001the audience that we have a teleconference participation by Mr. Leo on the laptop there. Say hi Paul. >> Okay. So for item two, adoption of agenda for this meeting. I get a motion. >> Uh we need to have a roll call vote because Paul is vote. So >> would you please call >> board member folks? I >> I >> Mr. Zamoa, can you hear us? >> Let me turn this. My headphones don't work. >> Okay. All right. We're good. >> Okay. It's uh unanimous members present. Okay. Hearing section. Uh do we have any cards? We do not. >> We do not. Okay. So, we'll move on to the first interim financial report [snorts] presentation. >> Okay. Thank you, Dr. Adam. [snorts] >> All right. Uh so, thank you everyone. Um this is our our first
002interim presentation for the 2526 fiscal year. The each school district is required to certify its financial condition twice during each fiscal year. So this is our first interim. There will then be a second interim. And the purpose is to address that we are a bit we're able to meet our financial obligations in the current and the two subsequent fiscal years. Uh first interim for 2526 we're maintaining a positive certification. >> Y congratulations. [laughter] >> That's always the goal. So this is our comparison of our adopted budget for the current year to what we're showing now as a first interim. And I know this is very small so I'll try and zoom in here if I can. [snorts] I'm actually not sure I can make this bigger. >> [snorts] >> Hey Mandy, can you turn me
003towards the screen? >> Yes, sir. [laughter] >> There you go. >> Would you like me to put you closer than that, Mr. Zamoa? Okay. So, normally I would like to zoom in. I'm not able to do that for some reason on this presentation. But to start at the top of this slide here, we're looking at our enrollment that was projected was 2160. We were right on that at 2160. Um, as of SEABS and our district ADA at adopted budget, we were projecting 1998.3. We came in a bit lower than that at seabeds in 1975. So basically 92.5% is what we projected. 91.5 is where we currently are as of sebeds. We are our last our most recent attendance month we were tracking more at 94%. So I do expect this number to improve. This is
004where we are right now. >> It's improving. >> Yes. But as of where we have to the number we have to use is our 91.5 for right now. >> besides last week [laughter] we don't talk about Thanksgiving week. >> We don't talk about Thanksgiving week >> to attendance. So, our LCFF revenues, there was a bit of a decrease there in our EPA funding, but like I said, by the end of the school year, I'm hoping to see um a better number there for LCF based on our our ADA. [snorts] Our federal revenues, there's an increase there. So, with federal revenues, they are what's called unearned where we we record the revenues at the same time that we record the expenditures. So as our budget for expenses and federal programs change, we also have to change
005revenues. That's the reason for a federal um a change in federal revenues there. This is related to the CSI grant which is uh it's it's specific to Shiitaka and it's related to title one. It has a very similar program to title one. We increased some like we expanded some programs at that school related to this funding and so we were able to you know increase our spending for our students. So our revenues um that we're reporting for this fiscal year also um increased under state funding. We had quite a bit of an increase there. Uh the majority of it related to the ELOP program. We have some ongoing revenues now for ELOP that have gone up. The state has changed the way that it calculates those percentages. we now fall in the higher uh the
006higher level of funding um to put it you know simply. So we're receiving more ELO revenues year over year now. There's also a new discretionary block grant. It's called the student services and professional development discretionary block grant and that was that came in under state funding [clears throat] that was about 600,000. Um there's also CCSP funding that uh we had budgeted lower than came in for the current year and then learning recovery emergency block grant. Those are the biggest pieces of that change in state revenue and other local we had nothing budgeted under sped revenues. I was after some digging I was able to find some revenues that we could budget that we do see year-over-year. It's not much compared to the three million or so that that program actually needs, but um every everything
007helps that we can budget. So our overall revenues increased by about 7%. As far as what we report, if I'm reading things correctly, there's no indication that federal money is going to be severely modified at least. [clears throat and cough] We did see, and it it's hard to see that reflected here because we had our increase in CSI revenue, but we did have a decrease in our title one about 120,000 lower than we had anticipated. So, that was that was a shift. We had to really pull from other places in our budget to make that work. That >> it's hard when they don't explain it all the time, too. >> Well, why we get cut, >> right? >> Well, I mean, the federal department of education in massive turmoil. >> Yes. >> Expected be some
