ATWATER ELEMENTARY SCHOOL DISTRICT FIRST INTERIM December 12, 2017 Sandra Schiber, Superintendent Carol Longobardi, Fiscal Services Supervisor Linda Levesque, Assistant Superintendent of Business Services
1st Interim Report The First Interim report includes budget revisions made between the Budget adoption in June and October 31, 2017. The 45 day budget revision that included increased revenues is now reflected in the Fund forms. This presentation compares the Adopted budget to the First Interim budget. Changes reflected on the SACS forms are in Fund Form 01 difference column as follows:
REVENUE UNRESTRICED RESOURCES Local Control Funding Formula (LCFF) ($ 14,509) The LCFF calculation at First Interim is based on the revised prior year P-2 ADA, which consists of 4779 District ADA and 51.59 COE ADA and GAP funding of 43.19%. We are experiencing increased enrollment but we typically revise LCFF revenue at P-2 and include the new calculation in Estimated Actuals during Budget Development. Other State Revenue $740,946 Increases in State revenue are from the one-time Mandate funds, a revision to the Mandate Block Grant and unrestricted Lottery funds. Local Revenue $ 72,926 Local Income increases are from Medical Admin Activities (MAA) funds for 2014/15 claims, the STRS excess cost reimbursement and site book fair sales.
EXPENDITURES Certificated Salaries $ 90,127 Certificated salary revisions are the result of adjustments to match actual salaries that were estimated in the Adopted Budget and increases to the management salary schedule. Classified Salaries $ 408,942 Increases to Classified salaries are due to new positions, including Custodians, a Computer Technician, Campus Supervisors and Instructional Aides particularly for Special Education. Additional increases are related to the new management salary schedule, site carry over, alignment of estimates to actual salaries and shifts from certificated to classified. Benefits $ 164,955 The increase in Benefits is related to increased salaries and new positions. Also more classified employees are qualifying for PERS membership since they are entitled to hold more than one part time position.
Books and Supplies $ 1,040,701 The increase includes site and District carry over assigned at the close of the prior Fiscal Year, including tech plan, E-Rate project set aside, tracks and furnishings. Additional funds were awarded to sites for the attendance incentive. Services & Other Operating Expenditures $ 191,462 Services were increased by carry over and added costs including a Transportation study, legal fees related to permanent residency and a Special Ed settlement. Capital Outlay $ 792,015 The increases are from Deferred Maintenance carry over and E-Rate funds earmarked for the dark fiber project. Other Outgo $ 110,336 Increases are for the Special Ed ADA to MCOE. Transfers Out ($1,000,000) Includes the transfer to Fund 40 for Capital project at Peggy Heller & MSE. Direct Support/Indirect ($ 15,929) Changes are the result of Indirect costs budgeted in Restricted Resources
Components of Unrestricted Ending Fund Balance ADOPTED BUDGET FIRST INTERIM ENDING BALANCE $ 18,600,317 $ 15,529,692 Revolving account $ 10,440 10,440 Technology Plan carry over $ 287,164 Safety Plan carry over $ 140,715 243,404 Program Needs set aside $ 598,955 598,955 School Tracks $ 24,200 Classroom furninshings $ 57,415 Deferred Maintenance carry over/ph $ 2,617,465 680,998 VAPA $ 373,000 380,540 One time funds-intervention Specialists $ 809,809 786,148 ACA penalties $ 100,000 Science Textbook adoption $ 1,000,000 1,000,000 Site carry over $ 243,191 OPEB contribution $ 100,000 Tech Infrastructure/Erate $ 474,267 STRS & PERS increase $ 1,776,819 1,325,265 Bus Replacement 46,964 MAA carry over-staff development 214,104 15% Reserve for Economic Uncertainties $ 8,184,762 9,047,428 Unassigned Ending Fund Balance $ 1,802,115 $ 1,195,446
RESTRICTED RESOURCES REVENUE Federal Revenue $ 152,455 Federal Income Revisions are due to carry over in Title I, Title II and the Special Education private school and Mental Health funds. Carry over funds are budgeted as new revenue as opposed to a reduction in ending fund balance. State Revenue $ 59,251 Increases are due to Restricted Lottery and the Scaling Up Multi-tiered System of Support (SUMS) Statewide grant. EXPENDITURES Certificated Salaries $ 42,384 The increase in Certificated is from carry over funds in Title I budgeted for teacher extra time and substitutes, Medi-cal funds to cover nursing services and the SUMS grant.
