ADOPTED BUDGET FY

Transcription

1 ADOPTED BUDGET FY

2 Administrative Services Memorandum To: From: Board of Trustees Superintendent/President Executive Leadership Team Planning and Budget Committee Campus Leadership Chris Nguyen, Vice President of Administrative Services Date: Subject: Adopted Budget for This memo provides an overview of the Adopted Budget for Executive Summary The for the District was built on the reality of the new Funding Formula (referred to as Student Centered Funding Formula ). The formula has three (3) elements. Technically, the elements are called Base Allocation (FTES), Supplemental Allocations (Equity) and Student Success Allocation (Student Success). The rates are calculated to provide a 3-year transition period to allow districts time to align their plans with the state s Vision for Success goals. The total statewide funding target for FY is approximately $7.1B. For FY , the allocation breaks down as: Base Allocation: 70% Supplemental Allocation: 20% Student Success Allocation: 10% In the 3 rd year and beyond, the percentages are as follows: Base Allocation: 60% Supplemental Allocation: 20% Student Success Allocation: 20% Using the new formula the Adopted Budget saw a gain to the revenue line of approximately $1.4M (vs the old FTES only model).

3 The current Three-Year Budget Model reflects a net savings of $2.5 million in reductions as a result of the Supplemental Employee Retirement Program (SERP) in Fall Despite the SERP related reductions, the 3-year trend indicates a clear need to grow the top line as well as strengthening cost control measures. Though the District recently reduced some personnel-related costs, the 3-Year model is showing a widening deficit in the forecast years, driven by the imbalance between modest revenue growth and aggressive expense growth (mainly related to pensions and benefits). State Revenue Outlook The state, again, achieved a balanced budget for that reflects increased revenues mostly going to the General Fund, not Prop 98. The state s Legislative Analyst Office expects the state s economy to remain healthy for the next months and that revenue will remain healthy from its three (3) primary sources: personal income tax, sales and use tax, and corporation tax. They have identified some factors impacting community colleges. Major Impacts on Community Colleges: 2.71% COLA (Delta loses this benefit due to gains from the New Formula) Hold Harmless provision of the Student Centered Funding Formula (not applicable to Delta due to gains from the New Formula) No Deficit Factor projected 2

4 Though the Student Centered Funding Formula benefited the District vs the traditional FTES only model, the District faces some headwind: Significant known cost increases in the next few years must be addressed that do not have any guarantee of funding. Examples include the over $400 million system-wide increase for the rising employer pension rates in STRS (state teacher s retirement system) and PERS (public employee s retirement system). For , we are absorbing PERS increase of 16% and STRS increase of 12.8%. In addition to the scheduled increase in the PERS/STRS/PERS Safety rates, a second increase was announced that will add significant costs. The District Three-Year Budget Model, which identifies on-going deficits, already assumes retention of the funded FTES base of 15,474 for FY18/19. If that is not sustained, the deficit would be exacerbated. The recent trend indicates that the actual FTES reported is below the funded FTES. Increasing medical costs (district cost increased 7% from FY to FY ). Union contracts that may require mandatory increases. A challenging and increasingly competitive enrollment climate. Expenditures Total Compensation, Program Review Requests, and Other Priorities Since the Tentative Budget was presented in June, we have added almost $800,000 in costs to the Adopted Budget. (See Attachment 4) In addition to the new costs, the District is obligated to cover annual cost increases for current active employees related to health benefits, step/column, and longevity salary increases, classification/compensation study adjustments, increases in PERS and STRS rates, CTA negotiated agreement and the annual contribution for OPEB (other post-employment benefits). The OPEB contribution is consistent with the Board-approved funding plan to fulfill the promise of future retiree medical benefits. (See Attachment 6b) FTES (Full-Time Equivalent Student) Slower Than Expected Growth Generating and monitoring FTES is at the heart of the budget planning process. Just as we project the budget in a Three-Year Fiscal Model, we also model actual FTES produced and projected over a multi-year period to evaluate our FTES targets and our ability to meet those targets. In light of the transition from an FTES funding model to a 3-prong funding model, our focus must also adjust to be more out-come oriented. With the introduction of the 3-prong funding formula, a sound enrollment management model is more important than ever, as is the District s ability to increase Equity (i.e. minority and underrepresented populations) and Student Success (i.e. completion, transfers, certificates, etc.) rates. Reserves Reserves are intended to protect the District against one-time events such as revenue shortfalls at both the district and state levels or unexpected expenditures that could occur in a given fiscal year. Further, reserves provide a source of cash flow, which can help the District meet 3

5 obligations during the period before property taxes are received. Reserves are one-time resources that should be used only for one-time purposes and should be used sparingly. With a healthy reserve, the District has the flexibility to develop a phased plan of bringing the budget into alignment between revenue and expenses; provides a short-term source of funds to stimulate enrollment growth and absorb one-time expenditures that provide a return in the form of future savings. The State raised its reserve level from 5% to 10% in November 2014 by a voter-approved rainyday fund to achieve greater budget stability and protect against unexpected events and revenue changes. This was a prudent move by the citizens of California. Like the State, the Board of Trustees has expressed a desire to maintain an unrestricted general fund reserve balance of no less than 5%. The projected beginning reserve for is ~12% or $11.7 million while we forecast reserves for the end of FY to be 8.22% or $8.6 million. Although the amount may appear to be substantial, we note that it is declining and the amount is nowhere close to GASB s recommendation of 2 months of operating expenses or between 5%-15%, favoring the 15% view. Putting the 2 months of expenses into perspective, that rule translates into a reserve fund of approximately $16 million, well above our ending FY amount but closer to the 15% recommendation. GASB s reserve recommendation is similarly in line with the accreditation agency s perspective. The statewide reserve average at the start of the 15/16 fiscal year is 17.3% or $15.5 million per the latest Chancellor s Office fiscal data abstract. Similarly, the average reserve level for districts of similar size in terms FTES and expenditure levels to us is $15.4 million and range in percentage of expenditures from 5.4% to 34.3%. Our Three-Year Fiscal Planning Scenario still projects a declining reserve balance. District Ending Reserve Balances: $10.6 million (12.7%) Actual $10.6 million (12.1%) Actual $9.9 million (10.23%) Actual $10.9 million (10.99%) Actual $11.7 million (12.06%) Actual $8.62 million (8.22%) Projected $7.04 million (6.81%) Projected $4.0 million (3.90%) Projected Summary The district is expected to see a bump in revenue for FY due to the new funding formula, though not sufficient to fully offset rising costs. There are opportunities for the district to reexamine its operations, be more outcome-based, be more student focused and align the district s goals with the state s. Attachments The following attachments are part of the Adopted Budget package presented to the Board. 4

