Ravenswood City School District

Transcription

1 Ravenswood City School District Dated: March 20, 2015 Prepared by: EASTSHORE CONSULTING FINANCIAL PLANNING ELECTION STRATEGIES PUBLIC RELATIONS

2 EASTSHORE CONSULTING FINANCIAL PLANNING ELECTION STRATEGIES PUBLIC RELATIONS 1714 Franklin Street # Oakland, CA (510) TRANSMITTAL LETTER To: All Interested Parties Cc: Dr. Gloria Hernandez-Goff, Superintendent Prima Singh, Interim Chief Business Official From: Shin Green, Principal Eastshore Consulting LLC Via: Municipal Securities Rulemaking Board Electronic Municipal Market Access (MSRB-EMMA) Date: March 20, 2015 Eastshore Consulting LLC, as consultants to the (the District ), located in San Mateo County, California, is submitting this continuing disclosure report in connection with outstanding debt obligations of the District. This report is submitted to ensure that full disclosure is available to all bond holders and market participants. The continuing disclosure report reflects information required under the continuing disclosure agreements for the District s debt issuances which were outstanding during the fiscal year ended June 30, Eastshore Consulting has reviewed the debt portfolio of the District and corresponding executed Continuing Disclosure Agreements and confirmed that this report contains all required information for the above referenced fiscal year. In addition to the information required under each agreement, other information is included to provide context. This report is being provided for the following debt issuances: Tax and Revenue Anticipation Notes Tax and Revenue Anticipation Notes School Facilities Financing Authority Revenue Bonds - Series 2006: Dated October 26, 2006 While the continuing disclosure report contains selected information included in the audited financial statements, it is strongly suggested that interested parties also refer to such statements which may provide additional information not required under the Continuing Disclosure Agreements. If you should have any questions regarding the District s requirements under the Continuing Disclosure Agreements, please contact Eastshore Consulting at

3 CONTENTS PAGE NUMBER 1. CUSIP Listing 3 2. Audited Financial Statements 4 3. State Funding 5 4. Enrollment & ADA 6 5. Assessed Valuation 7 6. Tax Levy & Delinquencies 8 7. Outstanding Debt 9 8. Budgeted General Fund Revenues & Expenditures Material Events 11 Page 2

4 1) CUSIP Listing The following tables provide the CUSIP numbers for all outstanding bond and notes requiring disclosure under SEC 15c2-12: School Facilities Financing Authority Revenue Bonds, Series AF AG AH AJ AT AK AL AM AN AP AQ AR Tax and Revenue Anticipation Notes ES Tax and Revenue Anticipation Notes ET1 Page 3

5 2) Audited Financial Statements Satisfies: SFFA Revenue Bonds, Series Section 4.1 Audited Financial Statements for, have been posted to the Municipal Securities Rulemaking Board Electronic Municipal Market website. ( The table below provides the specific web address for the June 30, 2014, audit report as of the date of this submission: Audited Financial Statements for the Fiscal Year Ended June 30, Page 4

6 3) State Funding Satisfies: SFFA Revenue Bonds, Series Section 4.2(a) The table below provides information of the State funding received by the District by fiscal year. State Apportionments provide districts with funding based upon State of California formulas for education funding and additional funding for specific purposes not funded with local property tax collections. The District also receives State funding for specific purposes which is accounted for as Other State Revenues. Fiscal Year State Apportionments Source: GENERAL FUND Revenue Limit/ LCFF Transfers Other State Revenues OTHER FUNDS Other State Revenues ALL FUNDS Total State Funding ,215,770 1,865,580 7,579,545 22,660,895 2,025,316 24,686, ,858,156 1,547,036 8,196,530 24,601,722 2,036,970 26,638, ,497,469 2,214,417 7,191,584 26,903,470 1,349,489 28,252, ,570,664 1,965,307 6,642,375 26,178,346 1,283,044 27,461, ,905,392 1,757,080 3,184,762 24,847,234 1,183,199 26,030,433 Total Effective July 1, 2013, the State of California implemented the Local Control Funding Formula, a new funding formula for school districts. With the implementation of the LCFF, the revenue limit system was terminated. Subsequent budgets will be prepared in accordance with the LCFF and future funding will be determined by the LCFF. As a result of the LCFF implementation, State revenue classifications have changed and a greater portion of total State funding is now reflected as State Apportionments. Revenue Limit/LCFF Transfers consists of Special Education Local Plan Area (SELPA) funding which, is derived from a variety of local, State and Federal funding sources. Interested parties are encouraged to review the audited financial statements of the District for additional information. Page 5

