los gatos union school district 2015-16 adopted budget › ... · special reserve - noncapital fy...
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LOS GATOS UNION SCHOOL DISTRICT
2015-16 ADOPTED BUDGET
Martin Fregoso, Assistant Superintendent-Business Services/CBO
Tom Gray, Director of Fiscal Services
Board of Trustees Meeting
June 25, 2015
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Discussion Topics
• Budget Calendar
• May Revise/Budget Update
• Current Budget Assumptions/Per Pupil Spending Trends
• General Fund FY 15-16 Adopted Budget vs. FY 14-15 Estimated Actuals
– Special Revenue Funds
– Capital Project Funds
• Multi-Year Projections
– Unrestricted Ending Balance & SB 858 Requirements
– Reserve Percentage
• Future Considerations
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Budget Calendar
• Unaudited Actuals: Due 09/15/15
• 1st Interim: 10/31/15; Due 12/15/15
• January – Governor’s January Revise Budget
• 2nd Interim: 1/31/16; Due 3/15/16
• May - Governor’s May Revise Budget
• June - Estimated Actuals for FY 15/16 & Budget
Adoption for FY 16/17
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Governor’s May Revise Proposals
• LCFF funding increase of $1,000 on average
– Increase of $850 per ADA for LGUSD
– LCFF funding = $6,858 per ADA for LGUSD, this may move the district into LCFF status sooner
• One Time Funds - Governor proposes $580-$601 per ADA for 2015-16 (Unrestricted and Restricted)
1. Mandate Reimbursements - $1.6 M for LGUSD (Unrestricted) – Suggested use includes Common Core
2. Teacher Training - $265K for LGUSD (Restricted) – Must be used for new teacher training and professional development for teachers
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FY 15-16 Budget Assumptions
• Property Taxes Growth
– FY 15-16 = 7.25%
– FY 16-17 = 4%
– FY 17-18 = 3%
• EPA Funds - $650K in property tax revenue base
– Final year in 2018-19
• 3 FTE - Certificated staff for enrollment growth & 7th
period at Fisher
– Allocated 3.0 FTE as of June 5
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FY 15-16 Budget Assumptions
• No salary enhancements for future years included at this
time
• Step and Column of 1.5% is included (certificated and
classified)
• STRS and PERS increases included in projections
– STRS increases of 1.85% every year until FY 19-20
or $300-$400K of incremental costs every year
– PERS rates could increase by 1.2%-1.6% for the
next few years
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FY 15-16 Budget Assumptions
• Contributions and Services increase at a 2% annual rate
• Common Core ELA Adoption (FY 16-17) $500K
• Basic Aid status secured for now
• Similar funding from LGEF and H&SC’s
• Note - District needs a minimum of 4.5% property tax
