Tentative Budget Report

Transcription

1 Tentative Budget Report Evergreen Valley College San José City College Community College Center for Economic Mobility San Jose Evergreen Community College Extension at Milpitas District Services June 12, 2018

2 2018/2019 REPORT Presented to the Board of Trustees June 12, 2018 Doug Smith, Vice Chancellor, Administrative Services Peter Fitzsimmons, Executive Director Fiscal Services Anthony Oum, Assistant Director Fiscal Services Linda Wilczewski, Controller Prepared in collaboration with Fiscal Services and Business Services Staff

3 BOARD OF TRUSTEES AND ADMINISTRATIVE OFFICERS BOARD OF TRUSTEES Mayra Cruz, President Jeffrey Lease, Vice President Craig Mann Rudy Nasol Wendy Ho Huong Nguyen Scott Pham ADMINISTRATIVE OFFICERS Debbie Budd, Chancellor Byron Clift Breland, Interim Chancellor effective July 1, 2018 Kim Garcia, Vice Chancellor, Human Resources Ben Seaberry, Vice Chancellor, Information Technology/CISO Doug Smith, Vice Chancellor, Administrative Services William Watson, Executive Director, Strategic Partnerships and Workforce Innovation Keith Aytch, President, Evergreen Valley College Jorge Escobar, Acting President, San Jose City College

4 I. Introduction TABLE OF CONTENTS A. Transmittal Memo 1 B. FY 2018/2019 Tentative Budget Summary 5 C. Board of Trustees Budget Principles 6 II. General Funds 7 A. Unrestricted General Fund B. Parking Fund C. Financial Stabilization Fund D. Student Success Enhancement Fund E. Facility Rental Fund F. Community College Center for Economic Mobility Fund G. Categoricals & Grants Fund H. Health Fees Fund III. Capital/Bond Project Funds 83 A. Capital Projects Fund B. GO Bond Measure G-2010 Series B Fund C. GO Bond Measure G-2010 Series C Fund D. GO Bond Measure G-2010 Series D Fund E. GO Bond Measure X Series A Fund F. GO Bond Measure X Series A-1 Fund G. GO Bond Measure X Series B Fund

5 IV. Special Revenue Funds 123 A. Cafeteria Fund B. Child Development Fund V. Internal Service Fund 126 A. Self-Insurance Fund VI. Fiduciary Funds 128 A. Financial Aid Fund B. Scholarships & Loan Agency Fund VII. OPEB-Related Funds 135 A. OPEB Bond Flow Chart 137 B. OPEB Trust Fund C. Retiree Benefit Fund D. Long-Term OPEB Debt Fund VIII. Long-Term Debt Funds 141 A. L/T Debt GO Bond Measure I Fund B. L/T Debt GO Bond Measure G 2004 Fund C. L/T Debt GO Bond Measure G 2010 Fund D. L/T Debt GO Bond Measure X Fund IX. Appendices A. Budget Assumptions 146 B. Recap of Fund Balances 149 C. 1 Cost Analysis of Salaries & Benefits By Bargaining Group 150 D. 1 Day Cost Analysis of Salaries and Benefits By Bargaining Group 153 E. Fund 10 Property Taxes and One-Time Settlement Taxes 156 F. Apportionment Analysis 157

6 June 12, 2018 To: Chancellor Budd Honorable Board of Trustees From: Doug Smith, Vice Chancellor of Administrative Services Introduction Enclosed for your information, please find the FY Tentative Budget. The approval of this budget by the Board of Trustees provides the District spending authority effective July 1, 2018, pending the passage of the State Budget Act in July 2018 and the adoption of the District s Final Budget on September 11, Immediately following this transmittal letter is a summary of the District s Estimated Actuals for the Unrestricted General Fund 10 for FY , a summary of the Tentative Budget for FY , and an Estimated Budget for FY and FY , respectfully. There is extensive budget detail included in this Tentative Budget Report that was supported by the Business Services staff at Evergreen Valley College, San Jose City College, and the Community College Center for Economic Mobility, then analyzed, compiled, and finalized by the District Services Fiscal staff. Community college finance is very complex, often unpredictable, and very changeable. Business Services and Fiscal Services staff are to be commended for their attention to detail, work ethic, and commitment to the organization to manage campus and district budgets on a basis consistent with program review, Board budget principles, and Board ends policies under the direction of the Chancellor and Board of Trustees, leading to fiscal decision making which is represented in this tentative budget. On May 24, 2018, the District Budget Committee reviewed this budget at length, including assumptions and basis within which budget projections have been made. The District Budget Committee is very knowledgeable and highly informed about budget detail, and has an excellent understanding of the overall budget picture, including the status of the District as a basic aid, or community-supported college Page 1

