Plumas Lake Elementary School District 2013-14 Budget Adoption Presentation June 20, 2013 Each student will reach their fullest potential as we strive for District excellence through sound leadership, effective communication, accountability, and investment in our staff.

Financial Reporting Cycle Budget is developed based on assumptions in June; Assumptions are usually based on the information in the May Revise Assumptions change during the year and we are required to file two interim reports during the year: First Interim – Due December 15, 2013 Second Interim – Due March 15, 2014 Budget Timeline: Governor released his Budget Proposal for 2013-14 in January Governor released the May Revise in May, which is based on updated revenue and expenditure data Legislature met its constitutional deadline and passed the 2013-14 budget and trailer bills on June 15 Changes how schools receive State Aid – Local Control Funding Formula Every district has a unique target base grant that will restore funding to 2007-08 funding levels Districts will move toward the target each year Governor will sign or veto budget bill We won’t have budget details until July 2012 Annual financial reporting: Budget Adoption – Due July 1, 2013 First Interim – Due December 16, 2013 Second Interim – Due March 17, 2014 Unaudited Actuals – Due September 15, 2014 Budget development is a continuous process

General Fund – Fund 01

Budget Assumptions 2012-13 Budget at Second Interim 2012-13 Estimated Actuals – Budget Development 2013-14 Budget Development Statutory COLA 3.24% 1.565% Deficit Factor 22.272% $0.77728 per $1.00 18.997% $0.81003 per $1.00 Revenue Limit (RL) w/ COLA RL w/ deficit Loss per ADA $6,912.36 $5,372.84 $1,539.74 $7,013.26 $5,680.95 $1,332.31 State Categorical Programs COLA Ed Jobs Funds ($222,813 final entitlement) $12K Federal Funds COLA Average Daily Attendance (ADA) 1045 K-8 plus 6.19 County – 1051.19 1050.5 K-8 plus 6.68 County – 1056.68 Lottery Base Lottery Prop 20 $124.25 $30.00 $124.00

Budget Assumptions (continued) Set aside five percent for economic uncertainty Commit funds for one Certificates of Participation (COP) Debt Service Payment Assign funds for Local Control Funding Formula – possible decrease in revenue Reserves Categorical Programs – 7.29 percent Cafeteria Fund – 5.31 percent Indirect Costs

Projected Enrollment as of 6/18/13 TK K 1 2 3 4 5 6 7 8 Total CB 14 60 43 64 49 39 38 307 Rio 20 59 61 82 65 74 443 SDC RM 121 111 92 324 Total (SDC included in last column only) 34 119 104 146 131 112 1079 We can use current year projections or prior year P2 data for Revenue Limit calculations. Prior year ADA, i.e., 2012-13 P2 Data for Revenue Limit calculations: 1050.50 District K-8 6.18 County SDC 1056.68 Total Projected District K-8 ADA based on current enrollment projections: 1079 x 97.0% = 1046.6 1052.81 Total

Plumas Lake ESD Organizational Chart Governing Board Superintendent Principal Site Staff Director FMOT Maintenance Worker Groundskeepers/Maintenance (2 positions) Bus Drivers/Custodians Site Custodians FMOT Secretary Director Curriculum/Instruction and Sp Ed Sp Ed Secretary Site Sp Ed Staff School Psychologist Counselor Academic Coach Director of Business Services Account Technicians Food Services Manager Site Food Services Workers Administrative Assistant Program Technician Computer Technician

Site Staff Cobblestone Rio Del Oro Riverside Meadows Office Administrator Site Secretary Office Clerk (3 hrs) Office Tech (8 hrs) Regular Classroom Teachers 15 FTE Teachers (includes TK classroom) 20 FTE Teachers 12 FTE Teachers Special Ed 1 FTE Teacher 2 Paras Learning Center (LC) 2 FTE Teachers 2 Paras SDC 2 Paras LC 1 Paras One-on-One 4 Paras LC 1 Para One-on-One Other 0.4 FTE PE Teacher 0.375 FTE Library 0.8125 FTE TK Para 0.6 FTE PE Teacher 0.375 FTE Library Clerk 2 FTE PE Teacher 0.4 FTE Band Teacher Yard Duty/Campus Supervision 6 hours Yard Duty 2 hours Crossing Guard 1.75 hours Yard Duty 5.5 hours Campus Monitor Custodial 1.875 FTE 2 FTE Shared positions Health Clerk – 6 hours Academic Coach – 1 FTE Counselor – 1 FTE Psychologist – 1 FTE

