Plumas Lake Elementary School District
2009-10 First Interim Financial Report
Governing Board Members
Craig Bommarito
Derek Bratton
Merrilee Leinweber
Chuck MacKay
David Villanueva
Each student will reach their fullest potential as we strive for district excellence through sound leadership,
effective communication, accountability, and investment in our staff.
Annual Financial Reporting

Annual financial deadlines:
Budget Adoption – June 30
 Unaudited Actuals for prior year – October 15
 First Interim – December 15
 Second Interim – March 15
 Third Interim – June 1 (required if negative or
qualified certification)

First Interim Financial Report

Education Code Section 42130 requires District to submit two financial
interim reports to Yuba County Office of Education each fiscal year:

First Interim: Financial transactions from July 1 to October 31

First Interim must be adopted by the Board prior to December 15

District must certify one of the following:



Positive: District can meet its current year and subsequent two year
obligations;
Qualified: District may not be able to meet its current year and subsequent
two year obligations; or
Negative: District cannot meet its current year and subsequent two year
obligations.
Budget Assumptions
Budget Adoption
Budget Act (used for First Interim)
2008-09
2009-10
2008-09
2009-10
COLA
5.66%
4.25%
5.66%
4.25%
Deficit Factor
11.428%
17.967%
7.844%
18.355%
($0.88572 per $1.00)
($0.82033 per $1.00)
($0.92156 per $1.00)
($0.81645 per $1.00)
$6,347.36
$5,621.98
($725.38)
$6,597.36
$5,412.01
($1,185.35)
$6,347.36
$5,849.47
($497.89)
$6,597.36
$5,386.41
($1,210.95)
Revenue Limit (RL)
Deficited RL
Dollar loss per ADA
Other Revenue
Limit Adjustments
-252.83 per ADA
($249,055)
State Categorical
Programs
-15.38%
ARRA – SFSF
(RL)
$0
$234,292
$297,620
$0
ARRA – SFSF
(Categoricals)
$0
$0
$50,715
$0
-4.46%
-15.38%
(Transportation: -65%)
-4.46%
(Transportation:19.8%)
Budget Assumptions
Budget Adoption
Budget Act (used for First Interim)
2008-09
2009-10
2008-09
2009-10
ARRA – Sp Ed
$81,444
$81,444
$81,546
$82,142
Lottery
$109.50
$11.50
Routine Restricted
Maintenance
Contribution 1%
$111.00
$13.25
Contribution 1%
Contribution 1%
Contribution 1%
Average Daily
Attendance (ADA)
938.35
994.38
Beginning Fund
balance
$1,677,314
$2,549,853
Fund Balance
What is fund balance?
 Fund balance is the difference between the District’s
assets and liabilities.
 Fund balance can be used to fund expenditures in
the next fiscal period, however if used for ongoing
costs, future budget decisions will revolve around
finding resources to continue ongoing expenditures.
 Fund balance consists:




Five percent reserved for economic uncertainty
COP Debt Service Payment $476,315
Charter ADA Issue (appeal pending) $186,511
Balance designated for budget shortfalls and for
categorical programs that are still restricted.
Why did the Fund Balance
Increase?
Budget Adoption
Unaudited Actuals
Beginning Fund balance
July 1, 2008
$1,742,313
$1,742,313
Revenue
$7,727,520
$8,244,359
Difference
$516,839
ARRA Funds
$348,335
2008-09 mid-year cut
$249,055
State/Local Revenue
($80,551)
Expenditures
$7,743,263
$7,436,818
$306,445
Ending Fund Balance
June 30, 3009
$1,726,570
$2,549,853
$823,284
Revenue Sources




Revenue Limit – State aid and property taxes – general
purpose funding based on student attendance
Federal – No Child Left Behind, Titles I, II, III, IV and V:
special purpose funding
State – categorical programs: special purpose funding
Local – Special Ed revenue from Yuba County Office of
Education, interest and facilities/other fees
Revenue Sources
Board
Approved
Operating
Budget
Beginning
Fund
Balance
Projected
Year Totals
(Revisions)
Difference
%
Variance
Reason
$2,549,853
Revenue
Limit
Sources
$5,632,572
$5,601,991
($30,581)
-0.5%
Applied new deficit
factor, one-time
ADA reduction &
revised ADA
Federal
Revenue
$452,004
$223,033
($228,971)
-50.7%
ARRA SFSF
recognized last year
Other State
Revenue
$919,838
$912,729
($7,109)
-0.8%
Transportation
revised. CSR
limitations and other
adjustments to
flexible categoricals
Other Local
Revenue
$467,942
$473,782
$5,840
1.2%
Local revenue
adjusted
Expenditures



