Saugus Union School District Respect Integrity Learning Teamwork Enthusiasm Budget

Transcription

1 Saugus Union School District Respect Integrity Learning Teamwork Enthusiasm Budget

2 Administration Governing Board Judy Egan Umeck, President Dr. David Powell, Clerk Paul De La Cerda, Member Rose Koscielny, Member Christopher Trunkey, Member District Administration Dr. Joan M. Lucid, Superintendent Dr. Victor P. Hayek, Assistant Superintendent of Business Dr. Christine Hamlin, Assistant Superintendent of Instruction Dr. Jennifer Stevenson, Assistant Superintendent of Human Resources School Site Administration Bridgeport Susan Bender, Principal Karen Harvey, Assistant Principal Cedarcreek Robin Payre, Principal Emblem Academy Jon Baker, Principal Lisa Loscos, Assistant Principal James Foster Dr. Deborah Bohn, Principal Helmers Pete Bland, Principal Vicky Kubasak, Assistant Principal Highlands Paul Martinson, Principal Mountainview Katie Demsher, Principal Dr. Alina Vehuni, Assistant Principal North Park Sandy Brunet, Principal Dr. Carin Fractor, Assistant Principal Plum Canyon Mary Mann, Principal Rio Vista Gina Nolte, Principal Rosedell Kathy Stendel, Principal Misty Covington, Assistant Principal Santa Clarita Theophane Korie, Principal Skyblue Mesa Julie Bogosian, Principal Tesoro Del Valle Dianne Saunders, Principal West Creek Academy Cory Pak, Principal Susan Bett, Assistant Principal 2

3 Table of Contents Administration...2 Governing Board... 2 District Administration... 2 School Site Administration... 2 General Information...5 About the District... 5 District Vision... 5 Core Values... 5 Overview...6 School District Budgets Are Not Static Documents... 6 Cycle of Budget Changes... 7 Executive Summary...8 The California Economy... 8 Local Control Funding Formula (LCFF)... 8 Grade Span Adjustment... 9 One-time Funds... 9 Additional One-Time Funds: Educator Effectiveness... 9 Local Control Accountability Plan (LCAP)... 9 State Teacher's Retirement System (STRS) Public Employee Retirement System (PERS) Healthy Workplace Healthy Families Act (AB 1522) Average Daily Attendance (ADA) Routine Restricted Maintenance Account (RRMA) Minimum Wage Increase Employee Staffing Employee Benefits Retiree Benefits Reserve for Economic Uncertainties Ending Fund Balance Revenue Summary...13 Unrestricted Expenditure Summary...15 Restricted Expenditure Summary...17 Combined Expenditure Summary...19 Supplementary Information

4 General Fund 01 - Fund Balance LCFF Calculator Education Protection Account (EPA) Lottery Utilities, Insurance and Legal Benefits Enrollment by Site Enrollment Trend Multi-Year Projection (MYP)...28 Assumptions Cost of Living Adjustments (COLA) Benefits Enrollment and ADA Local Control Accountability Plan (LCAP) Pension Reserve for Economic Uncertainties Multi-Year Projection (MYP) Unrestricted Multi-year Projection (MYP) Restricted Multi-year Projection (MYP) Combined Funds OTHER FUNDS (see descriptions below)

5 General Information About the District The Saugus Union School District is a PK-6 school district providing elementary level education under a single Board of Education and centralized administration. The District currently operates 15 elementary schools, a maintenance and transportation facility, and the District Office. The District encompasses approximately 94 square miles of land, most of which is on the west side of the Santa Clarita Valley in Los Angeles County. The Governing Board of the District consists of five elected members. Starting with the November 2016 election, members will be elected from designated geographic boundaries. Members of the Board elect a president each year. The day-to-day affairs of the District are the responsibility of the Superintendent. Our mission is partnership with the home and community to excellence in elementary education. District Vision Academic Success for Every Child Core Values Respect Integrity Learning Teamwork Enthusiasm 5

6 Overview Education code requires districts to hold a pubic hearing in a separate meeting prior to budget adoption. Not later than five-days after the adoption or by July 1, whichever occurs first, the District shall file the budget with the County Superintendent of Schools. The budget and supporting data shall be maintained and available for public review. For the proposed budget, the public hearing will be on June 7, 2016 and will be followed by formal adoption on June 21, These will take place at the regularly scheduled Board of Education meeting(s) held at the Education Center Avenue Stanford Santa Clarita, CA at 7:45 p.m. School District Budgets Are Not Static Documents With the passage of Proposition 25 in November 2010, the legislative vote requirement necessary to pass the State Budget and spending bills related to the Budget was lowered from two-thirds to a simple majority. In addition, Proposition 25 provided that if the Legislature fails to pass a budget by June 15, all members of the Legislature will permanently forfeit salary and expense reimbursement for each day lapsed until the State adopts its budget. This timeline makes it challenging to complete budget planning as the final State budget will likely change and its trickle down impact could affect California schools. School district budgets are initially adopted in June of each year. But even after adoption of the State budget, revenues for school districts may change. Since they are subject to constant change, school district budgets are not static documents, but instead must constantly be revised to respond to decisions at the State and Federal level, as well as to the expenditure needs of each school district. Acceptance of the constant revision in district numbers is one of the biggest challenges in understanding a local agency budget. Yesterday s numbers are not always today s numbers. But while there is a base cost of service, school districts operate on such a narrow income margin that even a small swing in revenues or costs can have a major impact on local agency decisions. Though the cycle of budget adjustments varies, it has some rhythm so that it is possible to identify by month the most significant budget change dates. 6

