AGENDA FOR SPECIAL MEETING ENCINITAS UNION SCHOOL … · 3/3/2017 · Agenda of Special Board Meeting March 9, 2017 – Page 2 Encinitas Union School District is a Tobacco-Free District

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)


GF Unrestricted

Contributes $7.36 mil to

GF Restricted Programs

-SPED $5.76 mil

-RRMA $1.60 mil


adjusted for Contributions (in millions)



Sources (in millions)


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)


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$


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$


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?