AGENDA FOR SPECIAL MEETING ENCINITAS UNION SCHOOL DISTRICT OF THE BOARD OF TRUSTEES 101 South Rancho Santa Fe Road Encinitas, California 92024
Welcome to the special meeting of the Encinitas Union School District Board of Trustees.
CLOSED SESSION The Board will meet in Closed Session to consider matters of litigation, employee negotiations, student discipline, employee grievances, personnel qualifications, or real estate negotiations authorized by the Brown Act. A report of action(s) taken in Closed Session will be presented as an item on the Public Session Agenda. PUBLIC COMMENT Members of the audience may address the Board of Trustees on items listed on the special meeting agenda. Speaking time is limited to three (3) minutes per speaker with a maximum of fifteen (15) minutes per topic. Persons wishing to address the Board should submit to the Executive Assistant to the Superintendent, prior to the meeting, a blue Public Comment card available on the information table. You will be called upon, when the agenda item is addressed by the Board. Please address the Board of Trustees from the podium by first stating your name and address. In accordance with the Brown Act, no action may be taken by the Board of Trustees on non-agenda items; however, the Board may 1) acknowledge receipt of the information; 2) refer the matter to staff for further study; or 3) place the item on a future agenda. CONSENT ITEMS All matters listed under consent are those in which the Board has previously deliberated or are considered routine items of business. An administrative recommendation for each item is contained in the agenda item description. There will be no separate discussion of these items prior to the time the Board of Trustees votes on the motion unless members of the Board, staff, or public request specific items to be discussed or pulled from the Consent Items. To address an item on the consent calendar, please follow the procedure described under Public Comment. PUBLIC INSPECTION OF DOCUMENTS In compliance with Government Code § 54957.5, non-exempt writings that are distributed to a majority or all of the board in advance of a meeting or less than 24 hours prior to the meeting, may be viewed at the district office, 101 South Rancho Santa Fe Road, Encinitas, CA 92024 or at the scheduled meeting. In addition, if you would like a copy of any record related to an item on the agenda, please contact the Office of the Superintendent at 760 944-4300, ext. 1111. AMERICANS WITH DISABILITIES ACT In compliance with the Americans with Disabilities Act, if you need special assistance, disability-related modifications, or accommodations, including auxiliary aids or services, in order to participate in the public meetings of the District’s Board of Trustees, please contact the Office of the Superintendent at (760) 944-4300, Extension 1111. Notification 24 hours prior to the meeting will enable the District to make the necessary arrangements to ensure accommodation and accessibility to this meeting.
AGENDA FOR SPECIAL MEETING ENCINITAS UNION SCHOOL DISTRICT OF THE BOARD OF TRUSTEES 101 South Rancho Santa Fe Road Encinitas, California 92024 March 9, 2017 CLOSED SESSION – 1:00 p.m.
OPEN SESSION – Immediately Following
AGENDA
(A copy of the agenda is available online at www.eusd.net prior to the close of business on the Friday preceding the meeting or 24 hours for a special board meeting. A printed copy may also be obtained at the District
Office in compliance with Government Code 54957.5, agenda-related documents that have been distributed to the Board less than 72 hours prior to the board meeting are available for inspection at the District Office.)
1. CALL TO ORDER 2. ROLL CALL: Mrs. Emily Andrade
Mrs. Leslie Schneider Mr. Gregg Sonken Mrs. Marla Strich Mrs. Rimga Viskanta
3. CLOSED SESSION
a) STUDENT RELATED MATTER / DISCIPLINE / EXPULSION / STIPULATED EXPULSION – CASE NO. 2017-160-1412
Education Code § 35146, 48912, 48918(c) 4. OPENING FUNCTIONS
a) PLEDGE OF ALLEGIANCE
b) WELCOME TO THE PUBLIC – Board President Gregg Sonken
(Courtesy reminder: Please set all cell phones to vibrate or turn off.)
c) CONSIDERATION/ACTION ON THE CLOSED SESSION STUDENT RELATED MATTER / DISCIPLINE / EXPULSION / STIPULATED EXPULSION – CASE NO. 2017-160-1412
Roll Call Vote: Members Mrs. Andrade, Mrs. Schneider, Mr. Sonken, Mrs. Strich, Mrs. Viskanta
5. PUBLIC COMMENT – Agenda Items
Members of the audience may address the Board of Trustees on items listed on the special meeting agenda. Speaking time is limited to three (3) minutes per speaker with a maximum of fifteen (15) minutes per topic. Persons wishing to address the Board should complete and submit, prior to the meeting, a blue Public Comment card available on the information table. (See agenda cover page for instructions.)