7 Cycle of Budget Changes Mid June/Early July Adoption of the State budget that may determine changes in school district revenues. August Recording of prior-year estimated expenses and determination of the unaudited current-year beginning balance. Fall-Spring Reports Certification of reports that determine the District s income, including attendance. Mid-December Presentation to the Governing Board of the First Interim Report, which reflects District income and expense to October 31 and a projection of income and expense for the balance of the year. March Presentation to the Governing Board of the Second Interim Report, which reflects District income and expense to January 31, and a projection of income and expense for the balance of the year. The Interim Reports show a projected net ending balance for the district, which is a very important indicator of District fiscal health. These are just some of the important budget change points during a typical school year. A district budget must also be constantly revised to reflect the change from estimated to actual cost for goods and services. These adjustments are presented for approval to the Board of Education at the regularly scheduled Board of Education meetings throughout the year. 7

8 Executive Summary The Governor of California presents a budget proposal each January and then follows up with a May Revision. The District uses the information from the May Revision as well as the Budget Guidelines from the Los Angeles County Office of Education (LACOE) as a basis for the District s budget development. The May revision to the Governor's budget proposal brought changes from his January proposal in the form of increased revenue projections. Though the fiscal outlook remains positive for the state economy, the Governor calls for fiscal discipline and restraint while issuing several warnings of risks to the State s economy. The California Economy Similar to the rest of the nation, this year the state s economy continues to grow and improve. The Governor s economic forecast expects continued growth over the next few years for California, as rising wages and lower gasoline prices allow consumers to spend more. California s unemployment rate dropped to 5.4 percent in March, the closest it has been to the national unemployment rate (of 5%) since early The state added 40,000 jobs a month on average in 2015, but the pace has begun to slow, with about 15,000 jobs per month added on average during the first few months of The Governor s forecast incorporates each of the scheduled minimum wage increases until it reaches $15 per hour by This may lead to slightly slower job growth and slightly faster wage growth than assumed in the Governor s budget. The Governor notes that the State economy is in its seventh year of economic growth, which is two years past traditional expansions. As stated in his budget summary, the current expansion has lasted since mid-2009, but the average length is only around five years. With the longest U.S. expansion having lasted ten years, it would be unprecedented not to have a recession by In addition, the Governor notes that there are several risks to maintaining the current economic expansion. These include a global economic slowdown or a stock market correction. Either of these activities could cause revenues to drop or unemployment to increase. The Governor s budget recognizes the historic volatility and fluctuations in public school finance. We begin with the Local Control Funding Formula. Local Control Funding Formula (LCFF) The proposed Local Control Funding Formula (LCFF) Gap percentage for California school districts reflects an increase of 2.64%, going from 52.20% to 54.84%. At the same time COLA has been decreased from 1.02% to 0.0%. The result for the 8

9 Saugus Union School District is a projected increase of $3.4m in base grant LCFF revenue. The Los Angeles County Office of Education issued a memo on June 2, 2016 recommending: that districts assign, reserve or otherwise set aside any projected increase in LCFF revenue as a result of Gap Funding in and subsequent years. If districts budget this increased revenue and the associated expenditure, they must have a contingency or alternative plan in place should these funds fail to materialize. The District has plans to increase reserves to 5%. Grade Span Adjustment The Local Control Funding Formula provides an augmentation to the base grant, referred to as a Grade Span Adjustment. The Grade Span Adjustment (GSA) requires the District to maintain a 24:1 school site average student to teacher ratio (grades TK-3) or, other alternate locally bargained ratio. The Board and STA reached an agreement on March 3, 2016 establishing a 28:1 student to teacher ratio in the applicable grades. The Budget reflects that the District will meet this ratio, therefore $3.8 million is included in the base grant revenue projections. One-time Funds The May revision proposes one-time revenue in the form of prior year mandate claims reimbursement in the amount of approximately $237 per student. These funds are one time in nature, therefore will not be reflected in future years in the multi-year projection. These funds are intended to reimburse for prior year expenditures of mandates, however, these are not restricted funds, and can be used for any purpose as determined by the Governing Board of the District and the Administration. Anytime a District receives one-time funds, it is always recommended to use those funds for one-time purchases as to not create a recurring liability. The result for the Saugus Union School District is a one-time revenue projected to be $2.6m. Additional One-Time Funds: Educator Effectiveness The one-time Educator Effectiveness grant ($668,000) awarded in is to be used for professional development no later than June 30, Approximately $203,310 has been included in the proposed budget. The remaining balance will be $464,690 and will be reflected in the fund balance as restricted funds. Local Control Accountability Plan (LCAP) The LCFF calls for school districts to set both district-wide and school-wide goals and spells out the specific action steps needed to achieve those goals for all students but especially for English Learners, foster youth, and low-income students. All members of the school community must be involved in developing, reviewing and supporting 9