7 district, funded primarily by local property taxes; the associated timing implications of this revenue information; and the associated underlying budget assumptions used. As the District goes forward, the District Budget Committee will be very key and influential in validating the District s budget status. The next steps for budget development will be to close the books and prepare for the auditor s review of FY Fiscal Year The beginning fund balance for July 1, 2018 is estimated to be $18,299, , without consideration for the pending collective bargaining agreements, which will be applied retroactively to July 1, 2017 once fully ratified and implemented for all groups. The overall COLA figure subject to ratification by the Board of Trustees is 6. The revenues for this tentative budget are projected to be $121,372,332, which has the District in basic aid status by approximately $38.7 million. As the most significant budget assumption, an estimate of 3.5 for new property taxes on top of the current year base is being applied consistent with the Board s budget principles. Given that student enrollment fees, Education Projection Account funds, and property tax dollars exceed the Total Computational Revenue (State general apportionment guarantee), the District receives no FTES general apportionment dollars from the State, and is thus considered a Basic Aid or Community-Supported College District. The District s general operating revenues are now based substantially on local property taxes. This past month the property tax projection for FY was updated based on the latest County Tax Collector estimate now representing an 8.63 on-going increase over the prior-year property tax receipts for Fund 10. The property tax revenues allocated to the Unrestricted General Fund 10 are now projected to be $97,023,437 in FY , and $102,870,592 in FY On the expenditure side, the total budget for the Unrestricted General Fund 10 has grown to $116,420,894 assuming a spend-out of all allocations. When a discount factor reflecting five-year historical spending patterns is applied, the expenditures for FY are estimated to be $114,499,949. This budget includes the increased cost of employee health and welfare costs, and all statutory benefit costs and changes to district-wide expenditure budgets based on trends and current year projected actuals with the exception of the costs associated with the 6 COLA pending Board of Trustees ratification. As previously stated, collective bargaining agreements, when finalized, will be retroactive to July 1, 2017 and expenditures and fund balances will be adjusted to reflect these changes. In summary, the FY Tentative Budget, as presented, anticipates total Fund 10 revenue of $121,372,332 total expenditures of $114,499,949 after application of the discount factor of $1,920,945. This represents a budgeted net change of $6,872,383 to the ending fund balance estimated to be $25,171,716, This figure of course will change significantly when the salary settlements are posted and we close the books for FY and that detail is incorporated into the FY Adopted Budget. Page 2

8 Fiscal Year and Fiscal Year As discussed above, the primary driver for unrestricted general fund revenue is local property taxes. In FY on-going property tax growth on top of the prior-year receipts was In the year following growth was 8.47, then 10.28, 6.57 in FY , then 6.19 in FY and recently reported to be 8.63 as of the May reporting period for FY This recent five-year trend illustrates a variance between a low of 3.21 and a high of which represents a $5.6 million swing when converted to on-going revenue. So while being a Basic Aid, Community-Supported College District certainly has served students well, it is highly volatile and has very significant revenue fluctuations. 85 of Unrestricted General Fund 10 revenue in this Tentative Budget is from property taxes. No single factor in this budget is more significant than this data point. While at this time the District s fiscal outlook remains relatively strong the District must continue to be cautious in its commitments, and make long-term stabilization set-asides, while staying prudently and carefully managed. The District is now heavily, almost exclusively, property tax dependent. On the expenditure side, retirement costs for STRS and PERS continue to escalate with a 1.85 rate increase in STRS and 2.53 rate increase in PERS this fiscal year. This trend continues in the out-years with projected rate increases at similar levels through at least FY On the other hand, the District experienced a reduction of 8.51 in Blue Cross premiums in this budget year and an increase of 5.88 in Kaiser medical rates. With the move to SISC, Self- Insured Schools of California, our projected out-year (Tentative Budget) premium increases are 8.84 for Blue Cross and 15.5 for Kaiser. For FY our rate increases will be based on our previous employee/retiree pool before benefitting from the larger purchasing power of SISC beginning in FY Following this, out-year projections will be based on the recent Self-Insured Schools of California premium increase history which is likely attributed to the extensive purchasing power of this large Joint Powers Authority. These factors, included with the health care premium increases, consume a major share of annual property tax expansion. Furthermore, in the out-years, the District is facing another significant cost increase with the ACA Cadillac Tax burden beginning in January 2021, estimated at $1.65, then annualizing in FY to approximately $3.3m These increased costs must be supported and backfilled by continued and ongoing property tax increases of 3.5 or more. One change made in recent years has been the application of apply a spending discount factor for out-year projections. Rather than assuming all budgeted dollars are spent, a discount factor based on five years of activity is applied. This factor is presently 1.65, which is the average variance between the revised budget and final year-end actuals for the previous five years. For planning purposes, the District will maintain its conservative posture with property tax estimates growing at a rate of 3.5 as a way to protect jobs, college programs, student success opportunities; to avoid potential significant unplanned reductions; and to remain prudent and responsible with spending commitments. Additionally, this conservative revenue methodology functions as a budget Page 3

9 stabilizer for this Basic Aid or Community-Supported District, and helps offset the unrestricted general fund reserve until such time that the District Stabilization Fund, as designated by the Board of Trustees, is fully funded. For planning purposes, as based on the Board Budget Principles, the District will maintain its long-term posture and budget planning of property tax estimates growing at a rate of 3.5. Also the District will continue to use the calculated expenditure discount factor to offset expenditure projections based on historical trends. Based on these historical spending patterns this discount factor is a progressive budget methodology and is built on sound budget principles. Summary In summary our FY Tentative Budget is projected to be balanced with an increase to the ending fund balance of $6,872,383 for a total $25,171,716 or 21.98, not yet subject to the pending 6 retroactive COLA. In the succeeding budget years, based on assumptions incorporated as part of the detail budget package, the current estimate is to finish at 27.75, and again subject to major adjustments upon ratification of the COLA. For the District s financial future there are six key data points and factors to watch and carefully manage: 1. Property Tax receipts 2. Resource Allocation Model adoption 3. Collective Bargaining efforts 4. Health and Welfare premiums 5. STRS and PERS pension employer rate increases 6. The impact of the ACA Cadillac Tax, now deferred to 2022 These elements are the major factors that will influence this budget and the District s financial future. Page 4