008impact, >> right? And so this was the first that I had seen that the you know the changes in the administration affected our title one funding that it now has. So we did see a sizable decrease there in our revenues for title one for this year. So expenditures, we had some changes um in salaries for certific certificated and classified. We what you're seeing in the increases is additional supports we're able to add with restricted programs that we're we're learning to better utilize or they're new and we're adding teachers. Like for instance, we have some teachers that were added under the Prop 28 uh funding for new music and arts programs. So we have um increases in expenditure there. There's also this added support that I kind of referred to under the CSI program. So we
009added we were able to add staff and and and programs and support to under that program. Then LEGS learning recovery emergency block grant where we were able to better leverage that to support salaries and staff. So you'll see that reflected under certificated salaries and under benefits the statute statutory costs related to that and under classified similar there's a lot of you know expansion in our e-lot programs at all of our sites. So that comes with time cards and people working extra duty to support those programs as well as you know our ever expanding special education program. We did need to add a couple of I think two special education aids so far this year and just added some costs over the previous over the adopted budget. So, moving to books and supplies, there was an
010increase there in some additional curriculum that we purchased. Uh services, it there's a it looks like there was a large decrease in services and there was. What this mostly has to do with is the way that those restricted programs up above were originally budgeted. So shifting those priorities, especially as we saw a decrease in our title one funding and we really had to look at how can we better utilize this funding where it's actually going to serve students, it's going to add supports, it's going to retain staff and it's not just a matter of how do we spend this on goods and services. So shifting those priorities, that's where a lot of that came out of what had been budgeted under software or um or consulting services or whatever professional services. So that's where we're
011seeing that decrease under the services and other expenditures. Capital outlay, that's some cost that we've paid out so far that's related to the new portable building that will be going in uh at Northshore Elementary School and that's being paid out of the ELO program. And then we had an increase in our projected excess cost that we pay to our SULPA for special education services for our students. So overall our expenditures increased by 1.3 million and so if you look at the surplus deficit line at the bottom of the slide if you can see that our projected at budget adoption was 2.9 million deficit and we're looking better now with a $ 1.4 $4 million deficit and that is planned deficit spending that we'll talk about more on a further slide here. These are [snorts] non-recurring
012revenues and expenditures. Just kind of a more more detail on some of our restricted programs. We had like the CSI grant that I already talked about added staff and programs for web. The universal prek planning, excuse me, resource uh 1653, that one is actually expired and should not have been budgeted at the budget adoption. So, we've dropped that out. A new aortionment of the learning recovery, which we talked about as well. And CCSP, an increased aortionment from what we had originally budgeted. New onetime funding is that discretionary block grant that I talked about. So, our total non-recurring revenues increased by over a million dollars. And our non-recurring expenditures, much of the expenditures kind of mirrors what is shown in the revenue section up above. So, we have our added staff and programs for CT, our
013expired funding that we dropped out uh for the universal prek planning, and then under the the new block grant, we're using that to relieve the general fund. I'll talk about the ending fund balance on our multi-year projection slide, but this really helped us stay solvent in the out years um to receive that additional funding. We also have just kind of notes on what we're doing with the CCSP grant. That's resource 6332. We have um a dean of student support. Um there's added student support staff and the EL family liaison are being paid from that program. Then the kitchen infrastructure grant there was some ovens and kitchen equipment that are being purchased with that. So that was an additional expenditure. and the learning recovery emergency resource uh grant lg are using that for additional student supports
