REDWOODS COMMUNITY COLLEGE DISTRICT
BOARD OF TRUSTEES MEETING
June 3, 2015
Agenda Item # XXX
SUBJECT:
APPROVE 2015-16 TENTATIVE BUDGET
RECOMMENDATION
Action is required. The President/Superintendent recommends approval of the 2015-16
Tentative Budget pursuant to BP/AP 6200 Budget Preparation. This action helps the District
meet Accreditation Standard III D The institution plans and manages its financial affairs with
integrity and in a manner that ensures financial stability.
BACKGROUND
The Board must approve a Tentative Budget before June 30, 2015 to provide a beginning budget
for the District effective July 1, 2015. This 2015-16 Tentative Budget has been prepared with
reasonable, but conservative assumptions.
Exhibit A recaps the District’s 2015-16 Tentative All Funds Budget. Exhibit B recaps the
District’s 2015-16 Tentative General Funds Budget. In Exhibit B, the first column of figures
recaps the monthly financial report as presented at this Board of Trustees meeting. Then,
adjustments are entered in the next column to calculate the 2015-16 Tentative Unrestricted
General Fund Budget report. No significant changes have been entered in the restricted general
fund or the other funds listed in Exhibit A. Several of the Governor’s proposed increases are not
included at this time, for example proposed increases for categorical funds. These augments will
be reported in detail in the 2015-16 Final Budget after the Legislature finalizes a budget, the
Governor signs the budget, and the Chancellor’s Office releases detailed allocation spreadsheets
by district.
Exhibit B notes that enrollments have been kept at the estimated 2015-16 enrollment stability
level of 3936 FTES as reported on the most recent 20141-5 CCFS 311Q Quarterly Financial
Status report and the 2014-15 “P-2” CCFS 320 enrollment report. Therefore, for apportionment
funding calculations, full-time equivalent students (FTES) have been held to 2014-15 enrollment
levels. During 2015-16, the District will likely only report Fall and Spring FTES, so enrollment
levels above enrollment stability are unlikely.
Revenues and expenditures include an estimate of apportionment from the May Revised
Governor’s Budget proposal along with expenditure increases for a salary step and annual
benefit cost increases. The Tentative Budget shows a modest increase to fund balance,
continuing the District’s commitment to steady improvement in fiscal stability.
Federal revenue remains unchanged at the 2014-15 level of about $100 thousand.
State revenue has been adjusted for a 1.02% cost of living adjustment (COLA). Revenue from
the proposed base budget increase and the proposal to increase the number of full-time faculty to
meet FON (Faculty Obligation Number) requirements has been recognized (The District is
currently meeting its FON requirement.) The District’s share of systemwide FTES is about
0.344%, so that percentage was applied to the Governor’s proposals. The Base Budget Increase
might be larger if basic funding for small districts and the rural allocation are adjusted upward,
but that is not included in this report. The Chancellor’s Office will provide more accurate
allocations in August 2015 in time for the preparation of the 2015-16 Final Budget report for the
Board’s September meeting. Local revenue remains unchanged at this time as the entire change
in Apportionment was recognized in State revenue. When the Chancellor’s Office provides
more granular figures, adjustments to apportionment can be made between State and Local
revenue.
Expenditures include the salary levels restored during 2014-15 plus a 2015-16 salary step.
Benefit cots have been increased by 6%. Health and welfare costs are increasing at a smaller rate
next year, but other payroll expenditures, such as final unemployment tax assessments have not
been reported yet. Non-payroll costs were increased by 2.5% as well.
The net result of the revenue and expenditure adjustments in this 2015-16 preliminary budget
estimates a small increase to the fund balance calculating to 6.3%.
Exhibit A: 2015-16 Tentative All Funds Budget
REDWOODS COMMUNITY COLLEGE DISTRICT
TENTATIVE BUDGET
FISCAL YEAR 2015-16
REVENUES, EXPENDITURES
AND CHANGE IN FUND BALANCE
REVENUES:
Federal Sources
State Sources
Local Sources
General
Fund
(10)
8100-8199 $
8600-8699
8800-8899
Total Revenue
EXPENDITURES:
Academic Salaries
Other Staff Salaries
Employee Benefits
Reorganization & RIF
Supplies & Materials
Services & Other Operating
Capital Outlay
1000-1999
2000-2999
3000-3999
4000-4999
5000-5999
6000-6999
Total Expenditures
EXCESS REVENUES (EXPENDITURES)
OTHER FINANCING SOURCES (USES):
Interfund Transfers In
Debt Service
Interfund Transfers Out
Student Financial Aid
8980-8988
7100-7199
7300-7399
7500-7699
Total Other Sources (Uses)
FUND BALANCE INCREASE (DECREASE)
GOVERNMENTAL FUND TYPES
SPECIAL REVENUE FUNDS
Child DevelStudent
Other Sp
opment
Farm
Rev Funds
(33)
(34)
(39)
Debt Serv
Fund
(21) &
(29)
Capital
Projects
(41)
1,356,475 $
18,062,227
11,942,054
0 $
0
2,155,764
72,891 $
244,229
48,669
0 $
100,000
22,000
0 $
0
595,000
0
0
20,000
31,360,756
2,155,764
365,789
122,000
595,000
20,000
10,969,396
6,586,963
7,055,421
1,271,000
342,861
4,027,353
323,207
0
0
0
0
254,781
155,061
18,134
7,985
0
200,000
90,000
75,000
9,000
0
0
0
26,159
13,512
6,276
5,000
6,881
100,000
8,000
132,000
300,000
0
0
6,000,000
30,576,201
0
455,789
138,000
730,000
6,084,000
784,554
2,155,764
(90,000)
(16,000)
(135,000)
(6,064,000)
15,000
0
(464,460)
(377,717)
98,907
(2,133,681)
0
0
90,000
0
0
0
28,000
0
0
0
0
0
0
0
0
0
0
0
(677,177)
(2,034,774)
90,000
28,000
0
0
107,377
120,990
0
12,000
(135,000)
(6,064,000)
1,772,720
0
2,020,120
0
16,861
0
0
0
218,495
0
11,000,000
0
1,772,720
2,020,120
16,861
0
218,495
11,000,000
1,880,097 $
2,141,110 $
16,861 $
BEGINNING FUND BALANCE:
Beginning Balance
Prior Year Adjustments
9790
9791-9792
Adjusted Beginning Balance
ENDING FUND BALANCE
$
12,000 $
83,495 $
4,936,000
Exhibit A: 2015-16 Tentative All Funds Budget – Continued
REDWOODS COMMUNITY COLLEGE DISTRICT
TENTATIVE BUDGET
FISCAL YEAR 2015-16
PROPRIETARY
FUND TYPES
REVENUES, EXPENDITURES
AND CHANGE IN FUND BALANCE
REVENUES:
Federal Sources
State Sources
Local Sources
Enterprise
Funds
(5X)
8100-8199 $
8600-8699
8800-8899
0 $
0
60,000
8,700,000 $
300,000
0
0 $
0
298,854
10,129,366
18,706,456
16,092,341
950,000
60,000
9,000,000
298,854
44,928,163
1000-1999
2000-2999
3000-3999
4,000
220,000
50,000
0
25,000
900
0
0
0
0
0
900,000
4000-4999
5000-5999
6000-6999
60,000
120,000
400,000
9,000
80,510
0
0
0
0
0
0
0
10,973,396
7,379,878
8,268,367
1,271,000
451,020
4,380,256
7,129,483
854,000
115,410
96,000
(55,410)
Total Expenditures
EXCESS REVENUES (EXPENDITURES)
OTHER FINANCING SOURCES (USES):
Interfund Transfers In
Debt Service
Interfund Transfers Out
Student Financial Aid
TOTAL
ALL
FUNDS
(Memo Only)
0 $
0
950,000
Total Revenue
EXPENDITURES:
Academic Salaries
Other Staff Salaries
Employee Benefits
Reorganization & RIF
Supplies & Materials
Services & Other Operating
Capital Outlay
FIDUCIARY FUND TYPE - TRUST
