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Regular Meeting - SRCS Board of Education
San Rafael City Schools
June 24, 2019 6:00PM
Central Services - Boardroom 310 Nova Albion Way San Rafael, CA 94903

I. OPEN SESSION/ROLL CALL 6:00 PM
Quick Summary / Abstract:

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



II. PLEDGE OF ALLEGIANCE
III. PUBLIC COMMENT ON NON-AGENDIZED ITEMS (Public comment on items that appear on the agenda will be taken at the time the item is addressed by the Board.)
IV. SPECIAL REPORT
IV.1. UPDATE: (ESD/HSD): Labor Unions: CSEA, SRTA, SRFT
Quick Summary / Abstract:
That the Board receives updates from district labor leaders: 1) CSEA 2) SRTA 3) SRFT
IV.2. BOARD BUSINESS (ESD/HSD) Public Hearing – Public Input Session On Draft Trustee Area Boundary Maps
Quick Summary / Abstract:

The Board and the Public are presented with three (3) draft area boundary maps (Green, Purple, and Yellow) for public comment. 

Rationale:

Board members are currently elected in “at-large” elections, where each member is elected by voters throughout the District.  The California Voting Rights Act (“CVRA”) prohibits the use of “at-large” elections in certain circumstances.  “By-trustee-area” elections, in which members are elected by voters in geographical subdivisions of the jurisdiction, are immune from challenge under the CVRA. 

On March 25, the Board adopted Resolution 1819-24 indicating its intent to transition from at-large to by-trustee area elections pursuant to the Elections Code.  The first step in that process was for the Board to hold two public hearings at which members of the public could provide input on the trustee area boundaries before maps were drafted.  The Board held these hearings on April 30 and May 13.

On June 14, the District posted the first draft trustee area boundary maps (Green, Purple, and Yellow) on its website.  This was followed by a community workshop at Bahia Vista Elementary School on June 18. 

Tonight, the Board will hold its first public hearing on the draft trustee area boundary maps.  This will be an opportunity for the public to provide comment on the drafts and for the Board to provide direction to the demographer for any revisions they would like to see in the next draft maps. 

Following tonight’s meeting, the District will hold additional public hearings and conduct additional community workshops on the draft trustee area boundary maps.  The next public hearing is planned for July 15, at the SRCS Central Services Board Room at 6:30 pm and the next workshop is planned for July 17, at the Venetia Valley Library from 6:30 - 8 pm.  Community members may visit http://www.srcs.org/trustee-elections to view the schedule, check out the mapping tools, and read FAQs.

 
Financial Impact:

There is no cost associated with this public hearing of draft boundary maps. 

Attachments:
1. Green Trustee Area Boundary Map
2. Purple Trustee Area Boundary Map
3. Yellow Trustee Area Boundary Map
V. CONSENT AGENDA: (All items appearing on the Consent Agenda are approved in one action by the Board. Trustees, staff or members of the public may request that an item be pulled for discussion prior to Consent Agenda approval.)
V.1. PERSONNEL: (HSD) Approval of Counseling Field Experience Agreement With Sonoma State University For the Period of July 1, 2019 - June 30, 2020
Quick Summary / Abstract:
This agenda item presents for Board approval the Administration's recommendation to enter into the Counseling Field Experience Agreement with Sonoma State University.

Rationale:
Providing high quality learning environments for counselor field experience/training both assists the professional in counseling, and often yields the District's best look at talented, prospective new counseling staff. Sonoma State provides intern counselors, under the supervision of our counseling staff.

 
Financial Impact:
There is no cost to the District related to this agreement.

Recommended Motion:

Approval of the agreement.


 


Attachments:
2019-2020 SSU/SRCS Counseling Field Experience Agreement
V.2. FINANCE: (ESD) Approval of 2019-20 Child Development Contracts between San Rafael City Elementary School District and the California Department of Education (CDE) and Related Resolutions # and #1
Quick Summary / Abstract:

The Board will consider the 2019-20 child development contracts and related Resolutions # and #, for recommended approval.



Rationale:

BACKGROUND:   

The State of California Child Development Division issues child development program contracts on an annual basis to Districts who have school sites that have been previously awarded funding to operate Preschool programs.  The programs integrate families with school programs prior to kindergarten in order to empower literacy and life skill development of preschool-aged children and their families.  Students become better prepared to enter and succeed in kindergarten

The funded sites are Bahia Vista Elementary School and San Pedro Elementary School.

The funding provided comes in the form of two contracts.  The first contract is the funding source for the Pre-K partial day program, and the second contract is for supplies specifically related to operating the program.  Funding provides for an Early Childhood Education (ECE) permit teacher at each site in each class in a partial FTE position.  



 
Financial Impact:

The total amount of the contracts are as follows:

    State of California Partial Day preschool program:    $335,968

    State of California Pre-K supplies grant:                    $5,000


SACS Codes:  12-6105-0-8590.00-0000-0000-700-000-000 $335, 968

                        12-6052-0-8590.00-0000-0000-700-000-000 $5,000



Recommended Motion:
Approval of the contracts and related resolution # and #. 