6. BOARD WORKSHOP – BUDGET
Superintendent Timothy Baird and Assistant Superintendent Ami Shackelford, along with Board members, will discuss the current year’s budget as well as budget considerations for the coming years. Board members will have the opportunity to dialogue on related budget considerations.
Agenda of Special Board Meeting March 9, 2017 – Page 2
● Encinitas Union School District is a Tobacco-Free District. Smoking is prohibited on District property at all times ●
Any individual with a disability, who requires reasonable accommodation to participate in a Board meeting,
may request assistance by contacting the Superintendent’s Office at 760.944.4300, Ext. 1111.
7. BOARD/SUPERINTENDENT COMMUNICATIONS
General written and oral communications and discussion to include appropriate or timely Reports by Board or Superintendent on matters relating to: Strategic Planning, Encinitas Educational Foundation, Legislative Action Committee, North Coastal Consortium Special Education, California School Board Association, Upcoming Projects, Current Activities, Curriculum Updates, Business and Facilities Updates, Personnel Updates, Instructional Materials Updates, Goals and Objectives, Conference Reports, Interagency Agreements and Activities, Committee Reports and written communications.
8. ADJOURNMENT
Budget
Workshop
Board of Education
Presentation
March 9, 2017
Today’s Goals
Understand School District Budget Development Calendar, Components
and Process
Discover how we put all of this together to produce a meaningful
budget
Discuss preparation of next year’s budget
What is a Budget?
What is it?
The representation of an organization’s priorities and goals in
financial terms
Why do we need one?
To ensure that we can focus our resources on our mission
Who are the ideal key players?
All stakeholders
The Check Book
Remember, it is conceptually similar to your home budget
Revenue = Salary
subtract
Expenses = Bills
equals
Ending balance (hopefully there is something left over)
or
Deficit Spending (Using savings or credit cards to pay the bills)
Spending Priorities
Student Achievement and School-wide Effectiveness
Accountability / Fiscal Solvency
School / Student Safety, Security and Climate
Legal compliance with State and Federal regulations / Ed. Code
Budget Development
The Budget has many moving parts
Requires an understanding of:
Budgeting
Financial and trend analysis
Educational programs
Spreadsheet skills don’t hurt either
Requires communication with:
The Board of Education
Superintendent and Cabinet
Principals and Administrators
Parents and Community Members
Budget Development Overview
Beginning Balance + Revenues- Expenditures = Ending Balance
EUSD
BUDGET
Governor’s May Revise
Health & Welfare
Contributions to Restricted
Programs
Indirect Rates
Carryover
Mid Year Adjustments
Adopted State Budget
Existing Staff
New Staffing Needs
Interest Rates
Federal Budget
Collective Bargaining
Agreements
Ending Fund Balance
Components
Transfers
Beginning Fund Balance
ComponentsFacility Conditions
Payroll Rates
Legal RestrictionsState Mandates
State Mandates
Governor’s Budget Proposals
Designated Required Set Asides
Donations
Grant Awards
Property Tax Collections
2017-18 Budget Development Calendar
