Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 4/30/26

Board of Directors - 5/6/26

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

3

2025-26 Finance Update Overview

Executive Summary (March 2026)

4

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,610 students, but current enrollment YTD average is 1614, exceeding projections but likely to land around final budgeted amount by P-2.

​

• Acceptances of offers & intent to return for 2026-27 have outpaced last year so far and we appear on track for exceeding overall enrollment targets–further update in slides 7-9.

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2026-27 Enrollment/Recruitment Pre-Lottery

Potential Avg. Enrollment For 26-27 SY: 1610 (Low)- 1645 (Mid) - 1675 (High)

• We are on track to meet or exceed enrollment targets (if current trends hold) with most likely landing between 1640-1670
• Our enrollment projections match low, middle, high scenarios at 1,620 - 1,690 students
• We are on track to fill 2 sections of TK & K at LH and at least 1 additional section of TK/K at LS
• Post-Lottery Leading Indicators are looking promising overall but we are still assuming conservative enrollment targets as we start mapping budget assumptions for next year
• As of 4/14/26: 1784 Accepted (+97 since 3/3) + 12 Offered Not Yet Accepted + 110 Waitlisted (122 declined)
• LH: 164 Offers Accepted / 6 Made + 90 Waitlisted + 789 ITR = 959 possible / 875-910 likely
• LS: 140 Offers Accepted / 6 Made + 20 Waitlisted + 691 ITR = 831 possible / 770-810 likely
• Total LCPS: 430 Offers Accepted/110 Waitlisted + 1495 ITR = 1645-1725 likely to start the year
• Estimated: 1620-1690 Average Enrollment for FY27–will know more once lottery acceptance date passes (March 10th) and returning student registration is complete (Apr)

5

Entry Grade Estimation of Likelihood We Are On Track to Fill Budgeted Seats

TK/K: We are on track for 2 sections of TK at LH and likely 2 at LS. Last year we ended up continuing to get applications and fully enrolled students well after lottery and expect to see this again. Post Lottery we are planning for 2 TK sections (1 may be capped at 10) and 2 K at LS to allow us to continue to accept kids to/through FDOS.

6th Grade & 9th Grade: We are on track to exceed full sections at both sites. GSP acceptances in non typical entry grades (7th/8th for MS and 10th-12th for HS) will likely allow us to top up/exceed all grades 6th-12th

2025-26 Budget vs. Actuals

Revenues

July 2025 to February 2026

7

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2025-26 Budget vs. Actuals

Expenses

July 2025 to February 2026

8

Cash Flow vs. Bond Covenants as of February 2026

​

9

WILL UPDATE

The purple line represents July-February actuals and a revised projection for March thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of February 2026

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10

Review the February 2026 check Register

11

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• February 2026 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 4/2/26

Board of Directors - 4/15/26

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

14

2025-26 Finance Update Overview

Executive Summary (March 2026)

15

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,610 students, but current enrollment YTD average is 1614, exceeding projections but likely to land around final budgeted amount by P-2.

​

• Acceptances of offers & intent to return for 2026-27 have outpaced last year so far and we appear on track for exceeding overall enrollment targets–further update in slides 7-9.

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2026-27 Enrollment/Recruitment Pre-Lottery

Potential Avg. Enrollment For 26-27 SY: 1610 (Low)- 1645 (Mid) - 1675 (High)

• We are on track to meet or exceed enrollment targets (if current trends hold) with most likely landing between 1640-1670
• Our enrollment projections match low, middle, high scenarios at 1,620 - 1,690 students
• We are on track to fill 2 sections of TK & K at LH and at least 1 additional section of TK/K at LS
• Post-Lottery Leading Indicators are looking promising overall but we are still assuming conservative enrollment targets as we start mapping budget assumptions for next year
• As of 4/14/26: 1784 Accepted (+97 since 3/3) + 12 Offered Not Yet Accepted + 110 Waitlisted (122 declined)
• LH: 164 Offers Accepted / 6 Made + 90 Waitlisted + 789 ITR = 959 possible / 875-910 likely
• LS: 140 Offers Accepted / 6 Made + 20 Waitlisted + 691 ITR = 831 possible / 770-810 likely
• Total LCPS: 430 Offers Accepted/110 Waitlisted + 1495 ITR = 1645-1725 likely to start the year
• Estimated: 1620-1690 Average Enrollment for FY27–will know more once lottery acceptance date passes (March 10th) and returning student registration is complete (Apr)

16

Entry Grade Estimation of Likelihood We Are On Track to Fill Budgeted Seats

TK/K: We are on track for 2 sections of TK at LH and likely 2 at LS. Last year we ended up continuing to get applications and fully enrolled students well after lottery and expect to see this again. Post Lottery we are planning for 2 TK sections (1 may be capped at 10) and 2 K at LS to allow us to continue to accept kids to/through FDOS.

