1. Each student will reach their fullest potential as we strive for district excellence through sound leadership, effective communication, accountability, and investment in our staff.

2.  Executive Summary  Unaudited Actuals  Enrollment data  Revenue Limit assumptions  Tier III flexibility  ARRA funding  Ed Jobs funding  Reserves  Revenues, Expenditures and Changes in Fund Balance  General Fund  Cafeteria Account  Deferred Maintenance  Capital Facilities Fund  Capital Project Fund  Debt Service Fund  Gann Limit  Schedule of Long-Term Liabilities  Looking Ahead

3.  Unaudited Actuals  Financial data reflecting district’s fiscal status at the end of the 2010-11 school year Revenues and expenditures for the entire year as reported by the district prior to the annual audit  Must be approved by the Governing Board by September 15  Submitted to the California Department of Education by local county office of education by October 15  Independent auditors validate the numbers and present audit report to Board in December

4. Forms in report:  Revenue, expenditures, and fund balances for the following funds: FORM 01 – General Fund FORM 13 – Cafeteria Fund FORM 14 – Deferred Maintenance FORM 25 – Capital Facilities Fund FORM 52 – Debt Service Fund  Form A – Average Daily Attendance (ADA) for P2, Annual and Revenue Limit calculations  Form CA – Summary of data and district certification  Form CAT – Revenues and expenditures for categorical programs  Form CEA – Current Expense Formula/Minimum Classroom Compensation

5. Forms in report (cont):  Form DEBT – Schedule of Long-Term Liabilities  Form GANN – Calculates appropriations subject to GANN Limit  Form ICR – Calculates a proposed indirect costs rate for federal and state programs for 2012-13  Form L – Report of annual lottery fund expenditures  Form NCMOE – Calculation to ensure we are using funds to provide services in addition to regular services (NCLB requirements)  Forms PCR and PCRAF – automatically calculate total program costs in Fund 01 in a standardized manner.  Form RL – Revenue Limit Calculation  Form SIAA – Summary of Interfund Activities (transfers between funds)  Form TRAN – Summary of Home-To-School Transportation

6.  Enrollment – 2010-11 California Basic Educational Data System (CBEDS)  K-8: 1027 (1.8% decline from prior year)  Average Daily Attendance (ADA) – 2010-11 Principal Apportionment (P2)  994.54 (2.67% decline from prior year)

7. 2006-07 Unaudited Actuals 2007-08 Unaudited Actuals 2008-09 Unaudited Actuals 2009-10 Unaudited Actuals 2010-11 Unaudited Actuals 2011-12 BUDGET Statutory COLA 5.92%4.53%5.66%4.25%(0.39%)2.24% Base RL $5,791.36$6,032.36$6,347.36$6,597.36$6,573.36$6,710.36 Deficit Factor 7.844% 0.92156 18.355% 0.81645 17.963% 0.82037 19.754% 0.80246 Funded RL $5,791.36$6,032.36$5,849.47$5,386.41$5,392.59$5,384.80 Other RL Adjustments (3.85%) ($252.99) per ADA P2 ADA (District K:8) 918.86972.84931.831015.24987.65 ADA used for RL (incl county Sp Ed ADA) 978.791021.861022.13994.54

8. Revenue Limit Funding

9.  Education Code Section 42605 allows complete flexibility in the use of funds appropriated in the state budget for fiscal years 2008-09 through 2014-15 for numerous programs and can be used for any educational purpose.  Categorical programs subject to Tier III flexibility Administrative Training - $8,713 Art & Music Block Grant - $15,133 CAHSEE - $800 California Peer Assistance & Review - $5,150 Community Based English Tutoring - $4,479 Gifted and Talented Education - $73,645 Instructional Material Realignment Program - $56,976 Math & Reading Professional Development - $6,014 Math & Reading Professional Development EL - $3,007 Professional Development Grant - $11,601 School Library Improvement Grant - $10,440 School Safety - $7,992 Supplemental Hourly Programs - $24,287 Targeted Instructional Improvement - $4,434  Deferred Maintenance State Apportionment Apportionment of $33,581 subject to Tier III flexibility until 2014-15 Transferred to Routine Restricted Maintenance.  Routine Restricted Maintenance – flexibility to decrease contribution from three percent to one percent (approximately $30K savings).