Classified Salaries $ 65,143 Increases are from carry over in Title I, Title III, Medi-cal and Special Education Mental Health funds budgeted for Instructional Aides. Benefits ($ 4,727) Benefits are less due to savings in Health & Welfare on part time employees who opt out of coverage. Books and Supplies $ 246,908 Carry over funds in Title I and Lottery were budgeted for Instructional materials, Medi-cal for nursing supplies and testing materials. Services & Other Operating Expenditures $ 205,073 Carry over funds were budgeted for professional services provided by West Ed, Charlotte Knox and MCOE. Routine Repair & Maintenance (RRM) carry over funds are for repairs & maintenance of buildings and equipment.
Capital Outlay $ 1,384,503 Increases included Prop 39 Clean Energy project funds and RRM funds for building and site improvements. Other Outgo $ 13,284 The increase to transfers out is for MCOE Special Ed transportation costs. Direct Support/Indirect $ 15,929 Indirect cost charges were budgeted on carry over amounts.
REVENUE RESTRICTED RESOURCES ADOPTED BUDGET FIRST INTERIM INCREASE/ (DECREASE) Federal $ 3,192,526 $ 3,344,981 $ 152,455 State $ 3,714,466 $ 3,773,717 $ 59,251 Local $ - $ - TOTAL REVENUE $ 6,906,992 $ 7,118,698 $ 211,706 EXPENDITURES Certificated Salaries $ 3,114,690 $ 3,157,074 $ 42,384 Classified Salaries $ 1,503,735 $ 1,568,878 $ 65,143 Employee Benefits $ 2,589,775 $ 2,585,048 $ (4,727) Books/Supplies $ 783,795 $ 1,030,703 $ 246,908 Services $ 1,625,528 $ 1,830,601 $ 205,073 Capital Outlay $ 264,670 $ 1,649,173 $ 1,384,503 Other Outgo $ 236,664 $ 249,948 $ 13,284 Direct Support/Indirect $ 271,279 $ 287,208 $ 15,929 $ - TOTAL EXPENDITURES $ 10,390,136 $ 12,358,633 $ 1,968,497 OTHER OUTGO Transfers Out Contributions $ 3,436,379 $ 3,523,758 $ 87,379 TOTAL OTHER $ 3,436,379 3,523,758 $ - $ $ 87,379 REVISED BEG. FD BALANCE $ 1,737,060 $ 1,737,060 ENDING FUND BALANCE $ 1,690,295 $ 20,883 $ (1,669,412)
COMBINED RESOURCES REVENUE ADOPTED BUDGET FIRST INTERIM INCREASE/ (DECREASE) LCFF Sources Federal Sources State Local $ 47,202,905 $ 47,188,396 $ (14,509) $ 3,192,526 $ 3,344,981 $ 152,455 $ 4,586,090 $ 5,386,287 $ 800,197 $ 213,255 $ 286,181 $ 72,926 $ - $ $ 1,011,069 TOTAL REVENUE $ 55,194,776 56,205,845 EXPENDITURES Certificated Salaries $ 22,863,235 $ 22,995,746 $ 132,511 Classified Salaries $ 6,337,414 $ 6,811,499 $ 474,085 Employee Benefits $ 10,618,842 $ 10,779,070 $ 160,228 Books/Supplies $ 2,051,093 $ 3,338,702 $ 1,287,609 Services $ 4,175,769 $ 4,572,304 $ 396,535 Capital Outlay $ 1,833,255 $ 4,009,773 $ 2,176,518 Other Outgo $ 865,998 $ 989,618 $ 123,620 Direct Support/Indirect $ (183,526) $ (183,526) $ - TOTAL EXPENDITURES $ 48,562,080 $ 53,313,186 $ 4,751,106 OTHER OUTGO Transfers Out $ (6,003,000) $ (7,003,000) $ (1,000,000) Contributions $ - $ - $ - $ - TOTAL OTHER $ 6,003,000 $ 7,003,000 $ 1,000,000 - REVISED BEG. FD BALANCE 19,660,916 19,660,916 ENDING FUND BALANCE $ 20,290,612 $ 15,550,575 $ (4,740,037)
1% 3% 8% 4% 19% 11% 12% 42% Certificated Classified Benefits Supplies Services Capital Outlay Other Outgo Transfer Out Salaries and benefits represent 73% of the general fund. Salaries and benefits excluding transfers out and expenditures budgeted for Capital outlay are 85% at First Interim.
