Financial Overview and Budget Projections for 2015-2016 and 2016-2017 Fiscal Years

2015/2016 Projected Year End and 2016/2017 Proposed Budget with Multi-Year Projections June 7, 2016 1

PRESCHOOL SERVICES 2015-16 ADOPTED PROJECTED PROPOSED BUDGET YEAR END 2015-16 2016-17 BUDGET A. REVENUES 1) LCFF / Revenue Limit Sources 2) Federal Revenues 3) Other State Revenues 4) Other Local Revenues TOTAL, REVENUES 0 0 0 0 0 0 75,381 75,381 75,381 97 43 43 75,478 75,424 75,424 B. EXPENDITURES 1) Certificated Salaries 2) Classified Salaries 3) Employee Fringes 4) Books & Supplies 5) Services & Other Operating Expenditures TOTAL, EXPENDITURES 0 0 0 42,935 9,170 9,844 13,529 75,478 46,068 9,415 12,854 7,087 75,424 44,400 10,454 9,263 11,307 75,424 C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES D. OTHER FINANCING SOURCES/USES E. NET INCREASE (DECREASE) IN FUND BALANCE (C + D4) 0 0 0 0 0 0 0 (4708) (4,708) F. FUND BALANCE, RESERVES 1) Beginning Balance as of July 1 2) Ending Balance, June 30 (E + F1) 9,743 9,743 9,742 5,034 5,034 5,034 2

CAPITAL FACILITIES 2015-16 ADOPTED PROJECTED PROPOSED BUDGET YEAR END 2015-16 2016-17 BUDGET A. REVENUES Other Local Revenues TOTAL, REVENUES 9,476 9,476 14,894 14,894 14,894 14,894 B. EXPENDITURES Services & Other Operating Expenditures TOTAL, EXPENDITURES 0 0 2,000 2,000 0 0 C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES D. OTHER FINANCING SOURCES/USES E. NET INCREASE (DECREASE) IN FUND BALANCE (C + D4) 9,476 12,894 14,894 0 0 0 9,476 12,894 14,894 F. FUND BALANCE, RESERVES 1) Beginning Balance as of July 1 2) Ending Balance, June 30 (E + F1) 9,743 19,219 27,477 40,371 40,371 55,265 3

BUDGET ASSUMPTIONS 2015-16 ADOPTED PROJECTED PROPOSED PROJECTED PROJECTED BUDGET YEAR END BUDGET 2015-16 2016-17 2017-18 2018-19 BUDGET BUDGET REVENUE 1. ENROLLMENT ESTIMATES 2. AVERAGE DAILY ATTENDANCE 3. UNDUPLICATED COUNT 4. STATUTORY COLA 5. GAP FUNDING 5. LOTTERY Unrestricted Restricted 6. MANDATED BLOCK GRANT K - 8th Grade 190 197 197 197 197 185.55 185 1.02% 53.08% 188.50 171 1.02% 52.20% 188.50 171 0.00% 54.84% 188.50 171 1.11% 19.30% 188.50 171 2.42% 34.25% $128.00 $34.00 $140.00 $41.00 $140.00 $41.00 $140.00 $41.00 $140.00 $41.00 $28.42 $28.42 $28.42 $28.42 $28.42 EXPENDITURES 1. FRINGE BENEFIT RATES STRS State Teachers Retirement System PERS Public Employee Retirement System Social Security Medicare SUI State Unemployment Insurance Workers Compensation 2. EMPLOYEE SALARY STEP INCREASES Certificated Classified 10.730% 12.600% 6.200% 1.450% 0.050% 1.819% 10.730% 11.847% 6.200% 1.450% 0.050% 1.957% 12.580% 13.888% 6.200% 1.450% 0.050% 1.957% 14.430% 15.500% 6.200% 1.450% 0.050% 1.957% 16.280% 17.100% 6.200% 1.450% 0.050% 1.957% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 4

CHANGES IN FRINGE RATES Actual 2015/2016 Actual 2016/2017 Estimated 2017/2018 Estimated 2018/2019 Estimated 2019/2020 10.73% 11.85% 6.20% 1.45% 0.05% 1.96% 12.58% 13.89% 6.20% 1.45% 0.05% 1.96% 14.43% 15.50% 6.20% 1.45% 0.05% 1.96% 16.28% 17.10% 6.20% 1.45% 0.05% 1.96% 19.10% 18.60% 6.20% 1.45% 0.05% 1.96% STRS PERS FICA Medicare SUI Wkrs. Comp. 9.20% 10.25% 10.25% 10.25% 10.25% STRS Employee 5

