Board President Natu Tuatagaloa, Vice President Rachel Kertz, Trustee Linda M. Jackson, Trustee Greg Knell, Trustee Maika Llorens Gulati

The Oath of Office will be administered to new 2015-2016 student board members Jesseca Chung of Terra Linda HS and Hei-Lee Ingrande-Edwards of Madrone HS.

San Rafael HS student member Lorrie Narcisse is continuing. 

Staff will report on the summer LEAP, BELL, APEX and EL Academy programs. 

That the Board receives any updates since the last Board meeting regarding development of the Local Control and Accountability Plan (LCAP).

That the Board receives any updates since the last Board meeting regarding Marin Promise data analytics.

The Board will receive any updates since the last board meeting.

Approval of the minutes for: Regular Meeting of August 24, 2015 and the Special Closed Session meeting of August 25, 2015. 

This agenda item presents for Board approval the Administration's recommended personnel transactions for the Elementary School District.

This agenda item presents for Board approval the Administration's recommended personnel transactions for the Elementary School District, as shown on Exhibit A (Certificated) and Exhibit B (Classified).

All changes to personnel since the previous board meeting including resignations, leaves of absence, retirements, reassignments, new hires, changes of contract, returns from leave, releases and short term assignments are included for Board approval.

Approval of all hiring, terminations, transfers, and retirements of employees in the Elementary School District.

This agenda item presents for Board approval the Administration's recommended personnel transactions for the High School District.

This agenda item presents for Board approval the Administration's recommended personnel transactions for the High School district, as shown on Exhibit A (Certificated) and Exhibit B (Classified).

All changes to personnel since the previous board meeting including resignations, leaves of absence, retirements, reassignments, new hires, changes of contract, returns from leave, releases and short term assignments are included for Board approval.  

Approval of all hiring, terminations, transfers, and retirements of employees in the High School District.

This agenda item presents for Board approval the Administration's recommended personnel transactions for the Joint School District.

This agenda item presents for Board approval the Administration's recommended personnel transactions for the Joint School District, as shown on Exhibit A (Certificated) and Exhibit B (Classified).

All changes to personnel since the previous board meeting including resignations, leaves of absence, retirements, reassignments, new hires, changes of contract, returns from leave, releases and short term assignments are included for Board approval.  

Approval of all hiring, terminations, transfers, and retirements of employees in the Joint School District.

The Board will review the ESD warrants for August 2015 to ratify.

A copy of the summary of the warrant register of all funds for warrants issued from August 1, 2015 - August 31, 2015, is attached.

Ratify the Elementary District warrants for August 2015.

The Board will review the HSD warrants for July 2015 for ratification.

BACKGROUND:      

The warrant register reflects the vendor name, date paid, amount of warrant, and budgetary account charged.

CURRENT CONSIDERATIONS:    

A copy of the summary of the warrant register of all funds for warrants issued from July 1, 2015 – July 31, 2015 is attached. 

Ratification of the warrants for July 2015.

The Board will review the HSD warrants for August 2015 to ratify.

A copy of the summary of the warrant register of all funds for warrants issued from August 1, 2015 - August 31, 2015, is attached.

Ratify the High School District warrants for August 2015.

The Board will review the Memorandum of Understanding.

BACKGROUND:
For the past ten school years, the Marin County Office of Education (MCOE) and San Rafael City Schools have participated in a Partnership based on a School to Career State of California grant. Within this School to Career Partnership, the position of a Business and Education Liaison was developed. A partial list of the job responsibilities of this position includes:

- Development of employer interest and participation in School to Career.
- Development of specific career exploration and work-based learning.
- Assisting teachers and Career Center staff at middle and high school level in curriculum.
- Serving as the School to Career Partnership central point for contact for county-wide employers and those who need a single point of contact with the Partnership.
- Assisting teachers and Career Center staff in monitoring of students at internship sites.
- Recruitment and placement of students for internships, job shadows, workplace tours, etc.
- Research and updating of labor market information in assigned industry and employer areas
- Gathering and recording of data and information on all students, employers, contacts, activities, projects and progress using information systems, surveys, logs, and other means as appropriate.
- Dissemination of current labor market information, workplace trends, etc.
- Assisting teachers and/or other staff in district or feeder middle and elementary schools in the placement of students in workplace tours or job shadows, as requested.

The School to Career Business Education Liaison, working in the San Rafael City Schools, is seen as an integral position for the development of internships, business school connections, classroom work- based learning projects and the development of academies: Terra Linda High (Health Academy) and San Rafael High (Technology Academy).
 