Attachments:
CPKS 2019-20
CSPP 2019-20
V.3. FINANCE:(ESD/HSD) Approval of Disposal of Obsolete Books and/or Equipment for the San Rafael City School District
Quick Summary / Abstract:

The Board will consider the disposal of obsolete books and/or equipment at Terra Linda and San Rafael High School.








Rationale:

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:

Sites have determined the following Books and Equipment to be obsolete or unrepairable:

Site Quantity Grade ISBN# Title
Good=G
Fair= F Poor =P
Obsolete= 0
Unrepairable = N Stolen= S
TLHS 3 9-12 9781618571991 Descubre 2 Poor Obsolete= 0
TLHS 2 9-12 9781618572004 Descubre 3 Poor Obsolete= 0
TLHS 1 9-12 821927981 Navegando 1 Poor Obsolete= 0
TLHS 1 9-12 821928392 Navegando 2 Poor Obsolete= 0
TLHS 6 9-12 883341727 Visions of Revisions Poor Obsolete= 0
TLHS 15 9-12 67890HR619876 UN PEU DE NOUREAU Poor Obsolete= 0
TLHS 7 9-12 None French Short Stories Poor/Fair Obsolete= 0
TLHS 24 9-12 73143445 Reflets Du Monde Francais Poor Obsolete= 0
TLHS 20 9-12 31896-0412 French Review Grammer Poor Obsolete= 0
TLHS 32 9-12 None Culture Et Civilisation Franfaises Poor Obsolete= 0
TLHS 25 9-12 None Lectures Choisies Poor Obsolete= 0
TLHS 50 9-12 351390211 Cesgens Qui Passent Poor Obsolete= 0
TLHS 10 9-12 None French Prose Poor Obsolete= 0
SRHS 240 10 618108203 Modern World History Poor Obsolete= 0
SRHS 220 12 30505844 Holt Economics Poor Obsolete= 0

 
Financial Impact:

COST/FUNDING SOURCE: The books and/or equipment will be disposed of or recycled at no cost to the district.




Recommended Motion:

Approval of disposal of obsolete books and/or equipment.




V.4. FINANCE: (ESD/HSD) Approval Resolution #1819-53 and #1819-54 for a Tax Anticipation Note (TAN) Loan Request for the 2019-20 Fiscal Year for the San Rafael Elementary School District (ESD) and the San Rafael High School District (HSD)
Quick Summary / Abstract:

The Board is presented with a resolution for recommended approval to request a Tax Anticipation Note (TAN) Loan for the ESD and the HSD.


Rationale:

BACKGROUND:   A Tax Anticipation Note (TAN) is a short-term loan from the Treasurer of the County of Marin that school districts can use to address a cash flow challenge created when expenditures must be incurred and paid before tax revenues (local or State) are received. In accordance with Article XVI, Section 6 of the Constitution of the State of California and Education Code Section 42620, Governing Boards are permitted to incur debt by obtaining TAN borrowings that must be paid off within the same calendar year.  The amount of TANs used in a year cannot exceed 75% of the total gross income from taxes of all types collected by the Board of Education in the preceding calendar year, and cannot exceed the total anticipated revenues for the current calendar year.

Historically, San Rafael City Schools has issued Tax Revenue Anticipation Notes (TRAN) which is another form of short-term financing that allows Districts to borrow cash to address short-term cash flow needs in anticipation of local tax revenue or revenues from the State.  The cost of issuing a TRAN currently out-weighs the benefits given the unusually low rate of return in the current economic environment.

CURRENT CONSIDERATIONS:
This agenda item presents for Board approval for the San Rafael Elementary District - Tax Anticipation Note (TAN) for the 2019-20 fiscal year for an amount not to exceed $18,500,000.

This agenda item also presents for Board approval for the San Rafael High School District  - Tax Anticipation Note (TAN) for the 2019-20  fiscal year for an amount not to exceed $20,000,000.





 
Financial Impact:

None

Recommended Motion:

Approval of ESD Resolution # 1819-53 and HSD Resolution # 1819-54 for a Tax Anticipation Note (TAN) loan request for the HSD, for the 2019-20 school year. 






Attachments:
ESD 2019-20 Tax Anticipation Note
ESD Tax Anticipation Note Resolution 1819-53
HSD 2019-20 Tax Anticipation Note
HSD Tax Anticipation Note Resolution 1819-54
V.5. FINANCE:(ESD/HSD) Approval of Resolutions #1819-55 and #1819-56 Determining the Use of Education Protection Account Funds (EPA) for the San Rafael Elementary School District and the San Rafael High School District
Quick Summary / Abstract:
The Board is presented with the resolutions regarding Education Protection Account funds for review and recommended approval. 
Rationale:

BACKGROUND:      

