1. PUBLIC HEARING FOR THE BUDGET ADOPTION 2015-2016 RAMONA UNIFIED SCHOOL DISTRICT JUNE 11,2015 1

2. OPENING COMMENTS The 2015-2016 July 1 budget is the beginning of a journey which ends over a year from now. It starts with assumptions that can change throughout the year. Some examples of these assumptions are:  The final State of California budget adoption and changes from current law  The actual enrollment in August  The number of sections taught at the high school and the number of elementary classrooms needed  The dollars from school sites not spent in the 2014-2015 school year which need to be accounted for  The State certification of the LCFF formula  The actual cost of increases in health benefits Other assumptions may also change 2

3. 2015-2016 RUSD PROJECTION Revenues$55,046,118 Expenses$52,204,671 Difference $ 2,841,447 Projected Beginning Balance$ 3,241,792 (July 1, 2015) Ending Balance$ 6,083,237 (Projected for June 30, 2016) Fund 17 (Special Reserve Fund) houses the 3% reserve -- or $1,545,197-- which is not reflected in the above number or in the multi-year projections 3

4. ASSUMPTIONS FOR REVENUES Revenues are based on Governor Brown’s May Revision to his proposed State Budget  Local Control Funding Formula is projected to receive dollars to close 53% of the gap to meet the targeted funding level  One-time revenues for Mandated Costs reimbursements  COLA to the target and the revenues are included (1.02%)  Current year ADA for revenue 4

5. WHERE DOES RAMONA GET ITS REVENUE? 5

6. LOCAL PROPERTY TAX INCOME TO RAMONA 6

7. ASSUMPTIONS FOR EXPENSES Dollars budgeted to support the LCAP which includes textbooks and continued professional development Increase in health benefits based upon preliminary projections Step and column increases Ramona Teachers Association tentative agreement and the ALT settlements are NOT included in these numbers along with any undetermined CSEA settlements Budget for the possible purchase of two new buses Full funding of the Routine Restricted Maintenance Account CALStrs and CALPers increases Assuming dollars budgeted in 2014-2015 are spent 7

8. CERTIFICATES OF PARTICIPATION A payment of $2,185,000 towards the COP is in the budget and multi-year budgets The final pricing occurred on June 4, 2015 with a delivery date of June 26, 2015 The refund kept the same term as the prior loan, but now has leveled the payments to $2,175,000 The total annual savings was $7,250,000 over the life of the previous debt This is $750,000 more than the Board approved resolution of a minimum savings of $6,500,000 The Governmental Finance Officers Association has a refunding rule of thumb that encourages a refund only if a district can achieve a 3% present value savings or better, RUSD refund was more than doubled this The interest cost on average was 3.38% The principal to debt ratio is 1 to 1.39 compared to the prior loan ratio of 1 to 2.1 8

9. MAINTENANCE UPDATE Routine Restricted Maintenance Account (RRMA) is restored to full funding in 2015-2016 Projects which have been completed or are scheduled over the summer include: Carpet/Tile Roofing Asphalt Bathrooms Science classrooms Turf field Gym floors Blinds Fencing Joint projects such as drinking fountain replacement, HVAC units and basket ball hoops for Ramona Elementary and other projects around the District are occurring with the MHS construction class and the FORUS group 9

10. MULTI-YEAR PROJECTIONS 10 Multi-Year Projections: Adopted Budget 2015-2016 2015-20162016-20172017-2018 Current Yr. Revenues $ 55,046,118 $ 53,122,256 $ 54,088,746 Current Yr. On-Going Expenses $ 49,759,671 $ 51,441,032 $ 51,130,769 Deficit/Surplus $ 5,286,447 $ 1,681,224 $ 430,946 COP Payment From General Fund $ 2,185,000 One-Time Expense Transportation Buses $ 260,000 $ - One-Time Expense Language Arts Textbooks $ - $ 900,000 $ - Beginning Balance $ 3,241,792 $ 6,083,239 $ 4,679,463 Ending Balance $ 6,083,239 $ 4,679,463 $ 2,925,409

11. ASSIGNED AND UNASSIGNED RESERVES Senate Bill (SB) 858 requires starting with the public hearing a school district needs to determine the total amount of assigned and unassigned ending fund balances for the budget and two additional years 2015-2016 Total Reserves (including Fund 17)$7,628,434 3% Reserve requirement$1,566,140 Remaining Balance$6,062,294 Reasons for fund balance in excess of minimum reserve $900,000 in 2016-2017 for English Language Arts textbook adoption $5,162,294 remains for: Future economic downturns Tentative agreement with RTA, settlements with ALT, potential settlement with CSEA, 11

12. ASSIGNED AND UNASSIGNED RESERVES 2016-2017 Total Reserves (including Fund 17)$6,244,660 3% Reserve requirement$1,635,781 Remaining Balance$4,608,879 Reasons for fund balance in excess of minimum reserve $4,608,879 remains for: Future economic downturns Tentative agreement with RTA, settlements with ALT, potential settlement with CSEA 12

13. ASSIGNED AND UNASSIGNED RESERVES 2017-2018 Total Reserves (including Fund 17)$4,510,606 3% Reserve requirement$1,675,284 Remaining Balance$2,835,322 Reasons for fund balance in excess of minimum reserve $2,835,322 remains for: Future economic downturns Tentative agreement with RTA, settlements with ALT, potential settlement with CSEA 13

14. ASSUMPTIONS THROUGH 2017-2018 The LCFF funding level continues at the DOF projections  COLA is built into the model Payment for COP stays constant at $2,185,000 Decline of enrollment continues In 2016-2017 the need to purchase English Language Arts Textbooks and are included in the expenditures 14

15. OTHER FUNDS Special Reserve Revenues $ 22,000 Expenditures $ 0 Cafeteria Revenues$1,799,200 Expenditures$1,786,745 Developer Fee Revenues$ 150,000 Expenditures$ 35,082 Self-Insurance Fund Revenues$ 69,818 Expenditures$ 78,700 15

16. CONCLUSION Ramona Unified School District’s financial outlook continues to be positive 16

17. WHAT IS NEXT? This is the Public Hearing for the budget The final adoption of the budget, along with the LCAP, will be held on June 25, 2015 If approved on a separate agenda item, figures from the RTA and ALT settlements will be incorporated into the final budget Staff is expecting an on-time State budget and, depending on the signing, will try to incorporate any changes which may occur Closes the presentation prior to the Public Hearing 17