10 San Jose/Evergreen Community College District Tentative Budget Summary July 1st, 2018 Audited Adopted Estimated Tentative Estimated Estimated Actuals Budget Actuals Budget Budget Budget Beginning Fund Balance $16,428, $15,534, $15,591, $18,299, $25,171, $31,944, Revenues Federal $11,014 $0 $9,365 $0 $0 $0 State $8,404,627 $7,692,128 $7,628,874 $7,567,329 $7,646,701 $7,732,659 Local $99,066,929 $101,519,749 $106,987,958 $112,871,784 $113,989,897 $117,702,368 Other Sources/Transfers $352,885 $770,801 $444,164 $933,219 $250,105 $229,185 Total Revenues $107,835,455 $109,982,678 $115,070,361 $121,372,332 $121,886,703 $125,664,212 Expenditures Certificated $44,376,579 $40,746,366 $45,153,027 $41,618,922 $42,008,470 $42,401,674 Classified $22,202,101 $24,161,631 $23,320,837 $24,618,376 $24,779,203 $24,941,157 Benefits (health & welfare, statutory) $25,934,802 $28,206,268 $27,068,532 $31,339,422 $32,578,379 $33,324,593 Total Personnel $92,513, $93,114, $95,542, $97,576, $99,366, $100,667, Materials & Supplies $993,638 $1,024,149 $896,936 $1,071,320 $1,071,320 $1,071,320 Operating Expenses $10,948,526 $13,649,113 $11,773,498 $13,097,329 $12,911,363 $13,061,363 Capital Outlay $879,703 $137,513 $313,508 $125,333 $125,333 $125,333 Contingency/Other Outgo $3,365,308 $4,220,779 $3,835,955 $4,550,192 $3,571,285 $3,602,572 Total Non-Personnel $16,187, $19,031, $16,819, $18,844, $17,679, $17,860, Sub Total Expenditures $108,700,657 $112,145,819 $112,362,293 $116,420,894 $117,045,353 $118,528,012 Discount Factor $0 ($1,996,196) $0 ($1,920,945) ($1,931,248) ($1,955,712) Total Expenditures $108,700,657 $110,149,623 $112,362,293 $114,499,949 $115,114,105 $116,572,300 Net Change in Fund Balance ($865,202) ($166,945) $2,708,068 $6,872,383 $6,772,598 $9,091,912 Ending Fund Balance $15,563, $15,367, $18,299, $25,171, $31,944, $41,036, Page 5

11 Board of Trustees Budget Principles Adopted February 13, Trustees to provide the Chancellor and staff with policy framework for managing an appropriate fund balance & structural balance. 2. Affirm a student centered approach that ensures our values of opportunity, equity, and social justice. 3. Compliance with accreditation standards. 4. Distinguish between on-going vs. one-time resources and expenses. 5. Manage all resource allocations or funding reductions systematically to maximize student equity and success. 6. Seek efficiencies and revenue opportunities. 7. Establish and maintain an employee salary and compensation structure that is competitive among the Bay 10 Community College Districts. 8. Maintain a minimum 7 Unrestricted General Fund reserve consistent with board policy. 9. District Stabilization Fund Board authority required to access. Access during economic downturn. Access to avoid or delay staffing reductions for non-grant funded positions. Replenish in healthy fiscal times. Allocate $250,000 in any given year when property taxes are above 6 and an additional $250,000 in any given year when property taxes are above 7. Cap Stabilization Fund at $2.5M. 10. Establish and maintain a balanced funding model that is centered on our mission, vision, values, Board Ends Policies, and strategic plan. 11. Property Tax projections will be based on 3.5 growth and will be adjusted each period based on County Tax Collector updates. 12. Adopted Budgets and Quarterly Reports will include long-term revenue and expenditure forecasts, enrollment trends, and financial risk analysis. 13. Use data to inform decision making. 14. Seed Student Opportunity and Access Revenue/Promise from current land-lease proceeds. 15. Financially plan and budget for total cost of ownership, including building-related expenses, and program-related expenses. Page 6

12 GENERAL FUNDS

13 GENERAL FUNDS Unrestricted General Fund 10 The Unrestricted General fund provides the resources necessary to sustain the day-to-day activities of the colleges and the district and pays for most operating expenditures district-wide. Revenues The FY Tentative Budget assumes an increase in revenues of $11,244,746 from the FY Revised Budget attributed to a decrease of $9,365 in anticipated Federal revenues (MAA Funds); a decrease of $124,799 in anticipated State revenues; an increase of $11,292,811 in anticipated local revenues [primarily associated with property taxes, which includes $2,471,000 in one-time revenues) and international student enrollment fees], and an increase of $86,099 in anticipated other financing sources (primarily associated with transfers-in from Fund 15). Expenditures The FY Tentative Budget reflects an overall 2.47 increase in expenditures from the FY Revised Budget. It is important to note that the neither of these budgets have been augmented to account for a cost-of-living adjustment. These adjustments will be made when the Board of Trustees takes action to approve any changes to salary schedules. The assumption includes the following: A 1.71 decrease in District-Wide expenditures to reflect primarily the following: o Increases to: Interpreters Insurance MSC Professional Development Utilities Board Election Expense (this expense is biennial) o Reductions in: Contracts / Services Tech Center Lease (this expense will be paid by Measure X, Series A-1) A 6.15 increase in District Services expenditures to reflect primarily the following: o Increases to: Salary and benefit costs Contingencies o Reductions in: Contracts / Services Page 7

14 A 2.74 increase in San Jose City College expenditures to reflect primarily the following: o Increases to: Salary and benefit costs Contingencies / Undistributed programs o Reductions in: Contracts / Services Equipment A 2.69 increase in Evergreen Valley College expenditures to reflect primarily the following: o Increases to: Salary and benefit costs Contingencies / Undistributed programs o Reductions in: Contracts / Services A reduction in the San Jose Evergreen Community College Extension expenditures to reflect primarily the following: o Increases to: Salary and benefit costs o Reductions in: Supplies Advertising Reserve The anticipated reserve for FY is projected to be 16.29; however, this will change as the FY retroactive COLAs will impact this projection coupled with the normal 1 to 2 variance realized as the books are closed. The current estimate is that FY will end closer to The reserve for FY is estimated at 21.98; however, this too will change as more definitive information is received from the State regarding the impact of the State s Adopted Budget on the District, data from the Santa Clara County Tax Collector s Office regarding property tax receipts, and the compounding effect of the FY COLAs. Parking Fund 11 The Parking Fund was augmented by the Unrestricted General Fund to support operations by $101,484 in FY On April 10, 2012, the Board of Trustees authorized an increase to parking permits and daily parking fees to mitigate the reliance of the Unrestricted General Fund 10. As a result of this action coupled with vacancies, the Parking Fund had a positive ending fund balance in the subsequent fiscal years. The fund required an augmentation by the Unrestricted General Fund 10 to support operations again in FY and subsequent years due to declining revenues and increased costs. Beginning in FY , the Transportation Fee (Eco Pass) is accounted for in the Parking Fund, which too began to run a deficit in FY Page 8