EDUCATION PROTECTION ACCOUNT:  As approved by the voters on November 6, 2012, The Schools and Local Public Safety Protection Act of 2012 (Proposition 30) temporarily increased the State’s sales tax rate and the personal income tax rates for taxpayers in high tax brackets.   The creation of the Education Protection Account (EPA) by Proposition 30 provides that a portion of K-14 general purpose funds must be utilized for instructional purposes.  K-14 local agencies have the sole authority to determine how the funds received from the EPA are spent, but with these provisions:

  • The spending plan must be approved by the governing board during a public meeting
  • EPA funds cannot be used for the salaries or benefits of administrators or any other administrative costs (as identified within the account code structure)
  • Each year, the local agency must publish on its website an accounting of how much money was received from the EPA and how the funds were expended

Further, the annual financial audit includes verification that the EPA funds were used as specified by Proposition 30.  If EPA funds are not expended in accordance with the requirements of Proposition 30, civil or criminal penalties could be incurred.

Proposition 55 takes effect January 1, 2018, and the income taxes generated will be distributed to each LEAs’ EPA. The statutory reporting requirements of Proposition 30 mentioned above carry forward under Proposition 55. 

CURRENT CONSIDERATIONS:    

Resolution 1819-55 and 1819-56 and the attached expenditure reports verifying the expenditures under the EPA (resource 1400) have all been used to support teacher salaries and benefits. No EPA funds were used to support any administrative costs. This information is in compliance with the requirements of Proposition 30.

Once the Board approves the resolutions, they will be posted on the District website along with the supporting documentation in compliance with Article XIII, Section 36 of the California Constitution.




 
Financial Impact:

COST/FUNDING SOURCE:

See the attached documentation of revenues and expenditures for the Education Protection Account (Resource 1400) for 2018-19 for both the San Rafael Elementary School District and the San Rafael High School District.


Recommended Motion:

Approval of Resolution # 1819-55 and 1819-56 as attached.


Attachments:
ESD-EPA Expenditure 2018-19
ESD-EPA Resolution #1819-55
HSD-EPA Expenditure 2018-19
HSD-EPA Resolution #1819-56
VI. DISCUSSION/ACTION SESSION
VI.1. PUBLIC HEARING: EDUCATION SERVICES: (ESD) Presentation and Discussion of the 2019-20 Local Control Accountability Plan for the San Rafael Elementary School District
Quick Summary / Abstract:
This item presents for Board review and discussion of the 2019-20 Local Control Accountability Plan for the San Rafael Elementary District.


Rationale:

BACKGROUND INFORMATION: The Local Control Funding Formula (LCFF) and Local Control and Accountability Plan (LCAP) together create a direct connection between student outcomes and fiscal expenditures. They were developed as a structure to put into local hands the challenging and essential work of designing a coherent, effective educational system based on measurable strategies and actions. Through a process of data analysis and consultation, districts work with the community to articulate a vision and set priorities.  

The LCAP is a critical part of what makes LCFF work to support student success. The funding formula for education made by LCFF was carefully constructed in order to support the goal of increased transparency and accountability. The development and sharing of the LCAP is how LCFF supports these goals.

The LCAP is first and foremost about creating a comprehensive plan that will guide how a district and its schools support student success. It is intended to be a document that is brief, easy to understand, and contains key information about how the District plans to act and spend funding to address state and local priorities for student success. Similar to a strategic plan, the emphasis is on creating a document that shares the story and context of how the District plans to achieve its mission and vision.

The LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context.

CURRENT CONSIDERATION:

The LCAP must include district annual goals that are aligned to the eight state priorities and specific actions a district will take to ensure that academic performance improves.

This template remains for the LCAP this year. The template contains the following sections (some of which are new this year):

  1. Budget overview for Parents
  2. Plan Summary
  3. Comprehensive Support and Improvement. 
  4. Annual Update
  5. Stakeholder Engagement
  6. Goals, Actions and Expenditures.
  7. Improved Services for Unduplicated Students
  8. Instructions

The LCAP must be structured around eight key state priorities:

  • Basic Services
  • Implementation of the CCSS
  • Parental Engagement
  • Student Achievement
  • Student Engagement
  • School Climate
  • Course Access
  • Other Student Outcomes

It is important to note that the LCAP is no longer a "rolling plan;" it is a three-year document with two annual updates. This year, it is considered an "annual update" year, which allows us to focus on analyzing the plan and making modifications as appropriate. It had been a rolling three-year document, rewritten every year. Now, most planning and priority setting will take place every three years. As such, the document remains the “2017-2020 Local Control Accountability Plan,” with updates to all sections except for the 2017-18 and 2018-19 columns in the Goals, Actions and Services section.

To help shape these documents, SRCS leadership and staff have engaged the SRCS community.

The LCAP Parent Advisory Committee (PAC) consults, reviews and comments on the District’s LCAP. The PAC meetings are designed specifically for SRCS parents to give input on the goals, actions and services in the LCAP. They held an initial meeting in January to provide feedback on the goals. A second meeting was held in June to review and provide feedback on the draft LCAP.

Furthermore, as part of our engagement work, we have conducted sessions for teachers, staff and students, and leveraged existing committees, such as DELAC and Budget Advisory Committees.