6th Grade & 9th Grade: We are on track to exceed full sections at both sites. GSP acceptances in non typical entry grades (7th/8th for MS and 10th-12th for HS) will likely allow us to top up/exceed all grades 6th-12th

2025-26 Budget vs. Actuals

Revenues

July 2025 to February 2026

18

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​

2025-26 Budget vs. Actuals

Expenses

July 2025 to February 2026

19

Cash Flow vs. Bond Covenants as of February 2026

​

20

WILL UPDATE

The purple line represents July-February actuals and a revised projection for March thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of February 2026

​

21

Review the February 2026 check Register

22

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• February 2026 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Non-Teacher Compensation Redesign Updates & Request for Approval

23

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• Request for Approval of New Non-Teacher Salary Bands and Revised LCPS Total Rewards & Compensation Philosophy: Per prior Board directives, we have issued addendums to returning staff using the new non-teacher salary band structure and are bringing them back to the Board for approval along with the revised Total Rewards and Compensation philosophy
• NEW Salary Bands for Non-Teaching Roles
• LCPS’ Updated Total Rewards & Compensation Philosophy
• Total Estimated Cost of Non-Teacher Compensation Increase ~3% (~$300,000-350,000) once addendums and offers for new employees are finalized later this spring–as previously shared this will be baked into the 26-27SY Budget
• Request for Board to Approve all Senior & Executive Leader Addendums that exceed $160k. Per Board fiscal policy. This includes:
• CEO (separately agendized), COO, COS, Head of School, Sr. Dir of SPED, Sr. Dir of Fin, & Sr. Dir of Ting & Ling (part of consent agenda)

New Compensation Collateral

Benefits Renewal Updates & Request for Input/Approval

25

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• LCPS Benefits Renewal Staff Survey, EdFuel Study & Carrier Quotes:
• We have worked with our brokers to administer a benefits survey to staff requesting input on their perspectives on benefits offerings. Findings included:
• 80%+ are believe EE-Only coverage is sufficient
• 50% of staff with dependents feel LCPS’ coverage of their family is not sufficient
• EdFuel Comp Study showed that most charters cover 60-75% of child dependents whereas LCPS currently only covers 50%
• Staff understanding of our plans is mixed and we need more education to support them

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Benefits Renewal Updates & Request for Approval

26

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• Total Estimated Cost of Benefits Renewal Increase:
• $175K (8.3% increase from $2.1MM current) if keep all coverage the same
• Cost to add additional lines/increase LCPS contributions: (~9.5-11% which would cost ~+$220K-245K total vs. +$175K total for renewal as is)
• Add Long-Term Disability: +$12K to add 50% up to $5K coverage for all employees
• Increase LCPS’ Dependent Contribution from 50% to 60%: +$30-50K varies depending on if more employees elect to cover with LCPS ($962/EE+children)
• Request for Board Approval: Based on total rewards philosophy & relative cost, COO, CEO and Finance Committee recommend adding Long Term Disability coverage and increasing LCPS’ employer contribution for dependent care coverage for child dependents to 60%.

Finance Committee - 2/25/26

Board of Directors - 3/04/26

LCPS Finance Report

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

2025-26 Timeline Overview

Month to Month - where we are headed!

29

2025-26 Finance Update Overview

Executive Summary (February 2026)

30

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,610 students, but current enrollment YTD average is 1617, exceeding projections but likely to land around final budgeted amount by P-2.

​

• Applications for 2026-27 have outpaced last year so far and we appear on track for on-time application targets in key entry grades–further update in slides 7-9.

