Saugus Union School District
First Interim Fiscal Year 2014-15
Executive Summary
Board of Trustees
Paul De La Cerda
Judy Egan Umeck
Rose Koscielny
Dr. David Powell
Christopher Trunkey
Administration
Joan M. Lucid, Ed.D., Superintendent
Cynthia Shieh, Assistant Superintendent of Business
Christine Hamlin, Ed.D., Assistant Superintendent of Instruction
Chad Hammitt, Assistant Superintendent of Human Resources
December 9, 2014
Table of Contents
Budget Calendar………………………………………………………...…3
Executive Summary ………………………………………………… 4 - 18
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Budget Calendar
FY 2014-15
June
Board adopts FY 2014-15 Budget.
July/August
Business Office Staff works on Year-end Closing (FY 2013-14)
August
Within 45 days, the District revises its budget to reflect significant changes in
the State’s approved budget.
September
Unaudited Actuals submitted for approval.
October
First Interim for Fiscal Year 2014-15 ends on October 31, 2014.
November
Preparation of First Interim.
December
Submission of First Interim on or before December 15, 2014. Release of
Auditor's Report for prior fiscal year.
January
Governor releases State budget proposal for the next fiscal year (2015-16);
Second Interim ends January 31, 2015.
February
School Board conducts a budget study session (based on the Governor's Budget
proposal)
March
District submits the Second Interim on or before March 15, 2015.
April
P-2 ADA cut-off
May
Release of Governor's May Revise (FY 2015-16).
June
Board conducts the public hearing and adopts 2015-16 Budget.
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EXECUTIVE SUMMARY
Saugus Union School District First Interim for FY 2014-15
The Saugus Union School District is located in Santa Clarita Valley in Northern Los Angeles County.
As of October 1, 2014 there are 9,911 students enrolled in fifteen schools within our boundaries of 99
square miles. Fourteen of our schools have been recognized as California Distinguished Schools, some
of them more than once. In addition, five schools have been recognized as National Blue Ribbon
Schools. All demographic areas of student performance continue to show improvement.
MISSION
The Saugus Union School District in partnership with the home and community is committed to
excellence in elementary education.
VALUE
Respect. Integrity. Learning. Teamwork. Enthusiasm.
VISION
Our vision is academic and personal success for every child.
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Board of Trustees
Paul De La Cerda, President, term expires December 2017
Rose Koscielny, Clerk, term expires December 2015
Dr. David Powell, Member, term expires December 2015 (appointed August 5, 2014)
Christopher Trunkey, Member, term expires December 2015 (appointed November 19, 2014)
Judy Egan Umeck, Member, term expires December 2017
District Administration
Joan M. Lucid, Ed.D., Superintendent
Christine Hamlin, Ed.D., Assistant Superintendent of Instruction
Chad Hammitt, Assistant Superintendent of Human Resources
Cynthia Shieh, Assistant Superintendent of Business Services
School Site Administration
Bridgeport:
Susan Bender, Principal
Mary Mann, Assistant Principal
Cedarcreek:
Jennifer Stevenson Ed.D, Principal
Emblem:
Jon Baker, Principal
Lisa Loscos, Assistant Principal
Foster:
Deborah Bohn, Principal
Helmers:
Diane Miscione, Principal
Dena Rusk, Assistant Principal
Highlands:
Paul Martinsen, Principal
Mountainview:
Katie Demsher, Principal
Robin Payre, Assistant Principal
North Park:
Pete Bland, Principal
Sandy Brunet, Assistant Principal
Plum Canyon:
Mary Jane Kelly, Principal
Rio Vista:
Gina Nolte, Principal
Rosedell:
Kathy Stendel, Principal
Karen Harvey, Assistant Principal
Santa Clarita:
Theophane Korie, Principal
Skyblue Mesa:
Julie Bogosian Principal
Tesoro del Valle:
Dianne Saunders, Principal
West Creek Academy:
Cory Pak, Principal
Susan Bett, Assistant Principal
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Introduction:
The Local Control Funding Formula (LCFF) establishes a base with supplemental and
concentration add-ons for English Learners (EL), free and reduced-price meal eligible students
and foster youth students, and provides additional funding for K-3 CSR, Grades 9-12, Home-toSchool Transportation and the Targeted Instructional Improvement Grant (TIIG).