10 the LCAP: parents, students, community members, school employees and other stakeholders. The District tracks the revenues of what the State calls unduplicated count. The unduplicated count is based on the number of economically disadvantaged, English language learners, and foster students enrolled in the District. These revenues are Supplemental and Concentration grants. The Saugus Union School District does not qualify for the Concentration grant but does receive funds under the Supplemental grant. The Budget reflects $3.1 million in revenues based on the projected funding of the Supplemental grant. These revenue and expenditures are recorded in the Unrestricted General Fund. State Teacher's Retirement System (STRS) The District budget proposal incorporates the required employer rate increases to the State Teacher's Retirement System (STRS). These escalating contributions have considerable financial impact on the District. The following table illustrates the District s future additional estimated costs based on labor costs. Fiscal Year STRS Rate Estimated Increase % $775, % $1,551, % $2,327,613 Public Employee Retirement System (PERS) The Public Employee Retirement System (PERS) is the retirement program for the District's classified employees. The following table illustrates the District s future additional estimated costs based on labor costs. Fiscal Year STRS Rate Estimated Increase % $250, % $448, % $644,891 10

11 Healthy Workplace Healthy Families Act (AB 1522) In July of 2015, AB1522 was in effect. Named the Healthy Workplace Healthy Families Act, it obligates the District to accrue sick leave for employees previously not eligible. Based on historical data of time worked by these groups of employees, expenditures have been budgeted to reflect the anticipated accrual and use of this added benefit. Average Daily Attendance (ADA) LCFF State funding is calculated using the Average Daily Attendance (ADA) rate of the district. The Budget was developed using a projected ADA of 9,532 representing a decline of 132. Revenue projections have been adjusted based on this ADA. School Year CALPADS +/- P2 ADA +/- Factor Enrollment , , % , , % , , % (projected) 9, , % Routine Restricted Maintenance Account (RRMA) The proposed budget reflects a 2% contribution (transfer) to the Routine Restricted Maintenance Account to support ongoing maintenance and repairs to the school facilities. Minimum Wage Increase On January 1, 2016, the minimum was raised to $10 per hour. The appropriate costs have been included in the budget. The minimum wage will continue to increase until it reaches $15 by The multi-year projections include this increase. Employee Staffing There are no significant staffing changes for On April 19, 2015 the Board approved a 5% salary increase for STA employees. This is a projected increase of $2 million for salary and benefits combined. Negotiations with CSEA are pending and 11

12 therefore are not reflected in the proposed budget, nor are salary adjustments for the unrepresented staff. Employee Benefits The District contributes $575 per month toward benefits for each eligible employee. Recent negotiated agreements have increased this to $600 per month per eligible employee. The proposed budget reflects this increase. Retiree Benefits Twelve benefit-eligible employees retired during the fiscal year. With the benefits cap applied, this results in an estimated annual liability of approximately $409,181. This cost has been included in the proposed budget. Reserve for Economic Uncertainties The State of California requires school districts to maintain a 3% reserve. The proposed budget includes 3% (of expenditures) as a Reserve for Economic Uncertainties. The projected reserve amount is $2,694,870. The proposed budget also includes an additional 2% reserve of $1,796,580, for a total of 5% or $4,491,450. Ending Fund Balance The District s beginning balance as of July 1, 2015 was $6,758,391. Estimated actuals forecast for June 30, 2016 project an increase in fund balance of $4,540,474. This is a result of one-time funding from the State. The June 30, 2017 fund balance (based upon the revenue and expenditures in the proposed budget, including Fund 17) is forecast to be $12,693,295. Though this is positive for the District, increasing expenses, changes in ADA, variances in COLA, and rising pension costs could eventually deplete the fund balance and reserves. Emphasis should be on stabilizing expenditures, maintaining adequate reserves, and effective planning to ensure we are providing the best learning opportunities for our students. The following pages summarize the estimated financials and major objects. 12

13 Revenue Summary 13

14 Total Projected Revenue TOTAL STATE 6% TOTAL FEDERAL 3% TOTAL LOCAL 8% TOTAL LCFF REVENUE 83% 14

15 Unrestricted Expenditure Summary 15

16 Unrestricted Expenditures TOTAL BOOKS AND SUPPLIES 3% TOTAL CONTRACTED SERVICES AND OTHER OPERATING EXPENSES 9% TOTAL CAPITAL OUTLAY 0% TOTAL BENEFITS 20% TOTAL CLASSIFIED SALARIES 14% TOTAL CERTIFICATED SALARIES 54% 16

