1. PLUMAS LAKE ELEMENTARY SCHOOL DISTRICT 2012-13 First Interim December 13, 2012 Each student will reach their fullest potential as we strive for District excellence through sound leadership, effective communication, accountability, and investment in our staff.

2. FINANCIAL REPORTING CYCLE Annual financial reporting: Budget Adoption – Due July 1, 2012 First Interim – Due December 15, 2012 Second Interim – Due March 15, 2013 Unaudited Actuals – Due September 15, 2013 Budget is developed based on assumptions in June; Assumptions are usually based on the information in the May Revise Assumptions change during the year based on updates from the State and we are required to file two interim reports during the year and certify one of the following: Positive: District can meet its current year and subsequent two year obligations; Qualified: District may not be able to meet its current year and subsequent two year obligations; or Negative: District cannot meet its current year and subsequent two year obligations. Budget development is a continuous process

4. BUDGET ASSUMPTIONS 2012-13 Budget Development2012-13 First Interim Statutory COLA3.24% Trigger Cuts – if tax initiatives fail$441 per ADA Deficit Factor22.272% $0.77728 per $1.00 22.272% $0.77728 per $1.00 Revenue Limit (RL) w/ COLA RL w/ deficit Loss per ADA $6,912.36 $5,373.62 $1,539.74 $6,912.36 $5,372.84 $1,539.74 State Categorical Programs COLA 00 Ed Jobs Funds ($222,813 final entitlement) $11K$12K Federal Funds COLA00 Average Daily Attendance (ADA)1030.59 K-8 plus 6.42 County = 1037.01 1040 K-8 plus 6.42 County – 1046.42 Lottery Base Lottery Prop 20 $118.25 $23.75 $124.25 $30.00

5. SITE STAFF CobblestoneRio Del OroRiverside Meadows OfficeAdministrator Site Secretary Administrator Site Secretary Office Clerk (3 hrs) Administrator Site Secretary Office Tech (5 hrs) K-8 Classrooms14 FTE Teachers (includes TK classroom) 1 Para (TK) 23 FTE Teachers12 FTE Teachers Special Education1 FTE Teacher 2 Paras Learning Center (LC) 2 FTE Teachers 3 Paras SDC 2 Paras LC 1 Para One-on-One 1 FTE 4 Paras LC 1 Para One-on-One Other0.428 0.4 FTE PE Teacher 0.375 FTE Library Clerk 0.643 0.6 FTE PE Teacher 0.375 FTE Library Clerk 2 FTE PE Teachers 0.4 FTE Band Teachers 0.375 FTE Library Clerk Yard Duty/Campus Supervision 6 hours Yard Duty 2 hours Crossing Guard 1.75 hours Yard Duty 5.5 hours Campus Monitor Custodial1.875 FTE2 FTE Shared positionsHealth Clerk – 6 hours Academic Coach – 1 FTE Counselor – 1 FTE Psychologist – 1 FTE

6. SOURCES OF REVENUE: REVENUE LIMIT FEDERAL REVENUE OTHER STATE AID LOCAL REVENUE

7. REVENUE LIMIT STATE AID Revenue Limit calculations -Using 1040 for K-8 however P2 ADA may come in higher: Potential for more revenue – as of 12/11/12 enrollment is 1098  If enrollment continues to grow until P2 we could see higher P2 ADA Data.  If P2 ADA comes in the same as P1 ADA there is potential for an increase in state aid - $85,339 Month 1Month 2Month 3Month 4 Monthly ADA 1058.1397.95%1054.3597.76%1047.9597.25%1057.3696.95% Cumulative ADA 1058.1397.91%1056.0397.83%1053.1497.62%1054.55 (P1) 97.48% Average Enrollment 1081107910781091

8. REVENUE LIMIT STATE AID 2012-13 Budget 2012-13 First Interim ChangeNotes Principal Apportionment$5,479,093$5,530,424$51,331 0.9% Adjusted ADA Property Taxes$624,718 0 Revenue Limit Transfers$11,603$11,282($321) (2.8%) Based on classified salaries subject to PERS