15 Financial Stabilization Fund 12 On February 24, 2015, the Board of Trustees authorized the creation of this new fund. On February 13, 2018, the Board of Trustees established parameters on providing resources to this fund and further refined parameters on fund utilization, which were originally established on February 23, Based upon these parameters, there was an additional transfer into Fund 12 from the Unrestricted General Fund 10 in the amount of $500,000 in FY bringing the fund balance to $1,250,000. Student Success Enhancement Fund 14 Established in FY , the Student Success Enhancement Fund receives partial revenues ($25,000 annually) from the land lease payments from the Evergreen Marketplace II retail development and future revenues associated with the land development project of some of the vacant parcels located adjacent to Evergreen Valley College. The objective of these revenues are to provide a funding source for innovative projects focused on closing the achievement gaps aligned with the Board of Trustees End Policies. The increase in revenues for FY and FY are a result of the exclusive negotiation agreement between the District and Republic Urban Properties. Facility Rental Auxiliary Fund 15 The Facilities Rental Auxiliary Fund was established in FY to track facilities rental fees received and to track corresponding costs associated with rental activities. Activity within this fund is limited to facilities rental activities; however, fund balances may be transferred to other funds to support shortfalls or other expenditures. The revenues and expenditures within this fund associated with District Services represent the activities associated with the tenant at the District Office. District Services is anticipating transferring $197,000 to the Unrestricted General Fund 10 in FY to cover the costs associated with parking at the District Office. San Jose City College is anticipating transferring $550,000 to the Unrestricted General Fund 10 in FY Evergreen Valley College is anticipating transferring $90,000 to the Unrestricted General Fund 10 in FY Community College Center for Economic Mobility (CEM) Fund 16 The Community College Center for Economic Mobility (formerly known as the Workforce Institute) made a contribution of $275,000 to the Unrestricted General Fund 10 in FY and $411,000 in FY Beginning in FY , the District and the CEM agreed that the CEM would annually transfer 15 of its operating profit (defined as annual revenues in excess of annual expenditures) to the District, which was $70,788 in FY The CEM ran a deficit in FY through FY In FY transfers begin again with $6,383. In FY the CEM once again ran a deficit. It is projected that $766 will be transferred in FY and $7,173 will be transferred in FY Page 9

16 Categorical and Grant Fund 17 The District continues to see an increase in restricted resources. The FY Tentative Budget estimates the following resources, some of which are unspent carry forwards from prior year(s): District Services = $1,138,584 San Jose City College = $15,300,809 Evergreen Valley College = $15,509,432 Community College Center for Economic Mobility: $5,351,277 The State will likely consolidate Basic Skills, Student Success & Support Program, and Student Equity effective July 1, If this comes to fruition this will be reflected in the FY Adopted Budget. Categorical Flexibility For categorical programs in the flexibility category, funding allocations for each district are set at the same amount received by the District in FY , less the FY reduction. This allocation methodology, as well as the flexibility, was locked in through FY As part of the FY State Budget, the Governor extended this flexibility for an additional two years through June San Jose City College elected to exercise this flexibility by transferring $34,308 since FY from the Childcare Tax Bailout Program to supplement the Disabled Student Program (DSPS). San Jose City College also elected in FY to transfer$17,394 from the Apprenticeship program to supplement the Student Success and Support program (previously known as the Matriculation program). Evergreen Valley College elected to exercise this flexibility by transferring $56,624 in FY from the Student Success and Support Program to supplement the Extended Opportunities Programs and Services program (EOPS). The District has in the past elected to transfer $30,000 from the PT Faculty Parity Pay Categorical Program and move $15,000 to EOPS and $15,000 to DSPS. Total PT Parity Pay was not affected by this change. These transfers trigger overall categorical flexibility per ABX4.2. Currently categorical flexibility is disallowed. Student Health Fees Fund 18 The Student Health Fee Fund was augmented by the Unrestricted General Fund 10 to support operations at Evergreen Valley College by $14,830 in FY and was augmented by MAA Funds to support operations at San Jose City College by $25,082 in FY Both campuses responded by reducing the expenditure budget for FY On February 14, 2012, the Board of Trustees authorized an increase to the student health fee by $1 (from $17 to $18 per semester) based upon the Implicit Price Deflator Index. As a result of these actions, the Student Health Fee fund was structurally balanced in FY Page 10

17 However, in FY the Unrestricted General Fund 10 once again augmented the Student Health Fee Fund in the amount of $37,125 ($32,006 to support operations at San Jose City College and $5,119 at Evergreen Valley College). On January 4, 2014, the Board of Trustees authorized an additional increase to the student health fee by $1 (from $18 per semester to $19 per semester) based upon the Implicit Price Deflator Index. Despite this action, San Jose City College required an augmentation of $29,041 in FY and an augmentation of $9,472 in FY from the Unrestricted General Fund 10. On April 4, 2017 the Board of Trustees authorized an increase to the student health fee by another $1 (from $19 semester to $20 per semester) effective All Both campuses are projecting a balanced budget for FY Page 11