6 Attachment # 1. Planning Documents a. Guiding Principles, Major Budget Assumptions Revenue b. Major Budget Assumptions Expenditures c. Strategic Goals and President s Goals 2. FTES 3. Changes in Revenues, Adopted to Tentative Budget 4. Changes in Expenditures, Adopted to Tentative Budget 5. Projected Fund Balance 6. Three-Year Fiscal Planning Scenarios a. Summary b. Detail c. Notes 7. All Funds Description 8. Table of Inter-Fund Transfers 9. All Funds (Detail Sheets) 10. All Funds Summary 11. Glossary of Terms 5

7 Attachment 1a Guiding Principles, Major Budget Assumptions and Goals Guiding Principles Responsible stewardship of available resources will serve as the foundation for sound fiscal management. The budget will be developed within the parameters of board policy, meet state requirements, and adhere to accreditation principles of integrated planning. The District will strive to reach and maintain a balanced budget (ongoing revenues = ongoing expenses), to avoid a structural deficit, maintain a prudent reserve, and identify the total cost of ownership for new and continued commitments. Due to the decline in FTES and the growth in annual operating costs, the district will be faced with structural deficits in the near term which will necessitate a multi-year plan to address. The district will need to examine ways to increase revenue while containing costs Resources will first be allocated to support the required level of instructional and student support services necessary to achieve the state funded enrollment target. Resources will be allocated or reallocated to support the District's strategic goals, program review core services priorities, and contractual obligations. One-time funds including operational savings will be allocated only for one-time uses, such as equipment, facilities, technology, and addressing long-term liabilities. As a means to implement the principles above, the District will continue to utilize a three-year fiscal planning model to identify current and future financial implications to help sustain sound financial operations. Assumptions The revenue build is based on the new Funding Formula for the Community Colleges proposed by the Governor: Funding formula: 70% base allocation, 20% equity and 10% success A 3-year average was used to determine our FTES (13,457.25) Vacancy savings - $1M All categorical and auxiliary programs are expected to be self-supporting, aside from required General Fund match. To ensure compliance and increased reporting efficiency. 5. The District will maintain a prudent reserve of at least 5% consistent with Chancellor s Office and ACCJC recommended fiscal standards.

8 Attachment 1b Guiding Principles, Major Budget Assumptions and Goals Strategic Goals The Board, administration, faculty, staff and students agree on the strategic direction for the College District and the long term plans for its effective operation and growth. Develop a climate and culture at the College that values compassion, forgiveness and gratitude. The College will maintain a fiscally sound position with strong budget reserves. The College will foster high level community engagement by developing outreach efforts, maintaining commitments and developing new partnerships in the District community with business, industry, government, education, and non-profit organizations. The College will increase student retention, success and overall achievement (degrees, certificates, transfer, and employment) and will develop and implement student success programs to achieve those goals. Develop a College-wide effort to increase equitable outcomes for students and promote diversity among staff and students. Clarify and articulate key institutional structures, organization, and leadership positions and seek out, select, and develop high-quality, experienced, talented key personnel for leadership and management for all positions; provide development and training for all staff. Develop and implement plans for a North County Center that promotes collaboration with our north and east county partners; develop plans for providing education in the Foothills by leveraging our resources and collaborating with Columbia College and the Calaveras community; develop plans for a permanent building at the South Campus at Mountain House. President's Goals Working with all members of the College community, provide leadership, direction, and resources to move the College toward the full implementation of Guided Pathways including all the necessary student services within three years. Working with all members of the College community, provide leadership, direction, and resources to prepare the College s Institutional Self-Evaluation Report, undergo a visit from a team of peers, and achieve full accreditation in Working with willing external partners (Health Sector; SUSD; CSU, Stanislaus; University of the Pacific; Mayor Michael Tubbs and the City of Stockton; the County of San Joaquin among others), develop and nurture partnerships with business and industry to move the College and community forward and provide living-wage jobs and professions for residents of the District. Working with internal partners (Management Senate, CTA, CSEA, Academic Senate, Classified Senate, ASDC, etc.), continue to evaluate and revise the shared governance committee structures and processes to provide maximum input and collaborative decision-making and to continue to create a culture and climate of compassion, forgiveness, gratitude, equity, inclusiveness and success for all. Working with internal and external partners, prepare the College and community for a General Obligation Bond election in 2020 that will provide adequate funds to continue to modernize and provide appropriate new facilities for the Stockton, Manteca, and the South Campus at Mountain House as are necessary to grow programs based on labor market data that lead to living-wage jobs and professions for all residents of the District. With the Foundation Board, develop a strategic plan for the next three years, achievable strategic goals, and action steps for accomplishing the goals, and hire minimal staff to support Foundation fund-raising events, coordinate field trips for students, and arrange other events to assist in achieving the goals of the Foundation.