The Base Grant rates for 2014-15 are as follows:
Grade
Level
K-3
4-6
7-8
9-12
Base Grant
Amount per
ADA
$6,952
$7,056
$7,266
$8,419
COLA
.85%
$59
$60
$62
$72
Augmentation
$729
$0
$0
$221
Base
Grant
$7,740
$7,116
$7,328
$8,712
COLAs and Gap Funding Amounts
The Base Grant rates are increased annually by the statutory COLA. The statutory COLA for
2014-15 is 0.85 percent. The estimated COLA for 2015-16 is 2.19 percent, and 2.14 percent for
2016-17. It is important to note that the COLA affects only the calculation of the LCFF Target,
and does not describe the net increase in funding for the District.
The $4.75 billion provided in the 2014-15 budget to continue to implement the LCFF is
sufficient to fund each district’s Gap by 29.56 percent. The Department of Finance projects that
enough additional funds will be provided to fund the Gap by 20.68 percent in 2015-16 and by
25.48 percent in 2016-17. This does not mean that the District will receive increases equal to
these amounts, but rather that the District’s gap (the difference between the Hold Harmless and
the Target amounts) will be funded by those percentages.
The State’s administration anticipates full funding of the LCFF target will occur in 2020-21.
Until then, increases in funding will be as the State budget appropriates funding for that purpose.
There is not statutorily guaranteed increase in any given year until full implementation is
reached. Furthermore, expiration of the sales tax increase in 2016 and expiration of the personal
income tax increase in 2018, as well as the uncertainty regarding the continued recovery of the
State’s economy, results in uncertainty regarding future years’ increases in LCFF funding.
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District's Funds and Budget:
Accounting is the fiscal information system for business. The District's accounting, referred to as
Governmental Accounting, is organized and operated on a fund basis. A fund is defined as a fiscal and
accounting entity with a self-balancing set of accounts recording cash and other financial resources,
together with all related liabilities and residual equities or balances, and changes therein, which are
segregated for the purpose of carrying on specific activities or attaining certain objectives in
accordance with special regulations, restrictions, or limitations.
In FY 2014-15, there are currently thirteen funds in the District accounting system. The District's
funds include:
General Fund (Fund 01)
Special Education Pass-Through Fund (Fund 10)
Child Development Fund (Fund 12)
Deferred Maintenance Fund (Fund 14)
Special Reserve Fund Other Than Capital Outlay Projects (Fund 17)
Building Fund (Fund 21)
Capital Facilities Fund (Fund 25)
County School Facilities Fund (Fund 35): To be phased out in 2014-15
Special Reserve Fund for Capital Outlay Projects (Fund 40)
Capital Project Fund Blended Component Units (Fund 49)
Bond Interest and Redemption Fund (Fund 51)
Debt Services Fund for Blended Component Units (Fund 52)
Other Enterprise Fund (Fund 63)
Multi-Year Assumptions:
The multi-year projection for the First Interim utilizes the recommended assumptions published
by Los Angeles County Office of Education. Expenditure projections include step and column
increases for salaries, as well as those expenditures addressed in the Local Control Accountability
Plan (LCAP). To address class-size reduction in TK-3, the assumptions include nine additional
teachers in 2016-17. Additional amounts have also been included to address the increase in
CalSTRS and CalPERS employer rates. It is anticipated that the District’s enrollment will remain
relatively decline slightly over the next two years.
