1

2

Districts are required to develop a budget using the state-adopted Criteria and Standards, to ensure expenditures are included necessary to implement the LCAP and in accordance to Ed Code.

This report updates 2016-17 budget year and establishes the 2017-18 budget year.

Budget Development reporting period for the 2016-17 year is January 31st though May 15, 2017 and the 2017-18 budget is based on the Governors May budget commitment.

The budget document and LCAP must be submitted to Merced County Office of Education by June 30, 2017.

What is Budget Development?

2017-18 State Budget Message

The Governor’s May budget revision proposes a $1.1 billion increase for 2017-18 from the January proposal in Proposition 98 funding to $74.6 billion.

The change in the states capital gains tax between January projections and May collections allowed for the additional funding announcement in May, however, the volatile nature of this funding source makes long-term planning a challenge.

The January proposed deferral of $859 million was dropped in May.

Discretionary one-time funds will be withheld until May 2019 and maybe used instead to overset any Prop 98 shortfall.

3

2017-18 State Budget Message-SSC

“All in all, the May Budget Revision is better for public education than the January Budget but only enough to offer slightly better prospects for maintaining programs.”

“The modest promise of the LCFF, restoration of the purchasing power level of 2007-08, will not be met because much of the restoration funding will go to increased contributions of the California State Teachers’ System (STRS) and CalPERS, not to educational programs.”

“There is little room for growth in program costs or new programs.” “The best education plans have always shared the characteristics

of good reserves, conservative budgeting, and rigorous setting of priorities. That will continue to be true over the next few years under the Governor’s plan.”

Source: SSC Fiscal Report May 19, 2017

4

Source: School Services of California May Revision Workshop

Per-ADA Revenues vs. Expenses

© 2017 School Services of California, Inc.

Base Growth $147

Base Growth $258 Base Growth

$217

Supplemental/ Concentration Growth

$103

Supplemental/ Concentration Growth

$118

Supplemental/ Concentration Growth

$62

STRS Increase $137

STRS Increase $139

STRS Increase $141

PERS Increase $34 PERS Increase $35 PERS Increase $37

Step & Column $109

Step & Column $111

Step & Column $113

$-

$50

$100

$150

$200

$250

$300

$350

$400

LCFF Growth Revenues Expenditures LCFF Growth Revenues Expenditures LCFF Growth Revenues Expenditures

2017-18 2018-19 2019-20

Special Education Contribution $49

Special Education Contribution $48

Special Education Contribution $53

2016-2017 Budget Changes

7

2016-2017 2016-2017 (B-A)2nd Interim June Update Difference %

A B C DLCFF Sources 1 24,290,352$ 24,278,693$ (11,659)$ 0.0%Federal Revenue 2 1,775,454 1,780,943 5,489 0.3%Other State Revenue 3 2,602,093 2,355,845 (246,248) -9.5%Other Local Revenue 4 215,980 244,223 28,243 13.1%

Contribution 5 0 0 0 0.0%6 28,883,879$ 28,659,703$ (224,176)$ -0.8%

Certificated Salaries 7 12,024,097 12,026,111 2,014$ 0.0%Classified Salaries 8 3,534,766 3,714,452 179,686 5.1%Employee Benefits 9 6,668,276 6,460,292 (207,984) -3.1%Books and Supplies 10 2,653,813 2,636,804 (17,009) -0.6%Service, Operations Expenses 11 2,367,848 2,211,704 (156,144) -6.6%Capital Outlay 12 44,768 89,848 45,080 100.7%Other Outgo 13 311,718 311,718 (0) 0.0%Transfers of Indirect/Direct Support C14 (209,669) (209,669) - 0.0% Transfers Out 15 901,866 916,444 14,578 1.6%

16 28,297,483$ 28,157,704$ (139,779)$ -0.5%

17 586,396$ 502,000$

18 9,178,095$ 9,178,095$ 19 9,764,491$ 9,680,095$

Net (Increase/-Decrease)