17 Restricted Expenditure Summary 17

18 Restricted Expenditures TOTAL CAPITAL OUTLAY 1% TOTAL OTHER 4% TOTAL BOOKS AND SUPPLIES 5% TOTAL BENEFITS 19% TOTAL OTHER OUTGO 6% TOTAL CERTIFICATED SALARIES 36% TOTAL CLASSIFIED SALARIES 29% 18

19 Combined Expenditure Summary 19

20 Combined Expenditures TOTAL BOOKS AND SUPPLIES 3% CONTRACTED SERVICES AND OTHER OPERATING EXPENSES 8% TOTAL CAPITAL OUTLAY 0% TOTAL OTHER OUTGO 2% TOTAL BENEFITS 20% TOTAL CERTIFICATED SALARIES 49% TOTAL CLASSIFIED SALARIES 18% 20

21 Supplementary Information General Fund 01 - Fund Balance NET BEGINNING BALANCE July 1, 2015 $ 6,758,391 Audit Adjustment $ (64,301) Other Restatements $ (1,091,131) nd Interim Revised Estimated Ending Balance $ 5,602,959 PROJECTED INCREASE/DECREASE in FUND BALANCE $ 4,540,474 Fund 17 Reserve $ 2,549,862 PROJECTED ENDING BALANCE June 30 $ 12,693,295 Total Estimated Income and Beginning Balance $ 102,522,307 Estimated Expenditures $ 89,829,012 NET ESTIMATED ENDING BALANCE - June 30, 2017 $ 12,693,295 BREAKDOWN OF NET ENDING BALANCE Restricted SELPA $ 466,790 Educator Effectiveness $ 464,690 Stores $ 60,000 Revolving Cash $ 2,500 Reserve for LRB Principal and Interest (FY17) $ 789,995 3% Mandated Reserve for Contingency $ 2,694,870 Additional 2% Reserve $ 1,796,580 Unassigned $ 6,417,869 NET ESTIMATED ENDING BALANCE - June 30, 2017 $ 12,693,295 21

22 Estimated June 30, 2017 Projected Fund Balance Breakdown Educator Effectiveness 4% Stores 1% Revolving Cash 0% Reserve for LRB Principal and Interest (FY17) 6% Unassigned 52% Mandated Reserve 22% Additional Reserve 15% 22

23 LCFF Calculator ADA Calculation Grade Span Funded ADA Greater of Current Year or Prior Year P2 ADA* ADA ADA* K-3 5, , Total 9, , , BASE AND AUGMENTATION GRANT Base Grade-Span Supplemental Base Base Grade Span Grant Rate COLA 0.00% Adjustment Grant 26.28% Grant Rate Grant Total K-3 7, ,231 $ 43,504, , ,567 $ 33,134,042 TARGETED INSTRUCTIONAL IMPROVEMENT GRANT (TIIG) AND TRANSPORTATION Targeted Instructional Improvement Block Grant $ 433,649 Home-to-School Transportation $ 386, LCFF TARGET LCFF Target (total base grant plus TIIG and transportation) $ 77,458, FLOOR ADA Rate times by ADA Rate $ 48,167, Other RL ADA Rate times by ADA Rate $ 476, Categorical $ 7,602, LCFF GAP funding per ADA * ADA $ 14,906, LCFF Floor $ 71,152, GAP Total GAP Remaining (difference between target and floor) $ 6,305, GAP Funding % (per DOF) $ 3,458, FUNDING Total Phase-In-Entitlement $ 74,611,035 COMPONENTS OF LCFF 8011 State Aid $ 42,585, EPA - (Proposition 30, based on adjusted revenue limit in floor calculation) $ 12,161, Property Taxes (based on P2 estimate tax report per LACOE) $ 19,864, Total Phase-In-Entitlement $ 74,611,035 23

24 Education Protection Account (EPA) 24

25 Lottery Unrestricted Restricted ESTIMATED INCOME FROM LOTTERY $ 1,393,850 $ 408,199 ESTIMATED EXPENDITURES Classified Staff Certificated Staff $ 1,015,486 Materials and Supplies $ 404,699 Service and Operations $ 378,364 $ 3,500 Total Estimated Expenditures $ 1,393,850 $ 408, Lottery Balance Applied to General Fund $ 1,393,850 $ 408,199 TOTAL LOTTERY REVENUE $ 1,802,049 Utilities, Insurance and Legal Object Title Expenditures Adopted Budget nd Interim Estimated Actuals Projected 5450 Insurance (Property/Liability/Auto) $ 368,553 $ 423,951 $ 423,951 $ 423,951 $ 488, Gas $ 30,097 $ 49,957 $ 50,207 $ 50,207 $ 50, Electricty $ 1,352,583 $ 1,537,384 $ 1,540,884 $ 1,540,884 $ 1,542, Water $ 207,660 $ 284,876 $ 285,376 $ 285,376 $ 285, Trash Disposal $ 75,563 $ 95,295 $ 97,445 $ 97,445 $ 101, Legal $ 279,110 $ 536,299 $ 304,318 $ 370,913 $ 304, Communication/Internet/Phone $ 99,053 $ 102,651 $ 107,151 $ 191,914 $ 193,205 Total $ 2,412,619 $ 3,030,413 $ 2,809,332 $ 2,960,690 $ 2,965,105 25