18 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Consolidated FY S Beginning Fund Balance, July 1st 15,591,265 FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PRIOR YEAR $ $ 18,299,333 $ 2,708, $ 25,171,716 $ 6,872, $ 31,944,314 $ 6,772, GROWTH INCOME Federal Revenue Federal MAA Program Revenue $ 9,365 $ 0 $ (9,365) -100 $ 0 $ 0 $ 0 $ Federal Revenue $ 9,365 $ 0 $ (9,365) -100 $ 0 $ 0 $ 0 $ State Revenue Education Protection Act (EPA) $ 1,132,485 $ 1,202,138 $ 69,653 6 $ 1,214,160 $ 12,022 1 $ 1,226,301 $ 12, B.O.G. (2 Admin. Fee) 175, ,180 6, ,884 (3,296) ,673 1, Secured Homeowners Exempt 423, ,805 14, ,128 15, ,987 15, Other State Income 2,738,732 2,772,495 33, ,806,882 34, ,841,905 35, Mandated Cost Reimbursement 672, ,503 (333,939) ,888 3, ,307 3, State Lottery 1,737,745 1,755,122 17, ,772,673 17, ,790,400 17, State Reimb Costs 749, , , , , State Revenue $ 7,628,874 $ 7,567,329 $ (61,545) -1 $ 7,646,701 $ 79,372 1 $ 7,732,659 $ 85, Local Revenue Secured Property Tax Revenues $ 79,800,000 $ 82,593,000 $ 2,793,000 4 $ 85,483,755 $ 2,890,755 4 $ 88,475,686 $ 2,991, Supplemental Secured Prop. Tax 3,203,000 3,315, , ,431, , ,551, , Unsecured Roll Property Taxes 6,268,037 6,487, , ,714, , ,949, , RDA Passthru (AB1290) (47.5) 1,892,400 1,958,634 66, ,027,186 68, ,098,138 70, RDA Residual Pmts 5,418,000 5,607, , ,803, , ,007, , Contributions/Gifts/Endowments 59,224 0 (59,224) RDA Asset Liquidation 19,000 2,471,000 2,452,000 0 (2,471,000) Interest 332, , , , Instructional Materials Fees 18,471 16,316 (2,155) , , Enrollment Fees Intl Students 2,523,344 2,548,578 25, ,574,063 25, ,599,804 25, Enrollment Fees Residents 5,648,520 5,705,005 56, ,762,055 57, ,819,675 57, Use of Facilities 4,000 4, , , Health Fees 410, , , , Enrollment Fees Non-Residents 783, ,504 7, ,419 7, ,413 7, Other Local Income 607, ,892 23, , , Local Revenue $ 106,987,958 $ 112,871,784 $ 5,883,826 5 $ 113,989,897 $ 1,118,113 1 $ 117,702,368 $ 3,712, Other Financing Sources Sale Of Equipment $ 2,809 $ 2,809 $ 0 0 $ 2,809 $ 0 0 $ 2,809 $ Sale Of Waste Materials 4,034 4, , , Interfund Trans In (Indirect Cost) 34,022 58,694 24, (58,694) Interfund Transfers In (10 fr 15) 370, , , ,262 (593,738) ,342 (20,920) Interfund Trans In (10 fr 16) 766 7,173 6, (7,173) Interfund Trans In (10 fr 17) 32,533 23,509 (9,024) (23,509) Other Financing Sources $ 444,164 $ 933,219 $ 489, $ 250,105 $ (683,114) -73 $ 229,185 $ (20,920) -8 Page 12

19 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Consolidated FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH RESOURCES $ 130,661,626 $ 139,671,665 $ 9,010,039 7 $ 147,058,419 $ 7,386,754 5 $ 157,608,526 $ 10,550,107 7 EXPENDITURES 51 - Academic Salaries Certificated Salaries $ 22,308,840 $ 22,891,249 $ 582,409 3 $ 23,097,270 $ 206,021 1 $ 23,305,146 $ 207,876 1 Certificated Salaries MSC 3,388,273 3,749, , ,782,755 33, ,816,799 34,044 1 Certificated Salaries Adjunct 19,455,914 14,978,659 (4,477,255) ,128, , ,279, , Classified Salaries Classified Salaries $ 14,499,125 $ 16,242,312 $ 1,743, $ 16,356,007 $ 113,695 1 $ 16,470,499 $ 114,492 1 Classified Salaries MSC 6,732,135 6,733,177 1, ,780,309 47, ,827,771 47,462 1 Classified Hourly/Temp 1,556,933 1,519,039 (37,894) -2 1,519, ,519, Classified OT 532, ,848 (408,796) , , Employee Benefits STRS $ 7,032,914 $ 6,238,879 $ (794,035) -11 $ 6,361,652 $ 122,773 2 $ 6,487,869 $ 126, PERS 3,544,764 4,563,287 1,018, ,719, , ,880, , OASDI/Medicare 2,505,644 2,716, , ,734,087 17, ,751,996 17, Health & Welfare 12,885,117 16,299,556 3,414, ,233, , ,221, , State Unemployment Insurance 137, ,007 (4,258) ,116 1, ,234 1, Workers' Comp 923, ,107 (90,881) ,027 6, ,006 6, Retiree Benefits (SERP) 38, , , , (555,284) X - Employee Benefits - Statutory $ 14,183,415 $ 15,039,866 $ 856,451 6 $ 15,344,532 $ 304,666 2 $ 15,102,901 $ (241,631) Employee Benefits - H&W 12,885,117 16,299,556 3,414, ,233, , ,221, , Supplies and Materials Supplies Instruction $ 13,406 $ 17,316 $ 3, $ 17,316 $ 0 0 $ 17,316 $ Software Instruction Over $ (400) Supplies Non-Instruction 618, , , , , Food & Food Serv - Non-Instr 187, ,739 (170) 0 187, , Software Non-Instruc Over $200 6,470 36,125 29, , , Copier Supplies 74,866 78,877 4, , , Contra Account (4,127) (4,000) (4,000) 0 0 (4,000) Supplies and Materials $ 896,936 $ 1,071,320 $ 174, $ 1,071,320 $ 0 0 $ 1,071,320 $ Other Operating Exp & Serv Personal/Contract Services $ 2,291,994 $ 1,926,713 $ (365,281) -16 $ 1,926,713 $ 0 0 $ 1,926,713 $ License Renewal Instruction (2,753) 0 2, License Renewal Non-Instruct 1,039, ,455 (180,830) , , Contracts/Personal Services 0 (1,200) (1,200) (1,200) 0 0 (1,200) Conference 476, , , , , Training 0 50,000 50,000 50, , Field Trips 186, ,954 (1,374) , , Page 13