Beginning BalanceEnding Balance

GENERAL FUND - Combined

REVENUE

TOTAL INCOME

EXPENDITURES

TOTAL EXPENSES

Base -$93,710 SCG $ 720,899 Restricted -$125,189

2016-2017 Budget

8

Unrestricted Restricted Combined

TOTAL GENERAL FUND ENDING BALANCE 9,477,869$ 202,226$ 9,680,095$

DESIGNATED COMPONENTSNonSpendable

Revolving Cash 10,000$

CommittedUnspent Supplemental/Concentration Balance 2,260,273.00$

AssignedTechnology 250,000$ Retiree Unfunded Liability 294,967$ STRS/PERS Unfunded Liability 311,177$ Facilities Projects 719,911$ Reserve After Set Asides 1,576,055$

Unassigned/unappropriatedREU 20% Reserve Requirement 5,631,541$

Balance -$ Restricted

5640 Medi-Cal Billing 32,121$ 8150 Ongoing & Major Maintenance Account 167,513$ 9010 Other Local Restricted 2,591$

TOTAL CARRYOVER 202,226$

Narrative to 2016-17 Budget Changes The following narrative is a brief review of some of the most significant changes that have occurred in the 2016-2017 combined budget (unrestricted and restricted) since the 2nd Interim Report in March on page 6.

Revenue LCFF April 15 ADA report resulted in a 0.04 less than estimated. But

district is in declining enrollment and will receive the 2015-16 ADA of 2,480. The 2016-17 GAP funding rate was reduced by 0.25% from 55.28% at 2nd interim to 55.03% in June.

Other state revenue was adjusted by $246,248 for the STRS on behalf updated report released by MCOE. This is offset by the same amount adjusted in the employee benefits expense line resulting in a 0 net impact on the bottom line.

Expenditures Salary and Benefits were impacted by the salary settlements with

Classified and Management. The STRS on behalf adjustment was also adjusted for the updated report.

Supplies and Services budgets are reviewed at the end of the year and any anticipated unspent amounts are released.

9

2016-2017 Other Funds

10

COP Debt Payment

Deferred Maintenance and Capital Facilities Transfer

Child Development -

Fund 12Cafeteria - Fund 13

Building - Fund 21

Capital Facilities

Developer Fees - Fund 25

Special Reserve

Capital Outlay- Fund 40

Bond Interest and

Redemption - Fund 51

Beginning Balance 69,603$ 998,890$ 2,786,021$ 3,662,815$ 2,815,664$ 301,515$ Income

Revenue Limit -$ -$ -$ -$ -$ Federal Revenue 158,906 1,987,068 - Other State Revenue 1,288,233 197,230 - Other Local Revenue 12,683 26,648 30,000 260,039 65,018 -

Total Income 1,459,822 2,210,946$ 30,000$ 260,039 65,018$ -$

ExpenditureCertificated Salaries 368,923$ -$ -$ -$ -$ -$ Classified Salaries 467,197 777,133 Employee Benefits 325,568 383,198 Books and Supplies 134,868 910,473 42,420 Services and Other Op 80,027 77,957 6,240$ 5,000 1,052,769 Capital Outlay - 62,148 10,800$ 119,861 Other Outgo - - 365,931 - - Transfers of Indirect/Direct 93,293 116,376

Total Expenditures 1,469,876$ 2,327,285$ 17,040$ 370,931$ 1,215,050$ -$

Other Financing Sources/UsesTransfers In 7,510$ 7,068.00 - - 901,866 -

Net Incr/(Decr) (2,544)$ (109,271)$ 12,960$ (110,892)$ (248,166)$ -$

Ending Balance 67,059$ 889,619$ 2,798,981$ 3,551,923$ 2,567,498$ 301,515$ QZAB 2005 (802,720)$ Net Balance 1,764,778$

2017-2018 Livingston Union School District

Budget

11

12

Funding Assumptions 2017/18 2018/19 2019/20Annual COLA 1.56% 2.15% 2.35%Funding Increase 1.78% 2.07% 2.89%Gap Funding Dollars SSC 432,227$ 511,783$ 728,151$ Gap Funding Rate (SSC Dartboard) 43.97% 39.03% 41.51%GAP DOF 43.97% 71.53% 73.51%Projected Enrollment* 2,533 2,535 2,546 Unduplicated Pupils* 2,270 2,271 2,281 Unduplicated Percentage 89.62% 89.59% 89.59%Funded ADA* 2,446.17 2,438.72 2,449.31 Change in Funded ADA over Prior Yr. (34.60) (7.45) 10.59 ADA Growth Funding (Loss of $ Due to Decline) (349,529.20)$ (77,055.35)$ 112,201.05$ Other State Funding (COLA) 1.56% 2.15% 2.35%Federal Funding Funding 0.00% 0.00% 0.00%Pre-School Funding 0.00% 0.00% 0.00%Other Local Funding (COLA) 1.56% 2.15% 2.35%