MULTI-YEAR ADA COMPARISON Funded ADA 209.02 209.02 192.04 192.04 188.75 188.50 188.50 School Year P-2 ADA 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 209.02 187.93 192.04 186.85 188.50 188.50 188.50 Districts are funded on the current year P-2 ADA OR the prior year P-2 ADA, whichever is higher. 6

UNRESTRICTED FUND BALANCE 2015-16 ADOPTED PROJECTED PROPOSED PROJECTED PROJECTED BUDGET YEAR END BUDGET 1,737,313 1,741,521 1,824,324 0 0 86,680 132,141 77,548 74,430 101,559 103,657 1,898,423 1,975,221 2,005,529 2015-16 2016-17 2017-18 2018-19 A. REVENUES LCFF / Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues TOTAL, REVENUES BUDGET 1,839,357 BUDGET 1,876,596 0 0 0 32,873 105,090 1,977,320 32,873 107,111 2,016,580 B. EXPENDITURES Certificated Salaries Classified Salaries Employee Fringes Books & Supplies Services & Other Operating Expenditures Debt Service Other Outgo - Transfers of Indirect Costs TOTAL, EXPENDITURES 826,421 206,556 287,411 118,808 279,376 996,752 223,123 314,031 110,013 276,255 890,837 221,557 335,063 146,698 301,322 900,041 225,719 358,928 144,698 301,322 914,926 230,290 385,967 144,698 301,322 0 0 0 0 0 (11,443) 1,707,129 (12,976) 1,907,198 (12,076) 1,883,401 (12,076) 1,918,632 (12,076) 1,965,127 C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES & USES (A - B) 191,294 68,023 122,128 58,688 51,453 D. OTHER FINANCING SOURCES/USES Interfund Transfers Contributions TOTAL, OTHER FINANCING SOURCES/USES - - - - - - - - - - - - - - - E. NET INCREASE (DECREASE) IN FUND BALANCE (C + D) 191,294 68,023 122,128 58,688 51,453 F. FUND BALANCE, RESERVES 1) Beginning Balance as of July 1 2) Ending Balance, June 30 (E + F1) 457,100 648,394 457,100 525,123 525,123 647,250 647,250 705,938 705,938 757,391 7

RESTRICTED FUND BALANCE 2015-16 ADOPTED PROJECTED PROPOSED PROJECTED PROJECTED BUDGET YEAR END BUDGET 15,225 19,820 19,320 147,529 152,647 151,810 30,723 62,799 36,490 362,333 373,473 340,948 555,810 608,739 548,568 2015-16 2016-17 2017-18 2018-19 A. REVENUES LCFF / Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues TOTAL, REVENUES BUDGET 19,320 151,810 36,490 346,886 554,506 BUDGET 19,320 151,810 36,490 348,483 556,103 B. EXPENDITURES Certificated Salaries Classified Salaries Employee Fringes Books & Supplies Services & Other Operating Expenditures Debt Service Other Outgo - Transfers of Indirect Costs TOTAL, EXPENDITURES 172,425 43,658 45,408 27,221 255,655 166,278 42,312 34,330 67,192 471,831 166,056 64,439 37,762 27,828 240,407 166,914 66,172 40,249 27,401 241,694 164,764 68,205 41,101 26,977 242,980 0 0 0 0 0 11,443 555,810 12,976 794,919 12,076 548,568 12,076 554,506 12,076 556,103 C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES & USES (A - B) - (186,180) - - - D. OTHER FINANCING SOURCES/USES Contributions TOTAL, OTHER FINANCING SOURCES/USES - - - - - - - - - - E. NET INCREASE (DECREASE) IN FUND BALANCE (C + D) - (186,180) - - - F. FUND BALANCE, RESERVES 1) Beginning Balance as of July 1 2) Ending Balance, June 30 (E + F1) 186,180 186,180 186,180 (0) (0) (0) (0) (0) (0) (0) 8

2014/2015 RESTRICTED ENDING BALANCE CARRYOVER California Clean Energy Jobs Special Education ASES (before & after school) TOTAL CARRYOVER $ 52,693 $ 82,864 $ 50,624 $186,181 9