20 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Consolidated FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY Memberships 271, ,067 (20,962) , , Mileage Expense 22,427 28,987 6, , , Board Meeting Expenses 6,000 6, , , Insurances 948,609 1,002,738 54, ,002, ,002, Telephone 258, ,890 67, , , Gas 446, ,200 86, , , Electricity 2,478,403 2,374,000 (104,403) -4 2,374, ,374, Electricity Rebate (186,711) 0 186, Water/Sewer 511, ,000 (5,923) , , Garbage 145, ,000 29, , , Fuel/Oil 68,588 77,896 9, , , Uniforms 32,922 57,067 24, , , Contra - Utilities (21,805) (20,240) 1,565-7 (20,240) 0 0 (20,240) Rentals/Leases 410, ,640 (293,324) , , Repairs 270, ,660 93, , , Preventative Maintenance Agreements 807, ,153 7, , , Fees/Audits/Elections 63,653 69,290 5, , , External Collection Fees 117, ,000 2, , , Advertising 359, ,764 91, , , Legal Expenses 227, ,000 12, , , Audit Expense 100, , , , Board Election Expense 0 150, ,000 0 (150,000) , , Printing/Reprographics Expense 62,631 69,285 6, , , Postage 42,539 55,778 13, , , Undistributed Funded Programs 0 808, , ,017 (135,966) , Other Operating Expense 0 461, , , , , Bank Charges 136, ,450 (1,990) , , Bad Debt Write Off 200, ,253 (100) 0 200, , Cash Over / Short ( Fees ) (100) Board Communications Reimburse 0 8,000 8,000 8, , Other Operating Exp and Serv $ 11,773,498 $ 13,097,329 $ 1,323, $ 12,911,363 $ (185,966) -1 $ 13,061,363 $ 150, Capital Outlay Site Improvements $ 16,837 $ 0 $ (16,837) -100 $ 0 $ 0 $ 0 $ Library 5,678 5, , , Library Textbooks 0 2,643 2,643 2, , Electronic Books 1,500 0 (1,500) Equipment ($200 to $4,999) 130,249 98,957 (31,292) , , Capitalizable Equipment - 3 Year Life 26,370 18,000 (8,370) , , Capitalizable Equipment - 8 Year Life 126,884 0 (126,884) Equip Replace($500&Over) 5,990 0 (5,990) Capital Outlay $ 313,508 $ 125,333 $ (188,175) -60 $ 125,333 $ 0 0 $ 125,333 $ Other Outgo Interfund Trans Out (10 to 17) $ 222,115 $ 308,038 $ 85, $ 308,038 $ 0 0 $ 308,038 $ Interfund Trans Out (10 to 16) 437, ,318 67, , , PRIOR YEAR GROWTH Page 14

21 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Consolidated FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY Interfund Trans Out (10 to 11) 545, , , ,486 29, ,773 31, Interfund Trans Out 17CWS to 48Pel 233, ,683 (78,660) , , Interfund Transfer (10 to 12) 500,000 0 (500,000) Interfund Trans Out (10 to 85) 1,883,760 1,883, ,883, ,883, Other Payments to/for Students 13,927 30,000 16, , , Appropriations For Contingencies 0 328, ,694 0 (328,694) Contingency 0 680, ,017 0 (680,017) Other Outgo $ 3,835,955 $ 4,550,192 $ 714, $ 3,571,285 $ (978,907) -22 $ 3,602,572 $ 31,287 1 PRIOR YEAR SUB- REQUIREMENTS $ 112,362,293 $ 116,420,894 $ 4,058,601 4 $ 117,045,353 $ 624,459 1 $ 118,528,012 $ 1,482,659 1 DISCOUNT FACTOR $ (1,920,945) $ (1,931,248) 0 $ (1,955,712) 0 REQUIREMENTS $ 112,362,293 $ 114,499,949 $ 2,137,656 2 $ 115,114,105 $ 614,155 1 $ 116,572,300 $ 1,458,195 1 Estimated Ending Fund Balance, June 30th $ 18,299,333 $ 25,171,716 $ 6,872, $ 31,944,314 $ 6,772, $ 41,036,226 $ 9,091, GROWTH Page 15