Due to the large file size, the Preliminary  2019-20 year for the 2017-2020 Local Control Accountability Plan for the Elementary School District document can be viewed in the link below. 

Google Drive via the following link: 

bit.ly/SRCS-LCAP-2019











 
VI.2. PUBLIC HEARING: EDUCATION SERVICES: (HSD) Presentation and Discussion of the 2019-20 Local Control Accountability Plan for the San Rafael High School District.
Quick Summary / Abstract:

This item presents for Board review and discussion of the 2019-20 Local Control Accountability Plan for the San Rafael High School District.



Rationale:

BACKGROUND INFORMATION: The Local Control Funding Formula (LCFF) and Local Control and Accountability Plan (LCAP) together create a direct connection between student outcomes and fiscal expenditures. They were developed as a structure to put into local hands the challenging and essential work of designing a coherent, effective educational system based on measurable strategies and actions. Through a process of data analysis and consultation, districts work with the community to articulate a vision and set priorities.  

The LCAP is a critical part of what makes LCFF work to support student success. The funding formula for education made by LCFF was carefully constructed in order to support the goal of increased transparency and accountability. The development and sharing of the LCAP is how LCFF supports these goals.

The LCAP is first and foremost about creating a comprehensive plan that will guide how a district and its schools support student success. It is intended to be a document that is brief, easy to understand, and contains key information about how the District plans to act and spend funding to address state and local priorities for student success. Similar to a strategic plan, the emphasis is on creating a document that shares the story and context of how the District plans to achieve its mission and vision.

The LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context.

CURRENT CONSIDERATION:

The LCAP must include district annual goals that are aligned to the eight state priorities and specific actions a district will take to ensure that academic performance improves.

This template remains for the LCAP this year. The template contains the following sections (some of which are new this year):

  1. Budget overview for Parents
  2. Plan Summary
  3. Comprehensive Support and Improvement. 
  4. Annual Update
  5. Stakeholder Engagement
  6. Goals, Actions and Expenditures.
  7. Improved Services for Unduplicated Students
  8. Instructions

The LCAP must be structured around eight key state priorities:

  • Basic Services
  • Implementation of the CCSS
  • Parental Engagement
  • Student Achievement
  • Student Engagement
  • School Climate
  • Course Access
  • Other Student Outcomes

It is important to note that the LCAP is no longer a "rolling plan;" it is a three-year document with two annual updates. This year, it is considered an "annual update" year, which allows us to focus on analyzing the plan and making modifications as appropriate. It had been a rolling three-year document, rewritten every year. Now, most planning and priority setting will take place every three years. As such, the document remains the “2017-2020 Local Control Accountability Plan,” with updates to all sections except for the 2017-18 and 2018-19 columns in the Goals, Actions and Services section.

To help shape these documents, SRCS leadership and staff have engaged the SRCS community.

The LCAP Parent Advisory Committee (PAC) consults, reviews and comments on the District’s LCAP. The PAC meetings are designed specifically for SRCS parents to give input on the goals, actions and services in the LCAP. They held an initial meeting in January to provide feedback on the goals. A second meeting was held in June to review and provide feedback on the draft LCAP.

Furthermore, as part of our engagement work, we have conducted sessions for teachers, staff and students, and leveraged existing committees, such as DELAC and Budget Advisory Committees.

Due to the large file size, the Preliminary  2019-20 year for the 2017-2020 Local Control Accountability Plan for the Elementary School District document can be viewed in the link below. 

Google Drive via the following link: 

bit.ly/SRCS-LCAP-2019






 
VI.3. PUBLIC HEARING: FINANCE: (ESD) Review of the San Rafael City Elementary School District 2018-19 Budget Revision and Public Hearing for the Preliminary 2019-20 Budget
Quick Summary / Abstract:

This Public Hearing is held for the community and Board to hear and review the Elementary School District draft budget for the 2019-20 fiscal year. A component of this adoption process will be a review and approval of the 2018-19 budget revisions. The final 2019-20 budget will be brought for formal approval and adoption on June 26, 2019.

Rationale:

2018-19 Budget Revisions

In June of each year, the Board of Education will adopt the Budget for all funds within the District.  During the fiscal year, the “working” budget for all funds in the District are monitored on a regular basis.  Individual accounts are revised throughout the year in response to changes in information from external sources such as the State & Federal governments or the Marin County Office of Education; from local sources, such as local granting agencies; and from internal sources, such as staffing changes in both classified and certificated positions within the District.         

The revised budget is then brought before the Board of Education at various times throughout the year for review and approval of the changes between the major revenue and expenditure accounts.  These modifications are brought before the Board in the form of a “Budget Revision” incorporated into the 1st and 2nd Interim Reports. 

The following are details of some changes since the 2nd Interim Report:

Unrestricted & Restricted Revenues:

The Local Control Funding Formula (LCFF) revenue has been recalculated based on P-2 ADA and the percentage of students eligible for Free & Reduced Meal (FRM). In addition, the budgets for the property tax estimates, which were provided in the J-29B from the MCOE and the Marin County Auditor-Controller’s Office in May, have been updated to reflect this information with an offset to State Aid.  The District will receive final information on these taxes during the closing process this summer. 

