Board Meeting October 9, 2013
Agenda 1. Welcome, Agenda, Approval of minutes, 6:15-6:20 2. Explain Board and Communication Protocol 6:20-6:25 3. Approval of minutes 6:25-6:30 4. Treasurer’s Report 6:30-6:35 5. PTO Update 6:35-6:45 6. Principal Update 6:45-6:50 7. Budget 2013/2014 Updates 6:50-6:55 8. Budget 2014/2015 Updates, review survey 6:55-7:00 9. Public Comment 7:00-7:10 10. Executive Session 192.660 2(d): To conduct deliberations with persons to carry out labor negotiation 7:10-7:15 11. Budget 2014/2015 Discussion 7:15-7:25 12. Budget 2014/2015 Consider motion to approve budget 7:25-8:05 13. Committee Resolutions - site and finance 8:05-8:15 14. Finance policies approval 8:15-8:25 15. Adjourn 8:25
Public Comments at Board Meetings ● Board will utilize a Public Comment process similar to those used by BSD and other boards. ● To address the Board: ○ Fill out a comment form and hand to Board Chair at the start of the meeting ■ Board Chair will filter similar requests and prioritize those who have not previously commented. ■ Due to time limits, all requests may not be accommodated. ○ This is a one-way communication. Board will not immediately respond. ○ Commenter has two minutes to address the board. Going over the time limit reduces the opportunity others have to speak. Time will not be extended. ○ Board Secretary will note substance of comments in minutes. ● Board supports open dialogue and will host open Q&A via Town Hall meetings held every other month. ● For more details, please review Board Public Comment Policy Document
Treasury Update Income Statement (Jul 1st, 2013 - Sept 31st, 2013) Actuals Budget (3 mo) Income received during the period: +$ 161,161.57 TBD Expenses paid during the period - $ 120,408.03 TBD Net Income $ 40,753.54 TBD Balance Sheet (Sept 31st, 2013) Total Assets : $ 389,022.77 Total Liabilities $ 126,733.50 Total Equity $ 262.289.27 ● Budget information will be entered pending review by board tonight ● Income is mainly due to timing and amount of BSD payment vs. expenses ○ 1st payment was for Jul-Sept; while expenses were for Aug/Sept ○ BSD has overestimated our ADMw so payments are higher than expected (taken some reserve for this) ● Otherwise do not expect large variance from breakeven budget
PTO/Fundraising Update PTO Response to budget gap -see previous slides PTO will ● Do auction ● May do a giving drive ● Find parent volunteers to offset certain school expenses Recommendations to Board and Principal ● Priority to Keep class sizes small or increase room size, retain good teachers ● Request annual donation by parents ● Increase ASEP, summer camp, classes for community (Early Ed) ● Get grant writer
Principal Update ● Students – Kinder ● Staff ● Programs ● Community ● Site
Principal Update ● Action Needed ○ Finding more substitute teachers ○ Volunteer Follow Up ○ Teachers training for behavior management ○ Planning for future school site ○ Helpers for English teachers ○ Following parking and building entrance procedures ○ Wifi in preschool room
Dibels Assessment
Dibels Assessment
Budget Changes ‘13/’14 Budget Item Changed (‘13/14) Impact (‘13/’14) Beginning surplus (deficit) $9.6 Lost KG Scholarship student and gained paying student $4K Updated Current Enrollment numbers (KG 24 → 25, 1st 47, 2nd $7.5K 23) PreK extra ½ month Tuition adjustment; 1 student dropped $2.8K Added extended hours for TA ($2.5K) Healthcare Eligible from 8 to 9; Taking payout from 2 to 1, ($2.4K) Healthcare for CI Teachers lowered to $2400 $5.7K PreK - added person due to CI issue ($10.9K) Payroll tax & PERS impact ($4.8) CI Teacher Visa Fee (net of $1000 credit) ($2K) Ending surplus (deficit) $7K
Priorities Survey Summary ● 99 responses
Other Feedback (not previously reflected). ● Increased volunteering. Create a culture of contribution in various forms. ● Use meritocracy approach to reward teachers. ● Need increased communication from the Board ● Develop a plan / roadmap explaining the mid & long-term plans for the school to tangibly demonstrate the need for fundraising and how surplus funds will be utilized. ● Explore partnerships with other charter schools to attract larger funding sources and/or co-locate or otherwise share facilities. ● Admin help could be achieved through additional volunteer hours. ● State-wide standard tests. Where are we and how are we compared to public schools and other charter schools? ● Is it possible to volunteer on weekends? Job does not allow it during week. ● We like after school programs but don't think we have to keep it low cost. ● Prioritize finding a bigger facility. ● More field trips related to curriculum. ● Offer Spanish.