General Fund Revenue

Local Control Funding Formula Local Control Funding Formula (LCFF) will replace revenue limits Most categoricals will now be included in the formula (see slide with Tier III categoricals) Economic Impact Aid and Class-Size Reduction will also be a part of the LCFF Categoricals that are excluded: Transportation Targeted Instructional Improvement Grant (TIIG) Special Ed Child Nutrition Transportation and Targeted Instructional Improvement Grants will be add- ons and can be used for any educational purpose

Local Control Funding Formula Districts will receive a base grant amount based on grade-level Adjustments will be made for class size reduction Districts will receive supplemental funding based on percentage of low income, English learners and students in foster youth K-3 4-6 7-8 Base Grant Amount (based on May Revise) $6,845 $6,947 $7,154 Adjustment Factors (Class size reduction) $712 Enrollment eligibility (percent low income, English learners, or in foster youth) 40% Supplemental (35%) for English learners, low income and in foster youth $548 $556 $572 Concentration (35%) for English learners, low income and in foster youth above 50% -

Local Control Funding Formula K-3 4-6 7-8 Amount per grade level $8,104 $7,503 $7,726 Enrollment 494.12 360.23 196.15 $4,004,586 $2,702,719 $1,515,518 Add TIIG $4,433 Add Transportation $48,697 Total Funding $8,275,953

Revenue Limit and Categoricals Revenue Limit Sources (2012-13) $6,229,268 Economic Impact Aid $43,757 Class Size Reduction $457,317 Tier III Categoricals $251,309 Targeted Instructional Improvement $4,433 Transportation $48,697 Total $7,034,781 Districts will receive 11.75% of the gap between the LCFF and RL calculations methods: $8,275,953 - $7,034,781 = $1,241,172 x 11.75% = $145,838

Revenue Limit Calculations Used the School Services of California Dartboard assumptions to calculate revenue limit Will make adjustments once there is more information available California Department of Education will have to make changes to the software

Revenue Sources Revenue Limit Sources $6,195,621 $6,229,268 $6,529,561 2012-13 Second Interim Budget 2012-13 Estimated Actuals Budget 2013-14 Budget Variance (Est Act vs Budget) Note Revenue Limit Sources $6,195,621 $6,229,268 $6,529,561 4.8% Federal Revenue $300,873 $305,960 $277,734 -9.2% Sequester cuts, no Ed Jobs funding Other State Revenue $1,033,966 $1,031,176 $1,047,997 1.6% Mandated costs block grant Other Local Revenue $487,567 $492,894 $491,348 -0.3% Less interest and misc. revenue Interfund Transfers In $26,300 $23,000 -12.5% CFD Admin costs Total Revenue $8,044,327 $8,085,598 $8,369,640 -3.6%

Federal Revenue No Child Left Behind (NCLB) Funding Special Education Title I Improving the Academic Achievement of the Disadvantaged Part 1 – $76,670 Title II Preparing, Training, and Recruiting High Quality Teachers and Principals - $6,078 Title III – English Language Acquisition, Language Enhancement and Academic Achievement for Limited English Proficient (LEP) Students - $6,532 Special Education Local Assistance Grants - $83,261 SPED IDEA Mental Health funds - $12,693 Federal Impact Aid (unrestricted) – $32,500 Medi-Cal Administrative Activities (MAA) - $35,000 Medi-Cal Option Billing (grant thru YCOE) - $30,000

Other State Revenue Prop 20 Lottery Funds - $30 per ADA = $32,250 Economic Impact Aid - $43,757 Lottery (unrestricted) - $124 per ADA = $133,300 Tier III Categoricals and other State Revenue - $283,276 Transportation - $48,697 Class-Size Reduction K-3 - $457,317

Other State Revenue - Tier III Categorical Flexibility Education Code Section 42605 allows complete flexibility in the use of funds appropriated in the State budget for fiscal years 2008-09 through 2014-15 for numerous programs and can be used for any educational purpose. Grants included in this flexibility are: Closed Programs: Administrator Training - $4,849 Art and Music Block Grant - $15,115 California Peer Assistance & Review Program - $5,148 CAHSEE Intensive Instruction - $800 Community Based English Tutoring- $4,478 Math and Reading Professional Development - $9,018 Professional Development Block Grant - $11,597 School Safety and Violence Prevention - $7,990 Supplemental Hourly Programs - $24,143 Targeted Instructional Improvement - $3,914

Tier III Categorical Flexibility (continued) Closed Programs (continued) Gifted and Talented Education – $66,473 School Library Improvement Block Grant - $10,437 Programs closed but operating with original intent of program Instructional Materials Funding Realignment Program - $56,959 - funding is used to purchase approved curriculum Deferred Maintenance - $33,382 Routine Restricted Maintenance – flexibility to transfer one percent of expenditures (previously was three percent of General Fund expenditures) NOTE: With new funding method, all these categoricals with the exception of Targeted Instructional Improvement Grant will become a part of the LCFF funding formula.