Assumptions for the First Interim for FY 2014-15 include:





Funding for the LCAP
Funding to address the needs of unduplicated counts of pupils which include English
Learners, Free and Reduced Price Eligible Students, and Foster Youth via the
proportionality calculation
Restructuring of the delivery of special education services
The District will continue to fund all Library Specialists to see each class at every school
site for 30 minutes per class per week
Reduced class size for TK, K and 1 to 26 and Grades 2-3 to 28 in 2014-15
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
Steps and columns for employees as well as the 3.5% increase that became effective July
1, 2014
Multi-year projections for the two subsequent years, FY 2015-16 and FY 2016-17, include:








Continued LCFF funding model
Increased funding for unduplicated counts of pupils based on the proportionality the
proportionality calculation
Increased funding for unduplicated counts of pupils
Steps and columns for employees. No salary improvement has been built into the multiyear projections.
Reduced class size for TK, K and 1 to 25 and Grades 2-3 to 27 in year 2015-16 and class
size TK, K and 1 to 24 and Grades 2-3 to 26 in year 2016-17.
Because of declining enrollment no additional general education teachers are necessary for
reduced class size. Nine additional general education certificated teachers are budgeted in
2016-17 to address class size reduction.
Reduction in major object 3900 for the PARS payment in 2015-16 of $256,431
Increased contributions to restricted maintenance equivalent to 3% of general fund
expenditures in 2015-16 and 2016-17.
The following table shows major assumptions used in the First Interim:
MYP Budget Assumptions
Factor
Statutory COLA
Gap Funding
Projected Enrollment
P-2 ADA
Funded ADA
General Ed FTEs
$ Per Pupil
Teacher Allocation per FTE
Custodial Supplies per Pupil
Instruction Days
CPI
Lottery - Unrestricted
Lottery - Restricted
CalPERS Employer Rate
CalSTRS Employer Rate
Interfund Transfers from Fund 14
Interfund Transfers from Fund 17
Interfund Transfers from Fund 63
2014/15
0.85%
29.56%
9,911
9,614
9,708
343
$75
$150
$20
180
2.10%
$128
$34
11.77%
8.88%
2015/16
2.19%
20.68%
9,842
9,547
9,614
343
$75
$150
$20
180
2.30%
$128
$34
12.60%
10.73%
$237,685
$830,000
$237,685
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2016/17
2.14%
25.48%
9,809
9,515
9,547
352
$75
$150
$20
180
2.50%
$128
$34
15.00%
12.58%
$1,000,000
$700,000
$237,685
GENERAL FUND (Fund 01): This is the chief operating fund for the District. It is used to account
for the ordinary operations of the District. All transactions except those required or permitted by
law to be in another fund are accounted for in this fund. In the General Fund, there are General
Fund Unrestricted and General Fund Restricted.
General Fund Unrestricted: Unrestricted funds are monies received that are not restricted in their
use. The district can spend unrestricted monies on whatever programs it chooses. To help us cope
with reduced funding, the state has eliminated the restrictions on some previously restricted
funding sources- allowing districts the flexibility to determine locally the best use of the funds.
General Fund Restricted: This is to account for those projects and activities that are funded by
external revenue sources that are legally restricted or restricted by the donor to specific purposes.
For example, special education funds are restricted. They can only be spent on students with
identified special needs and in the manner outlined in state and federal law.
General Fund Revenues: $79,090,082 (Unrestricted $66,856,313; Restricted:
$12,233,769)
The following chart illustrates the funding source of the total General Fund revenues.
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LCFF Source (Object 8010-8099): $64,060,082 (Unrestricted $64,060,082, Restricted $0)
This represented 81% of the total general fund revenues. It is the primary revenue component of
the District’s total revenue source.
The unrestricted portions represented in the LCFF funding include the Principal Apportionment
(P2 ADA), Education Protection Account, and Property Taxes. EC Section 42238.5(a)(1) allows
districts with declining attendance to continue to receive funding based on the greater of prior year
or current year actual attendance. This provides, in effect, a one-year cushion for the loss of
revenue due to declining enrollment/attendance. Because the District is in declining enrollment,
the State will use prior year P2 ADA, (9,709) to calculate the District’s LCFF funding.
