First Interim Report 2017/18 December 12, 2017 1 First Interim - PowerPoint PPT Presentation

First Interim Report 2017/18 December 12, 2017 1

First Interim Summary ◼ District maintains economic stability period through 2020/21 ◼ Revenue improvements through one time and ongoing funds ◼ Expenditures updates include planned negotiated compensation for 2017/18 ◼ Slight staffing and Special Education cost increases 2 Engagement Innovation Leadership Partnership Perseverance

First Interim Adjustments ◼ Revenue improvements since adopted budget ◼ $642,500 one-time revenues ◼ $ 425,300 one-time State funding ◼ $ 217,200 other one-time funding from unsecured funding, RDA, and deferred revenue/carry over ◼ $ 585,200 increase in ongoing revenues ◼ $427,400 secured property tax ◼ 7.7% growth vs estimated 6.1% at Adopted Budget ◼ $157,800 other ongoing revenue ◼ Decrease in State STRS On Behalf pass through revenue ($485,800) 3 Engagement Innovation Leadership Partnership Perseverance

First Interim Adjustments ◼ Expenditure adjustments since adopted budget ◼ $445,100 one-time expenditures ◼ $281,600 carryover and book adoption ◼ $163,500 related to one time State monies ◼ $1.18M increase in on going expenditures ◼ $792,600 planned negotiated compensation increase (2.0%) ◼ $273,000 increase in unforeseen Special Education cost (including increased staffing) ◼ $ 112,200 in other ongoing increases ◼ Decrease in State STRS On Behalf pass through expenditures ($485,800) 4 Engagement Innovation Leadership Partnership Perseverance

2017/18 First Interim Revenue ❖ Total Revenues: $49,057,162 ❖ Community Funded District ❖ 60.8% Local Property tax ➢ Secured (property) ➢ Unsecured ➢ RDA ❖ Secured Property tax is 56.6% of Total Revenues ❖ 16.6% Parcel Tax ❖ 7.5% MPAEF 5 Engagement Innovation Leadership Partnership Perseverance

2017/18 First Interim Expenditure ❖ Total Expenditures: $48,599,209 ❖ 88.4% of Total Expenditures on people ➢ 22 % Benefit Costs ➢ Increased ongoing pension cost ❖ 15.2% is Special Education expenditures ➢ 10 year average 14.8% ➢ Only 26.8% expenditures funded by State/ Federal 6 Engagement Innovation Leadership Partnership Perseverance

Change in Projected Reserves (Fund 01&17) ❖ Slight Improvement from Adopted Budget ❖ No deficit spending projected in current fiscal year ❖ District’s short term financial are healthy ❖ No significant changes to fiscal stability period through 2020/21 7 Engagement Innovation Leadership Partnership Perseverance

Multi Year Projections 8 (Reserve level and Deficit Spending) ❖ Reserve funds are one-time monies ❖ Deficit spending increases in out years to unsustainable levels beyond 2020/21 ❖ Reserve levels fall below 15% in 2021/22 ❖ Annual deficit spending projected at at $2.1M in 2022/23 Reserve level as % of 21.50% 19.20% 16.40% 12.80% Expenditure

Budget Sensitivities ◼ Property Tax Growth Rates ◼ Compensation Increases ◼ Pension Costs ◼ Enrollment 9 Engagement Innovation Leadership Partnership Perseverance

Next Steps ◼ Long Term Planning Initiative by June, 2018 ◼ Community Input Session on February 6, 2018 ◼ Second Interim Budget Report March 13, 2018 ◼ 2018/19 Adopted Budget ◼ Planning and development March - May, 2018 ◼ Public Hearing June 5, 2018 ◼ Board Approval June 12, 2018 10 Engagement Innovation Leadership Partnership Perseverance