7 4) Enrollment & Average Daily Attendance Satisfies: SFFA Revenue Bonds, Series Section 4.2(b) The table below provides Enrollment and Average Daily Attendance (ADA) figures for the District by fiscal year. Fiscal Year Source: Enrollment 2nd Period Report ADA Charter School ADA ,407 3, ,544 3, ,540 3, ,549 3, ,495 3, projected 3,445 3, * Information for through reflects P-2 ADA as stated in audited financial reports; information was obtained from the st Interim California s formulas for school minimum funding are based upon ADA. Districts are eligible to receive both local property tax revenues and, if required, State funding up to minimum funding levels. The District also receives funding for ADA related to charter schools authorized by the District. In and , two independent charter school were reauthorized by a neighboring school district and the District no longer receives funding for ADA generated by those independent charter schools. The District currently receives and passes through ADA funding for the Aspire charter school, which expanded enrollment in Page 6

8 5) Assessed Valuation Satisfies: SFFA Revenue Bonds, Series Section 4.2(c) The table below provides information on the District s assessed values by fiscal year. Year Local Secured Utility Total Secured Unsecured Total ,494,308, ,576 3,494,477, ,146,016 3,825,623, ,682,404, ,576 3,682,573, ,220,950 4,006,794, ,361,778, ,576 3,361,947, ,888,272 3,693,835, ,234,743, ,576 3,234,912, ,570,266 3,584,482, ,054,456,727-3,054,456, ,315,022 3,361,771, ,923,180,879-2,923,180, ,494,246 3,304,675, ,093,750,561-3,093,750, ,850,349 3,431,600, ,281,174,043-3,281,174, ,371,176 3,621,545,219 (1) Total Secured valuation is comprised of the Local Secured and Utility valuations Source: California Municipal Statistics, Inc. and County of San Mateo Page 7

9 6) Tax Levy & Delinquencies Satisfies: SFFA Revenue Bonds, Series Section 4.2(c) & (d) The table below provides information on the Secured Tax Charges levied by San Mateo County in support of the District s outstanding G.O. bonds. San Mateo County utilizes the Teeter plan for levy and distribution of property taxes. Under this method, entities are guaranteed 100% of the assessments levied on their behalf with the County retaining all penalties and interest resulting from delinquencies. Delinquency percentages are calculated based upon dollar amounts delinquent versus total amounts levied as of the date reported. Such delinquencies may be collected subsequent to the date reported and are not included in the delinquency percentages for subsequent years. Interested parties are strongly encouraged to refer to the County of San Mateo Treasurer-Tax Collector s website ( for additional information of property tax levy and collection policies and procedures. Fiscal Year Secured Tax Charge (1) Source: California Municipal Statistics, Inc. Secured Tax Delinquencies Delinquencies as a % of Secured Tax Charge ,206, , % ,182, , % ,194, , % ,203, , % ,283, , % (1) District's general obligstion bond debt service levy only Page 8

10 7) Outstanding Debt Satisfies: SFFA Revenue Bonds, Series Section 4.2(e) The table below provides information about the District s outstanding short-term borrowings, lease obligations and other long-term borrowings for. The presentation provides beginning and ending principal balances as well as information on additions and deletions of principal which are caused by addition of new borrowings and repayments, respectively. Lease-purchase agreements where the District assumes ownership upon maturity are reflected in the Capital Leases line item. Compensated Absences consist of accrued vacation and sick leave balances. Interested parties are strongly encouraged to refer to the notes to the District s audited financial statements for additional information on each of the borrowings disclosed herein, including repayment schedules where applicable. Fiscal Year Ended June 30, 2014 Aggregate Principal Amount of Short-Term Borrowings, Lease Obligations and Other Long-Term Borrowings Due Within Balance Balance One Year July 1, 2013 Additions Deletions June 30, 2014 (by June, 30, 2015) Short Term Debt Tax and Revenue Anticipation Notes $ 2,400,000 $ - $ 2,400,000 $ - $ Tax and Revenue Anticipation Notes - 2,500,000-2,500,000 2,500,000 Total Short Term Debt $ 2,400,000 $ 2,500,000 $ 2,400,000 $ 2,500,000 $ 2,500,000 Long Term Debt 2006 General Obligation Refunding Bonds* $ 10,131,709 $ - $ 828,461 $ 9,303,248 $ 862,016 Capital Leases - 556,871 95, , ,299 Postemployment Benefit Obligations 3,166, ,359-3,777,002 - Compensated Absences 297,367 51, , ,468 Total Long Term Debt $ 13,595,719 $ 661,460 $ 828,461 $ 13,428,718 $ 1,210,484 Total Principal Amount of Short-Term Borrowings, Lease Obligations and Other Long-Term Borrowings $ 15,928,718 * The 2006 General Obligation Refunding Bonds were purchased with the proceeds of the School Facilities Financing Authority Revenue Bonds, Series 2006 Source: The School Facilities Financing Authority (SFFA) is a blended component unit of the District and exists to facilitate financing activities. The SFFA issued Revenue Bonds to purchase the District s 2006 General Obligation Bonds. The SFFA Revenue Bonds are payable only from the debt service of the purchased bonds. As a blended component unit, the outstanding revenue bonds of the SFFA is reflected in the audited financial statements of the District in place of the 2006 General Obligation Refunding Bonds. $9,995,000 of the SFFA Revenue Bonds remained outstanding as of June 30, Page 9