Budget Funding Assumptions

13

Budget Assumptions Declining Enrollment

ENROLLMENT

GradeCALPADS 2014-2015

CALPADS 2015-2016

CALPADS 2016-2017

Projected 2017-2018

Projected 2018-2019

Projected 2019-2020

TK 69 61 51 51 51 51K 249 279 278 278 278 2781 262 258 283 278 278 278 2 300 244 265 283 278 278 3 287 290 245 265 283 278 4 275 285 285 245 265 283 5 285 258 284 285 245 265 6 285 285 267 284 285 245 7 305 293 276 267 284 285 8 285 305 288 276 267 284

Total District 2,602 2,558 2,522 2,512 2,514 2,525 Enrollment Change over PY (44) (36) (10) 2 11

MCOE Sp Ed Enrollment 34 28 21 21 21 21 Total Enrollment 2,636 2,586 2,543 2,533 2,535 2,546

Enrollment based on grade level shift

Budget Assumptions - Declining Enrollment and ADA Funding

14

ADA-FUNDING P-2 Actual 2014-2015

P-2 Actual 2015-2016

P-2 Actual 2016-2017

Projected 2017-2018

Projected 2018-2019

Projected 2019-2020

ADA 2,506 2,462 2,427.39 2,418.02 2,419.94 2,430.53 % of Enrollment 96.32% 96.25% 96.25% 96.25% 96.25% 96.25%ADA Change over PY (44.21) (34.60) (9.37) 1.93 10.59 Est. MCOE Attendance 30.47 24.12 18.78 18.78 18.78 18.78

Total Est. ADA 2,536.67 2,486.11 2,446.17 2,436.80 2,438.72 2,449.31

Est. Funded ADA 2,536.67 2,530.32 2,480.77 2,446.17 2,438.72 2,449.31 ADA Change over PY (49.55) (34.60) (7.45) 10.59

ADA is Funded on the higher of current or prior year ADA.

15

Attendance and Enrollment District only

2,462 2,484 2,481

2,506

2,462 2,427 2,418 2,420 2,431

2,300

2,350

2,400

2,450

2,500

2,550

2,600

2,650

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18est.

2018-19est.

2019-20est.

Livingston Union School DistrictEnrollment vs. ADA

District Only

Enrollment ADA

16

Expenditure Assumptions 2017/18 2018/19 2019/20Salary/Benefits Increase 0% 0% 0%Certificated/Mgt. Step & Col.* 274,044$ 312,931$ 302,914$ Classified/Mgt. Step* 71,329$ 66,421$ 48,371$ Certificated/Mgt. FTE 139.5 139.5 139.5Classified/Mgt. FTE 111.56 111.56 111.56Certificated Health Cap 16,023$ 16,023$ 16,023$ Classified/Mangt. HW Cap 14,185$ 14,185$ 14,185$ ACA Insurance 171,735$ Fixed cost rolled Fixed cost rolledRetiree Health Contribution 175,000$ 175,000$ 175,000$ STRS Employer Rates 14.43% 16.28% 18.13%Estimated Increase in STRS Costs 225,034.00$ 229,747.00$ 234,242.00$ PERS Employer Rates 15.53% 18.10% 20.80%Estimated Increase in PERS Costs 60,099$ 95,274$ 101,110$ Consumer Price Index 3.11% 3.19% 2.86%Routine Restricted Maint. 3% 3% 3%*Calculation includes Statutory Benefits

Budget Assumptions Narrative

17

• District projects the declining enrollment financial impact in 2017-18 and 2018-19.

• Although our district is not projecting deficit spending, purchasing power is

lost due to loss revenue for declining enrollment. Purchasing power is attributed to the district’s ability to financially sustain projected student services and employee benefits.

• Net increases to fund balance will be utilized to offset these funding cuts.

At this time, no expenditure cuts will be made. • While LCFF gap funding is substantial, funding dependent on COLA will not

receive as much of an increase in 2017-18. For example, pre-school, special education, and food service.

Budget Assumptions Narrative

• As fixed costs in these COLA dependent programs increase, these programs

will have trouble keeping financial sustainability and may in the future need to have the general fund make a contribution or substantial increases to existing contributions.

• STRS and PERS year over year increases are equal to a 1.6%-2.7% increase in pension contribution. These costs alone will consume the majority of all future COLA funding.

• ACA costs are calculated by assuming every employee eligible for this benefit

elects to be covered during open enrollment. This ensures we have set enough aside in the budget to cover the insurance requirement.

• The district continues to make the contribution equal to 3% of the total general fund expenditures in accordance to Ed Code 17070.75(b)(1) and (2) to the Routine Repair and Maintenance account.

18

Budget Assumptions Narrative

2017-2018 Budget

19

A B (A+B)UNRESTRICTED RESTRICTED COMBINED

REVENUELCFF Sources 1 24,710,920$ -$ 24,710,920$ Federal Revenue 2 - 1,401,180 1,401,180 Other State Revenue 3 425,426 1,434,936 1,860,362 Other Local Revenue 4 187,378 - 187,378 Contributions 5 (1,998,418) 1,998,418 -

TOTAL INCOME 6 23,325,306$ 4,834,534$ 28,159,840$

EXPENDITURESCertificated Salaries 7 10,647,548$ 1,516,486$ 12,164,034$ Classified Salaries 8 2,935,868 721,984 3,657,852 Employee Benefits 9 5,713,753 1,576,715 7,290,468 Books and Supplies 10 1,484,526 287,289 1,771,815 Service, Operations Expenses 11 1,798,301 166,921 1,965,222 Capital Outlay 12 8,021 36,747 44,768 Other Outgo 13 189,443 136,392 325,835 Transfers of Indirect/Direct Support Costs 14 (443,859) 235,061 (208,798) Transfers Out 15 390,502$ -$ 390,502$

TOTAL EXPENSES 16 22,724,103$ 4,677,595$ 27,401,698$

Net Increase/(Decrease) In Fund 17 601,203$ 156,939$ 758,142$

Beginning Balance 18 9,477,869$ 202,226$ 9,680,095$ Ending Fund Balance 19 10,079,071$ 359,165$ 10,438,236$

Base $398,986 SCG $202,217

2017-2018 Budget

20

2017-2018 COMPONENTS OF ENDING FUND BALANCELivingston Union School District Budget Board Meeting 6/01/172017-18 Budget Unrestricted Restricted Total

TOTAL GENERAL FUND ENDING BALANCE 10,079,071$ 359,165$ 10,438,236$ 3% State required Reserve 822,050.94

Remaining Balance to Substantiate Need 9,257,020.39 DESIGNATED COMPONENTS GASB 54

A) NONSPENDABLE FUND BALANCE9711 Nonspendable Revolving Cash 10,000$ 9712 Nonspendable Stores9713 Prepaid Expenses9719 All Others (Investments)

B) COMMITTED FUND BALANCE9750 Stabilization Arrangements9760 Supplemental Concentration 2,462,490$

C) ASSIGNED9780 Unfunded STRS and PERS 316,437$

Unfunded Retiree Liability 380,352$ Technology Sustainability 250,000$ Facilities 1,209,203$

D) UNASSIGNED FUND BALANCE9789 Reserve for Economic Uncertainties 17%* 4,628,539$

(Difference between 3% State and 20% BP)9790 Unassigned/Unappropriated Amount 0.00

9740 RESTRICTED BALANCE5640 Medi-Cal Billing Option 12,121$ 8150 Ongoing & Major Maintenance 344,452$ 9010 Other Restricted Local 2,591$

Total Restricted Balance 359,165$ -$

21

2017-2018 Ending Fund Balance Narrative AB 858 Disclosure

Merced County Office of Education continues to support the need for reserves over the recommended minimum reserve levels. The experience of the past several years has clearly demonstrated these minimum levels are not sufficient to protect educational programs from severe disruption in an economic downturn. The typical 3% reserve minimum represents less than two weeks of payroll for many districts. Many LEAs have established reserve policies calling for higher than minimum reserves, recognizing their duty to maintain fiscal solvency. The adequacy of a reserve level should be assessed based on the LEA’s own specific circumstances; reserve level determination is not a “one size fits all” formula. There are numerous models available for consideration. Examples include: • The Government Finance Officers Association recommends reserves equal to two months of average general fund

operating expenditures, or about 15-17%. • Rating agencies like Fitch or Moody’s typically assess the adequacy of a district’s reserves by comparing them to

statewide averages, which have hovered around 15% for California unified school districts in recent years. • FCMAT (Fiscal Crisis & Management Assistance Team) emphasizes the need to assess not only fund balance but

also actual cash on hand.

There are many benefits to having higher than minimum reserves including: • Financial flexibility to absorb unanticipated expenditures without significant disruption to educational programs. • Protection against exposure to significant one-time outlays such as disasters, lawsuits, or material audit findings. • Protection against the volatility of state revenues. • Protection against declining enrollment. • Protection to cover increases in fixed and statutory costs (i.e. STRS and PERS increases). • Financial flexibility to shift resources as priorities set through the LCAP process change. • Planning for major projects such as information technology upgrades, deferred maintenance or facility needs. This is not an exhaustive list. Of all the reasons for carrying higher than minimum reserves, protecting against state revenue volatility is one of the most compelling. This is especially true during LCFF implementation because gap percentage funding is correlated with Prop. 98 growth. By providing a buffer from volatile state revenues, maintaining higher than minimum reserves creates stability to maintain instructional services and programs. SOURCE: MCOE 2017-18 Budget and 2016-17 Estimated Actuals Guidelines and Submission

22

2017-2018 Ending Fund Balance Narrative AB 858 Disclosure

LUSD’s “Committed” SCG Fund Balance: The District’s intent is be transparent with Supplemental/Concentration (SCG) dollars and to track and report on

all spent and any unspent amounts. By doing this, the district will ensure these dollars are not used for anything other than (SCG) purposes as stated in the Local Control Accountability Plan (LCAP) intended to increase and improve services (EDUCATION CODE SECTION 52060-52077).

The $2,462,490 Supplemental/Concentration balance consists of $2,260,273 that is attributed to carryover funding from prior years and $202,217 is attributed to 2017-18 budget year. While ideally, expenditures should equal revenues, the reality is that in the past couple of years large amounts of SCG funding was released to school districts without adequate notice or time to plan for program spending.

The consequence of not setting these unspent dollars aside for future LCAP needs would result in the district having to increase it’s future SCG funding in excess of the new LCFF revenues it would receive in that year to meet its minimum proportionality percentage requirement when target funding is reached. During the transition years leading up to target, it is important to maintain proportionality with target to avoid inflating the base side of the budget.

LUSD believes it has a fiduciary responsibility to protect these funds for its intended use of “increasing and improving services” and as a result has passed Resolution No. 22-2015/2016 that commits these unspent dollars in the unrestricted general fund balance for future Supplemental and Concentration purposes as outlined in the LCAP.

LUSD’s fund balance “Assignments”: District has a 17%-20% fund balance board policy that addresses the issues discussed on the previous page. Future liabilities for unfunded STRS and PERS are statutory costs that all school districts are having to address. Our district offers retirees health insurance that produces a fixed cost and future liability. Technology sustainability and upgrades. Facilities projects, deferred maintenance and emergency repairs are continued and on-going district financial

commitments.

