Cotati-Rohnert Park USD Proposed Budget 2019-2020 Pre se nte d b y - PowerPoint PPT Presentation

Cotati-Rohnert Park USD Proposed Budget 2019-2020 Pre se nte d b y Ro b e rt A. Ma ric a l Chie f Busine ss Offic ia l June 25, 2019

Proposed Budget 2019 ‐ 20 • T he L o c a l Co ntro l F unding F o rmula (L CF F ) wa s imple me nte d in 2013-14. • A ke y pie c e to the fo rmula is the L o c a l Co ntro l Ac c o unta b ility Pla n (L CAP). T he L CAP re q uire s re po rting o f g o a ls a nd re la te d e xpe nditure s tha t will a lig n with the distric t’ s b udg e t. • Bo th the Pre limina ry L CAP a nd Pre limina ry Budg e t must b e pre se nte d in a pub lic he a ring in a me e ting prio r to a do ptio n to a llo w fo r disc ussio n a nd pub lic input. • T he fina l L CAP a nd Pro po se d Budg e t a re b o th pre se nte d to nig ht fo r fina l a do ptio n a nd a ppro va l.

Proposed Budget 2019 ‐ 20 • T he Pro po se d Budg e t fo r 2019-20 c o nta ins the mo st upda te d info rma tio n a va ila b le up to a nd inc luding the Go ve rno r’ s Ma y Re visio n pro po sa l. • T he Sta te L e g isla ture a nd Go ve rno r ha ve re c e ntly a g re e d o n the fina l 2019-20 Sta te Budg e t b ut the fina l b udg e t ve rsio n ha s ye t to b e sig ne d b y the Go ve rno r. o Hig he r ST RS ra te s tha n Ma y Re visio n, o ffse t with PE RS re duc tio n? o Additio na l funding fo r Spe c ia l E duc a tio n: Pre sc ho o l, AB602 • T he se c ha ng e s will b e inc lude d in a future b udg e t re visio n. • I f the re a re sig nific a nt c ha ng e s tha t a re re sulting fro m the fina l sta te b udg e t the distric t will re vise the b udg e t fo r a ny sig nific a nt c ha ng e s within 45 da ys.

Proposed Budget 2019 ‐ 20 • F isc a l re c o ve ry pla n ha s b e e n imple me nte d • Ce rtific a te d F T E o -8.0 Ce rtific a te d te a c he r F T E b a se d o n sta ffing ra tio s o Shifting o f Spe c ia l E d fro m c o ntra c t se rvic e s to distric t sta ff • Co ntinue to b udg e t fo r “fla t” e nro llme nt. o ADA will b e true d up b a se d o n mo nth 2 e nro llme nt • He a lth ra te s hig he r tha n pro je c te d: o +4.33%, pro je c te d +3.0% • I nc re a se to wo rke rs c o mp ra te s: o Ra te s we nt up +.02%, +$68,000 • I nc re a se to Pro pe rty & L ia b ility ra te s: o +27% o r +$120,000 • Ro utine Re pa ir Ma inte na nc e (RRMA)must b udg e t e xpe nditure s up to 3% o f to ta l GF o +$495,000 inc re a se c o mpa re d to prio r ye a r • Pro po se d b udg e t do e s me e t minimum re se rve le ve l re q uire me nts in 2019-20 a nd two sub se q ue nt ye a rs

LCFF Sources $ 53,923,552 Federal Revenue $ 2,234,438 State Revenues $ 4,678,071 Local Revenue $ 6,142,633 Transfers In $ 600,000 Total Revenue $ 67,578,694

38.3% Certificated Salaries $ 25,951,333 11.6% Classified Salaries $ 7,835,809 30.8% Benefits $ 20,876,220 2.2% Materials & Supplies $ 1,498,835 16.8% Services & Contracts $ 11,445,890 0.0% Capital Outlay $ 0 0.4% Other Outgo/Transfer Out $ 270,290 TOTAL EXPENDITURES $ 67,878,377 ** Salaries + Benefits = 81% of Total General Fund Expenditures