014as well staffing there. So our non-recurring expenditures increased by 1.7 million. If you look at our ending fund balance so our beginning fund balance did change this was due to an adjustment that was made at after the budget was adopted when we worked on our um anoded actuals closing out the 2425 year. There were some uh revenues that were budgeted um in error essentially for the CCSP program. This was only relating to our restricted ending fund balance. This was the full program if it spans five years and the revenues were budgeted as if we were going to receive them all last year. So we had to correct that. So this doesn't impact the unrestricted or the unassigned portion of our ending fund balance but the restricted portion only. So our beginning fund balance is now
015the 9.3 million that you see here and the ending fund balance including the restricted portions is 7.8 million and we'll look at that on the next slide in detail as well. >> It's up for 2026. So that's the new projection right? >> Yes. Okay. And these are the components of that ending fund balance. So we have our 4% reserve for economic uncertainties. Revolving cash and stores are always the same. And then we have the restricted portions of our ending fund balance which I'll just kind of go over some of the larger pieces. The expanded learning opportunities program or EWOP is $2.3 million of our ending fund balance. We have 500,000 for the CCSP grant, the um special education early intervention preschool [snorts] grants, the arts and music and schools of Prop 28. Those are all
016around 500,000 then 480,000 for the LPG, 347,000 for LEA B. So all of these pieces combined, the restricted portion of our ending fund balance is 5.1 million and the unassigned unappropriated is just over a million. These are some of our multi-year assumptions. So we'll get into the ending fund balances in the multi-year on the next slide, but we are anticipating steady enrollment. It's been staying right around 2160. So we expect it to continue. ADA is like I said at Cabbeds we're at 91.5. It seems reasonable to expect we'll be at least at 92 in the coming years because of all the changes that we're seeing when it comes to CT and our overall ADA as a result of that. And just also added, you know, um just efforts at all of our school sites to
017improve ADA. We're really seeing the results of that. Not that it's reflected at CBEDs yet, but we are seeing that. Uh we have our assumptions as we have in past years for the technology refresh program and the deferred maintenance 300,000 per year going to that curriculum curriculum excuse me curriculum adoption we have some adoptions slated for this year and next and then dropping off of it for the 27 28 year as of right now >> stop for just a quick second >> um the technology refresh program is something that I think we're committed to for the long term Um, and the deferred maintenance, we said, "Hey, this is the level that we think we need to take out of general fund." I'm not sure those really count as expenditure increases. Um, I mean, this is
018to show things that are changing. I mean, the curriculum adoption is the classic example. Yes, you're going to do [clears throat] it these two years and it's going to drop off, >> right? >> I I don't know. I don't know how the rest of the board feels. Um, but I don't view that as an expenditure increase. It's a commitment that we've made long term. >> That makes a lot of sense. And I think what it was is whenever those were increased last, they were added to that slide. >> Exactly. That's why I'm bringing it up. >> Okay. Thank you for that. And expenditure decreases. So we have kind of the same assumptions that we've been carrying forward. This is in part planning a couple of reductions uh through attrition. We're not looking at any layoffs
019or anything like that, but this would be reducing staff or programs where we can, but also some of this is just moving, you know, better still better utilizing some of those restricted programs and seeing what more that they can take on and continue to relieve our general fund. So that's part of this things that we can change next year to make some staff eligible to be paid under those programs. So that's part of our assumptions and it overall is a reduction to the general fund of 4 FTE in the 26 27 year to FTE in the 27 28 year and then instructional aids kind of to match those reductions. So this is our multi-year overview that shows a little more about the the fund balances. So, like I talked about, we've got our enrollment ADA
020assumptions at the top of the screen. And if we look at the surplus deficit line, so this is this should be our final year of our plan deficit spending. As you can see, we have a little modest, you know, surplus in the 26 27 year projected and a much better surplus the following year. So, we do also plan out an additional year in the background as we do this planning and we're seeing increase even more in the the year after that. So, we're looking at as far as the unassigned unappropriated balance of our, you know, of our of the portion of our ending fund balance, we're showing, like I mentioned earlier, just over a million dollars in that balance for the current year. But we see that significantly, you know, reduced in the 26 27
021year having to do with the deficit spending that we're still currently in in this year. And we see the same number the following year but in that third year out that third subsequent year that we do plan on is just not represented here because so much can change between now and then we're seeing that number increase significantly. So my hope and what's seems to be the case based on everything that we know right now um these next or two subsequent years are [snorts] going to be those lean times that funding cliff and after that it looks like things will be improving. >> Your multi-year projections assume no changes in salaries. They do they assume column increases. They don't they don't >> but nothing in negotiations. >> Yes, we don't have anything built into that. >>
022And this is a detail of our fund 25 the RDA portion of our fund 25 redevelopment agency fund. We had some expenditures so far related to the stadium restroom project as far as architect fees and inspection fees. And so we're moving along with that. We're going to be um submitting our plans to DSA this week actually. So that's we had some cameras purchased at some of the elementary schools just to um in the hallways and things where they were lacking to help with behaviors and injuries and those kinds of things. We have our annual debt service for the police lease back purchase the $646,000. [clears throat] We have >> So how many years left? >> Uh that has I want to say 202 more. Okay, three more >> for the for the solar panels. It
023will be at the end of 20. >> Perfect. Thank you, Michelle. That sounds great. >> I thought that was the state. >> Um, that is that's a portion of it because we refinanced the the solar as part of that. >> Yeah. >> Can you It didn't come through clearly. What year is the solar debt paid off? We believe it's 2029, but I can send a confirmation to the board once we make sure of that. >> Thank you. >> You're welcome. And we've got um another bigger chunk of this 132,000 for architect and inspection fees related to the new building going in, the new modular building going in at Northshore as part of the Elo program. Um some more um consulting fees based on the stadium restor project and the Baldwin Lane fire alarm system as
024to try and get that a number cleared out. one day we're going to get there. Um, and then our two utility workers that are paid out of 25. So, as a total right now, we're projecting 1.4 million expenditures for RDA for this year. And these are all of our other funds. So, ASB reporting is the fun way on the top left. We are projecting a rough number of revenues and expenditures based on what they've been trending. We will update that at the end of the year with actuals. Um fund 13's our cafeteria fund. They're looking at um they're working on spending down that that fund balance. So they'll projected to end at 949,000 at the in the current year. Deferred maintenance. We have our transfer in of 300,000 plus some interest revenues. Um we just
025have expenditures slated at 300,000. Um and so that would end at a $314,000 ending balance. 117 is our special reserve for health and welfare. This is what offsets out of pocket costs for our bargaining unit members. And we are this is what we're projecting here. This is another one that we will be chewing up probably after second interum when we have more information. But this is where we're showing between both bargaining units that there's an balance of 524,000 and the bargaining units are able to meet and decide on how they want to split that up between their members. Once we have that um updated information, >> it's going up. It has been going down. >> Yeah, it's um and even the bar units were able to increase pretty significantly the offset to their members and
026it still um is projected to go up a little bit of this year. So, that's good news. Um RDA, this is what we just talked about in the last slide, the expenditures there that I detailed. So, we're projecting right now to end the year with 4 2 million uh left and as far as RDA revenue revenue fund balance developer fees are projected to receive 160,000 in developer fees and we have nothing as of right now budgeted for expenditures fund 40 is our special reserve for capital outlay is where we would purchase capital expenditures from vehicles things like that we are as of right now we have no plans for expenditures there we're looking at 46600 as an ending fund balance for that portion of fund 40. For the tech refresh, tech sustainability portion of fund