9. FEDERAL REVENUE Education Jobs Funding - $12,057 Was spent by September 30, 2012 for teacher salaries No more funding available No Child Left Behind (NCLB) Funding  Title I Improving the Academic Achievement of the Disadvantaged Part 1  Budget Development: Preliminary numbers were $45K, however due to the requirements of the program we did not budget, however CDE has posted preliminary entitlements now and the amount was significantly higher.  First Interim – Preliminary entitlement is $82,090  Title II Preparing, Training, and Recruiting High Quality Teachers and Principals  Budget Development - $3,449  First Interim – preliminary entitlement is $6,398  Title III – English Language Acquisition, Language Enhancement and Academic Achievement for Limited English Proficient (LEP) Students - $11,426 Special Education  Local Assistance Grants - $72,483  SPED IDEA Mental Health funds – $2,326 Federal Impact Aid (unrestricted) – $30,000 Medi-Cal Administrative Activities (MAA) - $35,000 Medi-Cal Option Billing (grant thru YCOE) - $30,000

10. OTHER STATE REVENUE Prop 20 Lottery Funds – $5,716 FY 11-12 $32,220 FY 12- 13 $24,486 $23.75 $30 per Annual ADA Economic Impact Aid - $25,945 $25,949 Lottery (unrestricted) - $5,578 FY 11-12 $133,176 FY 12-13 $121,658 $118 $124.25 per Annual ADA Tier III Categoricals and other State Revenue - $264,962 $265,058 Transportation - $47,955 $47,959 Home-to-School - $28,526 $23,378 Home-to-School SPED - $19,429 $24,581 Class-Size Reduction K-3 - $457,317 $450,000

11. 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 - $15,116 $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 - $4,433 $3,914

12. TIER III CATEGORICAL FLEXIBILITY (CONTINUED) Closed Programs (continued) Deferred Maintenance - $33,464 – funding is transferred to Routine Restricted Maintenance 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 - $56,862 $56,959 - funding is used to purchase approved curriculum Routine Restricted Maintenance – flexibility to transfer one percent of expenditures (previously was three percent of General Fund expenditures) Current contribution budgeted is $269,184 Three percent of expenditures is $251,124

13. OTHER LOCAL REVENUE AND OTHER FINANCING SOURCES Other Local Revenue  Interest Earnings - $22,200 $28,200  Leases and Rentals – $41,024 $35,219  Other revenue $9,977 $9,800  Bus Fees - $13,000  Sp Ed Transfer from YCOE – $384,326 $392,686  YCOE adjusted based on SELPA-wide ADA  YCOE used 2011-12 P2 ADA  District will make adjustments at Second Interim Other Financing Sources  Interfund Transfers In - $26,300 (From Fund 52 for CFD Admin costs)

14. REVENUE SOURCES Revenue Source2012-13 Budget 2012-13 First Interim VarianceNotes Revenue Limit Sources $6,115,414$6,166,424$51,0100.8%Adjusted RL ADA Federal Revenue $196,670$281,780$85,11043.3% Adjusted Title I and Title II funding Other State Revenue $935,110$972,870$37,7604% Adjusted Class Size Reduction and Lottery Other Local Revenue $478,905$470,527($8,378)(1.7%) Adjusted Interest, SELPA funding, and rentals/leases Interfund Transfers In $26,300 Total Revenue$7,752,399$7,917,901$165,5022.1%

16. NEW ONGOING COSTS FOR 2012-13 Counselor – 1 Full-time Equivalent (FTE) Utility Worker (Grounds/Maintenance) – 1 FTEClassroom Teachers – 2 FTE Transitional Kindergarten Paraprofessional - 0.8125 FTE