UNRESTRICTED & RESTRICTED FUND BALANCE 2015-16 ADOPTED PROJECTED PROPOSED PROJECTED PROJECTED BUDGET YEAR END BUDGET 1,752,538 1,761,341 1,843,644 147,529 152,647 151,810 117,403 194,940 114,038 436,763 475,032 444,605 2,454,233 2,583,960 2,554,097 2015-16 2016-17 2017-18 2018-19 A. REVENUES LCFF / Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues TOTAL, REVENUES BUDGET 1,858,677 151,810 69,363 451,976 2,531,826 BUDGET 1,895,916 151,810 69,363 455,594 2,572,683 B. EXPENDITURES Certificated Salaries Classified Salaries Employee Fringes Books & Supplies Services & Other Operating Expenditures Debt Service Other Outgo - Transfers of Indirect Costs TOTAL, EXPENDITURES 998,846 250,214 332,819 146,029 535,031 1,163,030 265,435 348,361 177,205 748,086 1,056,893 285,996 372,825 174,526 541,729 1,066,955 291,891 399,177 172,099 543,016 1,079,690 298,495 427,068 171,675 544,302 0 0 0 0 0 0 0 0 0 0 2,262,939 2,702,117 2,431,969 2,473,138 2,521,230 C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES & USES (A - B) 191,294 (118,157) 122,128 58,688 51,453 D. OTHER FINANCING SOURCES/USES Interfund Transfers Contributions TOTAL, OTHER FINANCING SOURCES/USES - - - - - - - - - - - - - - - E. NET INCREASE (DECREASE) IN FUND BALANCE (C + D) 191,294 (118,157) 122,128 58,688 51,453 F. FUND BALANCE, RESERVES 1) Beginning Balance 2) Ending Balance, June 30 (E + F1) 643,280 834,574 643,279 525,122 525,122 647,250 647,250 705,938 705,938 757,391 10

UNRESTRICTED & RESTRICTED CHANGES SINCE 2015/16 BUDGET ADOPTION REVENUE CHANGES Educator Effectiveness Training Mandated Costs One Time Funds $ 48,844 Taylion Charter School Rental Income $ 11,235 Decrease in the Unduplicated Count of 15 Students Decrease of 17.21 in Taylion ADA (affects VSD Oversite Fee) $ 16,660 EXPENDITURE CHANGES Restricted Ending Balance Carryover $161,181 New Teacher Substitute Teacher Settlement Agreement Language Arts Adoption Sped Ed Non-Public Schools $ 43,361 $ 19,984 $ 68,295 $ 19,590 $ 130,575 11

UNRESTRICTED & RESTRICTED MULTI-YEAR PROJECTIONS 2015-16 2016-17 REVENUES Resource Object PROJECTED PROPOSED Codes Codes YEAR END BUDGET LCFF / REVENUE LIMIT SOURCES State Aid - Current Year Education Protection Account Current Years' Property Taxes Charter Schools in Lieu of Property Taxes Property Tax Transfers TOTAL, LCFF / REVENUE LIMIT SOURCES 0000 1400 0000 0000 6500 8011 8012 80xx 8096 8097 1,033,010 247,804 746,797 (286,090) 19,820 1,761,341 1,128,374 236,332 745,708 (286,090) 19,320 1,843,644 FEDERAL REVENUE Special Education Entitlement Special Education Discretionary Grants NCLB: Title I, Part A, Basic Grants NCLB: Title II, Part A, Teacher Quality NCLB: Title III, Limited English Proficient All Other Federal Revenue (REAP) TOTAL, FEDERAL REVENUE 3310 8181 8182 8290 8290 8290 8290 35,331 9,448 69,395 11,927 11,677 14,869 152,647 35,331 8,611 69,395 11,927 11,677 14,869 151,810 3010 4035 4203 0000 OTHER STATE REVENUE Mandated Costs Block Grant Lottery - Unrestricted All Other State Revenue TOTAL, OTHER STATE REVENUE 0000 8550 8560 8590 104,205 36,507 54,228 194,940 49,985 35,635 28,418 114,038 0000 OTHER LOCAL REVENUE Interest - General Fund Interagency Services - ASES All Other Fees & Contracts All Other Local Revenue From County Office TOTAL, OTHER LOCAL REVENUE 0000 9065 8660 8677 8689 8699 8792 5,695 185,365 32,668 63,196 188,108 475,032 5,695 185,365 35,302 62,660 155,583 444,605 0000 6500 12 TOTAL, REVENUES 2,583,960 2,554,097