26 Benefits Object Account Expenditures Adopted Budget Estimated Actuals Projected 3100 State Teachers Retirement $ 3,549,447 $ 4,462,148 $ 4,554,394 $ 5,577, Public Employees' Retirement $ 1,674,280 $ 1,431,774 $ 1,431,193 $ 1,958, OASDI/Medicare/Alternative Retirement $ 1,698,255 $ 1,726,670 $ 1,748,651 $ 2,042, Unemployment Insurance $ 27,338 $ 28,601 $ 31,162 $ 32, Worker's Compensation Insurance $ 1,450,496 $ 1,659,768 $ 1,673,376 $ 1,867, Retiree Benefits $ 406,113 $ 441,612 $ 441,612 $ 409, In Lieu Payments & Public Agency Retirement Services (PARS) $ 1,294,386 $ 1,035,238 $ 1,036,761 $ 1,114, Health Benefits* $ 4,158,199 $ 4,370,715 $ 4,314,259 $ 5,010,792 TOTAL BENEFITS $ 14,258,514 $ 15,156,526 $ 15,231,408 $ 18,014,111 *Per Employee Medical $ 6,900 $ 6,900 $ 7,200 Dental $ 1,544 $ 1,544 $ 1,544 Vision $ 84 $ 84 $ 168 Life Insurance BOE $ 156 $ 156 $ 156 Admin/Cert/Class Mgmt/Conf. $ 127 $ 127 $ 127 Class & Child Care Directors $ 67 $ 67 $ 67 Asst. Child Care Dir/FT pre-school inst. $ 31 $ 31 $ 31 Disability Insurance (Average based on Salary) Classified Mgmt $ 29 $ 29 $ 29 Certificated non-represented $ 35 $ 35 $ 35 STA $ 26 $ 26 $ 26 CSEA FT $ 20 $ 20 $ 20 CSEA PT $ 6 $ 6 $ 6 Total District Paid Medical (Average) $ 8,646 $ 8,646 $ 9,030 26

27 Enrollment by Site Site Projected Enrollment Bridgeport 907 Cedarcreek 489 Emblem Academy 739 Foster 559 Helmers 774 Highlands 370 Mountainview 778 North Park 709 Plum Canyon 634 Rio Vista 635 Rosedell 772 Santa Clarita 447 Skyblue Mesa 512 Tesoro Del Valle 578 West Creek Academy 945 Total Projected Enrollment 9,848 Enrollment Trend Enrollment/ADA Trend /13 13/14 14/15 15/16 16/17 - Projected P-2 ADA Enrollment (CALPADS) 17/18 - Projected 18/19 - Projected 27

28 Multi-Year Projection (MYP) Assumptions Financial projections of the Combined General Fund for and the two subsequent years are a required component of the budget and fiscal reporting process. The Multi-Year Projection assumes that all revenues will be ongoing until informed otherwise and all one-time revenue has been removed. Salary increases in future years beyond step and column are negotiated and therefore not factored into these projections (also does not include pending negotiations). Following are the assumptions used in the multi-year projections: Step and Column Movement 1.50% 1.50% Cost of Living Adjustment to LCFF 1.11% 2.42% LCFF GAP Funding 73.96% 41.22% Lottery Revenue-Unrestricted $140 $140 Lottery Revenue-Restricted $41 $41 Unduplicated % for Suppl/Conc Grants 26.04% 26.04% Cost of Living Adjustments (COLA) The statutory cost of living adjustment (COLA) for is.00% and estimated to be 1.11% for and 2.42% for This COLA applies to the LCFF Base Grant and affects the Target Entitlement, it does not describe the net funding increase to the District. Benefits The District s contribution toward medical benefits for each employee is $7,200 for FY The MYP assumes no change in the District s contribution. Future financial impact of the Affordable Care Act are unknown at this time and have not been factored into the MYP. Enrollment and ADA The District has experienced a decline in enrollment and average daily attendance (ADA) each year since The multi-year projection assumes no change to enrollment or ADA. 28

29 Local Control Accountability Plan (LCAP) The MYP assumes the following revenue allocations consistent with the Governors May Revision: FY LCFF GAP Rate Supplemental & Concentration Grant Change from prior year % $3,452,048 + $1,408, % $3,695,973 + $243,925 The Local Control Accountability Plan contains the detail of the expenditures budgeted on the target population. Projections are based on current district averages and trends; therefore they may vary in future years. Pension The MYP takes into consideration the following pension contribution rates: FY STRS PERS % 13.89% % 15.50% % 17.10% Reserve for Economic Uncertainties The MYP includes the legally required amount equal to 3% of the General Fund expenditures as well as an additional 2% to ensure the District has sufficient reserves. FY Mandated 3% Reserve Additional 2% Reserve Total Reserve $2,754,719 $1,836,479 $4,411, $2,815,407 $1,876,938 $4,692,345 29