The budgets for State Aid (8011) have been adjusted for the revised LCFF calculations along with Education Protection Account Funds (8012). 

The budget for Mandated Cost Reimbursements has been adjusted based on actual receipts (one-time) for the mandate backlog and lottery has been adjusted based on current estimates. 

The budgets for Other State/Federal Revenues were adjusted for updated information. 

The budgets for Interest Earnings were adjusted based on year-to-date receipts. Other local revenues have increased due to local donations received by the various school sites and budgeted accordingly.   

The budget for Parcel Tax revenues was adjusted based on current estimates and changes in the number of senior exemptions.

Contributions to restricted programs increased in large part due to revised estimates for special education transportation and increases to the Excess Cost Billback from MCOE. 

Expenditures & Restricted Programs:

During the past several weeks, the budgets for Salaries and Employee Benefits have been revised to reflect staffing changes for both certificated and classified staff including reductions for open positions.  The District continues to monitor and reconcile Position Control to Human Resources records and Payroll and the budget has been updated accordingly. Since this is the final budget revision of the year some step placement changes have also occurred. 

Negotiations have been settled with the certificated SRTA, Classified CSEA bargaining groups and unrepresented employees for 2018-19.  The salaries and statutory benefits have been adjusted for the cost of step and column increases for all employees.

The budgets for Materials & Supplies and Other Operating Expenditures have been reviewed and updated for current estimates.  The budget in the restricted programs has been adjusted in order to budget estimated carryover for materials and supplies for the upcoming school year as well as Parcel Tax carryover to support programs in 2019-20. The restricted budget for Grants was updated in order to be included in the 2019-20 Adopted Budget.   

The budgets for Services and Other Operating Expenditures have been adjusted for current estimates based on site and department requests and specifically, as local donations have been received.  In addition, the budget has been adjusted for increases and/or decreases in special education contracts, settlement agreements, and special education transportation. The unrestricted budget for Professional Consulting Services was adjusted to include contracts specifically aligned to the LCAP and for Professional Development. Substitute costs were adjusted with a saving offset from open positions not filled. The restricted budget for Other Contract Services, Professional Consulting Services, Sub-Agreements and Travel, and Conferences include adjustments in various grants.                                                                                      

CURRENT CONSIDERATIONS: As the 2019-20 Budget revision indicates, San Rafael City Elementary School District’s General Fund Budget reflects a positive ending fund balance.  It does, however, also reflect deficit financing in both the “unrestricted” and “restricted” General Fund Budget.  This is created in large part by one-time expenditures and “spending down” prior year carryover. Included are revisions for the General Fund and all of the Other Funds.  All of the ending fund balances are projected to be positive. 

 2019-20 Budget and Assumptions

BACKGROUND: The District is required to adopt a budget for all funds prior to June 30th each year.  This action must be taken after the Board has held a “public hearing”, which provides the public with an opportunity to comment on the budget. Under the State regulations for the Local Control Funding Formula (LCFF) and the Local Control Accountability Plan (LCAP), the Public Hearing on the budget and the LCAP will happen at tonight's Board meeting. On 6/26/19, the 2019-20 District Budget and the 2019-20 LCAP is being presented to the Board for formal approval. The District provided the appropriate notice and the budget was available for review on Thursday, June 20, 2019. 

During the months prior to June, the staff works diligently to collect data necessary to be included in the upcoming budget.  This information comes from several sources, including the State, the Federal Government, and the Marin County Office of Education, the SELPA, the County of Marin, the Marin Schools Insurance Authority and other various local sources.  This information is incorporated into the budget in the form of budget assumptions.  Some of these assumptions are preliminary and may change once information is finalized at the State, Federal & local levels.

The Budget Advisory Committee was convened in October 2018 and has met monthly through June of this year.  This committee reviewed information on various sources of District revenues, types of expenditures, contractual or mandated obligations and expenditures outside of the control of the District (e.g. utilities, insurance and payroll driven costs) as well as discussing the potential implications of the new Local Control Funding Formula (LCFF) and the new Local Control Accountability Plan (LCAP) that was approved by the State on September 15, 2017.

The following is a list of the various funds included in the Preliminary Budget, all of which are projected to have a positive ending fund balance:

All Funds of the Elementary School District
Fund Number and DescriptionFund Balance July 1, 2019Current Year ActivityFund Balance June 30, 2020
01General Fund$16,941,248($1,664,166)$15,277,082
12Child Development$46,248$0$46,248
13Cafeteria$26,767$0$26,767
14Deferred Maintenance Fund$880,797$2,792$883,589
20Special Reserve for OPEB$4,061,838$770,295$4,832,133
21Building Funds$5,042,783($1,189,275)$3,853,508
25Capital Facilities Fund$129,548$12,955$142,503
40Special Reserve for Capital Outlay$1,809,322$207,462$2,016,784
51Bond Interest Redemption$8,768,411$0$8,768,411

CURRENT CONSIDERATIONS:
 

The Governor’s May Revise was not significantly different from the Governor’s January budget proposal for K-12 education.  The Governor continued to support Local Control Funding Formula (LCFF) as a key component of the State budget proposal and to fully fund LCFF and eliminate the “GAP” funding. The State COLA is proposed to be 3.26% to fully fund the LCFF. There is new funding to offset the cost of pension and reduce the District contribution to the STRS statutory rate from a January Governors proposal of 18.13% to 16.70% in 2019-20. The PERS rate has adjusted from 18.06% in 2018-19 to 20.73% in 2019-20.