CURRENT CONSIDERATION:
This agenda item presents for Board approval the School to Career Partnership Business/Education Liaison agreement for the 2015-2016 school year between MCOE and San Rafael City Schools (Exhibit A).

FINANCIAL IMPLICATIONS:
The School to Career Partnership grant funds 50% of this position and the District is required to make a matching contribution for the 2015-2016 school year of $34,361.00 This amount provides a Business and Education Liaison for 30 hours per week, 190 days per year to support San Rafael High School, Terra Linda High School and Madrone High School students and will provide Partnership contact with middle schools in the district. Activities will vary depending on the time of year and the changing needs of San Rafael Elementary and High School District or the Partnership.

SACS Code: 01-9635-0-5849.00-1470-1000-800-000-000

BACKGROUND:
Board Policy 3270 states:
“Sale and Disposal of Instructional Materials, Equipment, and Supplies, if the value of the property is insufficient to defray the costs of arranging a public sale, the property may be donated or disposed of in an appropriate manner."  

CURRENT CONSIDERATIONS:Sun Valley Elementary and Davidson Middle School have determined that the following equipment is obsolete.

BACKGROUND:
It has been determined by the district that the purchase of a new additional copier is necessary in order to provide support for both the instruction and office staff at San Rafael High School.The school currently has two Kyocera Taskalfa 8001i copiers that are being used beyond their capacity and two Kyocera Mita 1500 copiers that have extended beyond their useful life. The two 8001i machines are being used at a rate that will significantly reduce the copiers life spans and the purchase of a new Discovery copier is necessary in order to increase efficiency, provide better support for both instructional and office staff, and be better equipped to handle the increased volume due to significant growth in student population at SRHS . The district will purchase a new Discovery Kyocera copier TASKalfa 8001i copier. In addition, Discovery will add one M2535dn desktop copier for the College and Career Center (no cost) for the total purchase price to replace the two Kyocera Mita 1500 copiers that are over 10 years old and consistently breakdown. 

CURRENT CONSIDERATIONS:                                                    
The District will purchase a Discovery Kyocera TASKalfa 8001i to help evenly distribute the work load on the new copiers. Discovery will also add one M2535dn copier for the total cost of the 8001i. The new digital copiers are significantly faster and have considerably more options for staff. It will increase productivity and efficiency for our instructional staff.

COST/FUNDING SOURCE: The purchase cost for the new copier is $16,933.75. The 8001i will be added to the annual maintenance cost for the two existing 8001i copiers and will not increase the annual costs. The overages will be billed at .005355 per copy per the existing contract.  The M2535dn annual maintenance cost will be $395 with an overage cost of .025 per copy.

SACS Code: 01-0000-0-6520.00-1110-1000-410-000-000 $16,933.75

                     01-0000-0-5620.00-1110-1000-410-000-000 $4,740

The Board reviews the budget development calendar.

BACKGROUND:
The typical budget cycle for the following school year begins in January with the Governor’s budget proposal (on or about January 10th).  During the months that follow, there are key dates and deadlines critical to the budget development process.  In order to provide the Board and community with a guide to this process, a budget development calendar is established and approved by the Board.

The Elementary Budget Committee meetings were established in the 2003-2004 school year for the San Rafael Elementary School District.  The school sites are represented by a teacher or classified employee and/or an administrator, who will take fiscal information back to the sites.  The purposes of the meetings are to update the committee on the budget, the Governor’s budget proposals, first and second interim and major budget assumptions and to review any new information. They also will consider possible recommendations to the Superintendent for budget reductions and/or restoring critical services or programs that were previously cut.  The meeting dates are scheduled on either the second or third Thursday of the month, and will be held at the DMS library.  

CURRENT CONSIDERATIONS:
To provide a calendar of key dates, deadlines and activities related to the budget development process for the 2016-17 budget year. 

COST/FUNDING SOURCE:
None

The Board will review the budget development calendar.

BACKGROUND:
The typical budget cycle for the following school year begins in January with the Governor’s budget proposal (on or about January 10th).  During the months that follow, there are key dates and deadlines critical to the budget development process.  In order to provide the Board and community with a guide to this process, a budget development calendar is established and approved by the Board.

The High School Budget Committee meetings were established in the 2009-10 school year for the San Rafael High School District.  The school sites are represented by a teacher or classified employee and/or site administrator, who will take the information presented at each meeting back to the sites.  The purposes of the meetings are to update the committee on the budget, the Governor’s budget proposals, property tax information, economic outlook, first and second interim and major budget assumptions and to review any new information. They also will consider possible recommendations to the Superintendent for budget reductions and/or restoring critical services or programs that were previously cut. The meeting dates are scheduled on either the second or third Wednesday of the month, and will be held at the district office in the boardroom.  

CURRENT CONSIDERATIONS:
To provide a calendar of key dates, deadlines and activities related to the budget development process for the 2016-17 budget year.  

Approval of the budget development calendar.

Healthy Start was established in 1991 through Senate Bill 620, the Healthy Start Support Services for Children Act, to improve student learning and support families. Healthy Start enhances efforts to close the achievement gap by helping children and their family members gain access to an array of learning supports. While each local Healthy Start is unique, all are designed to do the following:

• Ensure that each child receives the physical, emotional, and intellectual support that he or she needs — in school, at home, and in the community — to learn well.
• Build the capacity of students and parents to be participants, leaders, and decision-makers in their communities.
• Help schools and other child and family-serving agencies to recognize, streamline, and integrate their programs to provide more effective support to children and their families.

The California Department of Education (CDE) administers Healthy Start and awards two-year planning, five-year operational, and seven-year combined planning and operational grants to local education agencies (LEAs).  

CURRENT CONSIDERATION:  It is the purpose of this Independent Contractor Agreement for Services to specify the agreement between San Pedro Family Center Programs,  Bahia Vista Family Center Programs and Bay Area Community Resources (BACR) for the purpose of providing school-based outreach, coordination and family support services during the 2015-2016 school year.

This item presents for approval this Independent Contractor Agreement for Special Services with Bay Area Community Resources for grant related services representing the full school year as described in the agreement and the scope of work at Bahia Vista (Exhibit A) and San Pedro (Exhibit B).

FINANCIAL IMPLICATIONS: MOU's with BACR amount to $265,969 for the 2015-2016 school year. A specific MOU and a site budget for grant related activities as been created at each site and are as follows. 

Bahia Vista    
01-9463-0-5840.00-1110-2495-090-120-000           $143,119
Marin Community Foundation Grant

San Pedro      
01-9463-0-5840.00-1110-2495-095-120-000           $114,000
Marin Community Foundation PESSA Grant

01-9460-0-5860.00-1110-2495-095-120-000            $8,850
Transportation Grant

Approval of the Independent Contractor Agreement for Special Services for San Pedro and Bahia Vista Family Center Programs and Bay Area Community Resources (BACR) for 2015-2016.   

The costs for these services are:

San Pedro $7,500

SACS: 01-3010-0-5840.00-1511-3110-095-120-000

Madrone $7,500

SACS: 01-1100-0-5840.00-3200-3110-501-120-000

San Rafael High $6,750

SACS: 01--3010-0-5840.00-1511-3110-410-120-000

Davidson $15,000

SACS: 01-3010-05840.00-1511-3110-340-120-000

Approval of the MOU with (BACR) to provide counseling interns at San Pedro, Davidson, Madrone and San Rafael High School.

The Board will consider authorization of the Notice of Completion for this project. 

BACKGROUND: 

The Public Contract Law requires that the Board authorizes the filing of a Notice of Completion with the County Recorder upon substantial completion of a construction project.

CURRENT CONSIDERATIONS:

This agenda item presents for Board approval, authorization to file a Notice of Completion for Wildcat Engineering for the Fire Hydrant at San Rafael High School which had substantial completion on September 1, 2015.

The contract with Wildcat Engineering for the Fire Hydrant at San Rafael High School was approved by the Board of Education on June 8th, 2015.

FINANCIAL IMPLICATIONS:

Approval of the Notice of Completion.

The Board will consider authorization of the Notice of Completion for this project. 

BACKGROUND: 

The Public Contract Law requires that the Board authorizes the filing of a Notice of Completion with the County Recorder upon substantial completion of a construction project.

CURRENT CONSIDERATIONS:

This agenda item presents for Board approval, authorization to file a Notice of Completion for Wildcat Engineering for the Relocation of Modular Buildings at the Short Elementary School which had substantial completion on September 1, 2015.

The contract with Wildcat Engineering for the Relocation of Modular Buildings at the Short Elementary School was approved by the Board of Education on April 27, 2015.

FINANCIAL IMPLICATIONS:

Approval of the Notice of Completion.

The Board will review the SRFT proposal for recommended acceptance. 

Government Code 3547 requires:

"All proposals of exclusive representatives and of public school employers, which relate to matters within the scope of representation shall be presented at a public meeting of the public school employer and thereafter, shall be public records."

This agenda item presents for Board discussion and public review and/or comment, the San Rafael Federation of Teachers Association (SRFT) initial proposal for negotiations with the San Rafael High School District for the 2015-2016 school  year. 

A copy of the proposal from SRFT to SRCS is attached as Exhibit A.

Acceptance of the proposal of negotiation interests submitted by the San Rafael Federation of Teachers for the 2015-2016 school year.

The Board will review the HSD sunshine proposal to the San Rafael Federation of Teachers (SRFT) for 2015-16. 

Government Code 3547 requires:

"All proposals of exclusive representatives and of public school employers, which relate to matters within the scope of representation shall be presented at a public meeting of the public school employer and thereafter, shall be public records."

This agenda item presents for Board discussion and public review and/or comment, the initial proposals from the San Rafael High School District to open negotiations with the San Rafael Federation of teachers for the 2015-2016 school year. 

A copy of the proposal from the San Rafael High School District is attached as Exhibit A.

Approval of the District's sunshine proposal of negotiation interests with the San Rafael Federation of Teachers for the 2015-2016 school year.

The Board and attendees will be given opportunity to provide public input on Resolution No. 1659 Gann Limit for the San Rafael City Elementary School District for the Fiscal Years 2014-2015 and 2015-2016.

BACKGROUND:      

In 1979, voters approved Proposition 4, a constitutional limit on governmental spending at every level in the State, including school districts.  No agency’s expenditures can exceed its Gann limit, which is adjusted annually for changes in population and the lesser of either the national Consumer Price Index (CPI) or California’s per capita personal income. 

In 1990, a constitutional amendment (Proposition 111) changed the inflation index for the Gann limit calculation, effectively raising the limit.  Additionally, the minimum funding guarantee for education (Proposition 98) was changed to reflect the growth of California’s overall economy.  Proposition 111 accomplished this by shifting the adjustment for inflation from the growth of per capita personal income, which is historically a lower amount, to the growth in state per capita General Fund revenues plus one-half percent. 

Although the combination of Proposition 111 and Proposition 98 nullified the potentially harmful effects of the Gann Limits on K-12 school agencies, they are still required to complete the calculation and conduct a “Public Hearing” on the resolution adopting the adjusted “Gann Limit” for 2014-2015 and the estimated “Gann Limit” for 2015-2016.  The Gann Limit calculation is included in the supplemental information in the Unaudited Actuals State Reports.

CURRENT CONSIDERATIONS:    

This agenda item presents for Board approval, the Appropriations Limit Calculations, Exhibit A, and Resolution No.1659 Adoption of the “Gann Limit”, Exhibit B.  No increase to the Gann Limit is necessary (see calculations attached).

COST/FUNDING SOURCE:

Approval of Resolution No. 1659 will not have a financial impact on either the 2014-2015 or the 2015-2016 fiscal years.

Approval of Resolution No. 1659 Gann Limit for the San Rafael City Elementary School District for the Fiscal Years 2014-2015 and 2015-2016.

The Board and attendees will be given opportunity for public input on Resolution No. 1660 the San Rafael City High School District for the Fiscal Years 2014-2015 and 2015-2016.

BACKGROUND:      

In 1979, voters approved Proposition 4, a constitutional limit on governmental spending at every level in the State, including school districts.  No agency’s expenditures can exceed its Gann limit, which is adjusted annually for changes in population and the lesser of either the national Consumer Price Index (CPI) or California’s per capita personal income. 

In 1990, a constitutional amendment (Proposition 111) changed the inflation index for the Gann limit calculation, effectively raising the limit.  Additionally, the minimum funding guarantee for education (Proposition 98) was changed to reflect the growth of California’s overall economy.  Proposition 111 accomplished this by shifting the adjustment for inflation from the growth of per capita personal income, which is historically a lower amount, to the growth in state per capita General Fund revenues plus one-half percent. 

Although the combination of Proposition 111 and Proposition 98 nullified the potentially harmful effects of the Gann Limits on K-12 school agencies, they are still required to complete the calculation and conduct a “Public Hearing” on the resolution adopting the adjusted “Gann Limit” for 2014-2015 and the estimated “Gann Limit” for 2015-2016.  The Gann Limit calculation is included in the supplemental information in the Unaudited Actuals State Reports.

CURRENT CONSIDERATIONS:    

This agenda item presents for Board approval, the Appropriations Limit Calculations, Exhibit A, and Resolution No. 1660 adoption of the “Gann Limit”, Exhibit B. No increase to the Gann Limit is necessary (see calculations attached.)

COST/FUNDING SOURCE:

Approval of Resolution No. 1660 will not have a financial impact on either the 2014-2015 or the 2015-2016 fiscal years. 

