PUBLIC
HEARIN
G FOR T
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BUDGET ADOPT
ION
2015-2016
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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
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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
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 revenue4
WHERE DOES RAMONA GET ITS REVENUE?
LCFF79%
Federal Sources5%
Other State8%
Local Sources7%
Total Revenues
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LOCAL PROPERTY TAX INCOME TO RAMONA
State Sources61%
Local Property Taxes39%
LCFF Sources
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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 spent7
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
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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
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MULTI-YEAR PROJECTIONS
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Multi-Year Projections: Adopted Budget 2015-2016 2015-2016 2016-2017 2017-2018
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 $ 2,185,000 $ 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
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,
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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
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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
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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 continuesIn 2016-2017 the need to purchase English
Language Arts Textbooks and are included in the expenditures
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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
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CONCLUSION
Ramona Unified School District’s financial outlook continues to be positive
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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
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