30 Multi-Year Projection (MYP) Unrestricted Estimated Actuals Proposed Budget Multi-Year Projection Multi-Year Projection Unrestricted Unrestricted Unrestricted Unrestricted LCFF Revenue 71,152,888 74,611,035 76,301,082 77,740,642 Federal Revenue 180, State Revenue 6,800,402 3,927,071 1,667,924 1,667,924 Local Revenue 237, , , ,655 Total Revenue 78,371,914 78,751,761 78,182,661 79,622,221 Certificated Salaries 32,242,866 36,166,272 36,832,849 37,509,426 Classified Salaries 8,858,227 9,130,428 9,366,673 9,606,462 Benefits 10,920,552 13,623,052 14,715,189 15,821,761 Books & Supplies 1,103,305 2,023,281 2,023,281 2,023,281 Contracted Services/Operations 4,796,533 5,849,752 5,849,752 5,849,752 Capital Outlay 111, , , ,857 Other Outgo 149, , , ,315 Indirect Costs (202,168) (213,187) (213,187) (213,187) Total Expenditures 57,980,432 67,045,770 69,040,730 71,063,667 Net Surplus/(Deficit) 20,391,482 11,705,991 9,141,931 8,558,554 Transfers In from Fund , , , ,540 Transfers in from Fund 17 2,549,862 Contributions (15,297,194) (11,752,778) (11,812,404) (11,852,862) Transfers In/Contributions (15,066,610) (8,952,376) (11,561,864) (11,602,322) Total Surplus/Deficit 5,324,872 2,753,615 (2,419,933) (3,043,768) Beginning Fund Balance 3,619,027 9,008,200 11,761,815 9,341,882 Restatements 64, Ending Fund Balance 9,008,200 11,761,815 9,341,882 6,298,114 Store/Revolving Cash 62,500 62,500 62,500 62,500 Educator Effectiveness* - Special Ed - SELPA - Other Restricted - Mandated Reserve - 3% 2,599,466 2,694,870 2,754,719 2,815,407 Additional Reserve - 2% 1,732,977 1,796,580 1,836,479 1,876,938 Lease Revenue Bond Reserve 789, , ,994 Unassigned 4,613,257 6,417,870 3,898, ,274 30

31 Multi-year Projection (MYP) Restricted Estimated Actuals Proposed Budget Multi-Year Projection Multi-Year Projection Restricted Restricted Restricted Restricted LCFF Revenue Federal Revenue 3,293,035 2,831,135 2,831,135 2,831,135 State Revenue 1,829,191 1,012,023 1,012,023 1,012,023 Local Revenue 7,464,620 6,983,553 6,283,553 6,283,553 Total Revenue 12,586,846 10,826,711 10,126,711 10,126,711 Certificated Salaries 9,879,741 8,272,226 8,272,226 8,272,226 Classified Salaries 6,919,440 6,619,262 6,619,262 6,619,262 Benefits 4,356,970 4,391,059 4,391,059 4,391,059 Books & Supplies 3,323,676 1,023,563 1,023,563 1,023,563 Contracted Services/Operations 2,586, , , ,040 Capital Outlay 30,000 90,001 90,001 90,001 Other Outgo 1,369,662 1,259,999 1,259,999 1,259,999 Indirect Costs 202, , , ,092 Total Expenditures 28,668,438 22,783,242 22,783,242 22,783,242 Net Surplus/(Deficit) (16,081,592) (11,956,531) (12,656,531) (12,656,531) Transfers In from Fund Transfers in from Fund 17 Contributions 15,297,194 11,752,778 11,812,404 11,852,862 Transfers In/Contributions 15,297,194 11,752,778 11,812,404 11,852,862 Total Surplus/Deficit (784,398) (203,753) (844,127) (803,669) Beginning Fund Balance 3,139,364 1,135, ,480 87,353 Restatements (1,219,733) - Ending Fund Balance 1,135, ,480 87,353 (716,316) Store/Revolving Cash - - Educator Effectiveness* 668, , ,690 Special Ed - SELPA 466, , , ,368 Other Restricted Mandated Reserve - 3% Additional Reserve - 2% Lease Revenue Bond Reserve Unassigned - - (844,127) (1,182,684) 31

