Transcript Slide 1

Victor Valley Community College District
2013-14 Budget Workshop
June 11, 2013
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Agenda
 2013 /14 Budget Assumptions
 Redevelopment Agency Pass Through Funds (RDA)
 Other Post Employment Benefits (OPEB)
 GIC
 Growth Split
 Ending Balances
 Tentative Budget
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General Fund Budget Assumptions
For Fiscal-Year 2013-2014
General Assumptions:
1. The District shall maintain legal compliance with the 50% law
2. The District will develop a balanced budget with a minimum 5% ending fund
balance (reserve)
3. The District will not access long-term reserves for balancing the budget
4. The Program Review, Planning, and Budget Development Process will guide
the allocation of all resources
5. Vacancies due to retirement or resignation will not automatically be filled
6. Board of Trustee Resolution #12-07, approved at their meeting in July, 2012,
authorizes and directs the Superintendent/President to establish a policy goal of
balancing the District’s budget by Fiscal Year 2015/16 in accordance with Title 5
of the California Code of Regulations
7. Finance, Budget, and Planning Committee recommends incorporating the April
3, 2013 FCMAT recommendations in developing updated business processes
and balancing the District budget
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Revenue Assumptions:
8. General fund reserve funds (Bridge) will be utilized to offset revenue shortfall
9. The State recommends 1.57% Cost of Living Adjustments (COLA) funding
10. The State recommends 1.63% Growth funding
11. The State recommends $16.9 million for “online initiatives” is recommended for
distribution among 72 districts
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Expense Assumptions:
12. Employer mandatory payroll cost will increase proportionately to the COLA,
since by contract the legislated COLA must be applied to the salary schedule
13. Budget augmentations will initially be considered for mandatory and
compliance related requests
14. Budget augmentations for non-mandated or compliance issues may be
considered through reallocation of existing resources or one-time external nongeneral fund revenue
15. The budgets for object code 5000 expenditures will be reset to either the
highest amounts expended during the past two years or the current fiscal year
16. District health benefit premiums will increase by approximately 10%
17. Employer contribution to PERS will increase from 11.417% to ___ (the PERS
Board will meet in Mid-June 2013 to update the rate)
18. State Unemployment Insurance rates will decrease from 1.1% to .05%
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Redevelopment Agency Pass Through Funds (RDA)
Revenue
47.5% To General
Fund
52.5% To
Infrastructure &
Maintenance
2008/09
$
1,153,933
$
1,275,399
$
2,429,332
2009/10
$
617,333
$
682,316
$
1,299,649
2010/11
$
440,445
$
486,808
$
927,253
2011/12
$
332,980
$
368,031
$
701,011
2012/13 *
$
313,920
$
1,195,625
$
1,509,545
* as of 6/11/13
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Total
Other Post Employment Benefits (OPEB)
"Pay As You Go" Funding of Retiree Benefits
Victor Valley CCD has established a GASB 43 Trust for future OPEB costs.
Value of Plan Assets at June 11, 2013:
$8,854,449
OPEB Trust Corpus:
Annual Payments:
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
$
$
$
$
$
$
$
$
$
$
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Total
708,858
682,229
741,924
753,127
850,640
940,122
992,988
1,026,999
1,072,052
1,136,380
Special Reserve Fund (GIC)
Beginning Bal
Interest
Interest
Outgoing
(GIC)
(County)
(Draw)
Prior Yr Adj.
2009-10
$
28,022,430 $
1,923,016 $
3,322 $
2010-11
$
21,598,768 $
1,691,509 $
1,951 $
-
$
2011-12
$
23,300,343 $
1,691,509 $
2,000 $
-
$
-
$
24,993,852
2012-13
$
24,993,852 $
1,728,616 $
2,000 $
-
$
-
$
26,724,468
2013-14 *
$
26,724,468 $
1,834,295 $
2,000 $
$
-
$
28,560,762
*Projected
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(8,350,000)$
-
-
Balance
$
21,598,768
8,115 $
23,300,343
YTD Budget Expansion Proposal
(Community College League of California)
As of 6/11/13










Enrollment restoration: 1.63%
Cost-of-living adjustment: 1.57%
Student Success: $50 million
Proposition 39: $48 million
Deferred Maintenance: $30 million
Online education: $16.9 million
EOPS: $15 million
DSPS: $15 million
CalWORKs: $8 million
Academic Senate: $150,000
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Growth Split
Total District Growth (1.63%)
$
666,446
Instructional (50% Law)
Cost of Growth
Discretionary
$
333,223
Non-Instructional
Student Services
Admin. Services
$
10
$
$
150,000
183,223
$
$
166,617
166,617
333,233
Ending Balances
Million
2012-2013 Projected Ending Fund Balance
$
4.4
OPEB/Vacation Liability Budget: Liquidated
+
2.8
Prop 30 Passed
+
3.0
Projected Unspent Budget in 5000 Object Code (Services/Operations)
+
2.0
Projected Beginning Fund Balance for 2013-2014
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$
12.2
Victor Valley Community College District
TENTATIVE BUDGET
Unrestricted General Fund 2013/14
Board of Trustees Meeting - June 11, 2013
Actual
Budget Year
Current
Budget Year
Estimated
Budget Year
2011-2012
2012-2013
2013-2014
Target FTES
9,379
8,230
9,236
Full-Time Equivalent Students (Funded)
8,879
8,230
9,140
Full-Time Equivalent Students (Unfunded)
509
200
96
Full-Time Equivalent Students (Rolled)
386
540
200
9,774
8,970
9,436
Total FTES
BEGINNING FUND BALANCE
$18,016,776
$15,535,767
$12,140,938
$34,288,405
$31,919,360
$35,186,985
*
CATEGORY
ESTIMATED REVENUES
State (Apportionment)
State (All Other)
$1,773,654
$1,633,097
$1,623,664
$10,323,646
$11,643,527
$9,999,106
$1,018,531
$800,000
$934,939
$22,642
$0
$0
$47,426,878
$45,995,984
$47,744,694
Academic Salaries
$22,756,652
$22,383,596
$22,088,284
Classified Salaries
$10,478,250
$11,786,792
$11,576,837
Employee Benefits
$9,340,130
$10,025,388
$10,557,558
$500,000
Local (Property Tax included)
One-Time Revenue
Transfers In: Reserve
TOTAL REVENUES
ESTIMATED EXPENDITURES
OPEB & Vacation Liability
Supplies, Software, Subscriptions
Services and Operations
Capital Outlay
Transfers, Reserves
TOTAL ESTIMATED EXPENDITURES
$0
$3,600,500
$738,238
$740,356
$831,166
$5,727,041
$7,570,959
$6,598,809
$866,377
$695,145
$716,057
$1,200
$331,200
$1,701,436
$49,907,887
$57,133,936
$54,570,147
FUND BALANCE
$2,535,267
RESTRICTED/DESIGNATED BALANCE
$3,600,500
$0
$0
UNRESTRICTED BRIDGE BALANCE
$9,400,000
$1,550,000
$2,600,000
$15,535,767
$4,397,815
$5,315,485
TOTAL ENDING FUND BALANCE
5.1%
$2,847,815
5.0%
$2,715,485
5.0%
* Includes: $2,943,123 - Passage of Prop. 30: $2.8M - Liquidation of OPEB/Vacation Liability: $2.0M Est. Liquidation of Contractual Budgets
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Discussion
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