FY 2014-15First Interim Report

LUCIA MAR UNIFIED SCHOOL DISTRICTDecember 9, 2014

JAMES HOGEBOOM, SuperintendentRAYNEE J. DALEY, Ed.D., Asst. Superintendent, Business/CBO

RHONDA SEYBERT, Director of Finance

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Developing the Snapshot

Revenue• LCFF• One-time

Expenditures Encroachments on General Fund Projected MYP

LMUSD First Interim Report

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LMUSD LCFF Entitlement per ADA

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Outstanding Mandated Costs back-payments. One time funding. Estimated at $650,000.

CA Budget Development. Current positive economic outlook in California. Estimated $2 Billion additional dollars for schools.

Keeping our Eye on Revenue

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Settlement was negotiated that prior year (FYs 2010-11 to 2012-13) Accounts Receivables would be paid at 40% of amount billed.$717,849 being written off for Lucia Mar

Budget Adjustment – “budget income when received”, resulting in removing $271,071 from FY 2014-15

Total encroachment for FY 2014-15 due to these changes = $988,921

Evaluation of this program needs to be made as part of the “big rocks” process for FY 2015-16

Medi-Cal Administrative Activities (MAA)

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Funds driven by students that qualify for supplemental and concentration grant funding

Proportional funds used to increase or improve services to these students

As LCFF Revenue rises, LCAP Mandated Expenditures rise

LCAP Dollars

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Projection of LCAP Dollars for LMUSD

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Both CalSTRS and CalPERS have increased employer contributions each year through FY 2020-21.

Based on today’s salaries:

CalSTRS increased cost will be $700,984 for 2015-16 and $1,428,895 for 2016-17

CalPERS increased cost will be $73,876 for FY 2015-16 and $291,804 for FY 2016-17

Keeping our Eye On Expenditures

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CalSTRS and CalPERS Increasesthrough FY 2020-21

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LMUSD LCFF Entitlement per ADA

DRAFT BUDGET FY 2014/15 11

In FY 2014-15, the District took back 9 classes from the COE

The take-back plan for these classes included hiring LMUSD staff to support & improve the program

In January 2014, the Board was given an estimated cost of $3,469,571 – we are currently within that estimate

Special Education

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Routine Restricted Maintenance returns to a 3% required contribution of all General Fund expenditures. This will increase our budget by $568,283 in FY 2015-16 and $608,456 in FY 2016-17.

Incremental loss of E-Rate funding for telephonic and data plans starting in FY 2015-16. Loss of Revenue of $205,040 for FY 2015-16 and an additional loss of $131,170 in FY 2016-17.

Mandated sick pay for substitutes starting in FY 2015-16.

Future increased Expenditures

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Unrestricted General Fund RevenuesFY 2014-15 = $76,012,991

Note: 0% = less than 1%

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Unrestricted General Fund Expenditures FY 2014-15 = $67,605,158

Note: 0% = less than 1%

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Unrestricted General Fund ContributionsTo Encroaching Programs $12,052,080

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Summary MYP

2014-15 2015-16 2016-17Beginning Balance 12,646,433 9,002,186 6,698,471LCFF 72,895,724 76,777,911 78,046,754All Other Revenues 3,117,267 2,747,795 2,754,411Encroachment (12,052,080) (12,375,591) (12,674,171)Total Available $$$$ 76,607,344 76,152,301 74,825,466 Expenditures (67,605,158) (69,453,829) (71,521,071)Projected Ending Balance 9,002,186 6,698,471 3,304,395 Reserve Cash/Stores/Prepaids (40,000) (40,000) (40,000)3% Economic Uncertainty (2,867,984) (2,836,036) (2,908,265)

For Future Board Action 6,094,202 3,822,435 356,130

Lucia Mar Unified School District - MYPFirst Interim, October 31, 2014

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Fund 14 - Deferred MaintenanceFY 2014-15

Current Budget is $382,483

Included in this is $268,163 for salaries & benefits for five Custodians

Balance of budget, $114,320, used for various high priority projects across the District

Approximately $26,495 is remaining for projects this year

Funds 25/26 – Developer/ Mitigation Fees, FY 2014/15

*This was the Budget as of 10/31/14 – CCNTHS Phase III for $2.5 million was not yet budgeted.

REVENUES

Interest 5,000.00 4,000.00 9,000.00 Other Local Revenues 1,010,000.00 680,000.00 1,690,000.00

Total Revenues 1,015,000.00$ 684,000.00$ 1,699,000.00$

EXPENDITURES

Materials & Supplies 21,436.81 146,962.00 168,398.81

Services & Other Operating Expenditures 81,857.00 70,400.00 152,257.00

Capital Outlay 5,051.08 1,449,504.79 1,454,555.87

Debt Service - 2004 COPS 302,411.00 302,411.00

Total Expenditures 410,755.89$ 1,666,866.79$ 2,077,622.68$

INCREASE OR (DECREASE) IN FUND BALANCE

RESULTING FROM OPERATIONS 604,244.11$ (982,866.79)$ (378,622.68)$

NET CHANGE IN FUND BALANCE 604,244.11$ (982,866.79)$ (378,622.68)$

BEGINNING FUND BALANCE 1,242,237.99$ 1,896,300.83$ 3,138,538.82$

ENDING FUND BALANCE * 1,846,482.10$ 913,434.04$ 2,759,916.14$

Total2013-14

Fund 25Developer Fees

Fund 26 Mitigation Fees

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POSITIVE – LMUSD will meet its financial obligations for FYs 2014-15, 2015-16, and 2016-17

District will meet its required 3% reserve in FYs 2014-15, 2015-16, and 2016-17

FY 2014/15 First Interim Report Certification

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January 9, 2015 -Governor’s Budget to be ReleasedJanuary 27, 2015 -Provide update to the Board at regular meetingJanuary 2015Begin work on Second InterimJanuary/February 2015 – Begin Identifying “Big Rocks for Budget Development”

Next Steps: