001You were critical to this. Well, I guess so. >> Now we have quir. We're legal. >> We're legal. >> You can uh fire up whenever you're ready. >> Are we live? >> Ready. >> Yeah. Okay. All right. So call the meeting to order at 4:46. I need a motion to adopt the agenda for this meeting. So move >> second. >> All in favor? >> I post no. >> Okay. Mot please rise for a moment of silence. Ready. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Item four, public comment. Okay. the second interim. >> Okay, >> you're up. >> Thank you, Dr. Folks. This is our second interim report for the 2526
002fiscal year. So, as a reminder, the interim report uh is required that our school district is required to certify our financial condition twice every school year. Uh this certification addresses our ability to meet our financial obligations for the current year and the two subsequent years. And as of second inter we are maintaining our positive certification for the fiscal year of 2526. Yay. >> Yay. Always gay. So this is our interim to interim comparison. I'm going to try to zoom in here. There is not as far as at the top of the screen here. So this is a comparison of first interum to second interim enrollment in ADA. There was almost zero change there. Uh we do have some change in the revenues which I'll go over now. Our LCFF revenues it's it's less than 1%
003but we did uh a decrease there by 73,000. This was due to adjustments that were made um after our attendance audit of the 2425 fiscal year. So that did drop. Our title one allocation increased slightly under the federal for 18,000. our lottery aortionment that's our restricted lottery aortionment under the other state it did decrease by 21,000 and our RDA revenues increased slightly uh that is the majority of the change in the other local it was I believe 67,000 and the majority uh the remainder of that was mostly use of facilities uh revenues that had exceeded what we had originally budgeted so overall our revenues increased by almost 17,000 So, not a lot of change. >> A lot of >> Yeah, expenditures. We did have increases in in expenditures. Not huge for the most part, but
004uh under certificated salaries. So, I have some notes on the side there. I know they're very part budgeted under conferences and travel. We've shifted a lot of that to um extra duty and um you know, we've we've kind of expanded how we're using that funding. So more of that is landing under the salaries um whereas it was under travel before. So about 60,000 of that difference. >> So we used our own people for PD. >> We did. So we're uh we're doing um uh Can you kind of speak on that? >> Yeah. As far as we're using our this would be like the the classroom visits we're doing with the teachers with both at the at the high school buying their uh prep period things like that. as far as using trying to work from
005within better >> coaching. >> So like what Mike Benson's doing. >> Yeah. Mike Benson and Rebecca Em. Yeah. >> Jen Jen Gill. Sorry. Jen Gill. >> And then >> different math teacher. >> Yeah. Different math teacher. Yeah. >> And so uh there's also that $20,000 decrease in lottery that I spoke of before under revenues. We use that every year to offset teacher salaries. So that also impacts teacher salaries. we can't decrease that figure as much um by that difference of 20,000. And then there was also a temporary contract uh teaching contract for part of this year at Falls that was added in since first run. Um classified salaries, we had an increase of about 120,000. Um much of that is two additional onetoone special education aids that we have to bring on. That's uh legally
006we have to if it's stated in an IEP when we have a new sped student that comes to our district. There was also the addition of the EL coordinator position which is funded through the ELO program. So that would made up the majority of that almost 20,000. >> Is that Dr. Crow? >> Yes. >> And then this uh benefits increased as well as the statutory costs on on what we just talked about uh that we had an increase in services of about 287,000. Most of that was the new Zoom uh phone service. That's our initial cost on that. That will pay for itself. I think it was like a year and a half or two years. very quickly we will see savings there but there was an initial upfront cost and then utilities increased slightly
007as well as I believe our southwest gas um increased and then under capital outlay that that large increase there that was the fall turf project so >> well that was false we spent that much money on the turf at fall >> it was close to that amount yeah that was the vast majority of it >> we approach redlands about helping at all with that >> no we did not I don't rather than have any interest because we try to approach them before they have no interest in that property. >> Yes. Um so overall our expenditures increased by 633,000 and under the transfers out you can see the transfer of those additional RDA revenues to fund 25 and so at the bottom of the screen here our our net deficit increased from 1.4 4 million at
008first interim to 2.1 million at second interim and that is plan deficit spending which we'll talk about more on a on a later slide. So our non-recurring revenues and expenditures zoom in here again not much change here again from first interim to second interim whereas our CSI a portionment decreased slightly by $18,000 and because it is considered unearned revenue our expenditures and revenues have to match. So there's also a matching decrease in our expenditures for the CSI grant and then there's an increase in under the CCSBP grant of 92,000. This was partially indirect costs which were able to charge the program to reimburse essentially the unrestricted general fund for the administrative cost of running that program. So that's helpful to our bottom line. Um there's also the um there was a CCSP conference which we