9 Attachment 2 Full Time Equivalent Student (FTES) Review Note: For consistency, the following chart has been amended. Prior years use total FTES as reflected on Chancellor's Office Recalculation report, P2, or Annual CCFS320, whichever has the most accurate information as of print date. Current and future years use projections referenced on the Three-Year Fiscal Planning Scenario (Attachment 6a/b). FTES Full Time Equivalent Student * * FTES History and Summary Final Apportionment to Projected to Actual FTES Funded FTES * * Funded FTES Actual FTES Funded and Projected FTES and Restoration Final Apportionment to Projected to ,245 16,336 16, ,866 15,860 15, ,226 15,460 15,474 15,474 15, ,

10 Changes in Revenues - Unrestricted General Fund Attachment 3 Changes in Revenue Revenues $ 99,290,400 Increases to Revenue Increase in base funding due to new Funding Formula $ 1,412,500 State Lottery Allocation $ 186,700 Net Change from Tentative to Adopted Budget $ 1,599,200 Revenues $ 100,889,600

11 Changes in Expenditures - Unrestricted General Fund Attachment 4 Changes in Expenditures Tentative Budget Expenditures (June 12, 2018) $ 104,177,650 Increases to Expenditures Emergency Training 35,000 Environmental Health Contracts 96,000 ERP 250,000 Faculty Travel 17,700 Lottery 186,700 Maintenance & Facilities Contracts 62,000 Total Increases 647,400 Program Review Director of IT 84,600 Public Information Coordinator 60,800 Administrative Assistant II - Mountain House 37,400 Equipment Refresh 65,000 Web Hosting 36,000 Program Review Total 283,800 Decreases to Expenditures Position Control Adjustments (78,150) Property & Liability Insurance (60,000) Total Decreases (138,150) Net Change from Tentative to Adopted Budget $ 793,050 Expenditures / Ongoing & Temporary $ 104,970,700

12 Attachment 5 Projected Fund Balance/Reserve - Unrestricted General Fund Projected Fund Balance/Reserve Fund Balance/Reserve June 30, 2018 $ 11,706,385 Adopted Budget Revenues 100,889,600 Adopted Budget Expenditures 103,970,700 Net Operating Results for $ (3,081,100) Projected Ending Fund Balance/Reserve June 30, 2018 $ 8,625, % Notes: Expenditures assumes a $1M savings from vacancies and 5% minimum reserve

13 Three-Year Fiscal Planning Scenario Summary Adopted Budget Unrestricted General Fund Attachment 6a Tentative to Actual Adopted Projected Projected Projected FY FY FY FY FY #### 15,900 15,474 15,474 15,474 15,474 Projected % Restoration/Growth 3.00% 0.00% 0.00% 0.00% 0.00% Projected Inflationary COLA 1.02% 0.00% 1.00% 1.00% 1.00% Total Revenue $ 97,929,602 $ 100,889,600 $ 100,889,600 $ 100,889,600 $ 100,889,600 Total Expenditures - Ongoing & Temporary 97,107, ,970, ,471, ,844,700 $ 106,825,500 Vacancy Savings 1,000,000 1,000,000 1,000,000 $ 1,000,000 Total Expenditures 103,970, ,471, ,844, ,825,500 Operating Resutls (Ttl Rev - Ttl Exp) $ 822,085 $ (3,081,100) $ (1,581,400) $ (2,955,100) $ (4,935,900) Beginning Fund Balance $ 10,884,300 $ 11,706,385 $ 8,625,285 $ 7,043,885 $ 4,088,785 Fund Balance Change (+/-) $ 822,085 $ (3,081,100) $ (1,581,400) $ (2,955,100) $ (4,935,900) Ending Fund Balance/Reserve $ 11,706,385 $ 8,625,285 $ 7,043,885 $ 4,088,785 $ (847,115) Fund Balance as a % of Expenditures 12.06% 8.22% 6.81% 3.90% -0.79%

14 Three-Year Fiscal Planning Scenario Detail Adopted Budget Unrestricted General Fund Attachment 6b Tentative to Actual Adopted Projected Projected Projected FY FY FY FY FY State Resident Funded FTES Target 15,900 15,474 15,474 15,474 15,474 Revenues $ 97,929,602 $ 99,290,400 $ 100,889,600 $ 100,889,600 $ 100,889,600 Revenue Adjustment - New Funding Formula 1,412,500 Lottery 186,700 Total Revenue $ 97,929,602 $ 100,889,600 $ 100,889,600 $ 100,889,600 $ 100,889,600 Ongoing Expenditures $ 97,107,517 $ 104,177,650 $ 104,970,700 $ 103,471,000 $ 104,844,700 Changes Increases/(Decreases) Health Benefits - Active (est. 3yr avg 4%) 228, , ,200 Step, Column, Longevity 693, , ,600 CalPERS 620, , ,000 CalSTRS 351, , ,000 OPEB (other post employment benefits) 150, , ,000 Total Compensation for Current Active Employees 2,044,200 2,048,700 2,055,800 Retiree Health Benefits 125, , ,000 Emergency Training Environmental Health Contracts 35,000 96,000 ERP 250,000 (3,668,900) (800,000) (200,000) Faculty Travel 17,700 Lottery 186,700 Maintenance & Facilities Contracts 62,000 Program Review 283,800 Position Control Adjustment (78,150) Property & Liability Insurance (60,000) Total Expenditures - Ongoing & Temporary $ 97,107,517 $ 104,970,700 $ 103,471,000 $ 104,844,700 $ 106,825,500 Vacancy Savings $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Total Expenditures $ 97,107,517 $ 103,970,700 $ 102,471,000 $ 103,844,700 $ 105,825,500 Operating Results (Rev - Exp Ongoing - Exp Temporary) 822,085 (3,081,100) (1,581,400) (2,955,100) (4,935,900) Beginning Fund Balance $ 10,884,300 $ 11,706,385 $ 8,625,285 $ 7,043,885 $ 4,088,785 Fund Balance Change (+/-) $ 822,085 $ (3,081,100) $ (1,581,400) $ (2,955,100) $ (4,935,900) Ending Fund Balance/Reserve $ 11,706,385 $ 8,625,285 $ 7,043,885 $ 4,088,785 $ (847,115) Fund Balance as a % of Expenditures 12.06% 8.22% 6.81% 3.90% -0.79%