The following chart shows annual enrollment (based on the informational date which is the first
Wednesday of October each year) and P-2 Average Daily Attendance (ADA). Each school agency
reports its attendance three times during a school year. The First Principal apportionment ADA, called
the P-l ADA or the P-l count, is counted from July 1 through the last school month ending on or before
December 31 of a school year. The Second Principal apportionment ADA, called the P-2 ADA, is
counted from July 1 through the last school month ending on or before April 15 of a school year. The
final recalculation of the apportionment is based on a school agency's P-2 ADA.
The following chart illustrates the ten-year trend analysis between enrollment and P-2 ADA.
Blue = Enrollment
Orange = P-2 ADA
Note: The table represents a snapshot on CalPads date which is the 1st Wednesday of October.
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Federal Revenue (Object 8100-8299): $3,445,598 (Restricted)
This represents 4% of the total general fund revenues. The District receives federal reimbursement
through the California Department of Health Services (DCHS) for costs incurred to provide MediCal eligible services to student. In addition, the restricted amount includes IDEA funding for special
education services and No Child Left Behind (NCLB) including Title I, Title II, and Title III.
Other State Revenue (Object 8300-8599): $9,696,690 (Unrestricted $2,188,120; Restricted
$7,508,570)
This is the second largest revenue source for the District; it represents 12% of the total general fund
revenues. The unrestricted portipn includes Mandated Cost Reimbursement, Lottery, Home to School
Transportation, and the Targeted Instructional Improvement Grant. Restricted monies include After
School Education and Safety and Special Education dollars.
Other Local Revenue (Object 8600-8799): $1,650,027 (Unrestricted $370,426; Restricted
$1,279,601)
This represents 2% of the total general fund revenues. It is a small portion of the entire District's
revenue source. The unrestricted portions include Interest Income, Donations, Sale of Equipment, and
RDA money. The restricted portions include site specific or program donations and reimbursement
from local districts for regionalized special education services.
General Fund Expenditures: $83,459,795 (Unrestricted $58,280,307; Restricted: $25,179,488)
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Certificated Salaries (Object 1000-1999): $41,132,314 (Unrestricted: $ 33,012,369.00; Restricted
$8,119,945.00)
Certificated salaries are salaries for positions that require a credential or permit issued by the
Commission on Teacher Credentialing. Total district general education staffing for 2014-15 is
projected to be 343 full-time equivalents (FTE). In addition, we have 47 FTE for TK – 6 special
education teachers. It represents 49% of the total general fund expenditures (including transfers out).
Classified Salaries (Object 2000-2999): $14,138,283 (Unrestricted: $8,799,345; Restricted
$5,338,938)
This classification represents the salaries paid for the positions that do not require a credential or permit
issued by the Commission on Teacher Credentialing. The positions in this classification are office
manager, administrative clerk, clerical assistant, receptionist, secretary, health clerk, district office
staff, instructional aides and maintenance and operation staff, It is about 17% of the total general fund
expenditures.
Employee Benefits (Object 3000-3999): $13,892,637 (Unrestricted: $10,384,770; Restricted
$3,507,867)
This classification is to account for employers' contributions to retirement plans (State Teachers'
Retirement System, and Public Employees' Retirement System), alternative retirement plans, early
retirement incentive programs, health and welfare benefits, and the payroll related statutory costs such
as Workers' Compensation, State Unemployment Insurance, FICA, and Medicare. It is about 17% of
the total general fund expenditures.
Books and Supplies (Object 4000-4999): $6,688,663 (Unrestricted $1,891,148; Restricted
$4,797,515)
This is to account for expenditures for books and supplies, other reference materials, and noncapitalized equipment. It represents about 8% of the total expenditures. Because many of the site
allocations are subject to carryover, in this fiscal year they have been transferred to locally
restricted resources. Because the bulk of the per-student enrollment and custodial supply monies
are spent on books and materials, the District will see greater restricted expenditures in these areas.
Services and Other Operation Expenditures (Object 5000-5999): $6,377,737 (Unrestricted
$4,245,502; Restricted $2,132,235)
This is to account for expenditures for services, rentals, leases, maintenance contracts, dues, travel,
insurance, utilities, legal and other operating expenditures. It is about 8 % of the total expenditures.