COTATI-ROHNERT PARK USD GENERAL FUND - COMBINED 2017-18 2018-19 2019-20 2020-21 2021-22 Unaudited Est. Unaudited Proposed Projected Projected Actuals Actuals Budget Budget Budget REVENUES: Revenue Limit $ 49,711,729 $ 52,548,884 $ 53,923,552 $ 55,473,833 $ 56,972,304 Federal Revenue $ 2,470,354 $ 2,492,168 $ 2,234,438 $ 2,234,438 $ 2,234,438 State Revenue $ 5,516,192 $ 5,689,489 $ 4,678,071 $ 4,342,102 $ 4,348,701 Local Revenue $ 7,226,746 $ 6,786,497 $ 6,142,633 $ 6,112,567 $ 6,112,456 Transfers In $ 521,000 $ 994,377 $ 600,000 $ 600,000 $ 500,000 TOTAL REVENUES $ 65,446,022 $ 68,511,415 $ 67,578,694 $ 68,762,940 $ 70,167,899 EXPENDITURES: Certificated Salaries $ 24,950,212 $ 26,115,802 $ 25,951,333 $ 26,327,628 $ 26,709,378 Classified Salaries $ 7,073,783 $ 7,591,882 $ 7,835,809 $ 7,956,481 $ 8,079,011 Employee Benefits $ 18,577,135 $ 19,752,370 $ 20,876,220 $ 21,938,343 $ 22,275,756 Books and Supplies $ 1,643,875 $ 2,044,250 $ 1,498,835 $ 1,579,702 $ 1,602,444 Services and Other Operating Exp $ 12,364,934 $ 13,598,965 $ 11,445,890 $ 11,488,948 $ 11,664,403 Capital Outlay $ 213,177 $ 8,002 $ - $ - $ - Other Outgo $ 252,008 $ 245,527 $ - $ - $ - Transfers Out $ 774,050 $ 205,473 $ 270,290 $ 270,290 $ 250,000 TOTAL EXPENDITURES $ 65,849,174 $ 69,562,271 $ 67,878,377 $ 69,561,392 $ 70,580,992 Beginning Balance $ 3,289,952 $ 2,886,800 $ 1,835,945 $ 1,536,262 $ 737,810 Net Increase (Decrease) in Fund Balance $ (403,152) $ (1,050,856) $ (299,683) $ (798,452) $ (413,093) Ending Balance $ 2,886,800 $ 1,835,944 $ 1,536,262 $ 737,810 $ 324,717 District Reserve Percentage 4.38% 2.64% 2.26% 1.06% 0.46% Components of Ending Fund Balance: Nonspendable: (a) Revolving Cash $ 5,000 $ 5,000 $ 12,391 $ 12,391 $ 12,391 b) Prepaid Exp/Other $ 191,384 $ 13,223 $ - (b) Restricted $ 545,277 $ 559,862 $ 710,097 $ 208,071 $ - (c) Committed $ - $ - $ - $ - $ - (d) Assigned: Assigned Reserve $ 2,145,140 $ 1,257,860 $ 813,774 $ - $ - $ - $ - $ - $ - $ - (e) Unassigned /Unappropriated Reserve for Economic Uncertainties $ - $ - $ - $ - $ - Unassigned/Unappropriated $ 0 $ 0 $ - $ 517,348 $ 312,326 Special Reserve Fund (17) $ 2,665,497 $ 2,774,147 $ 2,774,147 $ 2,742,497 $ 2,787,497 4.0% 4.0% 4.1% 4.7% 4.4% AB 1200 Reserve Percentage (Must be min. 3% ) Reserve Level 4% 4% 4% 4% 4%