22 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Districtwide FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH INCOME State Revenue Education Protection Act (EPA) $ 1,132,485 $ 1,202,138 $ 69,653 6 $ 1,214,160 $ 12,022 1 $ 1,226,301 $ 12, Secured Homeowners Exempt 423, ,805 14, ,128 15, ,987 15, Other State Income 2,738,732 2,772,495 33, ,806,882 34, ,841,905 35, Mandated Cost Reimbursement 672, ,503 (333,939) ,888 3, ,307 3, State Lottery 1,737,745 1,755,122 17, ,772,673 17, ,790,400 17, State Reimb Costs 749, , , , , State Revenue $ 7,453,551 $ 7,385,149 $ (68,402) -1 $ 7,467,817 $ 82,668 1 $ 7,551,986 $ 84, Local Revenue Secured Property Tax Revenues $ 79,800,000 $ 82,593,000 $ 2,793,000 4 $ 85,483,755 $ 2,890,755 4 $ 88,475,686 $ 2,991, Supplemental Secured Prop. Tax 3,203,000 3,315, , ,431, , ,551, , Unsecured Roll Property Taxes 6,268,037 6,487, , ,714, , ,949, , RDA Passthru (AB1290) (47.5) 1,892,400 1,958,634 66, ,027,186 68, ,098,138 70, RDA Residual Pmts 5,418,000 5,607, , ,803, , ,007, , RDA Asset Liquidation 19,000 2,471,000 2,452,000 0 (2,471,000) Interest 332, , , , Use of Facilities 4,000 4, , , Other Local Income 430, , , , Local Revenue $ 97,366,687 $ 103,199,149 $ 5,832,462 6 $ 104,226,812 $ 1,027,663 1 $ 107,847,928 $ 3,621, Other Financing Sources Sale Of Equipment $ 2,809 $ 2,809 $ 0 0 $ 2,809 $ 0 0 $ 2,809 $ Sale Of Waste Materials 4,034 4, , , Interfund Trans In (10 fr 16) 766 7,173 6, (7,173) Interfund Trans In (10 fr 17) 32,533 23,509 (9,024) (23,509) Other Financing Sources $ 40,142 $ 37,525 $ (2,617) -7 $ 6,843 $ (30,682) -82 $ 6,843 $ 0 0 EXPENDITURES 51 - Academic Salaries RESOURCES $ 104,860,380 $ 110,621,823 $ 5,761,443 5 $ 111,701,472 $ 1,079,649 1 $ 115,406,757 $ 3,705,285 3 Certificated Salaries Adjunct $ 11,134 $ 0 $ (11,134) -100 $ 0 $ 0 $ 0 $ Classified Salaries Classified Salaries (Vacation/CompTime Payout) $ 149,557 $ 150,000 $ $ 151,050 $ 1,050 1 $ 152,107 $ 1,057 1 Classified Hourly/Temp 446, ,000 (46,844) , , Employee Benefits STRS (State on-behalf Payment) $ 1,826,121 $ 1,858,763 $ 32,642 2 $ 1,858,763 $ 0 0 $ 1,858,763 $ 0 0 Page 16

23 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND Districtwide FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PERS 8,155 8, , , OASDI/Medicare 34,063 23,000 (11,063) , , State Unemployment Insurance (11) Workers' Comp 5,909 5,900 (9) 0 5, , Retiree Benefits (104) X - Employee Benefits 1,875,263 1,896,763 21, ,897, ,897, Supplies and Materials Supplies Non-Instruction $ 137,291 $ 142,555 $ 5,264 4 $ 142,555 $ 0 0 $ 142,555 $ Food & Food Serv - Non-Instr 1,772 5,000 3, , , Copier Supplies 51,900 48,500 (3,400) -7 48, , Supplies and Materials $ 190,963 $ 196,055 $ 5,092 3 $ 196,055 $ 0 0 $ 196,055 $ Other Operating Exp & Serv Personal/Contract Services $ 755,443 $ 669,009 $ (86,434) -11 $ 669,009 $ 0 0 $ 669,009 $ License Renewal Non-Instruct 560, ,046 10, , , Training 0 50,000 50,000 50, , Insurances 534, ,253 57, , , Telephone 218, ,000 76, , , Gas 438, ,000 81, , , Electricity 2,457,327 2,350,000 (107,327) -4 2,350, ,350, Electricity Rebate (186,711) 0 186, Water/Sewer 505, ,000 (5,923) , , Garbage 136, ,000 33, , , Fuel/Oil 2,000 2, , , Rentals/Leases 385,112 33,743 (351,369) , , Repairs 233, ,696 44, , , Preventative Maintenance Agreements 635, ,648 1, , , Fees/Audits/Elections 61,964 65,765 3, , , External Collection Fees 117, ,000 2, , , Advertising 79,600 80,800 1, , , Legal Expenses 227, ,000 2, , , Audit Expense 100, , , , Board Election Expense 0 150, ,000 0 (150,000) , , Postage 40,000 46,500 6, , , Undistributed Funded Programs 0 35,000 35,000 0 (35,000) Other Operating Expense 0 200, , , , , Bank Charges 134, ,250 (1,393) , , Bad Debt Write Off 200, ,253 (100) 0 200, , Other Operating Exp and Serv $ 7,637,629 $ 8,028,963 $ 391,334 5 $ 7,943,963 $ (85,000) -1 $ 8,093,963 $ 150, Capital Outlay Equipment ($200 to $4,999) $ 16,280 $ 25,000 $ 8, $ 25,000 $ 0 0 $ 25,000 $ Capitalizable Equipment - 8 Year Life 10,620 0 (10,620) PRIOR YEAR GROWTH Page 17

24 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND FY Districtwide S 56 - Capital Outlay 26, Other Outgo FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH $ $ 25,000 $ (1,900) -7 $ 25,000 $ 0 0 $ 25,000 $ Interfund Trans Out (10 to 16) $ 437,217 $ 504,318 $ 67, $ 504,318 $ 0 0 $ 504,318 $ Interfund Trans Out (10 to 11) 545, , , ,486 29, ,773 31, Interfund Transfer (10 to 12) 500,000 0 (500,000) Interfund Trans Out (10 to 85) 1,883,760 1,883, ,883, ,883, Other Outgo $ 3,366,570 $ 3,048,760 $ (317,810) -9 $ 3,078,564 $ 29,804 1 $ 3,109,851 $ 31,287 1 SUB- REQUIREMENTS $ 13,704,860 $ 13,745,541 $ 40,681 0 $ 13,691,693 $ (53,848) 0 $ 13,874,342 $ 182,649 1 DISCOUNT FACTOR $ (226,801) $ (225,913) 0 $ (228,927) 0 REQUIREMENTS $ 13,704,860 $ 13,518,740 $ (186,120) -1 $ 13,465,780 $ (52,960) 0 $ 13,645,415 $ 179,635 1 Page 18