32 Multi-year Projection (MYP) Combined Funds Estimated Actuals Proposed Budget Multi- Year Projection Multi- Year Projection Total Total Total Total LCFF Revenue 71,152,888 74,611,035 76,301,082 77,740,642 Federal Revenue 3,473,809 2,831,135 2,831,135 2,831,135 State Revenue 8,629,593 4,939,094 2,679,947 2,679,947 Local Revenue 7,702,470 7,197,208 6,497,208 6,497,208 Total Revenue 90,958,760 89,578,472 88,309,372 89,748,932 Certificated Salaries 42,122,607 44,438,498 45,105,075 45,781,652 Classified Salaries 15,777,667 15,749,690 15,985,935 16,225,724 Benefits 15,277,522 18,014,111 19,106,248 20,212,820 Books & Supplies 4,426,981 3,046,844 3,046,844 3,046,844 Contracted Services/Operations 7,383,314 6,787,792 6,787,792 6,787,792 Capital Outlay 141, , , ,858 Other Outgo 1,519,460 1,419,314 1,419,314 1,419,314 Indirect Costs - (24,095) (24,095) (24,095) Total Expenditures 86,648,870 89,829,012 91,823,972 93,846,909 Net Surplus/(Deficit) 4,309,890 (250,540) (3,514,600) (4,097,977) - Transfers In from Fund , , , ,540 Transfers in from Fund 17-2,549, Contributions Transfers In/Contributions 230,584 2,800, , ,540 Total Surplus/Deficit 4,540,474 2,549,862 (3,264,060) (3,847,437) Beginning Fund Balance 6,758,391 10,143,433 12,693,295 9,429,235 Restatements (1,155,432) Ending Fund Balance 10,143,433 12,693,295 9,429,235 5,581,798 Store/Revolving Cash 62,500 62,500 62,500 62,500 Educator Effectiveness* 668, , ,690 - Special Ed - SELPA 466, , , ,368 Other Restricted Mandated Reserve - 3% 2,599,466 2,694,870 2,754,719 2,815,407 Additional Reserve - 2% 1,732,977 1,796,580 1,836,479 1,876,938 Lease Revenue Bond Reserve - 789, , ,994 Unassigned 4,613,257 6,417,870 3,054,062 (429,410) 32

33 OTHER FUNDS (see descriptions below) Other Funds July 1, 2016 Beginning Balance Projected Revenue Projected Expenditures June 30, 2017 Projected Fund Balance SELPA Pass-Through (Fund 10) $1,466,628 $35,026,398 $35,016,398 $1,476,628 Child Development Program (Fund 12) $25,532 $380,036 $380,036 $25,532 Deferred Maintenance (Fund 14) $1,549,273 $6,000 $362,000 $1,193,273 Special Reserve Other Than Capital Outlay Projects (Fund 17) $2,541,862 $8,000 $0 $2,549,862 Building (Fund 21) $14,766,230 $30,000 $12,712,589 $2,083,641 Capital Facilities (Fund 25) $9,280,919 $1,204,510 $133,052 $10,352,377 Special Reserve for Capital Outlay Projects (Fund 40) $2,978,909 $7,516 $805,902 $2,180,523 Capital Project Blended Component Units (Fund 49) $17,895,612 $96,104 $16,142,625 $1,849,091 Bond Interest and Redemption (Fund 51) $6,353,659 $5,838,751 $6,789,602 $5,402,808 Debt Services for Blended Component Units (Fund 52) $24,064,353 $6,026,249 $16,475,269 $13,615,333 Other Enterprise/Child Development Program (Fund 63) * $7,531,362 $6,263,512 $5,492,906 $8,301,968 *Projected ending balance includes fixed assets of approximately $4.5m and cash of approximately $3m. FUND 10: SPECIAL EDUCATION PASS-THROUGH FUND: The Saugus Union School District is the Administrative Unit (AU) for the Hart, Newhall, Sulphur Springs and Castaic school districts. This fund is used by the AU to account for Special Education revenue passed through to the other member LEAs. Revenues budgeted in this fund includes State special education apportionments, Federal local assistance under the Individuals with Disabilities Education Act, Federal preschool funding and State mental health funding. It is projected $6,653,620 will be from Federal and $28,362,778 will be from State funding sources. The projected ending balance is $1,476,691. Note: Special Education revenue that is not passed through to the other member LEAs, but rather is retained for use by the SELPA AU in accordance with the local plan is not accounted for in this fund; it is included in the General Fund. 33