2017/2018 Budget Development Alternative Report

23

CombinedPage 19 Page 19 Page 19

General Supplemental & Total Special Restricted Grants & Total Unrest &Unrestricted Concentration Unrestricted Education Maintenance Entitlements Restricted Restricted

IncomeLCFF 24,710,920 24,710,920 - - 24,710,920 Federal Revenues - - 328,061 1,073,119 1,401,180 1,401,180 Other State Revenues 425,426 425,426 674,584 760,352 1,434,936 1,860,362 Other Local Revenues 187,378 187,378 - - 187,378

Total Income 25,323,724 - 25,323,724 1,002,645 - 1,833,471 2,836,116 28,159,840 -

Expenses - Certificated Salaries 8,447,946 2,199,602 10,647,548 1,039,019 477,467 1,516,486 12,164,034 Classified Salaries 1,850,972 1,084,896 2,935,868 304,442 281,876 135,666 721,984 3,657,852 Employee Benefits 4,504,539 1,209,214 5,713,753 565,542 149,035 862,138 1,576,715 7,290,468 Books and Supplies 527,286 957,240 1,484,526 - 79,942 207,347 287,289 1,771,815 Services, Other Operating 1,144,873 653,428 1,798,301 - 58,625 108,296 166,921 1,965,222 Capital Outlay 8,021 - 8,021 - 36,747 - 36,747 44,768 Other Outgo(Exclude Indirects) 189,443 - 189,443 136,392 - 136,392 325,835 Direct Support/Indirect Costs (443,859) (443,859) 132,868 39,636 62,557 235,061 (208,798) Other Uses - - - - - - -

Total Expenses 16,229,221 6,104,380 22,333,601 2,178,263 645,861 1,853,471 4,677,595 27,011,196

Other Financing Sources/Uses - Transfers In - - - Transfers Out 375,000 15,502 390,502 - 390,502 Contribution (8,320,517) 6,322,099 (1,998,418) 1,175,618 822,800 - 1,998,418 -

- Net Increase (Decrease) to Fund Bal 398,986 202,217 601,203 - 176,939 (20,000) 156,939 758,142

Beginning Balance 7,217,596 2,260,273 9,477,869 0 167,513 34,713 202,226 9,680,095 Adjustment to Beginning Balance - Ending Balance 7,616,581 2,462,490 10,079,071 - 344,452 14,713 359,165 10,438,236

Fund 01Unrestricted Restricted

2016-2017 vs. 2017-2018

24

COMBINEDA B (B-A) %

2016-17 2017-2018 DIFFERENCE DIFFREVENUE

LCFF Sources 1 24,278,693$ 24,710,920$ 432,227$ 2%Federal Revenue 2 1,780,943$ 1,401,180$ (379,763)$ -21%Other State Revenue 3 2,355,845$ 1,860,362$ (495,483)$ -21%Other Local Revenue 4 244,223$ 187,378$ (56,845)$ -23%Contributions 5 0$ -$ (0)$ 0%

TOTAL INCOME 6 28,659,703$ 28,159,840$ (499,864)$ -2%

EXPENDITURESCertificated Salaries 7 12,026,111$ 12,164,034$ 137,923$ 1%Classified Salaries 8 3,714,452$ 3,657,852$ (56,600)$ -2%Employee Benefits 9 6,460,292$ 7,290,468$ 830,176$ 13%Books and Supplies 10 2,636,804$ 1,771,815$ (864,989)$ -33%Service, Operations Expense 11 2,211,704$ 1,965,222$ (246,482)$ -11%Capital Outlay 12 89,848$ 44,768$ (45,080)$ -50%Other Outgo 13 311,718$ 325,835$ 14,117$ 5%Transfers of Indirect/Direct S 14 (209,669)$ (208,798)$ 871$ 0%Transfers Out 15 916,444$ 390,502$ (525,942)$ -57%

TOTAL EXPENSES 16 28,157,704$ 27,401,698$ (230,064)$ -1%

Net Increase/(Decrease) In 20 502,000$ 758,142$

Beginning Balance 21 9,178,095$ 9,680,095$ Ending Fund Balance 22 9,680,095$ 10,438,236$

25

2016-2017 vs. 2017-2018 NARRATIVE

The following narrative is a brief review of some of the most significant changes that have occurred between the 2016-2017 and 2017-18 combined budget (unrestricted and restricted) on page 24.

REVENUE

- Local Control Funding Formula - The district reported decline in ADA of -34.6 with gap funding of 43.97% as stated on the assumptions page 12.