Gap Closing Feedback Budget Gap Closing Ideas Principal Feedback PTO Feedback Board Feedback Class Size increase No, negative conseq. No, unless large room Explore if needed KG Tuition increase Yes, if competitive Yes, last tuition year Yes Supply Fees Yes, $75-$100 OK Yes, $75 Summer School Yes, use current staff Yes, low cost, weekly Yes B/A care fee increase Add more kids, PreK Yes, if competitive Preschool Tuition increase Check if competitive Yes, if competitive Teacher Salary Retain good teachers Path to 100% of scale PERS Yes, if legal Vote Healthcare No unless large saving Reduce Minor Renovation Yes, not long term Use Parent volunteers Yes Accounting and IT Grant Writing hire writer for $2-3K ASEP Programs More, cheaper pgms Set target for PTO Cut Custodian Service No No Supplies and Textbooks Could cut $2K Corporate help? No cut due to CCSS
Budget Changes ‘14/’15 Budget Item Change (‘14/’15) Impact (‘14/’15) 2014/15 ADMw adjusted to 5.66% from 3% $13K KG Tuition increased from $5224 to $5500 $5.5K KG Class size increased from 24 to 25 in 14/15 (same as 13/14) $8K PreK extra ½ month Tuition adjustment (seems small) $3K Supply Fees increase from $50 to $75 $2.5K Healthcare for CI Teachers lowered to $2520 $6K Lunch Coordinator ($8.5K) Renovation Budget decreased $11K
Budget Decisions ‘14/’15 Budget Item Change (‘14/’15) Impact (‘14/’15) Yes/No Teacher Salary from 90% (assumed in budget) to ($14K) Yes ~95% of scale (stretch goal of 100%; revisit budget in Jan ‘14 board meeting Teacher Salary from 90% (assumed in budget) to ($28K) N/A 100% of scale Lunch Coordinator ($8.5K) Yes Explore changes to retirement benefit from PERS to (Up to $3K) Yes private. Approve to spend legal fees Explore option for Saturday School (PTO) Kick off plans for summer school ASEP Fundraising Target $4K (placeholder is $2K) $2K Before/After care tuition increase by 5% $3.3K Explore PreK Tuition Increase by additional 4% $3.8K Explore
PERS ● Background ○ PERS is the public employee retirement system ○ Employees pay 6%. In addition, employers pay a % depending on actuarial assumptions ○ Upon retirement, employees would receive retirement benefits based on a formula ○ PERS is currently in net unfunded status ○ Employer % based on making up the unfunded status and other assumptions such as cost of living increases ○ New Employees have to wait 6 months
PERS ● Current Situation ○ In 2012/2013, PERS employer rate was 18% and most staff at HCCS had to wait the 6 months. Total PERS expense: $21K ○ In 2013/2014, Rate jumped to 28% and most staff have met wait period. Expected PERS expense:$91K ○ In 2014/2015, rate expected to be 31% (10% increase). Expected PERS expense: $139K ○ PERS has a significant impact on teacher expenses ○ Kitzhaber is working with legislature to reign in increases - in spring, legislative changes resulted in a 1% decrease in the rate (from 29% to 28%)
PERS ● Recommendation: ○ Discuss alternatives with lawyers - currently budgeted $2,500 Without significant changes, PERS becomes an expensive burden on HCCS
Reserve Accounts & Targets ● Reserves serve as an “emergency fund” for organizations. Two types: ○ Operating: Unrestricted net assets that boards maintain for use in emergencies to sustain financial operations in the unanticipated event of significant unbudgeted increases in operating expenses and/or losses in operating revenues. ○ Capital: Assets reserved for long-term capital investment projects or large and anticipated expenses that will be incurred in the future.
Operating Reserve Considerations ● The recommended minimum level for charitable organizations is to hold 3 months of expenses (25% of annual expenses) as an operating reserve. ● We should set a 25% operating reserve goal. Will take several years to achieve. ● Our cumulative operating surplus is the foundation of the operating reserve. ● Balancing our budget becomes challenging in 2015/16 due to end of private kindergarten. Need to build reserve funds now to provide future flexibility. ● We should not utilize the operating reserve to fund the budget gap.
Operating Reserve Scenarios & Recommendation Recommend Scenario #1 ● Allows continued growth in Operating Reserves. ● Supports Long Term financial stability. ● Enables us to focus more fund raising efforts on Capital Reserves and special challenges / stretch goals.
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