009were able to send quite a bit of staff to. It was very uh beneficial for them. That was great. And then also the EL family coordinator position that we talked about before. Those were the biggest portions of that increase. Then the uh learning recovery emergency block grant resource 7435. There's an increase of about 31,000. There was mostly instructional materials and extra duty and subcaus and that um that stream of funding is expiring I believe next year. So it's good to be spending that down. So overall our non-recurring expenses increased by 105,000. Um, and looking here at the bottom of the slide, our ending fund balance as of June 30th. At first interim, we were anticipating 7.8 million. We're now looking at 7.1, almost 7.2. Um, and we'll go over the comp components of that ending
010fund balance on the next slide. >> How long do we expect to get the CCSP? >> CCSP, we have another two and a half years. >> Fiveear program. >> The fiveear program. So, we've already gone through a year and a half. We're almost at two. till we have another two and a half. >> Great. >> And I mean we're funding the E family coordinator there. >> Yes. That >> I mean that's a very important position. >> We're going to have to find another way to fund that if we still need it. >> That's the part of the coordinator is to start to look at other revenue sources to look at other grants things like that to see what we can do. And that is sort of the expectation from the state for that program is
011here is this initial startup money to keep this going for five years and then we're expected as a district to continue it with other >> Yeah. We're supposed to find a way to source it because we have not just her but we have other >> okay >> other employees under that grant. >> I'm sure you will keep that in mind. >> Oh yes >> and we're aware. >> Okay. So these are the components of our ending fund balance. Our 4% reserve for economic uncertainties is 1.7 million. We have our revolving cash and stores which are always at 10,000 a piece. And then we have the restricted portion of our ending fund balance. And this is broken out by resource code and all the different restricted programs that have ending fund balances. So the largest piece
012of that is our ELOP at 2.1 million. Um you can see several others here. We've got 457,000 for CCSP as of right now. They do they tear out those revenues. So we'll be receiving those periodically over the five years the total of five years. Uh 558,000 in the early the special education early intervention preschool grant. Um almost 500,000 in arts and music and schools. That's Prop 28. Another almost 500,000 for the learning recovery emergency block grant. and LA BOP which is um medical billing reimbursements for some of our special education staffing is at 337,000. So overall for restricted uh programs our ending fund balance is 4.6 million and that leaves our unassigned unappropriated at 792,000. >> I'm not familiar with Grace Stokes. >> Grace Stokes is the money that was donated for Falls or for
013force falls is to use towards the school. But we did use some of the money towards that that field as well. >> Oh, and to help offset the cost of the field. >> All right. So, these are our multi-year assumptions. Uh we are enrollment as of P1, you know, is 2159. We've been very stable as far as enrollment for for a while now. So we're just cons, we're still just anticipating it's going to remain flat at the 21 to 59 that it currently is. ADA is currently 91.5%. We, you know, given we've spoken about this um throughout this year, but given the efforts that we're making, especially at Shitakqua, as well as the attendance audits that are, you know, pre- audits are happening all over the district, we do anticipate to see that number grow.
014We're projecting 92% 88 in the uh subsequent years. The transfers for the technology refresh program deferred maintenance, those are staying the same um as of right now. Um curriculum adoption, we've planned at 366,000 for this year and next and then 100,500 and 2728. And so the kind of the ugly part of this presentation here is our expenditure decreases that we are projecting. So with and we'll look at the next slide what our ending fund balance is projected to be in the second subsequent year but in order to keep it you know where we need it to be essentially we would have to decrease the equivalent from our unrestricted general fund of six certificated FTE in 2627 and six classified instructional aids as well as three certificated FTE in 2728 and two classified instructional aids. We
015do realize that's not easy or realistic to say. This is just we've already had planned um attrition for four positions to relieve the general fund at least for four certificated positions for for next year with changes in you know reduction not only reductions in funding but increases in expenditure. Also keep in mind when we built this budget we were looking at a cola that was a half% more than it came in at. So, we're just having to continually increase our projections of reductions. However, that shakes out in the end. This is how what we would have to relieve our general fund by in order to maintain the end balance that I'll show on the next slide. Um the silver lining here is that we do anticipate to receive um a discretionary block grant in the
01626 27 year. We received one in the current year as well. It's we've already been given a projection as far as what we've received per ADA. It seems as though we will receive it. However, because I don't have that in writing yet, we don't have that from we expect to see that hopefully at the May revise um of the you know from the governor's office. But because it's not in stone yet essentially, we can't include that in our multi-year. So the the thing is what's happening here right now is the governor does not or the state doesn't want to commit too much cuz they feel like the revenues that are coming in are based of some the AI bubble is what they're calling it. So they don't want to commit like those funds are going