17. SALARIES AND BENEFITS Category2012-13 Budget Adoption 2012-13 First Interim ChangeNote Certificated$3,820,902$3,768,088($52,814) (1.4%) Adjusted salaries to actual contracts (column movement,/new hires) and removed academic coach salary Classified$1,299,005$1,317,261$18,256 1.4% Added para salary and adjusted clerical and support staff salaries Benefits$1,648,662$1,604,153($44,509) (2.7%) District contribution: STRS$313,428$311,030($2,398) 8.25% PERS$136,997$139,662$2,665 11.417% OASDI/Medicare$150,711$143,599($7,112) 6.2%/1.45% Based on salaries after pre-tax deductions Health$869,689$834,482($35,207) $10,000 per FTE Based on actual monthly contribution Unemployment$66,544$62,459($4,085) 1.1% Based on salaries after pre-tax deductions Worker’s Comp$93,860$96,693$2,833 1.9% - rate finalized after budget development PERS Reduction/Other $17,433$16,228($1,205) PERS 1.603% Adjusted other benefits

18. BOOKS AND SUPPLIES Category2012-13 Budget Adoption 2012-13 First Interim ChangeNote Approved Textbooks and Core Curricula Materials $84,497$82,616($1,881)Adjusted for workbooks Books and other reference materials $10,028$10,540$512 Materials and supplies $205,292$238,153$32,861Added Title I, materials for trainings and site adjustments Non-capitalized Equipment $54,200$70,357$16,157Added Title I -SmartBoards for Riverside Total$354,017$401,666$47,649

19. SERVICES AND OTHER OPERATING EXPENDITURES Category2012-13 Budget 2012-13 First Interim ChangeNotes Subagreements$70,450$75,450$5,000 Adjusted for contracts over $25,000 Travel and Conferences$41,435$46,603$5,168Adjusted for trainings Dues and Memberships$5,150$4,435($715) Insurance$86,953$85,510($1,443)Adjusted to actuals Ops/Housekeeping$268,320 Rentals/Leases$81,050$83,635$2,585Adjusted for copiers and FMOT repairs Directs Costs Interfund($34,220)($35,634)($1,414) Consulting/Professional$382,036$441,330$59,294Added Title I expenditures and trainings Communications$50,921 Total$952,095$1,020,570$68,475

20. OTHER OUTGO Category2012-13 Budget2012-13 First Interim Change Payments to County Offices $266,500 0 Debt Service$6,600 0 Transfers of Indirect - Fund 13 ($9,492)($9,618)($126) – based on Fund 13 expenditures

21. EXPENDITURES 2012-13 Budget Adoption 2012-13 First Interim ChangeNotes Certificated Staff $3,820,902$3,768,088($52,814) Adjusted salaries to contracts and removed academic coach Classified Salaries $1,299,005$1,317,261$18,256 Added TK para salary and adjusted to contracts Employee Benefits $1,648,662$1,604,153($44,509) Adjusted to salaries and for pre- tax deductions Books and Supplies $354,017$401,666$47,649 Added Title I expenditures and added for professional development Services/Op Expenses $952,095$1,020,570$68,475 Added Title I expenditures and added for professional development Other Outgo $273,100 Indirect ($9,492)($9,618)($126) Based on Fund 13 expenditures Interfund Transfers Out $18,927$21,880$2,953 Contribution to Fund 13 Total Expenditures $8,357,216$8,397,100$39,884

22. CONTRIBUTIONS TO RESTRICTED PROGRAMS CategoryTransportationRoutine Restricted Maintenance Special Education Revenue State Aid$60,955No State Funding$456,809 RL transfer (SPED only)$30,534 Total Revenue$60,955$487,343 Expenditures Certificated Staff$325,047 Classified Staff$42,694$131,971$238,010 Benefits$17,308$55,624$173,252 Materials & Supplies$30,000$43,604$2,300 Services & Other Operating Expenditures$10,963$15,578$77,443 SPED Transportation Costs$30,000$266,500 Excess Program Costs/Indirect$9,920$22,407$95,015 Total Expenditures$140,885$269,184$1,177,567 Contributions from unrestricted resources $79,330$269,184$690,224