15 Attachment 7 All Funds Description The following fund description overview is based on the California Community College Budget and Accounting Manual that prescribes the accounting practices and uniform coding for all colleges in the California Community College System. General Fund (11) General Fund Restricted (12) and Parking (13) The Restricted Subfund is used to account for resources available for the operation and support of the educational programs that are specifically restricted by laws, regulations, donors, or other outside agencies as to their expenditure. Such externally imposed restrictions are to be contrasted with internally created designations imposed by the governing board on unrestricted moneys. In general, unrestricted moneys can be used for any legal purpose deemed necessary. Restricted moneys are from an external source that requires the moneys be used for specific purpose(s). Monies such as matching contributions for categorical programs are unrestricted, but may be designated by the governing board for those purposes. Moneys designated as matching contributions should be maintained in the General Fund, Unrestricted Subfund. Circumstances and evidence relative to restrictions may not always be clear. The district should seek Chancellor s Office, legal, and/or contracted auditor consultation as needed. The Parking Fund is used to account for the revenues received from parking fees collected as authorized by Education Code Section (EC ) and expenditures in support of parking services provided to students and employees. Bond Interest and Redemption Fund (21) The Bond Interest and Redemption Fund is the designated fund referred to in EC 15146, 15234, 15235, 15250, 15251, and as the interest and sinking fund. This fund is to be used only to record transactions related to the receipt and expenditure of local revenues derived from the property tax levied for the payment of the principal and interest on outstanding bonds of the district. The fund is typically maintained by the County Treasury as the county assessor s office accounts for property tax receipts and the related principal and interest payment to the bond holders. Any other money remaining in this fund in excess of that needed to pay off all unpaid bonds and coupons payable from this fund, shall be transferred to the district s General Fund - Unrestricted upon the order of the county auditor. (EC 15234) Responsibility for this fund is vested with the county auditor. Other Debt Service Fund - Passport Loan (2950) This fund is used for the accumulation of resources for, and the payment of, other types of general long-term debt principal and interest. For example, fees collected for use of parking facilities built with student body funds under the authority of EC would be deposited in the General Fund and transferred to this fund to repay the debt. After all obligations have been paid, any unexpended balance may be expended for the purpose established in the original obligation or, if no restriction is placed on the unexpended balance, may be transferred to the General Fund-Unrestricted for expenditure. Responsibility for this fund vests with the Board. Child Development Fund (33) The Child Development Fund is the fund designated to account for all revenues for, or from the operation of, child care and development services, including student fees for child development services. Costs incurred in the operation and maintenance of the child care and development services are paid from this fund. This fund is established and maintained in the appropriate county treasury.

16 Attachment 7 Redevelopment Fund (39) This fund is used to account for all other specific revenue sources that are legally restricted to expenditures for specified purposes that are not an integral part of the district s instructional or administrative and support operation (e.g., dormitory replacement). This fund may be established and maintained in the county treasury or, as an alternative, the governing board may establish a bank account with a financial institution for each such fund established. Capital Projects Fund (41) The Capital Outlay Projects Fund is used to account for the accumulation and expenditure of moneys for the acquisition or construction of significant capital outlay items, and Scheduled Maintenance and Special Repairs (SMSR) projects. The Capital Outlay Projects Fund is used to account for the receipt and expenditure of proceeds from the sale of district bonds authorized pursuant to Education Code Section et seq. In general, this fund shall be established and maintained in the appropriate county treasury and moneys shall be used only for capital outlay purposes. Measure L Bond Fund (42) The Revenue Bond Construction Fund is used for acquisition or construction. The Revenue Bond Construction Fund is the fund designated in EC for the deposit of proceeds from the sale of all community college revenue bonds authorized under the provisions of EC Such deposits are used to meet the costs of acquisition or construction and all expenses of authorized projects (i.e., dormitories or other housing facilities, boarding facilities, student union or student activity facilities, vehicle parking facilities, or any other auxiliary or supplementary facilities as authorized). Proceeds from the sale of such bonds are deposited with the county treasurer and, upon order of the county auditor, credited to the district s Revenue Bond Construction Fund. Bookstore Fund (51) The Bookstore Fund is the fund designated to receive the proceeds derived from the district s operation of a community college bookstore pursuant to EC when it is the intent of the governing board to recover, in whole or in part, the costs of providing the services. All necessary expenses, including salaries, wages, and cost of capital improvement for the bookstore may be paid from generated revenue. Food Service Fund (52) The Cafeteria Fund is the fund designated to receive all moneys from the sale of food or for any other services performed by the cafeteria when it is the intent of the governing board to recover, in whole or in part, the costs of providing the services. Costs incurred in the operation and maintenance of such cafeteria are paid from this fund. The term cafeteria as used in this section is considered synonymous with the term food service. Self Insurance Fund (61) The Self-Insurance Fund is the fund designated by EC to account for income and expenditures of selfinsurance programs authorized by EC 72506(d). This fund is maintained in the county treasury and used to provide for payments on deductible types of insurance policies, losses or payments arising from self-insurance programs, and losses or payments due to noninsured perils. Associated Students Trust Fund (71) The Associated Students Trust Fund is used to account for moneys held in trust by the district for organized student body associations (excluding clubs) established pursuant to EC In a multi-college district, such a fund may be established for each college s student body. Organized student body associations formed as auxiliary organizations under EC et seq., fall under the Auxiliary Organizations Requirements for Accounting, Reporting, and Auditing manual.