Certificated Salaries - teachers and administrators who provide services that require
credentials from the State of California
Classified Salaries – all support personnel in the District
Benefits






Books and Supplies - Textbooks, workbooks, other classroom materials,
custodial/maintenance/transportation supplies and office supplies
Services and Operating Expenses – Travel, conferences, Dues and Memberships, Operations
and Housekeeping, Rentals, Leases, Repairs, and non-capitalized improvements,
Professional/Consulting Services and Operating Expenditures, Communications
Capital Outlay - Land & land improvements; buildings & building improvements, books and
media centers for new libraries, equipment and equipment replacements.
Other Outgo:




Retirement and statutory benefits: STRS and PERS, FICA/Medicare, Unemployment, Worker’s
Comp
Health/Dental/Vision - $10,000 cap
Payments to County Offices for Special Ed excess program and transportation costs
Debt Service payments
Indirect Costs
Other Financing Sources/Uses

Interfund Transfers Out – Deferred Maintenance and Cafeteria
Expenditures
Board
Approved
Operating
Budget
Projected
Year Totals
(Revisions)
Difference
%
Difference
Reason
Certificated Salaries
$3,053,502
$3,202,627
$149,125
4.9%
Added 3 FTE teachers; home school
teacher; extra stipends (BTSA and extra
duties)
Classified Salaries
$1,218,379
$1,199,562
($18,817)
(1.5%)
Adjusted salaries to contracts. Categorical
budgets adjusted.
Employee Benefits
$1,525,290
$1,568,926
$43,636
2.9%
Added 3 FTE teachers and adjusted
benefits
Books and supplies
$315,230
$335,088
$19,858
6.3%
Additional funding for Math adoption and
categorical funding adjusted.
Services/Other Op
Expenses
$1,164,609
$1,179,670
$15,061
1.3%
Adjusted leases to buy-out copier lease
and adjusted to professional and
consulting services
Capital Outlay
$6,600
$0
$6,600
(100%)
Moved to debt service payment to other
outgo
Other outgo
$274,311
$280,911
$6,600
2.4%
Moved debt service payment
Transfers of Indirect
Costs
($17,232)
($17,751)
$519
3.0%
Based on Fund 13 expenditures
Other Financing
Sources/Uses
($14,173)
($42,250)
($28,077)
Net Increase
(Decrease) in Fund
Balance
($54,160)
($495,248)
Ending Fund Balance
$2,495,693
$2,054,605
Eliminated contribution to Cafeteria
Economic Uncertainty – 5%; COP/Charter
payments/Categorical carryover
Multi-year projections


2009-10 CBEDS for elementary schools – 1046
ADA projections
994.38 for 2009-10 and two subsequent years
Projected COLA and deficit for subsequent years
 2010-11: 0.50% with deficit factor of 18.355; 0.50% COLA for State
categoricals
 2011-12: 2.30% with deficit factor of 18.355%; 2.30% COLA for
State categoricals
No changes to STRS, PERS, FICA/Medicare, Unemployment,
Worker’s Comp and Health benefits
COP debt service payment not reflected in projections
District will be deficit spending for current year and two subsequent
years
District will meet minimum recommended reserve for economic
uncertainty requirement for 2009-10 and subsequent two fiscal years






Multi-year Projections
Description
2009-10
2010-11
2011-12
Revenue
$7,253,785
$7,419,385
$7,560,257
Expenditures and
other financing uses
$7,749,033
$7,886,282
$8,085,417
Net Increase/Decrease
in Fund Balance
($495,248)
($466,897)
($525,160)
Fund balance
$2,054,605
$1,587,709
$1,062,549
Designated for
Economic
Uncertainties
$385,339
$394,315
$404,271
Other designations
$1,664,165
$1,188,295
$653,178
Fund 13 Cafeteria Fund
Costs associated with pending CSEA contract:

Increase Food Services Worker II from Range 6
to 9:
•
•
•
•
Salaries: $10,545
Statutory Benefits: $2,134
Indirect Costs: $573
Total Increase: $13,252
Note: Fund 13 budget was adjusted to include these costs
Cafeteria Fund – Fund 13
Board
Approved
Operating
Budget
Projected
Year Totals
(Revisions)
Difference
%
Difference
Reason
Beginning Fund
Balance
$34,842
$34,842
Revenue
$382,000
$397,000
$15,000
3.9%
Increased free/reduced price meals
and decreased paid meal based on
Aug-Oct actuals
Classified salaries
$138,207
$143,787
$5,580
4.0%
Adjusted salaries to contracts
Employee Benefits
$50,788
$45,281
($5,507)
-10.8
Adjusted benefits to contracts
Supplies
$198,000
$198,000
-
Services/Op Expenses
$5,840
$5,623
($227)
-3.9%
Direct costs – Fund 01
Other Outgo
$17,232
$17,751
$519
3.0%
Indirect – 4.52% of total expenses
Transfers In
$28,077
$0
($28,077)
Net Increase
(Decrease) in fund
balance
$0
($13,442)
Ending Fund Balance
$34,842
$21,400
Expenditures
-
-100%
Decreased contribution from
General Fund
Deferred Maintenance – Fund 14
Board
Approved
Operating
Budget
Projected
Year Totals
(Revisions)
Difference
%
Difference
Beginning Fund
Balance
$112,778
$112,778
Revenue
$3,500
$3,500
0
-
Materials and
Supplies
$10,500
$10,500
0
-
Services/Op
Expenses
$19,500
$19,500
0
-
Transfers In
0
0
0
-
Net Increase
(Decrease in fund
balance)
($26,500)
($26,500)
Ending Fund
Balance
$86,278
$86,278
Reason
State apportionment
unrestricted
Expenditures
Contribution from GF not
required until 2012-13
Fund 25 – Capital Facilities
Board
Approved
Operating
Budget
Projected Year
Totals (Revisions)
Difference
Beginning Fund Balance
(includes reserves for debt
service payment with
Trustee
$319,882
$319,882
Revenue
$218,670
$218,670
0
Services/Other Op Expense
$75,000
$75,000
0
Other outgo
$476,315
$476,315
Other financing sources
$343,865
$343,865
Net Increase (Decrease)
in Fund Balance
$11,220
$11,220
Ending Fund Balance
(includes reserves for debt
service payment with
Trustee)
$331,102
$331,102
%
Difference
Note
Draft 08-09 audit
adjusts beginning
Fund Balance
-
$188,985 (Impact
Fees Y-T-D)
0
-
Auditors may ask
us to move to Fund
52
0
-
Expenditures
With adjustment
new fund balance
$910,882
Debt Service Fund - Fund 52
Board
Approved
Operating
Budget
Projected
Year Totals
(Revisions)
Difference
(Projected
–
Approved)
Beginning Fund Balance
(includes reserves for debt
service payment with Trustee
$1,059,723
$1,059,723
Revenue
$672,925
$678,925
$6,000
Other outgo
$524,638
$524,638
0
Other financing sources
$347,115
$347,115
0
Net Increase (Decrease) in
Fund Balance
($198,828)
($192,828)
Ending Fund Balance
(includes reserves for debt
service payment with Trustee)
$860,895
$866,895
%
Difference
0.9%
Notes
Legal fees
reimbursed
Expenditures
Transfer to Fund 01 and
25 – Debt Service, admin,
legal fees for CFD
expenses
$469,121 w/ trustee
Fund 52 Multi-year Projections
Description
2009-10 Projected
Budget
2010-11
2011-12
Beginning Fund Balance
$1,059,723
$866,895
$803,207
Revenue
$678,925
$672,925
$672,925
Other Outgo (debt service)
$524,638
$524,613
$519,988
Other financing uses (transfers for
COP payment)
$347,115
$212,000
$152,500
Net increase (decrease) in Fund
Balance
($192,828)
($63,688)
$437
Ending Fund Balance
$866,895
$803,207
$803,644
Cash with fiscal agent
$469,121
$470,000
$470,000
Needed for August Debt Service
Payments of following year
$322,307
$319,995
$322,382
Balance - Other designations
$75,467
$13,212
$11,262
Long-Term Commitments
Type of
Commitment
Fund
# of Years
Remainin
g
Principal
Balance as of
July 1
Funding sources
Current
Year
Annual
Payment
CFD #1, Series
2005
52
26
$4,640,000
Mello Roos Taxes
$308,075
CFD #1, Series
2007
52
4
$2,525,000
Mello Roos Taxes
$126,250
CFD #2, Series
2007
52
28
$1,260,000
Mello Roos Taxes
$90,313
Certificates of
Participation
25 and
01
28
$6,945,000
Developer Fees
$476,315
Other Concerns
Governor recently announced $7B budget gap.
 Mid-year cuts expected.
 District using one-time money for ongoing
costs.
 How long will the economic crisis last?
 Contribution from Fund 52 to cover COP
payment decreases over the next two years.
 COP payment is an obligation of the General
Fund.

District Certification of Second
Interim

Certification of Financial Condition:
Positive certification
 Based upon current projections, District will
meet financial obligations for the current fiscal
year and subsequent two fiscal years:

• Deficit spending
• Minimum reserve required for economic uncertainty


District will be making further reductions
Board approval of First Interim Financial Report
Questions?