10.  American Recovery and Reinvestment Act (ARRA)  State Fiscal Stabilization Funding (SFSF) – intended to offset reductions to state general purpose and categorical funding and was revised on July 22, 2011: State general purpose funding: K:8 - $359,065 (original $293,424) Charter - $4,708 (original $3,396) Categorical funding: $44,420 (original $50,715) Entire entitlement $424,107 ($347,535 received in 08-09 school year and balance in 2010-11) Funded certificated teacher salaries  2009-10 - $211,545  2010-11 - $212,562  Special Education funding $163,705 2008-09 school year used $81,846 for para salaries Balance ($83,188) used in 2009-10 for para salaries

11.  Entitlement $222,813  Can be used for site expenditures only  2010-11 Expenditures - $79,270  Funding was used for the following:  Restore three day furloughs for site staff  Two part-time PE teachers - Rio and Cobblestone  Literacy Coach – shared by three sites  Part-time Library Clerk  Part-time Office Clerk at Rio

12.  Economic Uncertainty – Five percent  Minimum Classroom Compensation - Funding set aside to close deficiency  Certificates of Participation (COP) Obligation of General Fund if insufficient funds available in Fund 25 for debt service payment Reserve for COP debt service payment  Reserve for Charter ADA issue (pending appeal)  Reserve for Wheatland MOU  Reserve for possible mid-year cuts

13. Revenue Source Estimated Actuals Total Restricted and Unrestricted Unaudited Actuals Total Restricted and UnrestrictedVariance Revenue Limit Sources $6,025,098 $5,995,687(0.49%) Federal Sources $327,728 $325,841(0.58%) State Sources $941,385 $971,4283.2% Lottery, Tier III programs Other Local Revenue $584,936 $595,4321.8% Rec’d one-time $ from YCOE; Worker’s Comp Adj, Nextel E- Rate Interfund Transfers In $25,800 $20,734(19.6%) CFD Admin Costs – transfer from Fund 52 Total Revenue $7,904,497 $7,909,1220.06%

15. Object Code Estimated Actuals Total Restricted and Unrestricted Unaudited Actuals Total Restricted and Unrestricted Variance 1000-Certificated Salaries $3,217,857 $ 3,202,632 -0.47%Vacant teacher positions 2000-Classified Salaries $1,151,333 $ 1,131,525 -1.72% Vacant custodial position and para sub time and facilities extra time 3000-Benefits $1,521,191 $ 1,485,180 -2.37% Statutory benefits associated with above salaries plus HDV and Unemp savings 4000-Materials and Supplies $474,468 $ 453,567 -4.41%Site savings - $10K; FMOT - $8K 5000-Services & Operating Expenditures $1,166,962 $ 1,067,056 -8.6% Savings in Sp Ed, CFD Admin contracted services, operations and communications 6000-Capital Outlay 0 0 0% 7000-Other Outgo, Transfers of Indirect/Direct Support Costs $ 215,140 $ 201,022 -5.7%Savings in Sp Ed Excess Program Costs Total Expenditures $ 7,746,951 $ 7,540,582 -2.65% Net Increase (Decrease) in Fund balance $ 157,546 $ 368,139 Beginning Fund Balance $ 2,599,040 Ending Fund Balance $ 2,756,586 $ 2,967,179

16. Revenue Source Routine Restricted Maintenance Special EdTransportation Special Ed SD/OI Transportation State and Federal Aid $458,164$25,440$23,450 Fees $13,310 Total Revenue 0$458,164$25,440$36,760 Total Expenditures $195,248$1,008,434$66,876$92,697 Contributions from unrestricted resources $195,248$550,270$41,436$55,937

18.  Education Code, Section 41372 requires elementary school districts to expend at least 60 percent of their current cost of education for classroom teachers and aides, plus associated benefits.  District is 2.13% below the minimum  Deficiency amount is $141,539.40  Options available to the District  Request waiver from county office of education  Set aside funding to correct deficiency

19. Revenues$7,909,122 Expenditures$7,540,982 Net Increase/Decrease$ 368,140 Ending Fund Balance$2,967,179 Reserved for Economic Uncertainty$ 376,012 Revolving Cash and Prepaids$ 11,873 COP Debt Service Payment$ 475,475 Charter ADA$ 186,511 Revenue Limit Reductions$ 328,198 Wheatland High Agreement$ 295,000 Minimum Classroom Compensation Deficiency$ 141,539 Lottery Unrestricted$ 126,523 Restricted Programs (EIA, RMA, Lottery Prop 20 )$ 21,426 Available for Budget Shortfalls$1,004,622

20. Category2010-11 Estimated Actuals 2010-11 Unaudited Actuals Variance Revenue Federal Revenue$ 254,000$ 245,685(3.3%)Less participation in lunch program State Revenue$ 20,000$ 21,5937.96% Local Revenue$ 150,500$ 142,562(5.27%) Total Revenue$ 424,500$ 409,840(3.45%) Expenditures Classified Salaries$ 142,549 BA $519 $ 143,0670.36% Benefits$ 52,087 BA ($519) $ 51,020-2.05% Materials and supplies$ 201,562$ 201,415-0.07% Services and operating expenses$ 6,713 BA $151 $ 5,873-12.5%$840 savings in all categories Transfer of Indirect/Direct Support Costs $ 17,890$ 17,821-0.39%Based on actual expenses Interfund Transfer In$ 0 Total Expenditures$ 420,801$ 419,196-0.38% Net Increase/(Decrease) in Fund balance$ 3,699($ 9,356) Beginning Fund Balance$ 25,926 Ending Fund Balance$ 29,625$ 16,570