Services for unduplicated count students are being accounted for within the supplementary grant
funds. Title I sites have contracted for additional educational services for their students and many
of the sites are using gifts and donation monies to provide additional art and music opportunities
as well. In addition, additional services for special education students are accounted for as well.
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Capital Outlay (Object 6000-6999): $81,245 (Unrestricted $42,800; Restricted $38,445)
This is to account for expenditures capitalized intangible capital assets above $5,000. It represents
less and .01% of the total expenditures. The SELPA completed an installation of casework and
has purchased equipment for low incidence students. Maintenance has invested in lawn equipment
for the District and sites have purchased smart boards with their gifts and donation monies.
Other Outgo (Object 7100-7499): $1,148,916 (Unrestricted $95,627, Restricted $1,244,543)
This represents special education tuition and excess costs to other agencies and lease and interest
payments on District copiers and buses. It represents just over 1% of the District’s total
expenditures.
Unrestricted Ending Balance:
One of the key fiscal indicators for fiscal health risk analysis is the Reserve for Economic
Uncertainty. There are no longer any statutory requirements for how much the state must
increase education funding in any year. Progress toward the 8-year goal set by the Governor and
Legislature is measured by how much of a year over year dollar increase is provided by
subsequent Administrations and Legislatures over the next 8 years and beyond.
Unrestricted
Total Revenue
Transfers In*
Total Expenditures
Contributions
Net
Beginning Balance
Ending Balance
FY 14-15
FY 15-16
$66,618,628
$68,402,881
$237,685
$1,067,685
$58,930,503
$59,042,167
($10,264,056) ($12,108,835)
($2,575,931)
($2,748,121)
$6,613,337
$4,037,406
$4,037,406
$1,289,285
FY 16-17
$71,322,241
$1,937,685
$60,228,388
($12,943,063)
($1,849,210)
$1,289,285
($559,925)
Restricted
Total Revenue
Total Expenditures
Contributions
Net
Beginning Balance
Ending Balance
FY 14-15
FY 15-16
$12,233,769
$11,576,517
$25,179,488
$23,787,895
$10,264,056
$12,108,835
($2,681,663)
($102,543)
$3,854,024
$1,172,361
$1,172,361
$1,069,818
FY 16-17
$11,576,703
$24,550,351
$12,943,063
($30,585)
$1,069,818
$1,039,233
Combined (Unrestricted & Restricted)
FY 14-15
FY 15-16
Total Revenue
$78,852,397
$79,979,398
Transfers In*
$237,685
$1,067,685
Total Expenditures
$84,109,991
$82,830,062
Contributions
$0
$0
Net
($5,257,594)
($2,850,664)
Beginning Balance
$10,467,361
$5,209,767
Ending Balance
$5,209,767
$2,359,103
Required Reserve
$2,523,300
$2,490,805
Reserve %
4.80%
1.56%
Required Reserve %
3%
3%
Available Reserve/Meet Reserves Standard
Yes
Yes
FY 16-17
$82,898,944
$1,937,685
$84,778,739
$0
($1,879,795)
$2,359,103
$479,308
$2,572,914
-0.66%
3%
Yes
*In order to meet the required reserves, the District will transfer $830,000 from Fund 17 in 2015-16 and in
2016-17 an additional $700,000 and $1,000,000 will be transferred in from Fund 17 and Fund 14, respectively.
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The multi-year budget assumptions and projections illustrate the characteristics of this District’s
fiscal structure. The characteristics include: fully-funded LCFF vs. only gap funding, declining
enrollment, deficit spending for the current year, and deficit spending in subsequent years is
larger than the current year causing the District to backfill the deficit with monies from Fund 17
and Fund 14 wiping out those reserves.