Associated
Student
Employee
Student
Financial
Benefit
Body
Aid Trust
Trust
(71)
(74)
(78)
8980-8988
7100-7199
7300-7399
7500-7699
Total Other Sources (Uses)
FUND BALANCE INCREASE (DECREASE)
900,000
39,853,400
9,000,000
0
(601,146)
5,074,762
0
0
0
0
0
0
0
0
0
0
0
(9,000,000)
225,000
0
0
0
456,907
(2,133,681)
(464,460)
(9,377,717)
0
0
(9,000,000)
225,000
(11,368,951)
(376,146)
(6,294,189)
96,000
(55,410)
0
491,362
0
125,345
0
5
0
1,750,907
0
17,395,815
0
491,362
125,345
5
1,750,907
17,395,815
5
1,374,761 $
11,101,626
BEGINNING FUND BALANCE:
Beginning Balance
Prior Year Adjustments
9790
9791-9792
Adjusted Beginning Balance
ENDING FUND BALANCE
$
587,362 $
69,935 $
Exhibit B: 2015-16 Tentative General Funds Budget
REDWOODS COMMUNITY COLLEGE DISTRICT
TENTATIVE GENERAL FUNDS BUDGET
FISCAL YEAR 2015-16
REVENUES, EXPENDITURES
AND CHANGE IN FUND BALANCE
Full-time Equivalent Students (FTES)
REVENUES:
Federal Sources
1.02% COLA
Increase faculty numbers to meet FON
Base Budget Increase
State Sources
Local Sources
Total Revenue
EXPENDITURES:
Academic Salaries
Other Staff Salaries
Employee Benefits
Pay Restoration - draft estimate
Supplies & Materials
Services & Other Operating
Capital Outlay
Total Expenditures
Unrestricted
2014-15 June 2015
BOT
Adjustments
Unrestricted
2015-16 May
Revised Budget
Restricted
2015-16
General Fund
2015-16
Tentative Bgt
3936
0
3936
100,598
100,598
1,255,877
1,356,475
14,100,509
11,639,170
0
282,010
258,145
915,556
1,455,712
0
15,556,221
11,639,170
2,506,006
302,884
18,062,227
11,942,054
25,840,277
1,455,712
27,295,989
4,064,767
31,360,756
10,265,427
4,916,532
5,923,204
1,240,000
228,045
3,133,560
137,086
256,636
122,913
355,392
31,000
5,701
78,339
3,427
10,522,063
5,039,445
6,278,596
1,271,000
233,746
3,211,899
140,513
447,333
1,547,518
776,825
0
109,115
815,454
182,694
10,969,396
6,586,963
7,055,421
1,271,000
342,861
4,027,353
323,207
25,843,854
853,408
26,697,262
3,878,939
30,576,201
598,726
185,828
784,554
EXCESS REVENUES (EXPENDITURES)
(3,577)
OTHER FINANCING SOURCES/(USES):
Sale of Land & Buildings
Interfund Transfers In
Intrafund Transfers In
Debt Service
Intrafund Transfers Out
Interfund Transfers Out
Student Financial Aid
Other Sources (Uses)
0
15,000
0
0
0
(464,460)
(41,889)
0
0
0
0
0
0
0
0
0
0
15,000
0
0
0
(464,460)
(41,889)
0
0
0
0
0
150,000
0
(335,828)
0
0
15,000
0
0
150,000
(464,460)
(377,717)
0
(491,349)
0
(491,349)
(185,828)
(677,177)
Total Other Sources (Uses)
TEMPORARY ONE-TIME SAVINGS
FUND BALANCE INCREASE (DECREASE)
BEGINNING FUND BALANCE:
Beginning Balance
Prior Year & Other Adjustments
Adjusted Beginning Balance
ENDING FUND BALANCE
Net Fund Balance Percent
Excess Reserve Over 5% Minimum
(494,926)
107,377
0
107,377
2,092,646
0
1,597,720
0
175,000
0
1,772,720
0
2,092,646
1,597,720
175,000
1,772,720
1,597,720
1,705,097
175,000
1,880,097
6.1%
280,960
6.3%
345,666
BUDGET IMPLICATIONS
The District will use this budget to begin the 2015-16 fiscal year, until the State’s adopted budget
is enacted.
LL