For more detailed information on the Governor’s May Revise, see The Marin Common Message – Executive Summary issued by the Marin County Office of Education attached.

Within this dynamic and ever-changing fiscal environment, staff continues to work to identify changes or modifications in information both from the State and Federal governments that will then be incorporated into the budget during the 1st Interim budget revision being brought to the Board in the fall.

As the Budget indicates, based on the assumptions included in the Governor’s May Revise, the MCOE LCFF Calculator and the Marin Common Message, the San Rafael City Elementary School District will be able to meet its financial obligations for the current and two subsequent years.

 
Financial Impact:

COST/FUNDING SOURCE: In compliance with GASB 54, the components of the ending fund balance are as follows:

DescriptionUnrestrictedRestrictedCombined
NONSPENDABLE
TOTAL - RESTRICTED$ 2,609,579$ 2,609,579
ASSIGNED
Board Designated Reserve > 3%$ 4,282,111$ 4,282,111
Total - Assigned$ 4,282,111$ -$ 4,282,111
UNASSIGNED
Economic Uncertainty Reserve (3% State)$ 1,835,190$ 1,835,190
Unappropriated8,214,3688,214,368
TOTAL - UNASSIGNED$ 10,049,558$ -$ 10,049,558
TOTAL - FUND BALANCE$ 14,331,669$ 2,609,579$ 16,941,248




Recommended Motion:

Approval to submit the San Rafael Elementary School District 2018-19 Budget revisions and the preliminary 2019-20 Adopted Budget for public comment and Board approval on 6/26/2019.

Approval of the preliminary San Rafael High School District 2018-19 Budget revisions and the final 2019-20 Adopted Budg

Attachments:
1. Marin Common Message-May Revise
2. SRCS Adopted Budget 19.20 Presentation
3. ESD General Fund 19-20 Adopted Budget
4. ESD Other Funds 19-20 Adopted Budget
5. ESD MYP and Other Supporting Documents 19-20 Adopted Budegt
6. ESD Criteria and Standards 19-20 Adopted Budget
VI.4. PUBLIC HEARING: FINANCE (HSD) Review of the San Rafael City High School District 2018-19 Budget Revision and Public Hearing for the Preliminary 2019-20 Budget
Quick Summary / Abstract:

This Public Hearing is held for the community and Board to hear and review the High School District draft budget for the 2019-20 fiscal year. A component of this adoption process will be a review and approval of the 2018-19 budget revisions. The final 2019-20 budget will be brought for formal approval and adoption on June 26, 2019.


Rationale:

2018-19 Budget Revisions

BACKGROUND:   In June of each year, the Board of Education will adopt the Budget for all funds within the District.  During the fiscal year, the “working” budget for all funds in the District are monitored on a regular basis.  Individual accounts are revised throughout the year in response to changes in information from external sources such as the State & Federal governments or the Marin County Office of Education; from local sources, such as local granting agencies; and from internal sources, such as staffing changes in both classified and certificated positions within the District.

The revised budget is then brought before the Board of Education at various times throughout the year for review and approval of the changes between the major revenue and expenditure accounts.  These modifications are brought before the Board in the form “Budget Revision” incorporated into the 1st Interim and 2nd Interim Reports.

Unrestricted & Restricted Revenues:

The Local Control Funding Formula (LCFF) has been recalculated based on P-2 ADA and the percentage of students eligible for Free & Reduced Meal (FRM). District of Choice calculations have been adjusted in line with current projections.  Once the P-2 Certification with District of Residence information is released in August, the LCFF estimates will be used for the final calculations.

The LCFF calculations confirm that the San Rafael High School District will continue to be a “Basic Aid” District because the majority of funding will come from property tax estimates.  The budgets for property tax revenues have been adjusted from information provided in the J-29B from the MCOE and the Marin County Auditor-Controller’s office.  The District will receive final information on these taxes during the closing process and will calculate the final LCFF based on the tax information, P-2 and annual ADA for MCOE Special Education (NPS & SDC) and District of Choice ADA along with other factors included in the LCFF calculations.

With the passage of Proposition 30, a new account was added last year in order to account for these funds.  It is important to note that although Proposition 30 did not generate any new funds for LCFF funded Districts, it did increase the minimum guarantee by $200 per ADA.  This increase benefited Basic Aid districts by generating additional revenue and creating a new fund to account for the revenues and expenditures of these funds.  This is reflected in the Education Protection Account (8012).

