Victor Valley Community College District

2013-14 Budget Workshop

June 11, 2013

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Agenda2013 /14 Budget AssumptionsRedevelopment Agency Pass Through Funds

(RDA)Other Post Employment Benefits (OPEB)GICGrowth SplitEnding BalancesTentative Budget

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General Fund Budget AssumptionsFor Fiscal-Year 2013-2014

  General Assumptions: 1.The District shall maintain legal compliance with the 50% law2.The District will develop a balanced budget with a minimum 5% ending fund balance (reserve)3.The District will not access long-term reserves for balancing the budget4.The Program Review, Planning, and Budget Development Process will guide the allocation of all resources5.Vacancies due to retirement or resignation will not automatically be filled6.Board of Trustee Resolution #12-07, approved at their meeting in July, 2012, authorizes and directs the Superintendent/President to establish a policy goal of balancing the District’s budget by Fiscal Year 2015/16 in accordance with Title 5 of the California Code of Regulations7.Finance, Budget, and Planning Committee recommends incorporating the April 3, 2013 FCMAT recommendations in developing updated business processes and balancing the District budget

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Revenue Assumptions:

8.General fund reserve funds (Bridge) will be utilized to offset revenue shortfall9.The State recommends 1.57% Cost of Living Adjustments (COLA) funding10.The State recommends 1.63% Growth funding11.The State recommends $16.9 million for “online initiatives” is recommended for distribution among 72 districts

 

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Expense Assumptions: 

12. Employer mandatory payroll cost will increase proportionately to the COLA, since by contract the legislated COLA must be applied to the salary schedule13. Budget augmentations will initially be considered for mandatory and compliance related requests14.Budget augmentations for non-mandated or compliance issues may be considered through reallocation of existing resources or one-time external non-general fund revenue15.The budgets for object code 5000 expenditures will be reset to either the highest amounts expended during the past two years or the current fiscal year16.District health benefit premiums will increase by approximately 10%17.Employer contribution to PERS will increase from 11.417% to ___ (the PERS Board will meet in Mid-June 2013 to update the rate)18.State Unemployment Insurance rates will decrease from 1.1% to .05% 

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Redevelopment Agency Pass Through Funds (RDA)

47.5% To General Fund

52.5% To Infrastructure &

Maintenance Total

2008/09 1,153,933$ 1,275,399$ 2,429,332$

2009/10 617,333$ 682,316$ 1,299,649$

2010/11 440,445$ 486,808$ 927,253$

2011/12 332,980$ 368,031$ 701,011$

2012/13 * 313,920$ 1,195,625$ 1,509,545$

* as of 6/11/13

Revenue

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Total2012 708,858$ 2013 682,229$ 2014 741,924$ 2015 753,127$ 2016 850,640$ 2017 940,122$ 2018 992,988$ 2019 1,026,999$ 2020 1,072,052$ 2021 1,136,380$

OPEB Trust Corpus:

Other Post Employment Benefits (OPEB)"Pay As You Go" Funding of Retiree Benefits

Victor Valley CCD has established a GASB 43 Trust for future OPEB costs.

Value of Plan Assets at June 11, 2013: $8,854,449

Annual Payments:

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Special Reserve Fund (GIC)

Beginning Bal Interest Interest Outgoing Prior Yr Adj. Balance

(GIC) (County) (Draw)

2009-10 $ 28,022,430 $ 1,923,016 $ 3,322 $ (8,350,000)$ - $ 21,598,768

2010-11 $ 21,598,768 $ 1,691,509 $ 1,951 $ - $ 8,115 $ 23,300,343

2011-12 $ 23,300,343 $ 1,691,509 $ 2,000 $ - $ - $ 24,993,852

2012-13 $ 24,993,852 $ 1,728,616 $ 2,000 $ - $ - $ 26,724,468

2013-14 * $ 26,724,468 $ 1,834,295 $ 2,000 $ - $ - $ 28,560,762

*Projected

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YTD Budget Expansion Proposal(Community College League of California)

As of 6/11/13

Enrollment restoration: 1.63%Cost-of-living adjustment: 1.57%Student Success: $50 millionProposition 39: $48 millionDeferred Maintenance: $30 millionOnline education: $16.9 millionEOPS: $15 millionDSPS: $15 millionCalWORKs: $8 millionAcademic Senate: $150,000

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Growth Split

Total District Growth (1.63%) 666,446$

Instructional (50% Law) 333,223$ Cost of Growth 150,000$ Discretionary 183,223$

Non-Instructional 333,233$ Student Services 166,617$ Admin. Services 166,617$

Ending Balances

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Million2012-2013 Projected Ending Fund Balance $ 4.4OPEB/Vacation Liability Budget: Liquidated + 2.8

Prop 30 Passed + 3.0

Projected Unspent Budget in 5000 Object Code (Services/Operations) + 2.0

Projected Beginning Fund Balance for 2013-2014 $ 12.2

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Victor Valley Community College District

TENTATIVE BUDGET Unrestricted General Fund 2013/ 14

Board of Trustees Meeting - J une 11, 2013

Actual

Current

Estimated

Budget Year

Budget Year

Budget Year

2011-2012

2012-2013

2013-2014

Target FTES 9,379

8,230

9,236

Full-Time Equivalent Students (Funded) 8,879

8,230

9,140

Full-Time Equivalent Students (Unfunded) 509

200

96

Full-Time Equivalent Students (Rolled) 386

540

200

Total FTES 9,774

8,970

9,436

BEGINNING FUND BALANCE $18,016,776

$15,535,767

$12,140,938 *

CATEGORY

ESTI MATED REVENUES

State (Apportionment) $34,288,405

$31,919,360

$35,186,985

State (All Other) $1,773,654

$1,633,097

$1,623,664

Local (Property Tax included) $10,323,646

$11,643,527

$9,999,106

One-Time Revenue $1,018,531

$800,000

$934,939

Transfers In: Reserve $22,642

$0

$0

TOTAL REVENUES $47,426,878

$45,995,984

$47,744,694

ESTI MATED EXPENDITURES

Academic Salaries $22,756,652

$22,383,596

$22,088,284

Classified Salaries $10,478,250 $11,786,792 $11,576,837

Employee Benefits $9,340,130

$10,025,388

$10,557,558

OPEB & Vacation Liability $0

$3,600,500

$500,000

Supplies, Software, Subscriptions $738,238

$740,356

$831,166

Services and Operations $5,727,041

$7,570,959

$6,598,809

Capital Outlay $866,377

$695,145

$716,057

Transfers, Reserves $1,200

$331,200

$1,701,436

TOTAL ESTI MATED EXPENDI TURES $49,907,887

$57,133,936

$54,570,147

FUND BALANCE $2,535,267 5.1% $2,847,815 5.0% $2,715,485 5.0%

RESTRICTED/ DESIGNATED BALANCE $3,600,500

$0

$0

UNRESTRICTED BRIDGE BALANCE $9,400,000

$1,550,000

$2,600,000

TOTAL ENDI NG FUND BALANCE $15,535,767

$4,397,815

$5,315,485

* Includes: $2,943,123 - Passage of Prop. 30: $2.8M - Liquidation of OPEB/Vacation Liability: $2.0M Est. Liquidation of Contractual Budgets

Discussion

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