First Interim Report - December 13
Governor’s Budget Proposal – mid January
Initial Enrollment Projections - March
Budget Development Guides and Initial Planning Documents - March
District sets annual budget goals – March
Second Interim Report – March 14
Meet with sites and departments on budget – April
Hold study sessions and public input hearings for Local Control Accountability Plan
(LCAP) – Spring
Develop Tentative budget – May
Governor’s May Revise Budget – Mid May
First Reading of LCAP and Proposed Budget – June 6
Board Approval of LCAP and Final Budget – June 23
District submits Adopted Budget to County - June 30
Unaudited Actuals – Sept 15
2016-17
Budget
2016-17 Revenue All Funds(in millions)
Total 2016-17 Revenue for General Fund equals $62.60 mil
2016-17 Budget All Funds(in millions)
Total 2016-17 Budget for General Fund equals $73.34 mil
2016-17 Revenues General Fund(in millions)
Total 2016-17 Revenues for General Fund equals $59.15 mil
2016-17 Revenues General Fund
without Contributions (in millions)
Total 2016-17 Revenues for General Fund equals $59.15 mil
GF Unrestricted
Contributes $7.36 mil to
GF Restricted Programs
-SPED $5.76 mil
-RRMA $1.60 mil
2016-17 Revenues General Fund
adjusted for Contributions (in millions)
Total 2016-17 Revenues for General Fund equals $59.15 mil
2016-17 Revenues General Fund
Sources (in millions)
Total 2016-17 Budget for General Fund equals $59.15 mil
LCFF/Property Taxes 46.30$ 90.0% Title I 0.57$ 1.1%
Lottery 0.66$ 1.3% Title II 0.15$ 0.3%
Mandate Block Grant 0.15$ 0.3% Title III 0.06$ 0.1%
One Time Discretionary 1.10$ 2.1% ASES Grant 0.25$ 0.5%
Donations 2.17$ 4.2% Special Education 3.57$ 6.9%
Rentals/Leases 0.12$ 0.2% Mental Health 0.37$ 0.7%
Extended Day 0.93$ 1.8% Educator Effectiveness 0.15$ 0.3%
Interest Earned 0.05$ 0.1% Lottery 0.15$ 0.3%
Other 0.02$ 0.0%
Prior Year Deferred Revenues 0.22$ 0.4%
STRS In-Kind 2.17$ 4.2%
Total 51.47$ Total 7.68$
Unrestricted Restricted
Historical Property Tax / LCFF Collections
1% of Property Tax increase is approximately $400,000 for 2016-17
Actual Property Taxes Collected Projected Property Taxes Collected
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Total Property $ 33,487,072 $ 34,603,616 $ 35,846,835 $ 38,353,806 $ 40,979,030 $ 43,249,379 $ 44,590,110 $45,481,912 $ 46,391,550 $ 47,319,381
Amount of Increase $ 829,601 $ 1,116,544 $ 1,243,219 $ 2,506,971 $ 2,625,223 $ 2,270,349 $ 1,340,731 $ 891,802 $ 909,638 $ 927,831
Percent Increase 2.54% 3.33% 3.59% 6.99% 6.84% 5.54% 3.10% 2.00% 2.00% 2.00%
Secured (8041) $ 32,040,782 $ 33,128,762 $ 34,363,614 $ 36,809,636 $ 39,387,456 $ 41,563,743 $ 42,852,220 $43,709,264 $ 44,583,449 $ 45,475,118
Unsecured (8042) $ 1,118,470 $ 1,151,788 $ 1,203,078 $ 1,256,994 $ 1,281,899 $ 1,352,920 $ 1,394,860 $ 1,422,757 $ 1,451,213 $ 1,480,237
Misc./Prior Year Tax Adj $ 4,162 $ (108) $ (37,557) $ (30,457) $ (5,576) $ - $ - $ - $ -
HOE (8021) $ 323,658 $ 323,174 $ 317,701 $ 317,633 $ 315,250 $ 332,716 $ 343,030 $ 349,890 $ 356,888 $ 364,026
Total $ 33,487,072 $ 34,603,616 $ 35,846,836 $ 38,353,806 $ 40,979,030 $ 43,249,379 $ 44,590,110 $45,481,912 $ 46,391,550 $ 47,319,381
District of Choice $ 170,720 $ 138,972 $ 151,112 $ 166,500 $ 186,352 $ 186,352 $ 186,352 $ - $ - $ -