growth to maintain existing program, no salary increases
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Per Pupil Spending Trends
Projected Projected Projected
($000's) FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17
Expenditures 27,329 26,680 26,981 28,241 30,426 31,508 30,807 31,951
Enrollment 2,914 3,027 3,137 3,210 3,280 3,345 3,385 3,433
State Funding 1,612 1,197 403 976 1,589 1,009 732 773
% of Expenditures 5.90% 4.50% 1.50% 3.46% 5.22% 3.20% 2.38% 2.42%
Per Pupil $ Dollars $9,379 $8,814 $8,601 $8,798 $9,276 $9,419 $9,227 $9,307Expenditures excludes transfers to other funds
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Unrestricted Revenues
1. FY 14-15 property taxes includes $360K of one time RDA revenues
2014-15
Estimated
Actuals
2015-16
Adopted
Budget
Increase /
(Decrease)Percentage
BEGINNING FUND BALANCE $5,172,535 $4,849,677 ($322,858) -6.24%
REVENUE
LCFF Sources/Property Taxes 22,378,990 23,397,118 1,018,128 4.55%
Federal Revenues 0
Other State Revenue 736,393 512,000 -224,393 -30.47%
Other Local Revenue 4,826,439 4,796,211 -30,228 -0.63%
TOTAL REVENUE 27,941,822$ 28,705,329$ 763,507$ 2.73%
UNRESTRICTED
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Unrestricted Expenditures
1. Certificated Salaries – increase reflects 3.0 FTE for enrollment growth and teacher leaders
2. Employee Benefits – STRS retirement increases and benefits for additional staff
2014-15
Estimated
Actuals
2015-16
Adopted
Budget
Increase /
(Decrease)Percentage
EXPENDITURES
Certificated Salaries 14,518,705 14,806,506 287,801 1.98%
Classified Salaries 2,701,937 2,777,615 75,678 2.80%
Employee Benefits 4,498,209 4,895,763 397,554 8.84%
Books and Supplies 448,120 503,681 55,561 12.40%
Services, Operating Expenses 1,942,612 2,030,096 87,484 4.50%
Other Outgo 54,000 54,000 0 0.00%
TOTAL EXPENDITURES 24,162,344$ 25,066,409$ 904,065$ 3.74%
UNRESTRICTED
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Restricted Revenues
2014-15
Estimated
Actuals
2015-16
Adopted
Budget
Increase /
(Decrease)Percentage
BEGINNING FUND BALANCE $1,270,479 $919,703 -$350,776 -27.61%
REVENUE
LCFF Sources/Property Taxes $12,273 $0 -12,273 100.00%
Federal Revenues 613,275 602,725 -10,550 -1.72%
Other State Revenue 273,153 220,122 -53,031 -19.41%
Other Local Revenue 2,763,902 1,779,681 -984,221 -35.61%
TOTAL REVENUE $3,662,603 $2,602,528 -1,060,075 -28.94%
RESTRICTED
1. Other Local Revenue – This includes H&SC grants, this revenue is not booked until received
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Restricted Expenditures
1. Books and Supplies – Textbook adoption in FY 14-15, approx $600K, H&SC supply grants, Associated Student
Body expenditures at Fisher (future revenue and expenses not booked until received)