02740, we have our transfer in of 300,000. We are roughly planning to spend the whole 300,000 and so leave the ending fund balance the same as it started at around 89,000. That's subject to change as Jake comes up with his, you know, specific plans for that. And fund 51 is our bond interest reduction. This is has to do with our uh measure Q go bonds and and this is [snorts] maintained by the treasury. We report that out. We're showing an ending balance uh for this year of 161,000. That is the [snorts] further questions. >> So Jess, what was the expenditure for on the bond interest redemption was 696,50? What was that for? >> So this is basically paying on that debt. >> Okay. Yeah, that's out. >> That's still measure Q, right? >> Yes, that
028should be paying off fairly soon as well. >> Yeah, that will be I think after I think next year like based on way I have one request. >> Okay. Going back to the the RDA fund, you don't need to slide. Okay. Um that money is for improving our schools >> and it's going to go away. We don't know exactly when, but we think it's around >> 2030. Um and we're paying two utility, you know, and I thought about that a bit. Um and that's fine. I mean, because it's deferred maintenance and and improving our schools. I would like to see in the past we've had a project list of all the all the deferred maintenance and all the improve little improvements not big improvements but little improvements that we need. Um it would be nice
029to have that again so that we know that I don't want that money just dribbling away into right I really want it to be for improving our schools or doing increase. Okay. >> I would like to see what Craig's list is. >> Craig's license. >> Craigslist. [laughter] >> That's a odd coincidence. [laughter] >> We can definitely put that together. And would you prefer to see that on like a multi-year basis or the year at? >> Yes. No, multi-year. >> Okay. >> I don't know. That's [snorts] I'm only with >> Is that the redevelopment agency? >> Yes. Just a correction for that. It does end in 2027. The remaining portion for fun is in >> the um the debt service portion of 25. Okay. >> I hear you >> for the debt portion for fun 25
030ends in 2027. The remaining portion that comes up one ends in 2020. >> Thank you for that. And a huge shout out and thank you to Michelle for being by my side as we worked on this. We worked many many extra hours and I appreciate Michelle's hard work on this. >> Okay. >> Hey Manny. >> Yes. >> So how many employees do we have currently both certificated and classified that are uh their salaries are being paid by grants or programs and not on a general fund? I don't have that number off the top of my head, Mr. Deo, but I will absolutely get that to you >> that we have recent I will tell you uh Mr. Mo, we have recently increased that as we've been trying to get more creative with funding and to
031ensure that we never have to lay anybody off or anyone or anything like that. We have that has recently increased. So, we will get that number back to you to the board. >> So, yeah. [clears throat] And so we're watching when those programs the funding for those programs likely goes away and when they would either be reabsorbed or I don't know what happens at that point if we hope that we keep up with it with attrition. Is that kind of the plan? >> Yes, that's what we're looking at. It's mainly attrition. The I guess the main concern ones right now is what what we're looking at would be the CCSBP grant in the next three and a half years to see how we sustain that funding because those would be the largest bulk of some
032that I might lose funding. A lot of the other ones will be coming out of like title one, things like that where that's going to be ongoing. We will get ongoing funding for that hopefully. So at least federal government maintains uh the title one funding. But but that's always been ongoing. The three and a half years for the CCSP grant. That's the one we really need to create a sustainability plan. That's what we're going to look at for grants now. >> And also >> thank you. I was just going to add we've also had quite a few conversations with the mom and dad project. Yes. >> As they also received the CYBHI grant which is for you know similar purposes and trying to partner with them to see how we maintain these programs after the
033CCP funding goes away. >> So there's a couple conversations that are already happening to ensure that funding long term. In a worst case scenario, if those programs can't be funded, then those certificated and classified people will go back into the regular school site based on seniority if there have to be reductions in force. >> Yes, those they would have to be placed back in the classroom if for some reason we could not sustain the funding for them for any reason. Our goal is to sustain the funding, but yes, we would have to. So that means we have to have a pretty good within the next probably year and a half, two years, we should have a good I would say two years be able to have a good idea of where we're at with it