23. GENERAL FUND REVENUE AND EXPENDITURES Category2012-13 Budget Development 2012-13 First Interim Beginning Balance$2,969,364$3,077,693 Revenue$7,752,399$7,917,900 Expenditures$8,357,216$8,397,100 Net Increase/Decrease($604,817)($479,200) Ending Fund Balance$2,364,547$2,598,493 Economic Uncertainty$416,914$418,540 Revolving Cash$5,100 Restricted Funds$12,927$59,426 Committed - COP Debt Service$474,603$410,188 Assigned- Charter ADA$186,5110 Assigned - Salary Increase$115,355 Revenue Limit Per ADA Reductions$457,3210 Lottery$35,6390 Available for budget shortfalls$660,177$1,589,886

24. MULTI-YEAR PROJECTIONS (MYP) BUDGET ASSUMPTIONS 2012-13 First Interim2013-14 Projection 2014-15 Projection Statutory COLA3.24%2.00% 2.50%2.30% 2.70% Deficit Factor22.272% $0.77728 per $1.00 22.272% $0.77728 per $1.00 22.272% $0.77728 per $1.00 Revenue Limit (RL) w/ COLA RL w/ deficit Loss per ADA $6,912.36 $5,372,84 $1,539.52 $7,041.36 $5,473.11 $1,568.25 $7,192.36 $5,590.48 $1,601.88 State Categorical Programs COLA 002.30% Ed Jobs Funds ($222,813 final entitlement) $12,50600 Federal Funds COLA000 Average Daily Attendance (ADA)1040 K-8 plus 6.42 County = 1046.42 Lottery Base Lottery Prop 20 $124.25 $30.00 $124.25 $30.00 $124.25 $30.00 California Consumer Price Index2.30%2.5%

25. 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 – based on current contributions Adjusted for one-time expenditures for textbooks and TK start-up; Fund Balance Reserves:  Reserves for Economic Uncertainty – Five percent of expenditures  Committed one COP (COP REFI) debt service payment in reserves  Assigned funds for salary increase in 2012-13

26. MULTI-YEAR PROJECTIONS 2012-13 First Interim2013-14 Projection2014-15 Projection Beginning Fund Balance$3,077,693$2,598,493$2,077,653 Revenue$7,917,900$8,004,147$8,161,053 Expenditures$8,397,100$8,524,987$8,688,528 Net Increase (Decrease) in Fund Balance ($479,200)($520,840)($527,475) Ending Fund Balance$2,598,493$2,077,653$1,550,179 Revolving Fund & Restricted$64,526 Commitment- COP$410,188 $408,788 Reserved for Economic Uncertainty $418,540$426,249$434,426 Assignment - Salary Increases$115,355 Available for budget shortfalls$1,589,886$1,176,691$642,439

27. CASH Deferrals continue to be a concern – we monitor cash closely every month and will continue to do so throughout the year:  We will be receiving a balloon payment in June. No information on timing of payment, which is a concern.  State has eliminated a couple of deferrals (January payments moved to December; No March deferral) Current cash balance in county treasurer for the General Fund - $1,992,243 ( as of October 31, 2012 )

29. FUND 13 - CAFETERIA FUND Category2012-13 Budget 2012-13 First Interim ChangeNotes Beginning Balance$500 $1.00500.00 Revenue$410,600 Expenditures$429,527$432,480$2,953Adjusted salaries to actual contracts Net Increase (Decrease) in Fund Balance ($18,927)($21,880)- Transfer In (From General Fund) $18,927$21,880$2,953 Ending Balance$500 $1.00500.00

31. FUND 14 - DEFERRED MAINTENANCE Category2012-13 Budget2012-13 First Interim Notes Beginning Balance$100,139 $100,205$100,139 Revenue$1,500 Interest Earnings on cash at County Expenditures$15,000 Net Increase (Decrease) in Fund Balance ($13,500) Ending Fund Balance$86,639 Committed – Deferred Maintenance $86,639