Approval of Resolution No. 1660 for the San Rafael City High School District for the Fiscal Years 2014-2015 and 2015-2016.

The Board will review the 2014-2015 Unaudited Actuals.

BACKGROUND:  In accordance with the provisions of AB 1200 and Education Code Section 41200, the Governing Board of each school district must approve an annual financial statement of all receipts and expenditures of the District for the preceding year for all funds.  The reporting format for the financial statements is established and mandated by the state (SACS Financial Reporting Software) and they must be approved and submitted to the Marin County Office of Education (MCOE) on or before September 15^th.

 CURRENT CONSIDERATIONS:  This agenda item presented for Board discussion and approval is the 2014-15 Unaudited Actuals for the San Rafael Elementary School District.  Upon approval of the financial statements by the Board of Education, the SACS Reports are forwarded electronically to the Marin County Office of Education no later than September 15th for compliance review with the technical provisions of the Code Sections.  MCOE is required to forward them electronically to the Superintendent of Public Instruction on or before October 15^th.

The following reports are included in the SACS State Software:

• Unaudited Actuals Certification
• Summary of Unaudited Actuals Data Submission
• Table of Contents
• General Fund Form 01 Unrestricted and Restricted, Expenditures by Object, Expenditures by Function  (used for publication of statistical bulletin)
• Fund forms for all other funds used by the district
• Average Daily Attendance (Form A)
• Schedule of Capital Assets (Form ASSET)
• Schedule of Long Term Liabilities (Form DEBT)
• Appropriations Limit Calculation (GANN Limit Form)
• Current Expense Formula (Form CEA)
• Lottery Report (Form L)
• Indirect Cost Rate Worksheets (Form ICR)
• No Child Left Behind Maintenance of Effort (Form NCMOE)
• Special Education Maintenance of Effort (SEMA/SEMB)
• Program Cost Report – Allocation Factors (Form PCRAF)
• Program Cost Report (form PCR)
• Summary of Interfund Activities – Actuals
• Schedule for Categoricals (Form CAT)
• Technical Review Checks (TRC)

All of the reports reflect that SRCS has met the criteria for State & Federal Compliance on Maintenance of Effort, Special Education Maintenance of Effort, and the CEA (minimum classroom compensation) formula.  The following is a list of the ending fund balances as of June 30, 2015: 

• Fund 01 (General Fund) $10,220,801
• Fund 12 (Child Development Fund) $0
• Fund 13 (Cafeteria Fund) $438,766
• Fund 14 (Deferred Maintenance Fund) $477,593
• Fund 20 (Special Reserve Fund for Postemployment Benefits) $1,136,619
• Fund 21 (Building Fund) $431
• Fund 25 (Capital Facilities Fund)  $97,300
• Fund 35 (County School Facilities Fund) $0
• Fund 40 (Reserve for Capital Outlay) $315,128
• Fund 51 (Bond Interest & Redemption Fund)  $4,787,814

Each year there are fluctuations in both the revenues and expenditures for the Unrestricted and Restricted components of the General Fund.  The major reasons for the variances can be explained as follows: 