17 Attachment 7 Student Representation Fee Trust Fund (72) The Student Representation Fee Trust Fund is used to account for moneys collected pursuant to EC that provides for a student representation fee of one dollar per semester if approved by two-thirds of the students voting in the election. The election shall not be sufficient to establish the fee unless the number of students who vote in the election equals or exceeds the average of the number of students who voted in the previous three student body association elections. The fee is to be expended to provide for the support of governmental affairs representatives who may be stating their positions and viewpoints before city, county, and district governments and before offices and agencies of the State government. The district may charge a fee to recover its actual cost of administering these fees up to, but not more than, 7 percent of the fees collected and deposited. Other Debt Service Fund - OPEB (76) This fund is used for the accumulation of resources for, and the payment of, other types of general long-term debt principal and interest. For example, fees collected for use of parking facilities built with student body funds under the authority of EC would be deposited in the General Fund and transferred to this fund to repay the debt. After all obligations have been paid, any unexpended balance may be expended for the purpose established in the original obligation or, if no restriction is placed on the unexpended balance, may be transferred to the General Fund-Unrestricted for expenditure. Responsibility for this fund vests with the Board. Other Trust Funds (79 ) Other Trust Funds are used to account for all other moneys held in a trustee capacity by the college or district for individuals, organizations, or clubs. Such funds may be established and maintained in the appropriate county treasury, or as an alternative, the governing board may establish a bank account for each trust. Refer to Special Accounting Applications for requirements concerning separate bank accounts.

18 Attachment 8 Table of Inter-Fund Transfers Transfers Out from Unrestricted General Fund Totaling $ 7,470,900 1 Transfer to Child Development Fund for operational support costs. Increase to Fund 33 Child Development Fund $ 75,000 Decrease to Fund 11 General Unrestricted Fund $ (75,000) 2 Transfer to Capital Projects for Program Review. Increase to Fund 41 Capital Projects Fund $ 6,368,900 Decrease to Fund 11 General Unrestricted Fund $ (6,368,900) 3 Transfer to Capital Projects Fund for athletic facilities maintenance support costs. Increase to Fund 41 Capital Projects Fund $ 15,000 Decrease to Fund 11 General Unrestricted Fund $ (15,000) 4 Transfer to Capital Projects Fund for athletic ticket revenue. Increase to Fund 41 Capital Projects Fund $ 12,000 Decrease to Fund 11 General Unrestricted Fund $ (12,000) 5 Transfer to Other Debt OPEB. Increase to Fund 76 Capital Projects Fund $ 1,000,000 Decrease to Fund 11 General Unrestricted Fund $ (1,000,000) Transfers Out from Bookstore Fund Totaling $ 617,596 6 Transfer to Unrestricted General Fund for Administrative Fees. Increase to Fund 11 General Unrestricted Fund $ 379,000 Decrease to Fund 5100 Bookstore Fund $ (379,000) 7 Transfer to Food Service Fund for operational support costs. Increase to Fund 52 Food Service Fund $ 52,096 Decrease to Fund 51 Bookstore Fund $ (52,096) 8 Transfer to Other Trust for state playoffs, promo, competitions and intramurals. Increase to Fund 79 Other Trust $ 186,500 Decrease to Fund 51 Bookstore $ (186,500)

19 Attachment 9a Adopted Budget - Unrestricted General Actual Adopted Adopted Variance Adopted Federal $ 93,825 $ 87,700 $ 87, % State 55,549,415 55,387,570 57,412, % Local 42,259,174 43,369,612 43,369, % Transfers In-Other Sources 27,188 20,000 20, % Total Revenue $ 97,929,602 $ 98,864,882 $ 100,889, % Certificated Salaries $ 34,065,211 $ 35,936,334 $ 34,614, % Classified Salaries 22,963,703 22,985,078 21,708, % Benefits 27,235,243 27,616,657 28,724, % Supplies 1,231,165 1,286,868 1,234, % Other Operating Expense 9,518,314 8,977,954 10,618, % Capital Outlay 389, , , % Transfers Out-Other Uses 1,703,959 2,270,500 7,470, % Total Expenditures-Ongoing & Temporary $ 97,107,517 $ 99,774,697 $ 104,970, % Vacancy & Operational One-Time $ (1,000,000) $ (1,000,000) Total Expenditures $ 97,107,517 $ 98,774,697 $ 103,970,668 Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 822,085 $ 90,185 $ (3,081,083) Beginning Fund Balance $ 10,884,283 $ 10,884,283 $ 11,706,368 Ending Fund Balance After operating results ( ) denotes a deficit $ 11,706,368 $ 10,974,468 $ 8,625,285 Note: The total Rev and Total Exp (3 Year Model) do not foot to the Summaries due to rounding differences

20 Attachment 9b Fund Summary - Restricted General Actual Adopted Adopted Variance Adopted Federal $ 1,823,355 $ 2,228,184 $ 2,161, % State 18,014,548 29,355,980 30,465, % Local 1,234,342 1,321,933 1,869, % Transfers In-Other Sources 154,530 27,315 40, % Total Revenue $ 21,226,775 $ 32,933,412 $ 34,536, % Certificated Salaries $ 2,497,619 $ 2,582,367 $ 3,129, % Classified Salaries 5,317,199 6,132,594 7,066, % Benefits 2,678,492 3,098,661 3,859, % Supplies 879, ,271 1,003, % Other Operating Expense 5,146,484 16,016,442 13,136, % Capital Outlay 3,405,805 3,044,454 5,257, % Transfers Out-Other Uses 1,300,764 1,227,623 1,083, % Total Expenditures $ 21,225,739 $ 32,933,412 $ 34,536, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 1,036 $ - $ - Beginning Fund Balance $ 57,024 $ 57,024 $ 58,060 Ending Fund Balance After operating results ( ) denotes a deficit $ 58,060 $ 57,024 $ 58,060 Note: To the extent Categorical funds increase, so do the support demands on the General Funded personnel such as IT, Fiscal and HR support