Rev Limit State Aid PY $ - $ - $ - $ (10) $ 9 $ - $ - $ - $ - $ -
EPA $ - $ 1,060,556 $ 1,051,090 $ 1,051,600 $ 1,051,850 $ 1,026,154 $ 1,025,962 $ 1,023,976 $ 1,022,176 $ 1,020,376
2012/13 Categorical Funding $ - $ - $ 1,840,774 $ 1,840,774 $ 1,840,774 $ 1,840,774 $ 1,840,774 $ 1,840,774 $ 1,840,774 $ 1,840,774
Grand Total LCFF Sources $ 33,657,792 $ 35,803,144 $ 38,889,812 $ 41,412,670 $ 44,058,015 $ 46,302,659 $ 47,643,198 $48,346,662 $ 49,254,500 $ 50,180,531
Average Funding Per ADA for Surrounding
Districts (2015-16)
Source: California Dept. of Education-School Fiscal Services Division - 2015-16 Current Expense per Average Daily
Attendance
District Funds Received ADA
Avg
Funding
per ADA
Alpine Union Elementary 15,498,243$ 1,608.9 9,633$
Cardiff Elementary 8,537,770$ 642.6 13,286$
Del Mar Union Elementary 50,750,238$ 4,223.7 12,016$
Encinitas Union Elementary 53,445,363$ 5,126.8 10,425$
Escondido Union Elementary 168,347,897$ 16,077.7 10,471$
Fallbrook Union Elementary 56,556,822$ 4,839.1 11,687$
Lakeside Union Elementary 49,300,869$ 4,885.5 10,091$
Lemon Grove Elementary 40,157,782$ 3,651.8 10,997$
National Elementary 58,544,319$ 5,340.3 10,963$
Rancho Santa Fe Elementary 11,107,954$ 646.5 17,182$
San Pasqual Union Elementary 4,941,822$ 541.2 9,131$
San Ysidro Elementary 51,387,227$ 4,903.2 10,480$
Solana Beach Elementary 43,101,665$ 3,041.1 14,173$
South Bay Union 61,900,535$ 5,366.8 11,534$
2016-17 Budgeted Expenditures
General Fund by Category (in millions)
Total 2016-17 Budget for General Fund equals $61.90 mil
Certificated Salaries, $27.01 , 44%
Classified Salaries, $8.66 , 14%
Employee Benefits, $13.74 , 22%
Materials and Supplies, $3.41 , 5%
Contracts and Other Services,$7.27 , 12%
Capital Outlay, $0.73 , 1%
Other Incoming/Outgoing, $1.08 , 2%
Certificated Salaries, $22.92 , 52%Classified Salaries,
$5.61 , 13%
Employee Benefits, $9.00 , 20%
Materials and Supplies, $1.49 , 4%
Contracts and Other Services, $4.13 , 9%
Capital Outlay, $0.15 , 0%
Other Incoming/Outgoing,
$0.99 , 2%
2016-17 Budget General Fund
Unrestricted by Category (in millions)
Total 2016-17 Budget for General Fund Unrestricted equals $44.28 mil
Position Control is 85% of
GF Unrestricted Budget
(including benefits)
2016-17 General Fund Unrestricted Position
Control Salaries by Group (in millions)
Total 2016-17 Position Control Salaries for GF Unrestricted equals $28.53 mil
Certificated Mgmt, $2.07 , 7%
Classified Mgmt, $0.86 , 3%
Certificated, $20.84 , 73%
Classified , $4.75 , 17%
2016-17 General Fund Unrestricted Position
Control Salaries by Group (in millions)
Total 2016-17 Position Control Salaries for GF Unrestricted equals $28.53 mil
Classroom Teachers, $20.05 , 70%
Classified Clerical Support, $2.11 , 8%
Classified Operational Support, $2.37 , 8%
Certificated Pupil Support, $0.79 , 3%
Certificated Mgmt., $2.07 , 7%
Classified Mgmt., $0.86 , 3%
Other Classified Support, $0.28 , 1%
Historical Employee Salary Increases
Employee Compensation Increase by year:
2013-14 was 2.5% salary increase retro to July 2013
2014-15 was 4.0% salary increase
2015-16 was 2.0% salary increase
2016-17 was 4.0% salary increase and 0.5% increase to Benefits
for total of 4.5%
Employee Cost-Salaries plus Benefits