1. Local Control Funding Formula (LCFF):
   1. There were fluctuations in the various components of local property taxes, however, the overall LCFF calculations only changed by approximately $31,837 due to final CALPADs unduplicated counts of ELD, Foster Youth and Low Income students.
   2. Restricted:
      1. Legally Restricted Program reserves will be budgeted in the 1^st Budget Revision for schools and departments to access the funds.  These are funds that are intended for a particular purpose and cannot be used otherwise
   3. Committed: NONE
   4. Assigned:
      1. The District is recommending several Board designated set-asides.
         1. Local site donation carryover related to unspent donations received by the schools that will be included in the budget for in the 1^st Budget Revision.
         2. An ongoing Cash Flow contingency based on the one-time 2008-09 Tier III program transfer of $1.1 million
         3. Contingency for the costs associated with the implementation of the Common Core State Standards and Smarter Balanced Assessments
   5. Unassigned:
      1. The district continues to maintain 3% reserve for economic uncertainty.
      2. Maintain Additional Reserves for Economic Uncertainty of 2%
      3. Available reserves is that amount over all of the other reserves.  However, these are considered one-time if there is deficit financing as indicated in our Adopted Budget. 
2. Federal Funds:
   1. Most Federal funds that were received in 2014-15, but not spent, are transferred to a Deferred Revenue account and are budgeted in the following year.  This Federal Deferred Revenue is primarily related to Title I, Title II, and Title III.  This year it also includes the Title II California Math and Science Partnership Grant.
3. Other State Revenues:
   1. The final estimated amount for the 4^th quarter of Lottery funds (Prop 20 and Non-prop 20) came in higher overall than the May estimates
   2. During the closing process, it was determined that prior year State Mental Health funds needed to be recorded which increased revenues
4. Other Local Revenues
   1. Final Interest Earnings came in slightly higher than expected
   2. Parcel Tax revenues were slightly lower due to prior year adjustments related to senior exemptions and other adjustments
   3. Transportation fees collected were slightly higher than anticipated due in large part to growth in enrollment and increased participation in Home to School transportation
   4. Other local revenues in the restricted area of the budget came in less as the expenditures for various PTA programs, the Heads Up programs and the reimbursements from the MCF for carryover were lower than expected.
      1. Final Microsoft Settlement reimbursements were received in June approx.. $145K and will be used to purchase additional computers for the school sites in 2015-16
5. Contributions to Restricted Programs:
   1. The contribution to special education programs was lower due to the lower costs associated with the Excess Cost Billback from MCOE ($56K) and reduced costs for Special Education Transportation ($33K)
6. Salaries and Benefits
   1. The final expenditures came in lower due to savings from “open” positions, lower substitute costs, and health & welfare savings on the 3-tiered plans.  In the categorical area, hourly certificated and classified came in significantly less than budgeted as well as certificated substitutes or release time.
   2. Variances in Certificated and Classified Management was due to retroactive salary adjustments at the end of the year.
7. Materials & Supplies:
   1. The final costs for Textbooks in the unrestricted budget came in lower due to the delay in the State identification of CCSS aligned and approved instructional materials for English Language Arts and English Language Development.  It was originally identified in the LCAP and budgeted for that these materials be purchased in 2014-15.  However, due to the delay in the availability of the instructional materials, these purchases will be made in 2015-16.  Staff anticipates that the State approved list will be available in November 2016.
   2. In addition, the significant variances in the Books and Reference materials budget was due to the fact that some of the costs for ELA benchmark assessments that were budgeted for using LCFF funds in the LCAP were actually purchased in part using the final funds available in the one-time CCSS funding that needed to be expended by 6/30/2015. In addition, it was determined through the Curriculum Advisory Council that the math benchmark assessments embedded in the Every Day Math program would be used rather than purchasing additional math assessments.
   3. The final costs for Materials & Supplies in both the unrestricted and restricted components of the budget came in less, some significantly less.  This is due, in large part, to site and department carryover in local donation accounts and categorical programs and will be budgeted as carryover in the 1^st budget revision.
   4. The variance in the budget for Non-Capital Equipment is due to the cost of the chromebooks and carts. These items were budgeted in the LCFF/LCAP, but were actually purchased, in part, using the final funds available in the one-time CCSS funding that needed to be expended by 6/30/2015.

      Part of the variances were due to site budgets (Former EIA and Local Donations) set up for purchases that were deferred to 2015-16. 

8. Other Operating Expenditures:
   1. The cost of Utilities came in significantly lower. This is due, in part, to the ongoing conservation by school sites and departments related to water and the drought.  Staff will be reviewing these final numbers and making adjustments to the 2015-16 budgets as appropriate.
   2. The cost of leases, rentals and repairs was lower in large part due to a greater awareness of the use of copiers and due to the replacement of older copiers that are more expensive to maintain 
   3. The costs for Other Contract Services came in less in large part due to two schools not accessing the funds set aside for Playworks for various reasons including lack of availability for coaches by Playworks.  The budget for Professional Consulting Services came in less due, in large part, lower costs associated with the IT upgrades.
   4. The variance in Other Services is primarily related to lower final costs for Home-to-School transportation.
   5. The costs for services and other operating expenditures came in less for many of the special education contracts which reduced the amount of contribution for special education. 

           Note:  Site and Department carryover will be released by the middle of September. 

9. Other Financing Uses
   1. The variance in Other Tuition-Excess Cost to COE in the unrestricted budget is due to a billback from MCOE for Alternative Education placements in County Community School and Oracle. 
   2. The variance is due to the transfer for the GASB 45 Annual Required Contribution (ARC) based on the actuarial report to bring the final contribution closer to 100% of the ARC.
10. Reserves and Components of Ending Fund Balance:
    1. Non-Spendable:
       1. Revolving Cash

 NOTE: It is important to note that the higher the reserves the greater the level of cash reserves available to the District.  And with significant shifts and delays in State funding and apportionments, prudent fund reserves and cash reserves are more important than ever.