33. FUND 25 ASSUMPTIONS AND SUMMARY Revenue  Developer Fees:  Interest earnings - $450  Certificates of Participation 2012 - Refinanced CFD #1 Series 2007 BAN - $3,705,000  Certificates of Participation 2012 REFI – Refinanced COP Series 2007 $6,580,000 Expenditures  Debt Service Payments  COP 2012 Series 2007 - $6,705,751  COP 2012 BAN REFI - Interest only payment = $94,586  COP 2012 COP REFI - $75,988  Consulting fees - $21,500 for fee study, disclosures, trustee fees and developer negotiations Developer Impact Fees Collected 2007-082008-092009-102010-112011-122012-13 $27K$196K$250K$239K$170K$47,145 (YTD)

34. FUND 25 – CAPITAL FACILITIES FUND Category2012-13 Budget2013-14 MYP2014-15 MYP Beginning Balance$518,966 $500,713$876,984 Revenue Impact Fees & Interest$47,605$450 Refinancing of COP and CFD$10,285,00000 Transfer from Fund 52 for COP Transfer from Fund 52 for REFI $106,577 $63,125 $583,250$581,851 Total Revenue$10,502,307$583,700$582.300 Expenditures Services/Other Operating$688,957 (includes closing cost of Refi’s) $21,500 Debt Service$6,705,751 COP 2007 payoff $75,988 COP REFI $94,586 BAN REFI $410,188 COP REFI $152,013 BAN REFI $408,788 COP REFI $152,013 BAN REFI Interfund Transfers Out$2,579,007 (Fund 52 for CFD 1 2007 Refi) 00 Total Expenditures$10,144,289$583,700$582,300 Net Increase (Decrease) in Fund Balance $358,018($0.27)0 Ending Fund Balance$876,984 Cash w/ fiscal agent $25,010 Assigned for Land Purchase from County $851,974

36. FUND 52 ASSUMPTIONS AND SUMMARY Revenue 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 (increase of 14 homes) Interest earnings for cash at county and cash with fiscal agent - $5,770 Expenditures Report fees - $600 Debt Service payments CFD #1-2005- Principal and Interest debt service payment $306,075 CFD #2 2007- Principal and Interest debt service payment $86,938 CFD #1 2007- Principal and Interest debt service payment $$2,579,007 Transfers to other Funds: Transfer to Fund 25 for COP payments - $106,577 Transfer to Fund 25 for REFI CFD #1 Series 2007 - $63,125 Transfer to Fund 01 for CFD Administrative Costs - $26,300

37. FUND 52 – DEBT SERVICE FUND Category2012-13 Budget2013-14 MYP2014-15 MYP Beginning Balance$1,021,873 $994,763$1,114,588$789,056 Revenue Mello Roos and Interest$682,330$682,010 Transfer from Fund 25$2,579,007 Total Revenue$3,261,337$682,010 Expenditures Other services$600 CFD #1 Series 2007 Payoff$2,579,007 CFD #1 Series 2005$306,075$306,720$307,050 CFD #2 Series 2007$86,938$90,672$89,266 Transfers Out ( Fund 01 and 25) $26,300 (Fund 01 – CFD Admin) $63,125 (Fund 52 – CFD 1 payoff) $106,577 (Fund 52 – COP Debt service) $26,300 $583,250 $26,300 $581,850 Total Expenditures$3,168,622$1,007,542$1,005,067 Net Increase (Decrease)$92,715($325,532)($323,057 Ending Fund Balance$1,114,588$789,056$465,999 Cash w/ fiscal agent$402,656 Assigned – Debt Service$711,932$386,399$63,343

38. SUMMARY AND RECOMMENDATION We have lost millions in State Aid since the state budget crisis began in 2008-09:: 2012-13 - $1.6M (projected) 2011-12 - $1,4M 2010-11 - $1.2M 2009-10 - $1.2M 2008-09 - $487K  District will be deficit spending in the current budget year and two subsequent years.  District has managed the budget through the State financial crisis and has sufficient fund balance to help deal with the fifth year of this budget crisis.  Based on multi-year projections and current assumptions staff recommend the Board approve First Interim with a positive certification and the budget adjustments within.

39. ANY QUESTIONS?