11 8) BudgetedGen. Fund Revenues & Exp. Satisfies: SFFA Revenue Bonds, Series Section 4.2(f) The table below presents a summary of the District's General Fund budget and projected results for the fiscal year. The presentation below utilizes the original budget as approved prior to each fiscal year. During the course of a fiscal year, the District may amend the budget with Board of Trustees approval based upon information which was not available when the original budget was adopted. Interested parties are strongly encouraged to refer to the notes and required supplemental information in the District s audited financial statements for additional information on amended General Fund budgets and budgets for other funds of the District Original Budget 1st Interim (1) REVENUES Revenue Limit / LCFF Sources $ 28,296,648 $ 28,504,509 Federal Revenues 2,949,758 3,013,130 Other State Revenues 2,456,578 2,493,954 Other Local Revenues 6,234,687 7,177,377 TOTAL REVENUES $ 39,937,671 $ 41,188,970 EXPENDITURES Certificated Salaries $ 17,193,706 $ 18,449,959 Classified Salaries 6,563,750 7,187,808 Employee Benefits 7,762,848 8,445,066 Books and Supplies 1,804,730 2,101,951 Services and Other Operating Expenditures 6,346,254 7,045,573 Capital Outlay 165, ,200 Other Outgo 785, ,750 Transfers of Indirect/Direct Support Costs (194,800) (205,550) TOTAL EXPENDITURES $ 40,427,238 $ 43,993,757 EXCESS (DEFICIENCY) OF REVENUES (489,567) (2,804,787) OTHER FINANCING SOURCES (USES) Operating Transfers In $ 270,000 $ 270,000 Other Sources 473, ,076 TOTAL OTHER FINANCING SOURCES (USES) $ 743,076 $ 743,076 NET CHANGE IN FUND BALANCE $ 253,509 $ (2,061,711) FUND BALANCE AT BEGINNING OF YEAR $ 6,345,120 $ 6,345,120 FUND BALANCE AT END OF YEAR $ 6,598,629 $ 4,283,409 (1) Projected Source: The st Interim reflects projected annual revenues and expenditures based upon actual activity through October 31, California school districts are required to prepare and provide such interim reports twice a year in addition to year-end results. The 1 st Interim information above has not been audited and final results for the fiscal year may differ from the presented projections. Page 10

12 9) Material Events Satisfies: SFFA Revenue Bonds, Series Section 5(a); All Tax and Revenue Notes Section 3 The table below provides a summary on all material events which have occurred since issuance the SFFA Bonds. Individual Material Event Notices have been filed for each event and can be accessed at the Municipal Securities Rulemaking Board Electronic Municipal Market website ( School Facilities Financing Authority Revenue Bonds - Series 2006 Dated: October 26, 2006 January 24, 2008 June 5, 2008 June 26, 2008 November 19, 2008 June 24, 2009 July 28, 2009 August 20, 2009 May 6, 2010 November 8, 2010 November 30, 2010 June 2, 2011 May 1, 2013 August 13, 2014 Fitch Ratings downgrades Ambac Assurance Corporation, insurer for the Bonds, from "AAA" to "AA" Standard & Poor's downgrades Ambac Assurance Corporation, insurer for the Bonds, from "AAA" to "AA" Fitch Ratings withdraws ratings for Ambac Assurance Corporation Standard & Poor's downgrades Ambac Assurance Corporation, insurer for the Bonds, from "AA" to "A" Standard & Poor's downgrades Ambac Assurance Corporation, insurer for the Bonds, from "A" to "BBB" Standard & Poor's downgrades Ambac Assurance Corporation, insurer for the Bonds, from "BBB" to "CC" Fitch Ratings downgrades the School Facilites Financing Authority's underlying rating from "A-" to "BBB+" Fitch Ratings upgrades the School Facilites Financing Authority's underlying rating from "BBB+" to "A" Ambac Financial Group, Inc. parent company of Ambac Assurance Corporation, files for Chapter 11 bankruptcy Standard & Poor's withdraws ratings for Ambac Assurance Corporation Standard & Poor's upgrades the District's underlying rating from "BBB+" to "A-" Ambac Financial Group, Inc. parent company of Ambac Assurance Corporation, emerges from Chapter 11 bankruptcy Standard & Poor's upgrades the District's underlying rating from "A-" to "A" Section 5(a)(10) Section 5(a)(10) Tax and Revenue Anticipation Notes Dated: March 26, NONE Tax and Revenue Anticipation Notes Dated: March 27, NONE - Typically, when the rating of a bond insurer is below the underlying rating of the Bond, the underlying rating becomes the rating of the bonds. As of the date of this disclosure report, the bond insurer, Ambac Assurance Corporation, does not have ratings from either Standard & Poor s or Fitch Ratings and the underlying District and School Facilities Financing Authority ratings are the ratings for the Bonds. Page 11