MULTI-YEAR BUDGET PROJECTION Budget projections for the next two years are included as part of the Interim Report Process. The multi-year projections provide estimated revenues and expenditures for the next two years. The projections are based upon the Budget Assumptions identified in the Combined Funds form including: conservative enrollment growth, School Services (SSC) GAP funding %, COLA and CPI estimates and the elimination of the one-time Mandate reimbursement. Expenditures include adjustments for carry over amounts, increases for step & column costs and additional on-going staffing and utility costs related to the expansion of Peggy Heller School.
FIRST INTERIM-UNRESTRICTED 2017/18 Projected 2018/19 Projected 2019/20 Projected REVENUE LCFF Revenue $ 47,188,396 $ 48,530,425 $ 49,762,735 Other State Revenue 1,612,570 906,294 927,592 Other Local Revenue 286,181 227,262 227,262 Total Revenue $ 49,087,147 $ 49,663,982 $ 50,917,589 EXPENSES Certificated Salaries 19,838,672 $ 20,295,012 20,824,811 Classified Salaries 5,242,621 4,994,880 5,122,837 Employee Benefits 8,194,022 8,303,452 8,491,718 Books & Supplies 2,307,999 1,260,377 1,296,424 Services & Other Operating Expenditures 2,741,703 2,712,107 2,789,673 Capital Outlay 2,360,600 1,631,109 1,677,759 Other Outgo 739,670 758,623 780,320 Direct Support/Indirect Costs (470,734) (495,989) (535,470) Total Expenses $ 40,954,553 $ 39,459,571 $ 40,448,071 Excess/(Deficiency) $ 8,132,594 $ 10,204,411 $ 10,469,519 OTHER FINANCING SOURCES & USES Transfers Out $ (7,003,000) $ (6,003,000) $ (6,003,000) Contributions (3,523,758) (4,050,739) (4,214,088) Total Other Financing Sources & Uses $ (10,526,758) $ (10,053,739) $ (10,217,088) NET INCREASE/(DECREASE) IN FD BALANCE $ (2,394,164) $ 150,672 $ 252,430 BEGINNING FUND BALANCE $ 17,923,856 $ 15,529,692 $ 15,680,364 ENDING FUND BALANCE-GENERAL FUND $ 15,529,692 $ 15,680,364 $ 15,932,794 % of EFB to General Fund expenditures 25.75% 27.80% 27.64%
Components of Ending Fund Balance: Assignments Revolving Cash $ 10,440 $ 10,440 $ 10,440 Staff Development-MAA 214,104 214,104 214,104 VAPA 380,540 300,540 220,540 Intervention Specialists 786,148 421,533 49,626 Textbook adoption-science 1,000,000 1,000,000 1,000,000 Increases STRS & PERS 1,325,265 1,325,265 1,325,265 Program needs 598,955 598,955 598,955 Transportation bus replacement 46,964 46,964 46,964 Deferred Maintenance-PH expansion 680,998 1,680,998 1,680,998 Safety Plan carry over 243,404 243,404 243,404 Economic Uncertainties 15% $ 9,047,428 $ 8,460,338 $ 8,646,172 Ending Fund Balance After Assignments $ 1,195,446 $ 1,377,822 $ 1,896,326 Reserve % After Reservations 1.98% 2.28% 3.14%