Other Local Revenue and Other Financing Sources Interest Earnings - $20,000 Leases and Rentals – $56,300 Other revenue $9,800 Bus Fees - $13,000 Sp Ed Transfer from YCOE – $392,248 Other Financing Sources Interfund Transfers In - $23,000 (From Fund 52 for CFD Admin costs)

General Fund Expenditures

Expenditures 2012-13 Second Interim Budget 2012-13 Estimated Actuals Budget 2013-14 Budget Adoption Change Certificated Staff $3,744,745 $3,860,051 $3,887,597 0.7% Classified Salaries $1,313,915 1,346,178 1,396,058 3.7% Employee Benefits $1,585,382 $1,604,179 $1,593,126 -0.7% Books and Supplies $388,352 $421,884 $337,067 -20.1% Services/Op Expenses $1,037,871 $1,027,339 $1,014,091 -1.3% Capital Outlay $14,600 $0 Other Outgo $273,100 $265,693 $268,852 1.2% Indirect ($9,734) ($9,916) ($12,486) 25.9% Interfund Transfers Out $24,503 $28,172 $38,711 37.4% Total Expenditures $8,372,734 $8,543,580 $8,523,014

Salaries and Benefits $3,744,745 $3,860,051 $3,887,597 0.7% $1,313,915 Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Adoption Change Notes Certificated $3,744,745 $3,860,051 $3,887,597 0.7% Includes step increase Classified $1,313,915 $1,346,178 $1,396,056 3.7% Benefits $1,585,382 $1,604,179 $1,593,126 -0.7% District contribution: STRS $304,880 $313,072 $319,927 8.25% PERS $138,037 $140,062 $145,852 11.417% OASDI/Medicare $142,173 $146,655 $152,149 6.2%/1.45% Health $825,876 $825,074 $828,768 $10,000 per FTE Unemployment $62,069 $63,667 $11,021 0.05% Worker’s Comp $96,192 $98,882 $117,075 2.2246% PERS Reduction/Other $$16,155 $16,667 $18,334 1.603%

Books and Supplies Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Adoption Change Note Approved Textbooks and Core Curricula Materials $73,616 $77,370 $20,000 -74.2% No adoptions planned Books and other reference materials $9,664 $16,295 $10,350 -36.5 Materials and supplies $233,841 $247,079 $205,217 1.3% Non-capitalized Equipment $71,231 $81,140 $56,500 -30.4% SmartBoards Total $388,352 $421,884 $337,067 -20%

One-Time Expenditures SmartBoards and clickers – $45,500 ( Title I and Lottery) One-Time Expenditures Transitional kindergarten startup - $5,000 Total $50,500

Services and Other Operating Expenditures Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Subagreements $96,450 $95,399 $67,000 -29.8% Travel and Conferences $42,528 $41,105 $42,022 2.2% Dues and Memberships $4,475 $5,040 12.6% Insurance $85,243 $85,305 0.1% Ops/Housekeeping $269,129 $277,980 3.3% Rentals/Leases $85,220 $82,562 $88,720 7.1% Directs Costs Interfund ($34,996) ($35,774) Consulting/Professional $438,561 $433,039 $435,938 0.7% Communications $51,261 $51,083 $47,860 -6.3% Total $1,037,871 $1,027,339 $1,014,091 -1.3%

Other Outgo Payments to County Offices $266,500 $259,093 $268,852 3.8% Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Payments to County Offices $266,500 $259,093 $268,852 3.8% Debt Service $6,600 -100% Transfers of Indirect -Fund 13 ($9,734) ($9,916) ($12,468) 25.9%

Contracted Services and Other Outgo Health Services Nurse – $30,000 Special Education Occupational Therapist = $50,000 Behavior Specialist - $36,336 Special Behavior Assessments - $1,000 Excess Program Costs - $268,852 Yuba County Office of Education Sutter County Superintendent of Schools Transportation – Marysville Joint Unified School District - $51,000 Technology Advanced Technology Group - $55,000 Yuba County Office of Education - $79,400 Professional Development District-wide - $37,290 Audit - $15,000 Legal Counsel - $13,500