FINANCIAL IMPLICATIONS:  Over the past two months, staff has completed the closing process for all funds within the San Rafael Elementary School District.  The components of ending fund balance for the General Fund as of June 30, 2014 are as follows: 

Components of ending fund balance:

            Non-Spendable

Revolving cash                                                $       2,500

            Restricted                                                                  $1,941,318

    Committed                                                                  $             0

            Assigned

Local site donation                                          $    335,220

Cash Flow Contingency                                  $ 1,100,000

CCSS/SB Assessment Contingency               $ 1,300,000

             Unassigned                                                                

Reserve for Economic Uncertainty (REU)       $ 1,317,582 3%

Additional REU @ 2%                                     $    878,388 2%

Available                                                         $ 3,345,794           

                        Total Ending Fund Balance                        $10,220,801

Approval of the 2014-2015 Unaudited Actuals.

The Board reviews the 2014-15 Unaudited Actuals for the San Rafael High School District.

BACKGROUND:  In accordance with the provisions of AB 1200 and Education Code Section 41200, the Governing Board of each school district must approve an annual financial statement of all receipts and expenditures of the District for the preceding year for all funds.  The reporting format for the financial statements is established and mandated by the state (SACS Financial Reporting Software) and they must be approved and submitted to the Marin County Office of Education (MCOE) on or before September 15^th.

CURRENT CONSIDERATIONS:  This agenda item presented for Board discussion and approval is the 2014-15 Unaudited Actuals for the San Rafael High School District.  Upon approval of the financial statements by the Board of Education, the SACS Reports are forwarded electronically to the Marin County Office of Education no later than September 15th for compliance review with the technical provisions of the Code Sections.  MCOE is required to forward them electronically to the Superintendent of Public Instruction on or before October 15^th.

The following reports are included in the SACS State Software:

• Unaudited Actuals Certification
• Summary of Unaudited Actuals Data Submission
• Table of Contents
• General Fund Form 01 Unrestricted and Restricted, Expenditures by Object, Expenditures by Function  (used for publication of statistical bulletin)
• Fund forms for all other funds used by the district
• Average Daily Attendance (Form A)
• Schedule of Capital Assets (Form ASSET)
• Schedule of Long Term Liabilities (Form DEBT)
• Appropriations Limit Calculation (GANN Limit Form)
• Current Expense Formula (Form CEA)
• Lottery Report (Form L)
• Indirect Cost Rate Worksheets (Form ICR)
• No Child Left Behind Maintenance of Effort (Form NCMOE)
• Special Education Maintenance of Effort (SEMA/SEMB)
• Program Cost Report – Allocation Factors (Form PCRAF)
• Program Cost Report (form PCR)
• Summary of Interfund Activities – Actuals
• Schedule for Categoricals (Form CAT)
• Technical Review Checks (TRC)

All of the reports reflect that SRCS has met the criteria for State & Federal Compliance on Maintenance of Effort, Special Education Maintenance of Effort, and the CEA (minimum classroom compensation) formula.  The following is a list of the ending fund balances as of June 30, 2015: 

• Fund 01 (General Fund) $8,189,779
• Fund 11 (Adult Education Fund) $179,578
• Fund 13 (Cafeteria Fund) $117,477
• Fund 14 (Deferred Maintenance Fund) $362,674
• Fund 20 (Special Reserve Fund for Postemployment Benefits) $1,999,465
• Fund 21 (Building Fund) $2,034,417
• Fund 25 (Capital Facilities Fund)  $210,112
• Fund 40 (Special Reserve for Capital Outlay Projects) $0
• Fund 51 (Bond Interest & Redemption Fund)  $4,143,126

 Each year there are fluctuations in both the revenues and expenditures for the Unrestricted and Restricted components of the General Fund.  The major reasons for the variances can be explained as follows: 