- Federal Revenue - Reduction funding and budget for no carryover balances in title I, title II and III. - Other State Revenue - Elimination of one-time for mandated costs. - Other Local - Elimination of one-time donations and grants.

EXPENDITURES

- Salaries/Benefits: See Budget Expenditure Assumptions page 16. One time bonuses in 2016-17 resulted in a reduction of the classified salary budget..

- Books, Supplies, Services, Operations, Capital Outlay Elimination of expenditures tied to carryover and one-time funding sources. Other fixed cost were assessed and reduced or increased as needed. One time text book adoption of $838,946 in 2016-17 resulted in a large reduction in the supplies budget for 2017-18.

- Indirect Cost The 2017-18 rate approve by California Department of Education for Livingston Union School District is 6.96%. This is a 0.7% reduction of the 2016-17 rate of 7.66%.

- Transfers Out The primary reason for this difference is the one-time mandated cost funding in 2016-17 that was moved to fund 40 for capital facility purposes. The district continues with it’s annual $275,000 contribution to the Deferred Maintenance account in fund 40 and $100,000 to the facilities account in fund 40 for emergency repair or facility improvements.

26

2017-2018 Budget Development Multi Year Projection

2017/2018 2018/2019 PROJECTED % 2019/2020

PROJECTED %A B C

REVENUELCFF 1 24,710,920$ 25,222,703 2.07% 25,950,854 2.89%Federal Revenue 2 1,401,180 1,401,180 0.00% 1,401,180 0.00%Other State Revenue 3 1,860,362 1,900,359 2.15% 1,945,018 2.35%Other Local Revenue 4 187,378 191,407 2.15% 195,905 2.35%Contributions 5 - - 0.00% - 0.00%

Total Revenue 6 28,159,840$ 28,715,649$ 1.97% 29,492,956$ 2.71%

EXPENSESCertificated Salaries 7 12,164,034$ 12,418,782$ 2.09% 12,661,716$ 1.96%Classified Salaries 8 3,657,852 3,708,610 1.39% 3,744,827 0.98%Employee Benefits 9 7,290,468 7,689,338 5.47% 8,096,824 5.30%Books & Supplies 10 1,771,815 1,828,336 3.19% 1,880,626 2.86%Services & Other Operating Expenditures 11 1,965,222 2,027,913 3.19% 2,085,911 2.86%Capital Outlay 12 44,768 46,196 3.19% 47,517 2.86%Other Outgo 13 325,835 334,258 2.59% 342,831 2.56%Direct Support/Indirect Costs 14 (208,798) (215,459) 3.19% (221,621) 2.86%Transfers Out 390,502 394,407 1.00% 398,351 1.00%

Total Expenses 15 27,401,698$ 28,232,381$ 3.03% 29,036,982$ 2.85%

NET INCREASE/(DECREASE) IN FUND BAL 22 758,142$ 483,268$ 455,974$

BEGINNING FUND BALANCE 23 9,680,095$ 10,438,236$ 10,921,505$ ENDING FUND BALANCE 24 10,438,236$ 10,921,505$ 11,377,479$

COMBINED

2017-2018 Budget Development Multi Year Projection

27 Base $398,986 SCG $202,217

2017/2018 2018/2019 PROJECTED

2019/2020 PROJECTED

A B CREVENUE

LCFF 1 24,710,920$ 25,222,703$ 25,950,854$ Federal Revenue 2 - - - Other State Revenue 3 425,426 434,572 444,785 Other Local Revenue 4 187,378 191,407 195,905 Contributions 5 (1,998,418) (2,066,518) (2,129,646)

Total Revenue 6 23,325,306$ 23,782,163$ 24,461,897$

EXPENSESCertificated Salaries 7 10,647,548$ 10,870,537$ 11,083,184$ Classified Salaries 8 2,935,868 2,976,608 3,005,676 Employee Benefits 9 5,713,753 6,054,829 6,403,415 Books & Supplies 10 1,484,526 1,531,882 1,575,694 Services & Other Operating Expend 11 1,798,301 1,855,667 1,908,739 Capital Outlay 12 8,021 8,277 8,514 Other Outgo 13 189,443 193,515 198,063 Direct Support/Indirect Costs 14 (443,859) (458,018) (471,117) Transfers Out 15 390,502 394,407 398,351