21 Attachment 9c Fund Summary - Parking Actual Adopted Adopted Variance Adopted Local $ 703,311 $ 710,000 $ 710, % Total Revenue $ 703,311 $ 710,000 $ 710, % Classified Salaries $ 561,355 $ 384,753 $ 444, % Benefits 125, , , % Supplies 7,494 26,148 26, % Other Operating Expense 38,708 42,485 47, % Capital Outlay 24,616 16,942 30, % Total Expenditures $ 757,453 $ 585,000 $ 675, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ (54,142) $ 125,000 $ 35,000 Beginning Fund Balance $ 514,771 $ 514,771 $ 460,629 Ending Fund Balance After operating results ( ) denotes a deficit $ 460,629 $ 639,771 $ 495,629

22 Attachment 9d Fund Summary - Other Debt Service Fund - Passport Loan Actual Adopted Adopted Variance Adopted Loan Servicing $ 28,200 $ - $ - 0.0% Total Revenue $ 28,200 $ - $ - 0.0% Transfers Out-Other Uses $ - $ - $ - 0.0% Total Expenditures $ - $ - $ - 0.0% Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 28,200 $ - $ - Beginning Fund Balance $ 2,292,488 $ 2,292,488 $ 2,320,688 Ending Fund Balance After operating results ( ) denotes a deficit $ 2,320,688 $ 2,292,488 $ 2,320,688

23 Attachment 9e Fund Summary - Child Development Center Actual Adopted Adopted Variance Adopted Federal Food Program $ 75,628 $ 85,084 $ 85, % State Meal Reimbursement 3,870 5,000 5, % General Childcare 361, , , % State Preschool 613, , , % State Other 36, % Interest 688 1,000 1, % Parent Fees 32,776 15,000 32, % Contributions Received 125, , , % Transfer From General Fund 75,000 75,000 75, % Total Revenue $ 1,324,507 $ 1,246,084 $ 1,273, % Salaries $ 710,965 $ 819,666 $ 814, % Benefits 296, , , % Supplies 26 1,558 1, % Food Supplies 48,840 56,000 56, % Operating Expenses 6,034 12,440 12, % New Equipment - 1,500 1, % Total Expenditures $ 1,062,069 $ 1,246,084 $ 1,273, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 262,438 $ - $ - Beginning Fund Balance $ 102,405 $ 102,405 $ 364,843 Ending Fund Balance After operating results ( ) denotes a deficit $ 364,843 $ 102,405 $ 364,843

24 Attachment 9f Fund Summary - Farm Actual Adopted Adopted Variance Adopted Crop Sales $ 276,629 $ 284,000 $ 207, % Total Revenue $ 276,629 $ 284,000 $ 207, % Classified Salaries $ 49,410 $ 45,204 $ 46, % Benefits 26,699 31,528 34, % Supplies 20,931 15,107 11, % Crop Costs 137, , , % Other Operating Expense 59,900 31,000 62, % Capital Outlay 8,573 1,500 1, % Total Expenditures $ 303,181 $ 284,000 $ 260, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ (26,552) $ - $ (53,672) Beginning Fund Balance $ 870,479 $ 870,479 $ 843,927 Ending Fund Balance After operating results ( ) denotes a deficit $ 843,927 $ 870,479 $ 790,255

25 Attachment 9g Fund Summary - Redevelopment District Agency (RDA) Actual Adopted Adopted Variance Adopted Local $ 632,937 $ 245,750 $ 353, % Transfer In-Other Sources 1,068, ,000 - Total Revenue $ 1,701,437 $ 745,750 $ 353, % Other Operating 155,599 1,168,442 1,122, % Capital Outlay 208, , , % Total Expenditures $ 364,522 $ 1,658,036 $ 1,573, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 1,336,915 $ (912,286) $ (1,219,678) Beginning Fund Balance $ 4,204,269 $ 4,204,269 $ 5,541,184 Ending Fund Balance After operating results ( ) denotes a deficit $ 5,541,184 $ 3,291,983 $ 4,321,506

26 Attachment 9h Fund Summary - Capital Projects Actual Adopted Adopted Variance Adopted Scheduled Maintenance $ 1,193,924 $ 3,344,735 $ 2,283, % State Mandated 5,880,669 7,181,180 1,300, % Prop ,028 1,076, , % Interest 60,098 20,000 50, % Transfer In-Other Sources 294, ,000 6,395, % Total Revenue $ 7,856,307 $ 11,899,068 $ 10,864, % Supplies $ 11,119 $ 4,128,189 $ 17, % Other Operating 5,756,934 3,594,334 6,792, % Capital Outlay 2,088,254 5,219,067 3,524, % Transfers Out-Other Uses - 57, % Total Expenditures $ 7,856,307 $ 12,999,407 $ 10,333, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ - $ (1,100,339) $ 531,203 Beginning Fund Balance $ 4,064,661 $ 4,064,661 $ 4,064,661 Ending Fund Balance After operating results ( ) denotes a deficit $ 4,064,661 $ 2,964,322 $ 4,595,864

27 Attachment 9i Fund Summary - Measure L Bond Actual Adopted Adopted Variance Adopted Measure L Bond $ 9,134,831 $ 33,234,418 $ 24,008, % Interest 141,061-80, % Total Revenue $ 9,275,892 $ 33,234,418 $ 24,088, % Supplies $ 3,452 $ - $ 6, % Other Operating 1,003,829 1,471,615 1,420, % Capital Outlay 8,268,611 41,990,408 30,876, % Total Expenditures $ 9,275,892 $ 43,462,023 $ 32,303, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ - $ (10,227,605) $ (8,214,897) Beginning Fund Balance $ 8,214,897 $ 8,214,897 $ 8,214,897 Ending Fund Balance After operating results ( ) denotes a deficit $ 8,214,897 $ (2,012,708) $ -