Contributions to Restricted Programs Category Transportation Routine Restricted Maintenance Special Education Revenue $61,697 No State Funding $475,509 Contribution from unrestricted & RL transfer (SPED only) $102,004 $310,289 $596,547 Total Revenue $163,701 $1,072,056 Certificated Staff $300,675 Classified Staff $45,348 $138,290 $222,951 Benefits $20,528 $58,109 $158,290 Materials & Supplies 17 $73,600 $2,450 Services & Other Operating Expenditures $11,010 $19,207 $66,550 SPED Transportation Costs $30,000 $268,852 Excess Program Costs/Indirect $9,920 $21,083 $52,288 Total Expenditures $149,173

General Fund Activity and Reserves Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Beginning Balance $3,077,693 $2,619,711 Revenue $8,044,327 $8,085,598 $8,369,640 Expenditures $8,372,734 $8,543,580 $8,523,014 Net Increase/Decrease ($328,407) ($457,982) ($153,374) Ending Fund Balance $2,749,286 $2,466,337 Economic Uncertainty $417,322 $425,864 $425,001 Revolving Cash $5,100 Restricted Funds $80,444 $75,443 $57.955 Committed - COP Debt Service $410,188 Assigned - Salary Increase $115 355 $115,355 Local Control Funding Formula Impact $193,730 $193,700 Available for budget shortfalls $1,720,878 $1,394,061 $1,374,393

Multi-Year Projections (MYP) Budget Assumptions 2013-14 Budget Development 2014-15 Projection 2015-16 Statutory COLA 1.565% 1.80% 2.20% Deficit Factor 18.997% $0.81003 per $1.00 Revenue Limit (RL) w/ COLA RL w/ deficit Loss per ADA $7,013.36 $5,681.03 $1,332.33 $7,131,.36 $5,776.62 $1,354.74 $7,278.36 $5,895.69 $1,382.67 State Categorical Programs COLA 1.8% 2.2% Federal Funds COLA Average Daily Attendance (ADA) 1050.5 K-8 plus 6.18 County = 1056.68 Lottery Base Lottery Prop 20 $124 $30 California Consumer Price Index 2.3%% 2.30%

MYP Budget Assumptions (continued) Salaries and Benefits: No changes to staffing Included step increase for all eligible employees No changes to statutory benefits Health, Dental, Vision contribution – $10,000 per FTE

MYP Assumptions That May Impact the Budget Issue Current Assumption Current Status Impact Enrollment/ADA and Revenue Limit 2012-13 P2 Data 1050.50 Enrollment as of 6/18/13 is 1079 x 97% = 1046.63 ADA Unknown Current law allows district to use prior year ADA Local Control Funding Formula Using School Services of California (SSC) Dartboard for Revenue Limit Calculations Based on information from SSC District will receive less funding with Local Control Funding Formula ($193,700) Less State Aid

Multi-Year Projections 2012-13 Budget 2013-14 Projection 2014-15 Projection Beginning Fund Balance $2,619,711 $2,466,337 $2,199,626 Revenue $8,369,641 $8,492,005 $8,673,753 Expenditures $8,523,014 $8,758,717 $8,894,740 Net Increase (Decrease) in Fund Balance ($153,374) ($266,712) ($220,987) Ending Fund Balance $1,978,639 Revolving Fund & Restricted $63,055 Commitment- COP $410,188 $409,563 $408,788 Reserved for Economic Uncertainty $425,001 $437,936 $444,737 Assigned – Local Control Funding Formula Impact $193,700 Available for budget shortfalls $1,374,393 $1,289,072 $1,062,057

Cash Current cash balance in county treasurer for the General Fund - $538,052 (as of May 31, 2013) Deferrals continue to be a concern – we monitor cash closely every month and will continue to do so throughout the year: State Budget includes funding to buy back deferrals No information available on payment schedule Education Protection Account (EPA) – approximately 20 percent of our State Aid 2012-13 – the 20 percent will be released June 27, 2013 2013-14 – will be paid quarterly

Cafeteria Fund – Fund 13

Fund 13 Assumptions Revenue Expenditures Food Sales Paid lunches will increase by $0.25 Decreased food sales due based on actuals for this year Catering services - $33,462 Contribution from General Fund - $38,711 Expenditures Salaries and benefits Step increases for all staff Includes additional position – Catering Lead Food and supplies – additional cost for catering services Transfer of Direct Costs– Garbage (40 percent) and PG&E (15 percent) Indirect costs – 5.31 percent

Fund 13 - Cafeteria Fund Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Beginning Balance $500 Revenue $410,600 $427,512 4.1% Expenditures $434,403 $438,772 $466,223 6.3% Net Increase (Decrease) in Fund Balance ($23,803) ($28,172) ($38,711) 37.4% Transfer In (From General Fund) $24,503 $28,172 $38,711 Ending Balance