FIRST INTERIM-RESTRICTED 2017/18 Projected 2018/19 Projected 2019/20 Projected REVENUE Federal Revenue $ 3,344,981 $ 3,185,117 $ 3,185,117 Other State Revenue 3,773,717 3,703,829 3,790,869 Other Local Revenue - - Total Revenue $ 7,118,698 $ 6,888,946 $ 6,975,986 EXPENSES Certificated Salaries $ 3,157,074 $ 3,202,970 $ 3,283,620 Classified Salaries 1,568,878 1,655,065 1,693,357 Employee Benefits 2,585,048 2,664,677 $ 2,698,398 Books & Supplies 1,030,703 809,582 832,736 Services & Other Operating Expenditures 1,830,601 1,645,731 1,692,799 Capital Outlay 1,649,173 417,219 429,151 Other Outgo 249,948 257,921 265,298 Direct Support/Indirect Costs 287,208 286,520 294,715 Total Expenses $ 12,358,633 $ 10,939,686 $ 11,190,075 Excess/(Deficiency) $ (5,239,935) $ (4,050,739) $ (4,214,088) OTHER FINANCING SOURCES & USES Contributions 3,523,758 4,050,739 4,214,088 Total Other Financing Sources & Uses $ 3,523,758 $ 4,050,739 $ 4,214,088 NET INCREASE/(DECREASE) IN FD BALANCE $ (1,716,177) $ - $ - BEGINNING FUND BALANCE $ 1,737,060 $ 20,883 $ 20,883 ENDING FUND BALANCE $ 20,883 $ 20,883 $ 20,883
COMBINED 2017/18 Projected 2018/19 Projected 2019/20 Projected REVENUE LCFF Revenue $ 47,188,396 $ 48,530,425 $ 49,762,735 Federal Revenue 3,344,981 3,185,117 3,185,117 Other State Revenue 5,386,287 4,610,124 4,718,461 Other Local Revenue 286,181 227,262 227,262 Total Revenue $ 56,205,845 $ 56,552,928 $ 57,893,576 EXPENSES Certificated Salaries $ 22,995,746 $ 23,497,982 $ 24,108,432 Classified Salaries 6,811,499 6,649,944 6,816,193 Employee Benefits 10,779,070 10,968,129 11,190,116 Books & Supplies 3,338,702 2,069,959 2,129,160 Services & Other Operating Expenditures 4,572,304 4,357,838 4,482,472 Capital Outlay 4,009,773 2,048,328 2,106,910 Other Outgo 989,618 1,016,544 1,045,617 Direct Support/Indirect Costs (183,526) (209,468) (240,755) Total Expenses $ 53,313,186 $ 50,399,256 $ 51,638,145 Excess/(Deficiency) before Other Financing Sour $ 2,892,659 $ 6,153,672 $ 6,255,430 OTHER FINANCING SOURCES & USES Transfers Out $ (7,003,000) $ (6,003,000) $ (6,003,000) Contributions $ - $ - $ - Total Other Financing Sources & Uses $ (7,003,000) $ (6,003,000) $ (6,003,000) NET INCREASE/(DECREASE) IN FUND BALANCE $ (4,110,341) $ 150,672 $ 252,430 BEGINNING FUND BALANCE $ 19,660,916 $ 15,550,575 $ 15,701,247 ENDING FUND BALANCE $ 15,550,575 $ 15,701,247 $ 15,953,677
ASSUMPTIONS-COMBINED FUNDS 2017/18 Projected 2018/19 Projected 2019/20 Projected Enrollment/ADA Projections Projected Enrollment-AESD 5073 5083 5050 Prior Year P-2 ADA-1st Interim funding 4779 4800 4800 Projected P-2 ADA - 2017/18 4800 4800 4800 Projected P-2 ADA 17-18 -Including COE 4851 4851 4851 COLA & CPI Projections COLA Per SSC Projections 1.56% 2.15% 2.35% California CPI Per SSC Projections 3.11% 3.19% 2.86% K-12 Revenue Gap Funding 43.19% 39.03% 41.51% Change in Funding ADA 0.0 0.00 0.00 Adjustments For Prior Year Carryovers Federal Revenue $ 159,864 $ - State Revenue $ 888,790 $ - Local Revenue $ 58,919 $ - PY CO & 1X Expenditures-1XXX Certificated $ 179,580 $ - PY CO & 1X Expenditures-2XXX Classified $ 423,013 $ - PY CO & 1X Expenditures-3XXX Benefits $ 137,117 $ - PY CO & 1X Expenditures-4XXX Supplies $ 1,332,733 $ - PY CO & 1X Expenditures-5XXX Services $ 397,638 $ - Step & Column Increases Step & Column Increase Certificated $ 344,936 $ 587,450 Step & Column Increase Classified $ 