The budgets for Other State/Federal Revenues were adjusted for updated information with only minor adjustments necessary.

The budgets for Interest Earnings were adjusted based on year-to-date receipts.  Other local revenues have increased due to local donations received by the various school sites and budgeted accordingly. 

The budget for Parcel Tax revenues was adjusted based on current estimates and changes in the number of senior exemptions.

Contributions to restricted programs increased in large part due to changes in estimated costs for Special Education transportation, increases in MCOE Excess Cost for "Billback" program and services and adjustments in contract services budgeted for NPS and NPA.

Expenditures & Restricted Programs:

During the past several weeks, the budget for Salaries and Employee Benefits has been revised to reflect staffing changes for both certificated and classified staff including reductions for open positions.  The District continues to monitor and reconcile position control to Human Resources records and Payroll and the budget has been updated accordingly. 

Negotiations have not been settled with the certificated SRFT bargaining unit. Negotiations have been settled with Classified CSEA and unrepresented employees for 2018-19. The salaries and statutory benefits have been adjusted for the cost of step and column increases for all employees 

The budgets for Materials & Supplies have been reviewed and updated for current estimates along with local donations to support purchases at the school sites.  In addition, restricted program budgets have been adjusted in order to budget estimated carryover for materials and supplies for the upcoming school year as well as Parcel Tax carryover to support programs in 2018-19.  The restricted budget for Grants was also adjusted in order to be included in the 2019-20 Adopted Budget. 

The budgets for Services and Other Operating Expenditures have been adjusted for current estimates based on site and department requests and specifically as local donations have been received.  In addition, the restricted budget has been adjusted for increases and/or decreases in special education contracts, settlement agreements, MCOE Billback, and transportation.

A budget transfer was recognized for the reallocation of former HSD Marin Pupil Transportation Authority (MPTA) funds that flow through the SRESD in order to avoid having the funds “swept” via the Fair Share calculations.

CURRENT CONSIDERATIONS:  As the 2018-19 Budget revisions indicate, the SRHSD General Fund Budget continues to reflect deficit spending. Although the District was able to recognize savings from items mentioned above, the projected unrestricted budget deficit is projected to be ($811,275) in comparison to our 2nd Interim reported deficit of ($1,227,964).

2019-20 Adopted Budget

BACKGROUND: The District is required to adopt a budget for all funds prior to June 30th each year.  This action must be taken after the Board has held a “public hearing”, which provides the public with an opportunity to comment on the budget. Under the State regulations for the Local Control Funding Formula (LCFF) and the Local Control Accountability Plan (LCAP), the Public Hearing on the budget and the LCAP will occurred tonight and the Budget and the LCAP are being presented on June 26, 2019 to the Board for formal approval and certification.  The District provided the appropriate notice and the budget was available for review on Thursday, June 20, 2019. This preliminary draft Budget is being presented to the Board for final review and approval.

During the months prior to June, staff works diligently to collect data necessary to be included in the upcoming budget.  This information comes from several sources, including the State, Federal Government, Marin County Office of Education, SELPA, County of Marin, Marin Schools Insurance Authority and other various local sources.  This information is incorporated into the budget in the form of budget assumptions.  Some of these assumptions are preliminary and may change once information is finalized at the State, Federal & local levels.

The Budget Advisory Committee was convened in October 2018 and has met monthly through May of this year.  This committee reviewed information on various sources of District revenues, types of expenditures, contractual or mandated obligations and expenditures outside of the control of the District (e.g. utilities, insurance and payroll driven costs) as well as discussing the potential implications of the new Local Control Funding Formula (LCFF) and the new Local Control Accountability Plan (LCAP) that was adopted by the State in September 15, 2017.

The following is a list of the various funds included in the Preliminary Budget, all of which are projected to have a positive ending fund balance:

All Funds of the High School District
Fund Number and DescriptionFund Balance July 1, 2019Current Year ActivityFund Balance June 30, 2019
01General Fund$6,484,178($1,287,730)$5,196,448
11Adult Education$11,891$400$12,291
13Cafeteria$801$0$801
14Deferred Maintenance Fund *$291,201$0$291,201
20Special Reserve for OPEB$2,062,147$30,000$2,092,147
21Building Funds$511,549$747,514$1,259,062
25Capital Facilities Fund$223,350$0$223,350
40Special Reserve for Capital Outlay$641,397$250,125$891,522
51Bond Interest Redemption$6,548,236$0$6,548,236

CURRENT CONSIDERATIONS:   It is important to note that although the San Rafael High School District is a “basic aid” District and therefore not typically impacted significantly by State budget proposals, the LCFF calculations and the LCAP are still required even though there is no additional funding provided by the State.  It is also important to remember that over the past several years of State budget cuts, Basic Aid Districts were impacted by “fair-share” budget reductions from the State through the reduction and/or elimination of various State categorical programs. These fair-share reductions resulted in the loss of revenues of $1.3 million annually and are not restored by the LCFF even though these reductions were initially implemented as one-time. 