2. Services – Study trips, H&SC grants, one time legal expense.
2014-15
Estimated
Actuals
2015-16
Adopted
Budget
Increase /
(Decrease)Percentage
EXPENDITURES
Certificated Salaries 2,079,372 2,027,073 -52,299 -2.52%
Classified Salaries 1,316,655 1,278,701 -37,954 -2.88%
Employee Benefits 897,812 918,655 20,843 2.32%
Books and Supplies 1,637,445 460,038 -1,177,407 -71.91%
Services, Operating Expenses 1,224,938 849,220 -375,718 -30.67%
Capital Outlay 65,034 65,000 -34 100.00%
Other Outgo 123,220 140,220 17,000 13.80%
TOTAL EXPENDITURES $7,345,715 $5,740,159 -1,605,556 -21.86%
RESTRICTED
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FY 15-16
Other Funds
SPECIAL REVENUE FUNDS
CAFETERIA
FUND 13
DEFERRED
MAINTENANCE
FUND 14
BEGINNING FUND BALANCE $34,715 $382,767
REVENUE $575,100 $1,500
EXPENDITURES $620,100 $0
REVENUE OVER (Under) EXPENSES -$45,000 $1,500
Transfers In (Out) $45,000 $275,000
ENDING FUND BALANCE $34,715 $659,267
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FY 15-16
Special Reserve for Non Capital Projects
1. Transfer in FY 16-17 ($400K) for STRS/PERS retirement increases, ELA adoption, and deficit spending.
2. Transfer in FY 17-18 ($300K) for STRS/PERS retirement increases and deficit spending.
SPECIAL RESERVE - NONCAPITAL FY 2015-16 FY 2016-17 FY 2017-18
BEGINNING FUND BALANCE $2,219,308 2,228,629$ 1,837,989$
REVENUE $9,321 $9,360 $7,720
EXPENDITURES $0 $0 $0
REVENUE OVER (Under) EXPENSES $9,321 $9,360 $7,720
Transfers In (Out) $0 -$400,000 -$300,000
ENDING FUND BALANCE $2,228,629 $1,837,989 $1,545,709
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FY 15-16
Other Funds
CAPITAL
FACILITIES FUND
25
SPECIAL
RESERVE
CAPITAL OUTLAY
FUND 40
BEGINNING FUND BALANCE $1,658,741 $8,830,262
REVENUE $178,000 $30,000
EXPENDITURES $1,800,000 $8,168,500
REVENUE OVER (Under) EXPENSES -$1,622,000 -$8,138,500
Transfers In (Out)
ENDING FUND BALANCE $36,741 $691,762
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LGUSD - ADA Funding Comparison
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Property Tax/State Funding Intersect
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Multi-Year Projections
(Cash Flow Analysis)
1. Reserve Percentage calculation is different than the annual audit reserve calculation, excludes assigned balances.
2. Transfer in FY 16-17 ($400K) for STRS/PERS retirement increases, ELA adoption.
3. Transfer in FY 17-18 ($300K) for STRS/PERS retirement increases and deficit spending.
Los Gatos USD - Multi Year Projection
Unrestricted FY 14-15 FY 15-16 FY 16-17 FY 17-18
LCFF Sources/Property Tax $22,378,990 $23,397,118 $24,242,378 $24,904,100
Other State Revenues $736,393 $512,000 $514,000 $516,000
Other Local Revenues $4,826,439 $4,796,211 $4,872,297 $4,911,862
Transfers In $0 $0 $400,000 $300,000
Contributions -$3,332,336 -$3,191,259 -$3,274,267 -$3,340,252
Total Revenues $24,609,486 $25,514,070 $26,754,408 $27,291,710
Expenditures
Certificated Salaries 14,518,705 14,806,506 15,268,556 15,668,461
Classified Salaries 2,701,937 2,777,615 2,823,997 2,871,167
Employee Benefits 4,498,209 4,895,763 5,231,635 5,622,512
Books and Supplies 448,120 503,681 1,014,258 567,114
Services, Other Operating Expenses 1,942,612 2,030,096 2,072,758 2,104,546
Debt Service 54,000 54,000 65,000 65,000
Transfers Out 770,000 320,000 320,000 320,000
Total Expenditures $24,932,344 $25,386,409 $26,794,952 $27,217,548
Revenue Over (Under) Expenditures -$322,858 $127,661 -$40,544 $74,162
Beginning Fund Balance $5,172,535 $4,849,677 $4,977,338 $4,936,794
Ending Balance, June 30 $4,849,677 $4,977,338 $4,936,794 $5,010,956
Reserve Percentage 15.01% 15.99% 15.02% 15.05%
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SB 858 Requirements
• SB 858 requires districts to explain ending fund
balances above the minimum reserve level.
• LGUSD has $6,253,349 above the 3% State minimum
requirement.
• Excess Reserves Needed for the following reasons:
– $3,735,188 (additional 12% minimum reserve per
Board policy, cash flow requirements)
– $1,875,000 (STRS/PERS retirement benefit
increases
– $643,211 (ELA textbook adoption in FY 17-18)
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Next Steps
• Close Books for FY14-15
• Complete Financial Audit – October/November
• Negotiations for FY15-16
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Future Considerations
• District will need to be cautious going forward
• LCFF funding gaps compared to our neighbors– Sustaining current programs will be challenging
• CalSTRS & CalPERS increased contributions
• Flat funding in LCFF transition year – AB 1290 (Sharing of RDA pass-thru revenue with State $900K), automatic loss of EPA funds in LCFF status– Extremely critical, need adequate reserves
• Future LCFF funding level growth may not be sufficient to cover current cost base, need a minimum of 4.5% growth
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Conclusion
• Staff Recommends that the Board Approve the Estimated Actuals (FY14-15) and FY 15-16 Adopted Budget with a Positive Certification at the next scheduled BOT meeting.
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Thank You
&
Questions