034to look if if it can sustain so that we can plan ahead and not hire if through attrition through we know if these people have to go back into the classroom or not. But we have some good ideas on how to maintain it though. [clears throat] >> Okay. And I know the puzzle, you know, it's difficult to predict what the puzzle's going to be, but the way it looks right now. If you're looking at the two out years, you're looking at reduction of six certificated positions and five classified positions, but the enrollment stays the same. So, we'd probably be looking at an increase in class size. >> Could be looking at an increase in class sizes. Some of our class sizes um are low in certain areas. Like right now we know that there's in
035different [clears throat] areas where we know we're going to could lose somebody currently and still maintained. Um really secondary is always the place we have to really look at master schedules, take a close look at master schedules to ensure that those are being utilized appropriately. Uh we look at elementary right now like we're projecting right now that it's possibly we may be able to lose one through attrition in elementary next year. But all those things we wait to happen. we see when retirements come in all those we just wait for that process right now we did cut one out of um independent study uh we did not have to lose anybody that position just went somewhere else under the CSI funding but that was a that's one position there that we were able to decrease
036so we're trying to always look at how to do it without actually losing anybody just moving people and then through attrition moving people around a little bit Right. Um, one last question. The you had mentioned that there are there a decrease in federal funds is starting to be seen by the district. Does the district have obligations to continue to fund those programs in light of the funding being cut? >> So, our we do have staff that are paid from from restricted programs, especially when it comes to federal programs. They are tied to that funding if that funding was to go away. Um, essentially the position could then go away. But as Mr. Marquez kind of mentioned already, we're really trying to avoid that happening, seeing where else we can absorb those costs if that if
037it does come to that. But if if we had to uh the positions that are relying on a specific funding source could be dissolved if we had to do that, >> right? Okay. >> Can I comment about CCSTP? Yes, >> I was just going to mention that um you know CTA is very proactive about trying to promote the CCSP program, community schools program. And so I've been working with MAMI. We're hoping to send a team down to Anaheim to the Anaheim Learning Lab because NEA is um which is our national union. They are promoting um NCTA is also promoting community schools. And one of the things that Anaheim uh secondary uh teachers association has done in conjunction with the Anaheim Union School District is they have actually pulled in more money from grants than they're
038receiving from the state of California for their CCSP program. So by participating in the Anaheim Learning Lab, we're able to go down and see a model in which um other school districts are successfully pulling in a lot of other resources from the community, which is, you know, the whole point of community schools grant um and just bringing resources and funding and [snorts] and trying to help again find ways to creatively um fund these positions that are so valuable like the support specialists and the deans and such. And so, um, we're looking at going in February. I'm really looking forward to, uh, you know, seeing these types of things in action and seeing what types of, uh, positions and programs and things that they have in place, uh, to help make the community schools model more
039sustainable. So >> a lot of things that are com that comes with the CCSP is based around a lot of it the student wellness and mental health and there tend to be a lot of funding for that right now as that tends is a hot topic and tends to be a large issue as we've discussed here in the board as well this board has discussed that it that's where the funding tends to be come from. So we're that's why we feel pretty confident that we're going to be able to like like Jess mentioned through CYBHI through mom and dad project partner that we've already seen the partnerships with them do very well as long as we continue those partnerships but looking beyond that as well even outside our community. We also just created in fle
040a new position that's under the management confidential salary schedule that is funded through the CCSP grant and we'll be coordinating further grant revenues and looking for those pockets of money that we can apply for and hopefully continue to you know keep our programs alive. >> Sounds good. >> Okay. Uh we have to take action on this. So, I need a motion to approve the first interim financial report. >> So, move. [snorts] >> Uh, any further comments, Paul? >> I'm just going to take >> Yes, please. >> Or member Holmes. >> Hi, >> Eric. >> I Smart. >> Hi, Zoya. >> Hi, >> it's unanimous of members present. Okay. There being no further business that it will