28 Attachment 9j Fund Summary - Bookstore Actual Adopted Adopted Variance Adopted Book Sales $ 3,933,654 $ 4,585,000 $ 4,585, % Merchandise Sales 762, , , % Other Revenue 66,403 5,000 5, % Interest 71, Total Revenue $ 4,833,888 $ 5,415,000 $ 5,415, % Cost of Goods Sold $ 3,370,645 $ 3,330,000 $ 3,717, % Salaries 696, , , % Employee Benefits 260, , , % Supplies 13,667 17,000 17, % Freight Out 65,065 72,700 72, % Banking, Travel, Dues 110,545 43,000 43, % Credit Card Fees 75,835 65,000 65, % Equipment / Site Improvement 25,033 70,000 70, % Other Expense 49, , , % Depreciation 6, % Total Operating Expenditures $ 4,674,006 $ 4,714,093 $ 5,202, % Food Service $ 16,920 $ 112,403 $ 52, % Admin. Fees 338, , , % Promotion 150, , , % Intramurals 1, % Competitions 35,600 35,600 35, % Total Bookstore Transfers Out $ 542,801 $ 677,903 $ 617, % Total Expenditures $ 5,216,807 $ 5,391,996 $ 5,820, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ (382,919) $ 23,004 $ (405,000) Beginning Fund Balance $ 1,746,776 $ 1,746,776 $ 1,363,857 Ending Fund Balance After operating results ( ) denotes a deficit $ 1,363,857 $ 1,769,780 $ 958,857 Note: The Bookstore is paying a disproportionate share of the Admin Fees compared to other areas (~7% vs 4%)

29 Attachment 9k Fund Summary - Food Service Actual Adopted Adopted Variance Adopted Food Sales $ 653,737 $ 660,000 $ 660, % Catering Sales 76, , , % Other Revenue 9, % Total Revenue $ 739,045 $ 760,500 $ 760, % Cost of Sales $ 339,441 $ 327,120 $ 327, % Salaries 209, , , % Employee Benefits 63,122 95, , % Supplies 33,182 71,000 71, % Sales Tax 5,099 4,400 4, % Repairs 9,570 1,200 1, % Uniforms 14,728 1,000 1, % Indirect Costs 51,733 53,235 53, % Other Expense 24,694 28,850 28, % New Equipment non capitalized 3,630 7,000 7, % Depreciation 1,225 1,225 1, % Total Expenditures $ 755,964 $ 867,903 $ 812, % 0.0% Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ (16,919) $ (107,403) $ (52,096) Transfer Out To Foundation-Passport $ - $ (5,000) Transfer In From Bookstore $ 16,919 $ 112,403 $ 52,096 Beginning Fund Balance $ - $ - $ - Ending Fund Balance After operating results ( ) denotes a deficit $ - $ - $ -

30 Attachment 9l Fund Summary - Self Insurance Actual Adopted Adopted Variance Adopted Interest $ 60,197 $ 34,000 $ 60, % Contributions from Other Funds 2,075,719 2,120,000 2,060, % Total Revenue $ 2,135,916 $ 2,154,000 $ 2,120, % Supplies $ 2,200 $ 5,000 $ 5, % Claims and IBNR 330, , , % Claims Admin 56,560 93,000 93, % Insurance Premiums 1,766,755 1,767,048 1,888, % Other Operating Expense 53, , , % Equipment 30,070 17,628 15, % Total Expenditures $ 2,238,978 $ 2,609,115 $ 2,653, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ (103,062) $ (455,115) $ (533,000) Beginning Fund Balance $ 1,720,638 $ 1,720,638 $ 1,617,576 Ending Fund Balance After operating results ( ) denotes a deficit $ 1,617,576 $ 1,265,523 $ 1,084,576

31 Attachment 9m Fund Summary - ASB, Student Fees, ID Cards Actual Adopted Adopted Variance Adopted Contributions Food Pantry $ 415 $ 500 $ % Events Income/Flea Mkt (partial) - 1,000 1, % Sales % Student Rep Fees 16,349 23,070 23, % Student Activity Fee 101,200 93,890 93, % Other Local Revenue 1, % Total Revenue $ 119,523 $ 118,460 $ 118, % Supplies $ 18,944 $ 20,454 $ 17, % Other Expense 45,533 75,511 67, % Capital Outlay 6,813 2,302 1, % Other Outgo 4,576-4, % Total Expenditures $ 75,866 $ 98,267 $ 90, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 43,657 $ 20,193 $ 28,415 Beginning Fund Balance $ 364,367 $ 364,367 $ 408,024 Ending Fund Balance After operating results ( ) denotes a deficit $ 408,024 $ 384,560 $ 436,439

32 Attachment 9n Fund Summary - Other Debt Service Fund (OPEB) Actual Adopted Adopted Variance Adopted Transfer In-Other Sources $ 850,000 $ 850,000 $ 1,000, % Unrealized Gains/Losses 593, % Total Revenue $ 1,443,076 $850,000 $1,000, % Other Operating Expense $ 8,634 $ - $ - 0.0% Total Expenditures $ 8,634 $ - $ - 0.0% Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 1,434,442 $ 850,000 $ 1,000,000 Beginning Fund Balance $ 9,048,340 $ 9,048,340 $ 10,482,782 Ending Fund Balance After operating results ( ) denotes a deficit $ 10,482,782 $ 9,898,340 $ 11,482,782

33 Attachment 9o Fund Summary - Other Trust Actual Adopted Adopted Variance Adopted Local $ 783,734 $ 615,400 $ 575, % Transfer In-Other Sources 186, , , % Total Revenue $ 970,234 $ 801,900 $ 761, % Classified Salaries $ 154,861 $ 168,012 $ 172, % Benefits 33,407 33,001 35, % Supplies 131,039 13,700 13, % Other Operating Expense 633, , , % Capital Outlay % Transfers Out-Other Uses % Total Expenditures $ 953,605 $ 801,900 $ 761, % Net Operating Results Revenue - Expenditures ( ) denotes a deficit $ 16,629 $ - $ - Beginning Fund Balance $ 306,609 $ 306,609 $ 323,238 Ending Fund Balance After operating results ( ) denotes a deficit $ 323,238 $ 306,609 $ 323,238