Step 3 Column II Salary 52,662$ Step 3 Column II Salary 39,153$
12.58% STRS 6,625$ 13.88% PERS 7,309$
1.45% MED 764$ 6.20% SocSec 2,427$
0.05% SUI 26$ 1.45% MED 764$
1.45% WC 764$ 0.05% SUI 26$
1.30% OPEB 685$ 1.45% WC 764$
1.30% OPEB 685$
Salary + LRC's 8,863$ Salary + LRC's 11,975$
Café Cash 11,160$ Café Cash 11,160$
1.45% MED 162$ 6.20% SocSec 692$
0.05% SUI 6$ 1.45% MED 162$
1.45% WC 162$ 0.05% SUI 6$
1.30% OPEB 145$ 1.45% WC 162$
1.30% OPEB 145$
Café Cash + LRC's 11,634$ Café Cash + LRC's 12,326$
Total District Cost New Hire 73,159$ Total District Cost New Hire 63,454$
Total Benefits and Taxes 39% Total Benefits and Taxes 62%
Certificated New Hire Classroom Teacher Classified New Hire Custodian
CalPERS Rate Increases The employer contribution to CalPERS is proposed to increase to 15.8% in 2017-18,
up from 13.888% in 2016-17
“Classic” members continue to pay 7.0%
New members pay 6.0%, which may fluctuate from year-to-year basedon the PEPRA requirement to pay half the normal cost rate
Estimates of the resulting future contribution rate increases for school employers are as follows:
Actual Projected
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
13.888% 15.8%* 17.7%* 19.7%* 21.1%* 21.5%*
*CalPERS provided these estimates in early 2016 and has not yet issued revised estimates
© 2017 School Services of California, Inc.
CalSTRS Rate Increases
Employer rates are increasing to 14.43% in 2017-18, up from 12.58% in
2016-17
No specific funds are provided for this cost increase
Under current law, once the statutory rates are achieved, CalSTRS will
have the authority to marginally increase or decrease the employer
contribution rate
Year Employer
Pre-PEPRA
Employees
Post-
PEPRA
Employees
2016-17 12.58% 10.25% 9.205%
2017-18 14.43% 10.25% 9.205%
2018-19 16.28% 10.25% 9.205%
2019-20 18.13% 10.25% 9.205%
2020-21 19.10% 10.25% 9.205%
© 2017 School Services of California, Inc.
2016-17 General Fund
Materials and Supplies Budget (in millions)
Total 2016-17 Materials and Supplies Expense budget for General Fund equals
$3.41 mil
Schools
District
Office Schools
District
Office
Textbooks -$ -$ Textbooks -$ -$
Reference Materials 0.01$ 0.04$ Reference Materials -$ -$
Instruct/Office Supplies 0.66$ 0.44$ Instruct/Office Supplies 0.28$ 1.63$
Equipment 0.01$ 0.32$ Equipment -$ 0.01$
Total 0.68$ 0.81$ Total 0.28$ 1.64$
Unrestricted Restricted
2016-17 General Fund
Services and Other Operating Expenses (in millions)
Total 2016-17 Services and Other Op Ex Expense budget for GF equals
$7.27 mil
Schools
District
Office Schools
District
Office
SubAgreements -$ 0.61$ SubAgreements -$ 0.68$
Travel and Conference 0.03$ 0.08$ Travel and Conference -$ 0.16$
Memberships 0.00$ 0.04$ Memberships -$ 0.00$
Insurance -$ 0.28$ Insurance -$ -$
Utilities -$ 1.02$ Utilities -$ -$
Maintenance Agreements 0.01$ 0.22$ Maintenance Agreements -$ 0.27$
Direct Costs 0.01$ (0.01)$ Direct Costs -$ (0.00)$
Contracts & Agreements 0.38$ 1.24$ Contracts & Agreements 0.04$ 1.99$
Telecommunications -$ 0.21$ Telecommunications -$ 0.00$
Total 0.43$ 3.70$ Total 0.04$ 3.10$
Unrestricted Restricted
Multi-Year Projections
Ending Fund Balance of one year becomes the Beginning Fund Balance in the
next year
Use current budget as basis for “the Out-Years”
Include known variables and changes