25 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND District Services FY S FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH INCOME Local Revenue Contributions/Gifts/Endowments $ 59,224 $ 0 $ (59,224) -100 $ 0 $ 0 $ 0 $ Local Revenue $ 59,224 $ 0 $ (59,224) -100 $ 0 $ 0 $ 0 $ Other Financing Sources Interfund Transfers In $ 185,000 $ 197,000 $ 12,000 6 $ 127,681 $ (69,319) -35 $ 132,342 $ 4, Other Financing Sources $ 185,000 $ 197,000 $ 12,000 6 $ 127,681 $ (69,319) -35 $ 132,342 $ 4,661 4 EXPENDITURES 51 - Academic Salaries RESOURCES $ 244,224 $ 197,000 $ (47,224) -19 $ 127,681 $ (69,319) -35 $ 132,342 $ 4,661 4 Certificated Salaries MSC $ 453,672 $ 591,033 $ 137, $ 596,352 $ 5,319 1 $ 601,719 $ 5, Classified Salaries Classified Salaries $ 4,525,814 $ 5,081,449 $ 555, $ 5,117,019 $ 35,570 1 $ 5,152,838 $ 35,819 1 Classified Salaries MSC 3,628,914 3,575,128 (53,786) -1 3,600,154 25, ,625,355 25,201 1 Classified Hourly/Temp 348, ,499 (83,390) , , Classified OT 174,774 55,168 (119,606) , , Employee Benefits STRS $ 81,132 $ 96,220 $ 15, $ 98,882 $ 2,662 3 $ 101,618 $ 2, PERS 1,270,138 1,568, , ,622,023 53, ,677,718 55, OASDI/Medicare 637, ,260 15, ,663 4, ,097 4, Health & Welfare 2,497,773 3,101, , ,278, , ,466, , State Unemployment Insurance 18,312 18, , , Workers' Comp 121, ,960 4, , , Retiree Benefits 0 85,140 85,140 85, (85,140) X - Employee Benefits - Statutory 2,128,066 2,546, , ,608,321 61, ,587,049 (21,272) Employee Benefits - H&W 2,497,773 3,101, , ,278, , ,466, , Supplies and Materials Supplies Non-Instruction $ 100,706 $ 130,408 $ 29, $ 130,408 $ 0 0 $ 130,408 $ Food & Food Serv - Non-Instr 29,300 23,000 (6,300) , , Software Non-Instruc Over $200 1,500 2, , , Copier Supplies 22,966 23, , , Supplies and Materials $ 154,472 $ 179,285 $ 24, $ 179,285 $ 0 0 $ 179,285 $ Other Operating Exp & Serv Page 19

26 FY Tentative Budget - General Fund - Three Year Projections 10 - GENERAL FUND FY District Services S Personal/Contract Services 788,382 FY PRIOR YEAR GROWTH FY PRIOR YEAR GROWTH FY $ $ 692,406 $ (95,976) -12 $ 692,406 $ 0 0 $ 692,406 $ License Renewal Non-Instruct 71,653 73,650 1, , , Conference 142, ,479 58, , , Memberships 65,148 75,659 10, , , Mileage Expense 8,690 14,200 5, , , Board Meeting Expenses 6,000 6, , , Telephone 19,107 19, , , Fuel/Oil 36,292 37, , , Uniforms 13,275 13, , , Rentals/Leases 578 5,251 4, , , Repairs 3,814 10,307 6, , , Preventative Maintenance Agreements 26,200 26, , , Fees/Audits/Elections 0 3,525 3,525 3, , Advertising 6,979 40,344 33, , , Legal Expenses 0 10,000 10,000 10, , Printing/Reprographics Expense 34,630 31,584 (3,046) -9 31, , Postage 1, (239) Other Operating Expense 0 18,600 18,600 18, , Bank Charges 800 1, , , Board Communications Reimburse 0 8,000 8,000 8, , Other Operating Exp and Serv $ 1,224,695 $ 1,288,039 $ 63,344 5 $ 1,288,039 $ 0 0 $ 1,288,039 $ Capital Outlay Equipment ($200 to $4,999) $ 60,827 $ 61,749 $ $ 61,749 $ 0 0 $ 61,749 $ Capitalizable Equipment - 8 Year Life 6,481 0 (6,481) Equip Replace($500&Over) 5,990 0 (5,990) Capital Outlay $ 73,298 $ 61,749 $ (11,549) -16 $ 61,749 $ 0 0 $ 61,749 $ Other Outgo PRIOR YEAR Appropriations For Contingencies $ 0 $ 328,694 $ 328,694 $ 0 $ (328,694) -100 $ 0 $ Other Outgo $ 0 $ 328,694 $ 328,694 $ 0 $ (328,694) -100 $ 0 $ 0 SUB- REQUIREMENTS $ 15,210,367 $ 17,073,525 $ 1,863, $ 17,050,404 $ (23,121) 0 $ 17,283,461 $ 233,057 1 DISCOUNT FACTOR $ (281,713) $ (281,332) 0 $ (285,177) 0 REQUIREMENTS $ 15,210,367 $ 16,791,812 $ 1,581, $ 16,769,072 $ (22,740) 0 $ 16,998,284 $ 229,212 1 GROWTH Page 20