34 FUND 12: CHILD DEVELOPMENT FUND: This fund is used to account separately for Federal, State, and local resources to operate Child Development Programs. The program includes three State Preschools located at Cedarcreek, Rio Vista and Santa Clarita. The anticipated total revenues for the Child Development Programs are $380,036, which includes $239,313 from the State and $140,722 from other local revenues. The total expenditures are estimated to be $380,036. The ending balance is projected to be $25,532 on June 30, FUND 14: DEFERRED MAINTENANCE FUND: This fund is used to account separately for State apportionments and District matching contributions for deferred maintenance projects. Expenditures in this fund are for major building repairs such as HVAC, roofing, floor replacement, plumbing or other authorized replacements. The Deferred Maintenance account reflects no restricted revenue from State sources as a result of the State releasing the funding requirement and declaring those funds unrestricted. With implementation of the Local Control Funding Formula, funds are included in the base grant in the General Fund. The balance as of June 30, 2016 is projected to be $1,549,273. Revenues in only include interest in the amount of $6,000. Expenditures are for repairs and maintenance at the school site based on a priority listing maintained by the District Maintenance & Operations department in the amount of $362,000. The ending balance is estimated to be $1,193,273 on June 30, FUND 17: SPECIAL RESERVE FOR OTHER THAN CAPITAL OUTLAY PROJECTS: This fund is used primarily to provide for the accumulation of general fund moneys for general operating purposes other than for capital outlay. These funds are accounted for in the overall fund balance. The June 30, 2016 projected balance is $2,549,862. As this is a reserve fund, there are no anticipated expenditures for We anticipate $8,000 in interest income. FUND 21: BUILDING FUND: Also known as the G.O. Bond Fund. This fund exists primarily to account for proceeds from the sale of bonds and may not be used for any purposes other than those for which the bonds were issued. Current funds as of April 30, 2016 in the account include Measure E ($2,028,325), and Measure EE ($13,216,862). We anticipate $30,000 in interest income. Estimated expenditures for are projected to be $12,592,589 from Measure EE for administrative management of the program and Phase 1 projects designated in the Measure EE Master Plan as well as $120,000 from Measure E for the closeout of older projects, organization of files, as-builts and other related documents. The projected ending fund balance for June 30, 2017 is $2,083,641. FUND 25: CAPITAL FACILITY FUND: Also known as the Developer Fee Account, this fund is used to account for monies received from fees levied on developers or other agencies as a condition of approving a development. The District currently receives Level 1 residential fees of $1.58 per square foot of habitable space and $0.25 per square foot of commercial or industrial development. The interest earned in this fund is restricted to this fund. The expenditures in this fund are restricted to the 34

35 purposes specified in agreements with the developer or specified in Government Code. The current balance is $9,280,919 (a portion of these funds are set aside as they may be refundable to the developers). Anticipated collections (fees and interest) for are $1,204,510, though dependent on may economic variables. Anticipated expenditures for , which include overhead and administrative expenses, consulting fees for SFNA s, fair share mitigation analysis, and other related research and analysis, are $133,052. The ending balance is projected to be $10,352,377 on June 30, FUND 40: SPECIAL RESERVE FUND FOR CAPITAL OUTLAY PROJECTS: This fund is used to account for transfers authorized by the governing board from the General Fund and must be expended for capital outlay purposes. The use of the funds in this account to support debt service payments for the Lease Revenue Bond(s) is under review. Nonetheless, the interest income is anticipated to be $7,516. Payments and interest of the lease revenue bond are anticipated to be $805,902. The ending balance is projected to be $2,180,523 at June 30, FUND 49: CAPITAL PROJECT FUND FOR BLENDED COMPONENT UNITS: This fund is used to account for capital projects financed by Mello-Roos Community Facilities Districts. The Mello-Roos Community Facilities Act of 1982 allows the District to establish a CFD upon approval of 2/3 of the voters in the District. A CFD is for the purpose of selling tax-exempt bonds to finance public improvements and services. The projected beginning balance is $17,895,612 with anticipated revenues of $96,104 and expenditures of $16,142,625 for a projected net ending balance of $1,849,091. FUND 51: BOND INTEREST AND REDEMPTION FUND: The bond interest and redemption fund is used for the repayment of bonds used for the District. In addition to Measure E (2002), in 2014 the voters in the District passed Measure EE in the amount of $148 million to be used for additions, repairs and modernization of district facilities. The full amount of the bond(s) have been not been issued as they are scheduled to be issued gradually over the next 10 years. The Los Angeles County Treasurer deposits taxes levied by the County Auditor/Controller on property owners within the District into this fund. The District has no control over this account or the funds deposited into it. As the bonds reach maturity the county auditor controller will make payments from accumulated taxes and interest. FUND 52: DEBT SERVICE FUND FOR BLENDED COMPONENT UNITS: This fund is used to account for the accumulation of resources for the payment of principal and interest on bonds issued by Mello-Roos Community Facility District. Revenue of $6,026,249 represents tax and interest income. Expenditures of $16,475,269 represent debt service payments. The projected ending balance is $13,615,333 on June 30, FUND 63 OTHER ENTERPRISE FUND: This fund is used to account for any activity for which a fee is charged to external users for goods or services. The Child 35

36 Development Programs have been treated as an Enterprise Fund, since the programs are not subsidized by State or Federal funds and are operated with the intent of recovering the costs of the program through tuition charges and registration and other related fees. The program has seen a 5% tuition increase in Total revenues for are projected to be $6,263,512 which include interest income in the amount of $21,465. The total expenditures are projected to be $5,492,906. The largest expenditure is for certificated salaries, classified salaries, and employee benefits in the amount of $4,205,885. The other expenditures in the amount of $1,287,021 include operating fees, material and supplies, services and other operating expenditures. The ending net position is estimated to be $8,301,968 which includes the value of the building at June 30, The projected cash balance is $3,803,