UNRESTRICTED & RESTRICTED MULTI-YEAR PROJECTIONS 2015-16 PROJECTED PROPOSED YEAR END 2016-17 EXPENDITURES Object Codes BUDGET CERFTIFICATED SALARIES Certificated Teachers' Salaries Certificated Supervisors' & Administrators' Salaries Other Certificated Salaries TOTAL, CERTIFICATED SALARIES 1100 1300 1900 1,014,423 147,879 1,163,030 907,257 148,040 1,596 1,056,893 728 CLASSIFIED SALARIES Classified Instructional Salaries Classified Support Salaries Classified Supervisors' & Administrators' Salaries Clerical, Technical and Office Salaries TOTAL, CLASSIFIED SALARIES 2100 2200 2300 2400 29,431 76,230 89,657 70,117 265,435 64,439 60,139 88,504 72,914 285,996 EMPLOYEE BENEFITS STRS PERS OASDI/Medicare Health and Welfare Benefits Unemployment Insurance Workers' Compensation TOTAL, EMPLOYEE BENEFITS 3111-3112 3211-3212 3311-3322 3401-3402 3501-3502 3601-3602 112,759 30,370 36,611 139,993 27,750 348,361 128,841 38,052 37,216 141,766 26,281 372,825 878 669 13

UNRESTRICTED & RESTRICTED MULTI-YEAR PROJECTIONS 2015-16 PROJECTED PROPOSED YEAR END 2016-17 EXPENDITURES (con't) Object Codes BUDGET BOOKS AND SUPPLIES Textbooks and Core Curricula Materials Books and Other Reference Materials Materials and Supplies Noncapitalized Equipment TOTAL, BOOKS AND SUPPLIES 4100 4200 4300 4400 44,590 349 91,155 41,111 177,205 76,634 37,158 174,526 60,734 - SERVICES AND OTHER OPERATING EXPENDITURES Sub agreements for Services Travel and Conferences Dues and Memberships Insurance Operations and Housekeeping Services Rentals, Leases, Repairs, and Improvements Transfers of Direct Costs - Interfund Professional/Consulting Services & Operating Costs Communications TOTAL, SERVICES & OTHER OPERATING EXPENDITURES 5100 5200 5300 191,655 29,497 4,980 14,843 70,265 96,492 (6,845) 338,573 8,627 748,087 54,973 12,920 4,980 14,843 81,188 96,267 (11,307) 276,532 11,333 541,729 5400-5450 5500 5600 5750 5800 5900 TOTAL, EXPENDITURES 2,702,118 2,431,969 14

District: Vallecitos School District CDS #: 37-68437 Adopted Budget 2016-17 Budget Attachment Balances in Excess of Minimum Reserve Requirements Reasons for Assigned and Unassigned Ending Fund Balances in Excess of Minimum Recommended Reserves Education Code Section 42127(a)(2)(B) requires a statement of the reasons that substantiates the need for assigned and unassigned ending fund balances in excess of the minimum reserve standard for economic uncertainties for each fiscal year identified in the budget. Combined Assigned and Unassigned/unappropriated Fund Balances Form Fund 2016-17 Budget Objects 9780/9789/9790 01 17 General Fund/County School Service Fund Special Reserve Fund for Other Than Capital Outlay Projects $646,250 Form 01 - Objects 9780/9789/9790 $0 Form 17 Total Assigned and Unassigned Ending Fund Balances District Standard Reserve Level Less District Minimum Reserve for Economic Uncertainties $646,250 5.00% Form 01CS #10, Line 10B.4. $121,598 Form 01CS #10, Line 10B.7. Remaining Balance to Substantiate Need $524,652 Reasons for Fund Balances in Excess of Minimum Reserve for Economic Uncertainties Form Fund 2016-17 Budget Description of Need 01 01 01 General Fund/County School Service Fund General Fund/County School Service Fund General Fund/County School Service Fund $97,600 Unsettled Union Negotiations (2015/16 & 2016/17) $150,000 Facility Upgrades (2015/16 & 2016/17) $277,052 Payroll Cash Flow Contingency Total of Substantiated Needs $524,652 Remaining Unsubstantiated Balance $0 Balance should be Zero Education Code Section 42127 (d)(1) requires a county superintendent to either conditionally approve or disapprove a school district budget if the district does not provide for EC 42127 (a)(2)(B) public review and discussion at its public budget hearing. 15