102,172 $ 166,249 Statutory Benefits- Certificated step & column $ 68,987 $ 129,239 Statutory Benefits -Classified step & column $ 20,434 $ 39,900 Additional Salary Increases Longevity bonus-certificated $ 15,000 $ 23,000 Statutory Benefits-Certificated $ 3,195 $ 5,336 Additional Classified salaries-ph $ 63,000 Additional Classified benefits $ 22,949 Addt Certificated positions: PH expansion $ 321,880 Additional Certifcated-benefits $ 117,606 Other Adjustments Retiree Benefit - Healthcare Increases $ 16,462 $ 43,554 $ 42,177 Retirement Plan Contribution Rates CALSTRS 14.43% 16.28% 18.13% CALPERS 15.53% 18.10% 20.80%
CONSIDERATIONS State revenues are on track with official estimates so we expect full LCFF funding by 2020/21. Once we reach full funding annual increases will be dependent on ADA growth and COLA. Significant risks to the budget include increases in the STRS & PERS rates, minimum wage increases, costs associated with expanded sick leave and Special education expenditures for transportation, Preschool & Behavioral Health Programs. One time funds set aside for Intervention Specialists will expire after 2019/20. Funds set aside for VAPA will continue until expended and are assigned in the Ending Fund Balance. Possibility of a financial liability for the Employer Shared Responsibility under the Affordable Care Act (ACA). The District continues to set aside funds for modernization projects but when the LCFF funding target is met and expenses continue to increase, less funds will be available for facilities.
Fund 12-Child Development OTHER FUNDS The State Preschool reimbursement rate increased but because revenue is based on enrollment it is too soon to estimate the total award. $ 20,000 of the potential revenue was budgeted to cover the realignment of salaries & benefits. Fund 13-Cafeteria Special Revenue Fund Carry over funds were budgeted to cover additional Food Service Assistant positions and supply & equipment purchases. Fund 25-Capital Facilities Fund The change in expenditures is due to carry over amounts designated for the Peggy Heller expansion project. Fund 40- Special Reserve for Capital Projects Interest Income was increased by $ 40,000 and $ 1,000,000 that was included in the General Fund Budget was transferred to FD 40. Expenditure increases were budgeted from the transfer in and from carry over funds for the projects at Peggy Heller and MSE.
ADDITIONS TO LCAP 2017/18 ACTIVITY ADOPTED BUDGET FIRST INTERIM CHANGE CSR teachers (2) 200,000 170,907 29,093 Counselor 26,000 26,388 (388) Health Aides 41,043 35,035 6,008 Classified PE Aides 75,065 134,683 (59,618) Math Licenses 50,000 44,848 5,152 392,108 411,861 (19,753) We were unable to reduce class sizes for CSR Teachers included in the LCAP due to increased enrollment. PE Aide costs were underestimated and one position was estimated at 7 hours per day but was hired for 8 hours per day triggering eligibility for H&W benefits.
Board of Trustees Scott Lee Dale Wilson Kelly Fincher Larry Whitney Mark Hendrickson