Best estimate to anticipate the effects of today’s decisions on the district’s
long-range financial position
Watch out for Structural Deficits
Historical Reserve Balances
Fund 01, Fund 17, Fund 20
2015-16 2014-15 2013-14 2012-13 2011-12
G/F Unrestricted 15,626,328$ 10,979,347$ 9,746,215$ 8,271,547$ 7,286,397$
Fund 17 4,455,236$ 4,431,319$ 5,238,023$ 5,016,429$ 4,729,219$
Fund 20 377,005$ 374,843$ 373,335$ 372,050$ 370,706$
Total Reserves 20,458,569$ 15,785,508$ 15,357,573$ 13,660,027$ 12,386,322$
Ending Balances as of Unaudited Actuals
Changes and Considerations to the
2017-18 Budget
Our Reserves are our Savings Account
General Fund Unrestricted Surplus Dollars
Fund 17
Fund 20
These funds are our safety net and source of one-time funds if needed
Goal – Total Reserves should be about 20% or approximately $15 million
Should be spent on one-time expenditures
Changes and Considerations to the
2017-18 Budget
Our Checking Account is our year over year ongoing income vs. ongoing
expenditures
Ongoing expenditures should not exceed our ongoing revenues
Ideally – Budget decisions are based upon prior year unaudited actuals
Often we use prior year actuals and current year projections to make decisions
about ongoing expenditures
Future year issues (STRS/PERS rate increases for example) also must be considered
when looking at ongoing expenditures in the budget
Reviewing the Savings Account
(Reserves)
2015-16 Unaudited Actuals
Total Reserves (Fund 01, Special Fund 17, Fund 20) $20,458,569
Increase from 2014-15 was $4,673,061
$3,102,921 was from ongoing revenue sources
$1,570,140 one-time revenue sources
REVIEWING THE CHECKING ACCOUNT
(YEAR OVER YEAR INCOME VS. SPENDING)
2015-16 End of Year Unaudited Actuals Starting Point for
the 2016-17 Budget
Ending Fund Dollars Available - $3,102,921
Additional Reductions or Savings in Budget + $1,100,000
(approx.)
Energy Savings and Department Reductions
Total Available Dollars for New Ongoing Costs = $4,202,921
BALANCING THE CHECKING ACCOUNT
Dollars Available From 2015-16 Ending Budget
Surplus Available Dollars = $4,202,921
Ongoing Expenditures For 2016-17 Projections
Employee Raise (4%) - ($1,525,142)
Employee Benefit Increase - ($201,081)
STRS/PERS Increase - ($620,000)
Enrichment Program - ($800,000)
Affordable Care Act + Other Benefits - ($313,339)
New Positions - ($729,788)
Other Additions - ($294,164)
TOTAL = ($4,483,514)
Dollars Remaining /(Deficit Spending) = ($280,593)
Addressing the 2017-18 Projection
Projected Increase of Property Taxes from 2016-17 Year of $2.3 mil
We start the year with an ongoing deficit of ($0.28 mil) assuming all current
programs continue next year
Start Budget Planning Process with incorporating new increases:
STRS/PERS projected rate increase $0.6 mil
Staffing changes based on enrollment and program needs (e.g. DLI, Spec Ed, etc.)
District of Choice potential loss of Revenues ($0.18 mil)
ELA/ELD materials
Facility maintenance needs
Child Nutrition Services facilities and Operations
Other expenses?
Fiscal Monitoring
Position Control
Overtime
Substitutes
Encumbrance reporting
Insurance, utilities and other large contractual items
Percentage received / expended
Enrollment / ADA
Economy (taxes, interest, etc.)
QUESTIONS?