes in enrollment, expenditures, or property tax revenues are the sole responsibility of the district. We think our recommended policy regarding the level of reserves has served basic aid district well for three decades. 17
Basic Aid Reserves During Bad TimesAs we have seen more recently, during bad times—those when the state is cutting both revenue limit and categorical funding and property taxes are declining as well—we think further discussion of reserves is in order. Specifically, the threats to fiscal stability for basic aid districts have increased in both number and severity.
Over the past three years, state-wide average property taxes have declined each year. Additionally, beginning in 2008-09, categorical funds received by all districts, including basic aid districts, have been cut by a total of 19.84%.We have also seen periodic renewals of the state’s attack on excess property taxes. And to create the perfect storm, basic aid districts are expected to pay a “fair-share” contribution equal to the per-student amount lost by revenue limit districts. (Although the state has reversed its latest proposed revenue limit reduction and therefore basic aid districts are not currently required to make a fair-share contribution for 2010-11, they will make the 2009-10 contribution in 2010-11.)
Schools of choice, charter schools, districts of choice and other unique district factors, such as the loss of a major employer or construction slowdown, have also affected the fiscal stability of basic aid districts. For many basic aid districts, especially those that are newly basic aid not so much from growth in property taxes, but because of reductions to the revenue limit, the vulnerabilities are overwhelming. The newer basic aid districts, especially those that “backed-into” basic aid, may be barely above the level of revenue limit funding and have not yet had a chance to build a basic aid reserve.
As a result, in the short term many basic aid districts are seeing their reserves erode at an alarming rate. It is no longer unusual to hear that a basic aid district has a serious fiscal problem. At least a couple have implied that, absent an improvement in the economy, they will receive a qualified or even negative certification. Especially vulnerable are those newer basic aid districts that have experienced substantial declines in property tax revenues, increasing enrollment, creation of charter schools, and other losses of revenue or increased costs. And for all districts, the delayed payment of categorical funds has created cash flow challenges.
School Services of California Issue #43, October 2010
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So, How Does This Impact Our Advice On Reserves?First, current economic conditions and their effect on basic aid districts has reinforced our conviction that basic aid districts definitely need higher reserves than do revenue limit districts. And we think that, long term, our 33% guideline remains appropriate. But as we have seen recently, even a very conservative reserve can evaporate quickly. The combined effects of step and column and health and welfare benefit increases, the “fair-share” contribution, increased costs of special education and other programs, and lost revenue have caused many basic aid districts to spend major portions of the reserve just to get through the current year, not to mention the challenge of meeting the state-required three-year multiyear projection.
Coupled with the considerable uncertainty as to whether a new administration will maintain the recently enacted Budget, basic aid districts have good reason for concern. Our advice is that basic aid districts remember that “Cash isKing” and that they avoid new commitments, at least until the May Revision next spring. It is easier to spend money you do have late than to deal with the problem of spending money early and finding out you do not have it. We believe that any reduction to revenue limits by the new administration will be accompanied by yet another “fair-share” contribution from basic aid districts. We think spending less and spending it slower is good advice for all districts, but particularly for the basic aid districts.
Bottom line, we now see our former recommendation as being the bare minimum, not the more comfortable level we once expected it to be. So now when a district asks us how much they need to have in reserve, our answer is always the same: “More.”—Ron Bennett
School Services of California Issue #43, October 2010
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GOALS DRIVE BUDGETDistrict Strategic Goals
Ensure Academic Excellence for All Students
Develop a Positive and Unified School Community Culture
Maintain and Improve Facilities
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Questions?
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