1. Local Control Funding Formula (LCFF):
   1. The final Secured Tax revenue came in $29,165 lower than estimated by the County Auditor-Controllers Office in April.  This was the first year that the budget was based on 100% of the AB8 Tax Roll in November.  The final receipts came in very close to estimates so staff will continue to use this methodology for the immediate future.
   2. The Decrease in Secured Taxes were offset by increases ($42,992)  in revenues received for RDA Residual funds.
   3. The variance in State Aid ($21,499) is due to final District of Choice calculations.
   4. The cost of Utilities came in within only slight variances
   5. The cost of leases, rentals and repairs was lower in large part due to a greater awareness of the use of copiers and due to the replacement of older copiers that are more expensive to maintain 
   6. The final Costs for Special Education Transportation (5860-Other Services) came in lower than estimated
   7. Restricted:
      • Legally Restricted Program reserves will be budgeted in the 1^st Budget Revision for schools and departments to access the funds.  These are funds that are intended for a particular purpose and cannot be used otherwise
   8. Committed: NONE
   9. Assigned:
      • The District is recommending several Board designated set-asides in 2014-15
        1. Local site donation carryover related to unspent donations received by the schools that will be included in the budget for in the 1^st Budget Revision.
        2. Contingency for Cash Flow management due to cost of borrowing
        3. Contingency for implementation of the Common Core State Standards (CCSS) and Smarter Balanced Assessments.
   10. Unassigned:
       • The district continues to maintain 10% reserve for economic uncertainty.
       • Available reserve is that amount over all of the other reserves.  However, these are considered one-time if there is deficit financing as indicated in our Adopted Budget.
2. Federal Funds:
   1. Most Federal funds that were received in 2014-15, but not spent, are transferred to a Deferred Revenue account and are budgeted in the following year.  This Federal Deferred Revenue is primarily related to Federal Mental Health funds, Title I, Title II, and Title III. 
3. Other State Revenues:
   1. Unrestricted/Restricted: The variance in Other State revenues is primarily due to final lottery estimates for both Non-Prop 20 and Prop 20 funds.
4. Other Local Revenues
   1. Final Interest Earnings came in slightly higher than expected.
   2. Parcel Tax revenues were lower due to prior year adjustments related to senior exemptions and other adjustments
   3. The final tax apportionment for the AB602 Fiscal Allocation Plan (FAP) from the Marin County SELPA came in slightly lower based on final NPS/LCI revenues from MCOE under the FAP
5. Contributions to Restricted Programs:
   1. The contribution to special education programs was lower due to the lower costs associated with the Excess Cost Billback from MCOE ($50K) and reduced costs for Special Education Transportation ($46K)
6. Salaries and Benefits:
   1. The final expenditures came in lower due to savings from “open” positions, lower substitute costs, and lower certificated and classified coaches’ salaries.
   2. There was savings in health & welfare based on estimates for the 3-tiered plans and open positions.
7. Materials & Supplies and Other Operating Expenditures:
   1. Most of the expenditure accounts in both the unrestricted and restricted components of the budget came in less, some significantly less.  It is due, in large part, to site and department carryover in local donation accounts.  In addition, former Tier III program carryover continues to be allocated to the school sites and/or departments.  Some of these programs include:
      • Peer Assistance & Review (PAR)
      • California High School Exit Exam (CAHSEE)

        Note: most of these funds are allocated out to the schools or departments and the carryover will be budgeted in the 1^st Budget Revision.

8. Capital Outlay
   1. The variance in the unrestricted budget is due to:
      • 1) costs related to the IT upgrade came in under budget
      • 2) One of the vehicles (Ford F-450) purchased in the Spring did not arrive until July so the district could not recognize the asset until it was received in 2015-16.
9. Other Financing Uses
   1. The variance in Other Tuition-Excess Cost to COE is due to a reduction in the final billback from MCOE for the Excess Cost for Special Education
10. The overall Deficit Spending in the unrestricted budget was reduced at year-end closing with approximately $670,000 in excess of expenditures over revenues.
11. Reserves and Components of Ending Fund Balance:
    1. Non-Spendable:
       • Revolving Cash

 NOTE: It is important to note that the higher the reserves the greater the level of cash reserves available to the District.  And with significant shifts and delays in State funding and apportionments, increasing enrollment that is creating the need for additional staff at a rate that exceeds increases in tax revenues, prudent fund reserves and cash reserves are more important than ever. This is especially true for a “basic aid” district that is facing significant growth in the current year and in the foreseeable future.

FINANCIAL IMPLICATIONS:  Over the past two months, staff has completed the closing process for all funds within the San Rafael High School District.  The components of ending balance for the General Fund are as follows:

Components of ending fund balance:

            Non-Spendable

Revolving cash                                              $       5,600

            Restricted                                                                 $1,364,428

   Committed                                                                 $              0

            Assigned

Local site donation carryover                          $     76,310

Cash Flow Contingency                                  $1,100,000

CCSS Contingency                                         $   550,000

             Unassigned                                                               

Reserve for Economic Uncertainty (REU)      $2,974,274 10%

Available                                                         $2,119,168           

                        Total Ending Fund Balance                         $8,189,779  $1 variance due to rounding     

Approval of the  2014-15 Unaudited Actuals for the San Rafael High School District.

Staff will receive a report on the Cal200.