Currently, the District’s expenditures far surpass its revenue amounts. In the current year, the
District is deficit spending by over $2.3 million. In 2015-16, the amount rises to just over $2.5
million and in 2016-17 deficit spending is projected to be over $1.6 million. If the State is
unable to continue to fund the Local Control Funding Formula, the District will fall to a qualified
or negative certification as it will have exhausted all other available funds in Fund 14 and Fund
17. It is necessary for the District to make sufficient cuts in order to live within its means.
OTHER FUNDS
SPECIAL EDUCATION PASS-THROUGH FUND (Fund 10): This fund is used by the
Administrative Unit (AU) of a multi-LEA Special Education Local Plan Area (SELPA) to account
for Special Education revenue passed through to other member LEAs.
Special Education revenue that is not passed through to other member LEAs, but rather is retained
for use by the SELP A AU in accordance with the local plan is not accounted for in this fund, it is
then included in the General Fund.
Revenues budget in this fund includes state special education apportionments, federal local
assistance under the Individuals with Disabilities Education Act, federal preschool funding, state
mental health funding and these in turn are passed to Castaic, Newhall, Sulphur Springs and
William S. Hart School Districts. Federal amounts are projected to be $6,634,450 and $21,522,
324 are projected to be from state funding sources. The fund has $158,605.14 in carryover of
mental health funds. It is projected that a total of $28,156,774 will be passed through to member
districts.
CHILD DEVELOPMENT FUND (Fund 12): This fund is used to account separately for federal,
state, and local resources to operate Child Development Programs. The programs include two State
Preschools located at Cedarcreek and Rio Vista and two LA Universal Preschools located at
Mountainview and Santa Clarita. The anticipated total revenues for the Child Development
Programs are $445,929, which includes $409,929 from the State and $36,000 from other local
revenues. The total expenditures are projected to be $448,174. The projected ending balance is
anticipated to be $28,294 at June 30, 2015.
DEFERRED MAINTENANCE FUND (Fund 14): This fund historically has been used to account
for state apportionments and the District's contribution for deferred maintenance purposes.
However with implementation of the Local Control Funding Formula, funds are included in the
base grant in the General Fund. Revenues in 2014-15 only include interest in the amount of $9,815.
Expenditures are for repairs and maintenance at the school site based on a priority listing
maintained by the District’s Maintenance & Operations department. It is anticipated that
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expenditures in the amount of $788,000 will occur in 2014-15. The ending fund balance is
projected to be $1,354,864 at year end.
SPECIAL RESERVE FOR OTHER THAN CAPITAL OUTLAY PROJECTS (Fund 17): This
fund is used primarily to provide for the accumulation of general fund moneys for general
operating purposes other than for capital outlay. The District will transfer $650,196 into Fund 17
as a result of receiving one-time mandate block grant reimbursement monies for prior year claims.
It is anticipated that the projected ending balance will be $2,314,751 at year end of which $446,658
is food service monies and $1,868,093 is unrestricted.
BUILDING FUND (Fund 21): It is known as G.O. Bond Fund. This fund exists primarily to
account for proceeds from the sale of bonds and may not be used for any purposes other than those
for which the bonds were issued. This represents 1993, 2002, 2005 (refunding) & 2006 (refunding)
outstanding General Obligation Bonds. It is projected that the District will eceive $13,377 in
interest. Expenditures includes salary and benefit amounts paid to the Director of Facilities for
one-half of the fiscal year and $20,000 for facility repairs and improvements, architect fees, and
other consulting fees. The ending fund balance is anticipated to be $2,256,140 at year end.
CAPITAL FACILITY FUND (Fund 25): It is also known as Developer Fee money. This fund is
used to account for monies received from fees levied on developers or other agencies as a condition
of approving a development. The Interest earned in this fund is restricted to this fund. The
expenditures in this fund are restricted to the purposes specified in agreements with the developer
or specified in Government Code. It is anticipated that this fund will receive revenue in the amount
of $580,156 of which $49,156 represents interest income and $531,000 developer fees collected.
The total expenditures of $50,500 are for projects at various school sites. The projected ending
balance will be $8,307,899 at June 30, 2015.