Proposed Budget 2018 ‐ 19 Areas of Financial Concern • Sta te T e a c he rs Re tire me nt (ST RS) I mpa c t: Ba se d o n Ma y Re visio n, 2019-20 inc re a se is e stima te d to c o st a n a dditio na l $78,287. Ra te s will c o ntinue to inc re a se a nnua lly until 2020-21 a nd will pe a k a t 19.10% • Pub lic E mplo ye e s Re tire me nt Syste m (PE RS): 2019-20 inc re a se e stima te d to c o st a dditio na l $235,315. Ra te s a re a lso e xpe c te d to inc re a se a nnua lly a nd pe a k in 2023-24 a t 26.4%. • T he ST RS a nd PE RS ra te s in the 2019-20 b udg e t we re b a se d o n Ma y Re visio n. T he fina l sta te b udg e t sho uld inc lude re vise d ra te s fo r b o th ST RS a nd PE RS. ST RS is e xpe c te d to inc re a se +.4% fro m Ma y Re visio n a nd PE RS will de c re a se -1.012% fro m Ma y Re visio n. E stima te d o ve ra ll +$27,000 inc re a se in c o st. Bo th ST RS a nd PE RS ra te s will b e o a djuste d in o ur 2019-20 b udg e t in a future re visio n. • Ple a se note tha t ST RS a nd PE RS c ost inc re a se s will c ontinue to a c c ount for the la rg e st sha re of inc re a se d c osts to the budg e t

Proposed Budget 2019 ‐ 20 Areas of Financial Concern • Co ntinue d impa c t o f ST RS/ PE RS inc re a se s • E nro llme nt tre nds • COL A o nly funding driving L CF F inc re a se s • Co mpe ting inte re sts fo r a va ila b le re so urc e s: o Co nta ining Spe c ia l E duc a tio n Co sts o F uture sa la ry ne g o tia tio ns o F unding future te c hno lo g y ne e ds o I nc re a se s in g e ne ra l c o st o f do ing b usine ss o Una ntic ipa te d e xpe nditure s o Building up (o r just ma inta ining ) GF re se rve

Budget Adoption Reserve Requirement • Budg e t Ado ptio n Re se rve Re q uire me nts: Se na te Bill (SB) 858 inc lude d the trig g e ring la ng ua g e fo r the re se rve c a p, b ut a lso re q uire s tha t fo r the a do pte d b udg e ts, sc ho o l distric ts must a dd so me ste ps to the pub lic he a ring . • Sc ho o l distric ts ne e d to de te rmine the to ta l a mo unt o f a ssig ne d a nd una ssig ne d e nding fund b a la nc e s fo r the b udg e t ye a r a nd de te rmine the a mo unt in the re se rve tha t is a b o ve the minimum re q uire me nt. • Are a s to disc uss: o T he minimum re se rve le ve l re q uire d o T he a mo unt o f a ssig ne d a nd una ssig ne d e nding fund b a la nc e tha t e xc e e ds the minimum o Re a so ns fo r the re se rve b e ing g re a te r tha n the minimum

Budget Adoption Reserve Requirement

Budget Adoption Reserve Requirement • Sta te me nt o f re a so ns fo r the distric t re se rve b e ing a b o ve the sta te minimum inc lude : Curre nt le ve l o f re se rve wo uld fund le ss tha n 2 mo nths o f pa yro ll o Unc e rta inty o f future e nro llme nt tre nds o Unc e rta inty a nd vo la tility o f spe c ia l e duc a tio n c o sts o Ne e de d to ma inta in po sitive c a sh flo w to re duc e b o rro wing c o sts o T o ma inta in o r upg ra de b o nd ra ting o Distric t ha s no t se ttle d ne g o tia tio ns fo r 2019-20 o T o susta in c urre nt a nd future ST RS a nd PE RS c o st inc re a se o Hig he r re se rve le ve l is ne e de d with full funding o f L CF F with COL A b e ing the o o nly inc re a se in sta te funding re ve nue s T o pre ve nt c utting c urre nt sta ffing a nd pro g ra ms whe n the ne xt e c o no mic o do wnturn ha ppe ns