017to be ongoing. So they don't want to commit to long-term funds in the cola. So what they're trying to do is give us money through block grants which are only shortterm rather than longterm. So this is where we can that's where they're kind of saying okay we'll give you this to pacify you for a minute with this money to get you through this hump time kind that's why just can't put it in there and we won't know until that time >> there'll be at least three >> what yeah it's only through attrition >> yes to clarify we're not planning any layoffs or no >> anything of that nature we're looking at this through attrition also every certificated and classified position right now before as they become become vacant before we rehire. We're looking as a
018cabinet very closely at how can we absorb or restructure this position so that we're not just continuously refilling um just because we had that position filled before. So, we're being very creative with how we staff right now. >> Um and the block grant, assuming it does come in, uh it is onetime funding, so there, you know, that's a consideration. It would however be a huge relief to our general fund at least in the you know in next fiscal year and that would that would relieve some pressure. We would we wouldn't see these huge reduction numbers. Um and in the out years the projection you know that cola number is the projections that are larger year after year. what it looks like as far as what we know right now is that after the current and
019for subsequent fiscal year we start we're you know we start seeing surpluses rather than deficits we start getting into a better financial position. So if we can relieve pressure next year even if it's only next year that still will kind of pave the way for brighter days ahead. So that's the hope. I do I do expect to see that come through, but like I said, we can't budget on the hope. We have to budget on what we know right now. Um, so we're this is kind of worst case scenario is what we're looking at right here. If that block grant was to completely not come through at all, >> we hope it's a worst case scenario. >> Yes, >> that's true. >> So what about the five plus billion dollars that Governor Newsome is withholding
020from right now? >> That's really more of a cash flow issue. It doesn't affect our budget because we only have a certain amount that's promised to us as far as budget goes. But but what that concerns is it's a matter of when we receive our cash, right? >> So for you know we do I do cash flow projections at each of these reporting periods. >> And so we can see when we expect to receive like tax revenues or um excuse me whatever revenues that we have coming in and we can see month by month if we're going to end up with a negative cash balance. That's where we can do things like um a constitutional advance or in front of borrowing is to make sure we have the cash in the treasury to physically, you
021know, have >> Yeah. Because the governor hasn't taken theoretically any funding only basically, let's call it borrowed against it, >> gave us an IOU. >> He hasn't committed to paying it. >> He has not committed to paying it. Nope. But that's a whole other different state. But we just >> That's cash flow issue versus budget issue. >> So um >> so we budget like normal and hope he's going to come through, >> right? But even if he comes through, it doesn't increase our funding. It's just >> different. >> It just gives us >> it's just it's just a guaranteed cash flow. >> Yeah. >> And and we do have ways around. I mean, it's not uncommon really for, you know, he's just he's basically it's a deferral without him calling it a deferral. Um but
022we experienced as a district deferral in the past and there are tools that we have as a district that we can maintain our cash flow. >> But um what we need is that discretionary block grant or a higher cola So we can keep the lights on and pay the bills. >> Yes. >> Right. >> That's it. >> So that's what we're looking at. So hopefully um my you know at EA we'll have better news and I can change these assumptions for the better, but this is what I have to go along for right now. So, for our multi-year overview, this is um some of the same information that we just went over, but if you look at our surplus deficit line, so we're very much still heavily in deficit spending this year. With the projections
023that I just talked about, we would be at a $323,000 deficit in 2627, which is obviously much a smaller of a deficit, and then into surplus in 2728. >> Yeah. What's the extra million dollars in 2728? So, uh, we have, so like our ending, um, excuse me, our expenses, they're shrinking somewhat, but then we also have our, um, >> when the cola starts, >> our cola is going to be higher in those years. >> The extra the million dollar increase between 26 27 and 27 28 is cola >> if for the most part. Yeah, there's cola. there's the higher ADA that I'm projecting the 92 rather than the 91.5 in the current year. >> But that's both years. So >> yes. So it also um any redu like our reductions in staff they compound. So
024it's essentially you know we have that savings in all of 26 271 and all of 2728. >> I'm talking about revenue. >> Oh you're talking about revenue. Okay. >> The extra million dollars in revenue. >> Oh I see what you're saying. >> But that's a reduction in spending right. Um, so it's the it's the funding that we're receiving essentially. So it has a lot to do with the cola because there is a drastic change in those couple of years >> in what's projected and hopefully that stays the same. But that's why you know we keep revisiting this because things are changing all the time. So uh this is our our expense detail of fund 25 the RDA portion of fund 25. There's really no change from first interim have our uh a portion of our