21. Category2010-11 Estimated Actuals 2010-11 Unaudited Actuals Variance Revenue Other State Revenue$ 0 Local Revenue$ 2,030$ 1,708(15.7%)Interest earnings Total Revenue$ 2,030$ 1,708 Expenditures Materials and supplies$ 15,376 0 Services and operating expenses$ 14,624$ 0(100%)$ budgeted for emergencies Total Expenditures $ 30,000$ 15,376(48.7%) Excess (deficiency) of Revenues over expenditures before other financing sources and uses $ (27,970)$ (13,668) Other financing Sources/Uses0$ 0 Net Increase (decrease) in Fund Balance$ (27,970)$ (13,668) Beginning Fund Balance$112,374 Ending Fund Balance$ 84,404$ 98,705

22. Category2010-11 Estimated Actuals 2010-11 Unaudited Actuals Revenue Local Revenue$ 227,370 BA - $8,930 $ 235,159 Total Revenue$ 227,370$ 235,159 Expenditures Materials and supplies$ Services and operating expenses$ 61,400 BA - $20,977 $ 82,377 Capital Outlay$ 13,500 BA – ($13,500) $ Other outgo (debt service principal and interest)$ 476,065 Excess (deficiency) of Revenues over expenditures before other financing sources and uses $ (323,595)$ (323,283) Interfund Transfers In$ 121,865$ 115,000 Net Increase (decrease) in Fund Balance$ (201,730)$ (208,283) Beginning Fund Balance$ 759,224 Ending Fund Balance$ 557,494$ 550,942 Cash with fiscal agent$ 477,223

23. Category2010-11 Estimated Actuals 2010-11 Unaudited Actuals Revenue Local Revenue$ 668,021$ 681,603 Total Revenue$ 668,021$ 681,603 Expenditures Other outgo (debt service principal and interest)$ 525,089 BA - $40 $ 525,129 Excess (Deficiency) of Revenues over expenditures before other financing sources and uses $ 142,932$ 156,475 Other financing sources/uses$ 147,665$ 135,734 Net Increase (decrease) in fund balance($ 4,733)$ 20,741 Beginning Fund Balance$1,205,080 Ending Fund Balance$1,200,347$1,225,821 Cash with fiscal agent$ 465,907

24. Unaudited balance July 1, 2010 Audit Adj Audited Balance July 1, 2010IncreasesDecreases Ending Balance June 30, 2011 Amounts Due Within One Year Certificates of Participation Payable $ 6,820,000 $ 130,000 $ 6,690,000 $ 475,475 Other General Long-Term Debt – CFD #1 and CFD #2 $ 8,310,000 $ 120,000 $ 8,190,000 $ 520,088 Governmental activities long-term liabilities $ 15,130,000 $ 250,000 $ 14,880,000 $ 995,563

25. Approve Resolution 2011-5 – Resolution for Adopting the Gann Limit for 2011-12  State Constitution requires school agencies to perform Gann Limit calculations  Education Code sections 1629 and 42132 specify that governing boards of districts shall adopt a resolution to identify their estimated appropriations limits for the current year and their actual appropriations limit for the preceding year  Calculation is included in the Unaudited Actuals and data is extracted from the General Ledger – Uses two factors to yield the change in our Gann Limit – Statewide factor for per capital personal income change and P2 ADA  Calculations identify how much state aid counts toward our Gann Limit so the State of California knows how much state aid counts toward their Gann Limit  2010-11 Appropriations subject to limit - $6,440,518  2011-12 Estimated appropriations subject to limit - $6,883,272

26.  State passed 2011-12 budget in July  District adopted budget prior to July 1  State assumptions (COLA, deficit factor) did not change  Other assumptions that may require budget revisions at First Interim Salary adjustments for any negotiated and ratified bargaining unit contracts ADA – currently budgeted at 2010-11 P2 data Add any categorical carryovers  Still weak outlook for economy/possible mid-year cuts?  Cash deferrals continue  Enrollment as of 9/12/11- 1072: Cobblestone: 286 Rio: 471 Riverside: 315  CBEDS last October – 1027  First day of school, August 2011 – 1063  Education Jobs Fund – no funding after this year  First Interim decisions  What ADA numbers do we use for Revenue Limit calculations?  Do we want to set aside monies for salaries funded with Education Jobs Fund?  Do we want to set aside funds in reserves for salary increases?  Fund 25 – Will we receive sufficient developer impact fees to cover COP debt service payment? KB Homes has pulled three permits this year.

27. QUESTIONS?