COUNTY SCHOOL FACILITIES FUND (Fund 35): This fund is used primarily to account
separately for state apportionments for the State School Facilities Fund. The interest income is
anticipated to be $500. Expenditures for materials and supplies have been budgeted at $84,000 and
$85,545 has been budgeted for services and other operating expenditures. It is anticipated that this
fund will have a -0- balance at year end.
SPECIAL RESERVE FUND FOR CAPITAL OUTLAY PROJECTS (Fund 40): This fund exists
to provide for the accumulation of general fund monies for capital outlay purposes. This fund may
also be used to account for any other revenues specifically for capital projects. The interest income
is anticipated to be $26,828. Just over $2,153,000 has been budgeted for the lease revenue bond
of which $1,298,070 is interest expense and $855,000 is principal. The projected ending balance
will be $18,677,025 at June 30, 2015.
CAPITAL PROJECT FUND FOR BLENDED COMPONENT UNITS (Fund 49): This fund is
used to account for capital projects financed by Mello-Roos Community Facilities Districts. The
Mello-Roos Community Facilities Act of 1982 allows the District to establish a CFD upon
approval of 2/3 of the voters in the District. A CFD is for the purpose of selling tax-exempt bonds
to finance public improvements and services. In August and September, he District issued bonds
in the following areas: CFD 2006-1 Area 1, CFD 2006-1 Area 3, CFD 2006-2 Area, and CFD
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2006-2 Area 3 for a total of $36,717,254. Of this total, almost $26,000,000 will be transferred to
the Wm. S. Hart Union High School District and to Newhall Land and Farming. It is anticipated
that this fund will generate $41,000 in interest income. Additionally, $600,000 has been budgeted
for services and other operating expenditures and for capital outlay. The projected ending balance
will be $18,215,734 at June 30, 2015.
The CFDs are as follows:
49.1 - CFD 2000-1 Saugus/Hart Facilities Financing Authority
49.2 - CFD 2002-1 Tesoro
49.3 - CFD 2005-1 Plum Canyon/Skyblue Area
49.4 - CFD 2004-1 Tesoro
49.5 - CFD 2006-1 West Creek, Area 1, Area 2, and Area 3
49.6 - CFD 2006-2 River Village, Area 1
49.7 – CFD 2006-1C Saugus/Castaic
DEBT SERVICE FUND FOR BLENDED COMPONENT UNITS (Fund 52): This fund is used
to account for the accumulation of resources for the payment of principal and interest on bonds
issued by Mello-Roos Community Facility District. The total revenues of $6,667,484 represents
taxes and interest income. The total expenditures of $6,813,469 represents debt service payments.
The projected ending balance will be $21,701,383 at June 30, 2015.
OTHER ENTERPRISE FUND (Fund 63): This fund is used to account for any activity for which
a fee is charged to external users for goods or services. The Child Development Programs have
been treated as an Enterprise Fund, since the programs are not subsidized by state or federal funds
and are operated with the intent of recovering the costs of the program through parent fees. Total
revenues are anticipated to be $5,680,065, which includes interest income in the amount of
$18,665, and tuition and fees collected in the amount of $5,661,400. Just under $4,750,000 has
been budgeted for expenditures which include certificated salaries, classified salaries, and
employee benefits in the amount of $3,555,067. The other expenditures in the amount of
$1,194,933 include material and supplies, custodian services in the amount of $332,860 and other
operating expenditures. The projected net position is projected to be $6,866,841 at June 30, 2015.
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Final note:
Recently, the Department of Finance (DOF) announced the State’s General Fund revenue are up
just over $1 billion as compared to the forecast for 2014-15. In addition to the overall positive
General Fund news, the state’s unemployment rate fell .1% to 7.3% in September, which is the
lowest rate it has been since July of 2008. However, it is important to approach the improved
outlook with caution as the temporary tax increases sunset in 2016 and 2018. In addition, the
employer’s contribution to both STRS and CalPERS has been increased at an unprecedented
rate. An economic downturn within the next few years could quickly result in a return to
operating deficits.
The Governor’s Budget will be our next check on current and future year budget forecasts and
estimates, and will be released by January 10, 2015.
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