025stadium restroom project. We have some expenditures out there for that. Um we have our debt service for the stadium the stadium project at the high school. Um we've got some architect and inspection >> uh to least inspect. >> Yeah. Yeah. Um are some architect and inspection fees on the the modular building that's going in at Northshore and the stadium restrooms and as well as the Baldwin fire alarm um a number that we're looking at we're working on closing and total compensation for it says two utility workers that should say grounds keepers because those um job titles did change uh recently. So our total expenditure in uh of our RDA funds right now is 1.4 4 million. So these are our other funds, our ASB reporting on the top left there. That's our middle school and
026high school ASB accounts. We'll uh update that with actuals at the end of the year. Uh F1 13 for child nutrition. We're showing um they're projecting an ending balance of 961,000 deferred maintenance. >> Is that a problem? I mean, I thought a big thought was a problem. capture is that gone away? >> Um, it's it is being spent down as you can see. You know, it's trending from the beginning balance. I'll check with um our our child nutrition uh manager and and make sure that we're still on track. There's a certain threshold that she has where you know she haven't any fund balance, but it's just a question of how large it is. >> She had let us know that there was going to she hasn't played to spend that money down that she does
027have a plan to ensure that money can spend down. >> Perfect. and our fund 14 for deferred maintenance. We're just um we have budgeted expenditures for the full transfer in of 300,000, but we'll be updating that as we go. Um fund 17 is our our fund that offsets out of pocket costs for both bargaining units um for health and welfare. And so these numbers again will be updated at at estimated actuals with with what um the our actual transfers out that we make at the end of the year. Redevelopment agency, we just went over that on the previous slide. Um those are RDA funds. Developer fees, we're projecting revenues of 310,000 in developer fees. Um an ending balance of 398,000. So, we're building back up from we had spent that account down on these big
028high school science lab renovation project. So, we're seeing those build back up again. Um, those can only be spent on housing or rehousing of students is is the term, but it's for classrooms. >> We can't spend it on HBC. >> We I would have to look into that because I think it's only for like building a classroom, but I'll check on that. >> What about the restroom for the stadium because it's going to include >> we could maybe argue that because the team rooms >> well and and it's a requirement for the largest classroom we have >> to have. This is true. I mean it's I think it's a valid argument. I'll look into that and make sure that we're safe to do that, but we could I mean we did use uh Oh, no.
029Never mind. We use it on the science labs only. >> So, but I'll check on that. Do we know what the status is of our request for h housing funds for the stadium because it's a classroom, >> right? On the like facilities funding. >> Yeah, I do not. >> I need to I need to look at that and see where we are with that. >> Okay. Cuz I thought I thought you said I don't know it was like eight months ago when you put in for it, maybe it was longer that we would hear something by like January. >> Yeah. I haven't yet. So I'll check on that. And then >> and it was like you hear something by like January but you don't get the funds for like another year or something. >> So
030state's been busy on this. >> Yeah. Busy chasing away all the >> Yeah. Uh special reserve for capital outlay or fund 40. We're um anticipating revenues is interest revenue essentially of 25,000 of just the cash that's in that account and then ending balance of 483,000 um special reserve. So this is the the portion of that same fund 40 that's set aside for the tech refresh. Um, we're just showing the the transfer in of 300,000 and then expenditures of 300,000 for an ending balance of 89,000. And the fund 51 is our go bonds that's um maintained by the treasury, the Sanino County Treasury. And we just report those numbers out >> because our new CIO needs to understand our tax CTO. Sorry, I just CTO. um needs to understand our tech sustainability program. >> Yes. And
031I Raven and I just had a meeting with him um I think it was last week um to go over his budget but also talk about rate and the tech refresh program and so he's he's been a great job of that. >> Yeah, he seems really strong in that area as far as rate and budget because he dealt with that before. >> Did our previous CTO read him a fiveyear plan of what he was expecting in terms of sustainability? as far as what was the next refresh time. >> Yeah, we had to >> review that to make sure he agrees, >> right? We did go over that together also. So, he's got that that plan. You know, this certain batch of Chromebooks are, you know, this is the year that those will be up for
032a refresh. So, it's all laid out um based on what equipment it is specifically. So, he does have that list, >> but we need him to review it and make sure he agrees with it. >> True. Yes. Absolutely. Okay. All right. Are there any other questions? >> All right. Well, thank you very much. That's uh that's it for me. >> Thank you. That's it for the meeting. >> Unless there's any