Deferred Maintenance Fund Fund 14

Fund 14 Assumptions and Summary Deferred Maintenance Program is a Tier III Categorical Program was closed in 2008-09 Funds can be used for any educational purpose State funding was transferred under flexibility in 2008-09 Funding was deposited in Fund 01 since 2008-09 State funding is budgeted in Fund 14 for 2013-14 Fund balance was committed at 2011-12 at First Interim for Deferred Maintenance Projects Revenue State funding and interest Expenditures Riverside Meadows Paint Project and Rio Seal Coat Project

Fund 14 - Deferred Maintenance Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Beginning Balance $100,139 $86,239 Revenue $1,100 $34,482 3,034.7% Expenditures $15,000 $35,000 133.3% Net Increase (Decrease) in Fund Balance ($13,900) ($518) -96.3% Ending Fund Balance $85,721 Committed – Deferred Maintenance

Capital Facilities Fund Fund 25

Fund 25 Assumptions and Summary – Revenue Impact Fees and interest Transfer from Fund 52 - $526,035 Expenditures Debt Service Payments COP Principal and Interest Payment = $410,188 Refi COP Interest only payment = $152,013 Consulting fees - $21,500 for fee study, disclosures, trustee fees and developer negotiations Developer Impact Fees Collected 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 $27K $196K $250K $239K $170K $76,957

Fund 25 – Capital Facilities Fund Category 2012-13 Budget Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Beginning Balance $518,966 $18,792 Revenue $60,005 $70,102 $59,445 -15.2% Expenditures $8,415,34 $8,415,344 $585,480 -93.0% Net Increase (Decrease) in Fund Balance ($8,355,339) ($8,345,242) ($526,035) -93.7% Interfund Transfers In $169,702 $139,075 $526,035 278.2% Transfers Out/Others Uses $12,864,007 -100% Ending Fund Balance $39,322 $500,713 Cash w/ fiscal agent $6,512 Assigned – Capital Facilities projects $12,280

Debt Service Fund Fund 52

Fund 52 Assumptions and Summary – Revenue - $682,010 Community Facilities District (CFD) Mello Roos taxes are collected in January and June: CFD #1 - $320 per home annual for total of $506,560 CFD #2 - $400 per home annual for total of $170,000 Interest earnings for cash at county and cash with fiscal agent Expenditures - $1,092,413 Report fees - $600 Debt Service payments CFD #1-2005- Principal and Interest debt service payment $306,720 CFD #2 2007- Principal and Interest debt service payment $90,672 CFD Administrative Costs $23,000 – Administrative costs paid out of General Fund and reimbursed from Fund 52 Transfer to Fund 25 for COP payments - $526,035 Other notes: Cash flow will be an issue. We will probably have to loan funds from the General Fund to make the debt service payments for the February payments.

Fund 52 – Debt Service Fund Category 2012-13 Second Interim 2012-13 Budget Estimated Actuals 2013-14 Budget Change Beginning Balance $1,021,873 $1,145,390 Revenue $682,300 $682,505 $681,572 -0.1% Expenditures $2,972,620 $397,392 -86.6% Interfund Transfers In $2,579,007 -100% Interfund Transfers Out $196,002 $165,375 $549,035 232% Net Increase (Decrease) $92,715 $123,517 ($264,855) -314.4% Ending Fund Balance $1,114,588 $880,535 Cash w/ fiscal agent $402,658 $402,559 Assigned – Debt Service $711,929 $742,831 $477,976

Fund 52 Multi-Year Projections 2012-13 2013-14 2014-15 Beginning Balance $1,021,873 $1,145,390 $800,535 Revenue $682,505 $681,572 Expenditures $2,972,620 $397,392 $396,916 Transfers In $2,579,007 Transfer Out $165,375 $549,035 $599,856 Net Increase or decrease in fund $123,517 ($264,855) ($315,200) Ending Fund Balance $565,335 Cash with fiscal agent $402,559 Funds available for Aug/Sept payments $742,831 $477,976 $162,776

Debt Service Schedule Debt Service Due Date Principal Interest Total Due CFD #1 – Series 2005 August 1 $115,000 $97,233 $209,488 CFD #2 – Series $25,000 $33,188 $58,188 COP 2012 September 1 $76,006 COP 2012 Refi $185,000 $113,981 $298,981 CASH NEEDED $642,663 February 1 $32,484 March 1 $111,206 $316,929

Any questions?