34 Attachment 10 All Funds Summary Fund Fund Description Beginning Fund Balance Budgeted Revenues Budgeted Expenditures Ending Fund Balance 1100 Unrestricted General $ 11,706,368 $ 100,889,585 $ 103,970,668 $ 8,625, Restricted General 58,060 34,536,155 34,536,155 58, Parking 460, , , , Bond Interest and Redemption 22,792, ,792,889 Other Debt Service (Passport Loan) 2,320, ,320, Child Development 364,843 1,273,944 1,273, , Farm 843, , , , Redevelopment 5,541, ,760 1,573,438 4,321, Capital Projects 4,064,661 10,864,857 10,333,654 4,595, Measure L Bond 8,214,897 24,088,646 32,303, Bookstore 1,363,857 5,415,000 5,820, , Food Service - 812, , Self Insurance 1,617,576 2,120,000 2,653,000 1,084, & 7200 Associated Students 408, ,460 90, , Student Financial Aid 261, , Scholarship and Loan 2,051, ,051, Other Debt Service (OPEB - Other Post Employment Benefits) 10,482,782 1,000,000-11,482, Other Trust Fund 323, , , ,238 Totals $ 72,876,253 $ 183,151,903 $ 195,064,614 $ 60,963,541

35 Attachment 11 Glossary of Terms Accounting - The process of identifying, measuring and communicating financial information to permit informed judgments and decisions by users. Accounts Payable - Accounts due and owing to persons, business firms, governmental units or others for goods and services not yet paid. Accounts Receivable - Amounts due and owing from persons, business firms, governmental units or others for goods and services provided, but not yet collected. Allocation - Division or distribution of resources according to a predetermined plan. Apportionment A state allocation to each district based on a funding formula. The three types of revenues that comprise the allocation amount are enrollment fees, local property taxes and state funds. Apportionment Attendance Report (CCFS 320) A report submitted three times a year for summer, fall and spring terms to report full-time equivalent student (FTES) attendance at Period 1 (P1), Period 2 (P2) and Annual. It is the primary basis of District s funding by the state. Audit - An examination of documents, records and accounts for the purpose of determining; 1) that all present fairly the financial position of the district; 2) that they are in conformity with prescribed accounting procedures; and 3) that they are consistent with the preceding year. Auxiliary Foundation - A separate entity created by a district as an auxiliary organization to receive, raise and manage funds from private sources. Auxiliary Operations - Service activities indirectly related to teaching and learning. Food service and bookstore are considered auxiliary operations. Backfill - Funds allocated by the Legislature to make up for revenues (e.g. student fee, property taxes) that were projected but not received. Beginning Fund Balance - The funds that the district begins the year with, that include cash, accounts receivable, less accounts payable. Block Grant - A fixed sum of money, not linked to enrollment measures, provided to a college district by the state. Bonds - Investment securities or notes sold by a district through a financial firm for the purpose of raising funds for various capital expenditures. Prop 39 general obligation bonds are the most significant and require at least 55% vote of the electorate. Board of Governors - The statewide governing board of the community colleges. The members are appointed by the Governor. The Board hires the Chancellor of the California Community Colleges System and makes policy decisions that affect all districts. The Board may be directed by the Legislature to regulate certain matters and it may choose to regulate others. Board of Trustees -The local governing board of each community college district. Its members are

36 Attachment 11 elected by the voters in the District. The board hires the chief administrator of the district and directs the operations of the district. It makes policy decisions that are permitted or mandated at the local level. Budget - A plan of financial operation for a given period for a specified purpose consisting of an estimate of revenue and expenditures. Budget and Accounting Manual - Education Code Section enumerates the responsibilities of the Board of Governors, which includes the establishing, maintaining, revising, and updating the uniform budgeting and accounting structures and procedures for the California Community Colleges. This responsibility is embodied in the California Community Colleges Budget and Accounting Manual (BAM). Capital Projects - Capital Projects Funds are used for the acquisition or construction of capital outlay items, e.g. buildings, major equipment. Categorical Funds - Also called restricted funds, these are monies that can only be spent for the designated purpose. Examples: funding to serve students with disabilities (DSPS) or the economically disadvantaged, low-income (EOPS), scheduled maintenance, instructional equipment, and student success (formerly matriculation). Chart of Accounts - A systematic list of funds and accounts developed according to the California Community Colleges Budget and Accounting Manual (BAM) to uniformly capture revenues, expenditures and balance sheet activity. Cost of Living Adjustment (COLA) - An increase in funding for revenue limits or categorical programs. Current law ties COLA to indices of inflation, although different amounts are appropriated in some years. There is no mandate that requires the state to provide COLA funding. Deficit - In the context of a budget, a deficit is when revenues for the year are less than planned expenditures. Disabled Student Programs & Services (DSPS) - Categorical funds designated to support and assist disabled students into the general college program. Encumbered Funds - Obligations in the form of purchase orders, contracts, salaries, and other commitments for which budget are reserved. Ending Balance The funds remaining once the fiscal year end is closed and available for the new fiscal year. Enrollment Cap The state limits how many full-time equivalent students (FTES) that it will fund for the Community College System, and in turn, individual districts. Estimated Income - Expected receipt or accruals of monies from revenue or nonrevenue sources (abatements, loan receipts) during a given period. Expenditures - Amounts disbursed for all purposes. Extended Opportunity Programs and Services (EOPS) - Categorical funds designated for supplemental services for disadvantaged students.