MANDATED COST REIMBURSEMENT FUNDS 5 PROPOSED EXPENDITURE PLAN

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Samuel Washington
5 years ago
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1 COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT Board of Trustees Meeting February 8, 2016 MANDATED COST REIMBURSEMENT FUNDS 5 PROPOSED EXPENDITURE PLAN Status: Presented by: Information Christine Statton Vice President, Administrative Services Issue The state of California has experienced a strong fiscal budget year in , and as a result, has allocated large one-time funds for reimbursement of past mandated cost claims to community colleges. The College of the Sequoias has been allocated $4,931,189 in one-time unrestricted (discretionary) funds for the fiscal year. Background In years past, the District filed specific reports to claim mandated cost reimbursements from the state of California. In the state budget crisis years ( ), the state quit reimbursing most of these claims. During this time, the state also changed its methodology for reimbursing such claims. The new methodology is a simple reimbursement per FTES. The prior claiming process and subsequent auditing of claims was a very time-consuming process for both the community colleges and the state. Currently, the district receives approximately $250,000 per year for the per FTES mandated cost block grant reimbursement under the new methodology. In the past, the District never budgeted the actual claim reimbursement revenues in advance, since the state was not dependable in its timing for reimbursement of these claims. Similarly, the District did not budget these new one-time funds until received. With the large distribution of one-time mandated cost reimbursements to California community colleges, the state of California has now paid down the bulk of what was owed from prior mandate cost reimbursement claims. Administration presented ideas and options for potential expenditures to the Board of Trustees at the January 2016 Annual Planning Retreat, and sought input from the Board regarding the $4,931,189 in one-time mandated cost reimbursement funds available. Administration will present an updated expenditure plan to the Board of Trustees at this board meeting for information and review. The Board will be requested to approve a final expenditure plan for these one-time funds in March Recommended Action Information only - proposed mandated cost reimbursement funds expenditure plan.

2 Mandated Cost Reimbursement COS has received $4,931,189 one-time unrestricted funds in Accreditation standards require that: We ensure financial stability the mission and goals drive financial planning institutional planning reflects a realistic assessment of financial resources availability Proposed needed expenditures and projects For information and discussion:

3 Description Transfer funds to Capital Projects Fund for facility needs Proposed Expenditures Recommended Amount Reason/Notes $1,000,000 Bond funds are completely expended; state scheduled maintenance funds are limited. Emergencies could occur. Capital Projects Fund currently = $1M only. Fund OPEB Trust $1,000,000 Increasing our funding lowers our $5.4M Unfunded Obligation and increases COS credit rating and fiscal solvency outlook. Standard III.D.12: the district allocates appropriate resources for OPEB. (Currently $5.8M funded; Accrued Liability=$11.3M) Funding for Hanford Quad design and construction Additional funding for Hanford modular classrooms and offices $1,250,000 Bond interest funds are being used for modular classrooms. Quad projected costs = $1.25M $200,000 Available Measure C Bond fund interest = $600K available for construction. Estimated Cost = $800K.

4 Description Proposed Expenditures Recommended Cost Reason/Notes Pool Renovations $750,000 Large pool renovations will be needed in the near future to keep the pool in functioning order Instructional Equipment $200,000 Enhance funds available for instructional equipment The state may fund $1M separately (also) in This would supplement if needed to provide $1M for District Instructional Equipment needs. New Firewall System $100,000 This equipment directly connects to the CENIC network (Internet) that protects the District from viruses & security weaknesses. Core Switch System $240,000 This equipment is the main Hub for all connections throughout the District. The current devices are out of support as of fall Rainy Day Reserve - Increase COS General Fund Balance $191,189 Increase GF Fund Balance for one-time needs that may arise

5 Hanford Quad

6 Hanford Quad

7 Hanford Modular

8 Pool Issues

9 Pool Issues

BOARD OF TRUSTEES MEETING August 22, 2016

BOARD OF TRUSTEES MEETING August 22, 2016 Board Budget Development Guidelines Guiding Principles: The following guiding principles are provided to the District Resources Allocation Council (DRAC) and the