While modest property tax growth is welcome, the level of growth in student population continues to increase creating the need for teachers as well as other costs associated with educating more students.  This combined with the costs associated with significant STRS rate increases, escalating special education costs, the ongoing implementation of CCSS and developing actions to address the needs of our target “at-risk” population of students, is creating fiscal challenges.  Many of the expenditures included in the budget were identified during the LCAP process and needs assessment and were based on community input.  Many of these expenditures also help to ensure that the District can meet the proportionality requirements by demonstrating that the level of increased or improved services for EL/ Low-Income students is proportionate to the supplemental grant funds calculated by the LCFF.

The Governor’s May Revise was not significantly different from the Governor’s January budget proposal for K-12 education in concept as there were no new programs added. The Governor continued to support Local Control Funding Formula (LCFF) as a key component of the State budget proposal and fully fund LCFF and eliminate the “GAP” funding. The State COLA is proposed to be 3.26% and to fully fund the LCFF.  There is new temporary relief to offset the cost of pensions and reduce the District contribution to the STRS statutory rate from a January Governors proposal of 18.13% to 16.70% in 2019-20. The PERS rate has been adjusted from 18.06% in 2018-19 to 20.73% in 2019-20. For the HSD, changes to general purpose revenues are primarily due to estimated changes in property tax revenues based on a 4.4% growth rate. EPA State funding is projected to remain unchanged. 

For more detailed information on the Governor’s May Revise, see The Marin Common Message – Executive Summary issued by the Marin County Office of Education attached.

Within this dynamic and ever-changing fiscal environment, staff continues to work to identify changes or modifications in information both from the State and Federal governments that will then be incorporated into the budget during the 1st budget revision being brought to the Board in the fall.

As the Preliminary Budget indicates, based on the assumptions included in the Governor’s May Revise, the MCOE LCFF Calculator and the MCOE Common Message, the San Rafael City High School District will be able to meet its financial obligations for the current and two subsequent years.


 
Financial Impact:

COST/FUNDING SOURCE In compliance with GASB 54, the components of the ending fund balance are as follows:

2019-20 HSD Budget Adoption
DescriptionUnrestrictedRestrictedCombined
NONSPENDABLE
TOTAL - RESTRICTED$ 986,174$ 986,174
ASSIGNED
Board Designated Reserve > 3%$ 4,037,606$ 4,037,606
Assigned for SRFT 2% compensation incr$ 267,468$ 48,770$ 316,238
Total - Assigned$ 4,305,074$ 48,770$ 4,353,844
UNASSIGNED
Economic Uncertainty Reserve (3% State)$ 1,144,160$ 1,144,160
Unappropriated-
TOTAL - UNASSIGNED$ 1,144,160$ -$ 1,144,160
TOTAL - FUND BALANCE$ 5,449,234$ 1,034,944$ 6,848,178


Recommended Motion:

Approval to submit the San Rafael High School District 2018-19 Budget revisions and the preliminary 2019-20 Adopted Budget for public comment and Board approval on 6/26/2019.

Attachments:
1. Marin Common Message-May Revise
2. SRCS Adopted Budget 19.20 Presentation
3. HSD General Fund 19-20 Adopted Budget
4. HSD Other Funds 19-20 Adopted Budget
5. HSD MYP and Other Supporting Documents 19-20 Adopted Budegt
6. HSD Criteria and Standards 19-20 Adopted Budget
VI.5. FINANCE:(ESD/HSD) Approval of Receipt of Donations to San Rafael City Schools
Quick Summary / Abstract:
The Board will review the donations for approval

Rationale:

Board Policy 3290 Section 1.1 states:

“The Board of Education may accept on behalf of, and in the name of the District, such gifts, donations, bequests and devices as are offered. Such gifts, cash contributions, donations, bequests, and devices may be made subject to conditions or restrictions as the Board of Education may prescribe and/or accept.” (Education Code 41030-41032)

The following donations were received for the San Rafael City Schools District, as follows:

Donor Item/Purpose Site Amount/Value
Wildcare Ring Mountain Transportation Fees 2nd Grade Class San Pedro $ 235.50
St. Luke Presbyterian Target Cards for kids clothing San Pedro $ 1,500.00
Wildcare Transportation Fees 2nd Grade Class San Pedro $ 118.34
Total $ 1,853.84



 
Financial Impact:

COST/FUNDING SOURCE: Total of general donation: $1,853.84







Recommended Motion:
Approval of donations

VII. CONFERENCE SESSION
VII.1. Report Out Action from Closed Session
VII.2. Agenda Items for Future Meetings
VII.3. Board Member Reports
VII.4. Superintendent's Activity Report
VIII. READJOURNMENT to Closed Session (if necessary)
IX. NEXT REGULAR MEETING - June 26, 2019
X. ADJOURNMENT (and Closed Session Report Out, if necessary): 9:00 P.M. (approximate time)

Published: June 20, 2019, 3:18 PM

The resubmit was successful.