PUBLIC

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BUDGET ADOPT

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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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