Total Expenses 16 22,724,103$ 23,427,704$ 24,110,517$

NET INCREASE/(DECREASE) (6-16) 17 601,203$ 354,460$ 351,380$

BEGINNING FUND BALANCE 18 9,477,869$ 10,079,071$ 10,433,531$ ENDING FUND BALANCE 19 10,079,071$ 10,433,531$ 10,784,911$

UNRESTRICTED

2017/2018 2018/2019 PROJECTED

2019/2020 PROJECTED

A B C

-$ -$ -$ 1,401,180 1,401,180 1,401,180 1,434,936 1,465,787 1,500,233

- - - 1,998,418 2,066,518 2,129,646 4,834,534 4,933,486 5,031,059

1,516,486$ 1,548,245$ 1,578,532$ 721,984 732,003 739,151

1,576,715 1,634,508 1,693,410 287,289 296,454 304,932 166,921 172,246 177,172 36,747 37,919 39,004

136,392 140,743 144,768 235,061 242,559 249,497

- - - 4,677,595$ 4,804,677$ 4,926,465$

156,939$ 128,809$ 104,594$

202,226$ 359,165$ 487,974$ 359,165$ 487,974$ 592,568$

RESTRICTED

2017-2018 Budget Development Multi Year Projection

28

2017/2018 2018/2019 PROJECTED

2019/2020 PROJECTED

UNRESTRICTED

ENDING FUND BALANCE 19 10,079,071$ 10,433,531$ 10,784,911$ Components of Ending Fund Balance GASB 54

a. Nonspendable (Revolving Cash & Investment) 20 10,000 10,000 10,000 b. Committed Fund Balance 9750-9760 21 2,462,490 2,462,490 2,462,490 d. Assigned 22 2,204,342 2,365,062 2,596,234 Total Balance After Designations 23 5,402,239 5,595,979 5,716,187 % Remaining After GASB 54 Designation Applied to Bal Policy 24 20% 20% 20%Reserve for EU/Board Balance Policy 17%-20% 25 5,402,239$ 5,595,979$ 5,716,187$ Net of Reserve Policy 26 -$ -$ -$

2017-2018 Budget Development Other Funds

29

Child Development -

Fund 12Cafeteria - Fund 13

Building - Fund 21

Capital Facilities

Developer Fees - Fund 25

Special Reserve

Capital Outlay- Fund 40

Bond Interest and

Redemption - Fund 51

Beginning Balance 67,059$ 889,619$ 2,798,981$ 3,551,923$ 2,567,498$ 301,515$ Income

Revenue Limit -$ -$ -$ -$ -$ Federal Revenue 158,906 2,137,316 - Other State Revenue 1,293,807 131,875 - Other Local Revenue - 26,298 18,000 79,120 18,000 -

Total Income 1,452,713 2,295,489$ 18,000$ 79,120 18,000$ -$

ExpenditureCertificated Salaries 361,925$ -$ -$ -$ -$ -$ Classified Salaries 466,327 786,781 Employee Benefits 389,766 421,543 Books and Supplies 49,577 918,367 48,000 Services and Other Op 99,193 68,963 6,240$ 5,000 652,080 Capital Outlay - - -$ 233,572 Other Outgo - - 365,931 - - Indirect/Direct 93,895 114,903

Total Expenditures 1,460,683$ 2,310,557$ 6,240$ 370,931$ 933,652$ -$

Other Financing Sources/UsesTransfers In 7,970$ 7,532.00 - - 375,000 - Transfers OutSources - UsesContribution

Total Other Financing Sources/U 7,970$ 7,532.00$ -$ - 375,000.00 -

Net Incr/(Decr) -$ (7,536)$ 11,760$ (291,811)$ (540,652)$ -$

Ending Balance 67,059$ 882,083$ 2,810,741$ 3,260,112$ 2,026,846$ 301,515$ QZAB 2005 (802,720)$ Net Balance 1,224,126$

SACS REPORTS

• FUND REPORTS • AVERAGE DAILY ATTENDANCE • MYP FORM

• BALANCE IN EXCESS OF MIN RESERVE • CRITERIA AND STANDARD REVIEW

30