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2026-27 Enrollment/Recruitment Pre-Lottery

Potential Avg. Enrollment For 26-27 SY: 1610 (Low)- 1645 (Mid) - 1675 (High)

• We are on track to meet or exceed enrollment targets (if current trends hold) with most likely landing between 1630-1650
• Our enrollment projections match low, middle, high scenarios at 1,610 - 1,675 students
• We are on track to fill 2 sections of TK & K at LH and at least 1 additional section of TK/K at LS
• Post-Lottery Leading Indicators are looking promising overall but we are still assuming conservative enrollment targets as we start mapping budget assumptions for next year
• As of 3/3: 1687 Accepted + 133 Offered Not Yet Accepted + 102 Waitlisted (only 40 declined)
• LH: 192 Offers Made / 87 Waitlisted + 796 ITR = 988 possible / 875-900 likely
• LS: 238 Offers Made / 22 Waitlisted + 699 ITR = 937 possible / 770-825 likely
• Total LCPS: 430 Offers Made/109 Waitlisted + 1495 ITR = 1645-1725 likely to start the year
• Estimated: 1610-1675 Average Enrollment for FY27–will know more once lottery acceptance date passes (March 10th) and returning student registration is complete (Apr)

31

2026-27 Enrollment/Recruitment Pre-Lottery

Leading Indicators:

• Intent to Return (ITR): On Track (1495) All families have completed and 98%+ want to return (796 LH/699 LS)

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• New Student Applications: On Track with a Few Exceptions for Lottery on Wednesday 2/25
• 539 applications (up 193 from last month) submitted so far: comparable/above where we were last year
• All entry grades are looking on track to fill their assigned sections with the exception that we are waiting to see whether Lodestar will have enough TK and K to fill two sections each (4 total) or just 1.5 each (3 total)
• Lodestar K-2 remains the lowest enrolled and will continue to have 2 sections for 1st and 2nd
• We are factoring this in when deciding how many seats to open and how many to potentially “overbook” to factor in disenrollment and ensure we hit enrollment targets for Day 10, Census, and SY overall

​

• Enrollment Team Active Outreach Strategy & SchoolMint System are supporting higher levels of applications compared to what we are hearing from other charters:
• Decision to leave Oakland Enrolls & Stay with School Mint appears to have helped us again this year
• We’ve had a major influx of applications in grades 6-12 due to GSP’s denial at the county so look poised to top up throughout 7-12th grades if there is not a successful appeal to the state
• We’ve continued to expand our digital marketing strategies and have seen significant increases due to Google Ad buys, but don’t have enough comparative data yet to fully see year over year impacts

32

Entry Grade Estimation of Likelihood We Are On Track to Fill Budgeted Seats

TK/K: We are on track for 2 sections of TK at LH and likely 2 at LS. Last year we ended up continuing to get applications and fully enrolled students well after lottery and expect to see this again. We will make a call on LS TK & K Section 2 after Lottery

6th Grade & 9th Grade: We are on track to exceed full sections at both sites. GSP applications in non typical entry grades (7th/8th for MS and 10th-12th for HS) will likely allow us to top up/exceed all grades 7th-12th

2025-26 Budget vs. Actuals

Revenues

July 2025 to January 2026

34

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2025-26 Budget vs. Actuals

Expenses

July 2025 to January 2026

35

Cash Flow vs. Bond Covenants as of January 2026

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36

WILL UPDATE

The purple line represents July-January actuals and a revised projection for February thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of January 2026

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37

Review the January 2026 check Register

38

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• January 2026 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

2025-26 Audit Agreements

39

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Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 1/29/26

Board of Directors - 2/04/26

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

42

2025-26 Finance Update Overview

Executive Summary (February 2026)

43

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,610 students, but current enrollment YTD average is 1620 (and currently at 1,610), exceeding projections.

​

• Applications for 2026-27 have outpaced last year so far and we appear on track for on-time application targets in key entry grades–further update in February when we are closer to lottery.

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2026-27 Enrollment/Recruitment Pre-Lottery

Potential Enrollment For 26-27 SY:

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• We are on track to meet enrollment targets (if current trends hold) between 1630-1650
• Our enrollment projections match the teacher compensation low, middle, high scenarios at 1,610 - 1,660 students
• We are on track to fill 2 sections of TK at LH

​

• Pre-Lottery Leading Indicators are looking promising overall but we are still assuming conservative enrollment targets as we start mapping budget assumptions for next year

44

2026-27 Enrollment/Recruitment Pre-Lottery

Leading Indicators:

• Intent to Return (ITR): On Track ~85% of families have completed and ~98% want to return; this will likely go down as the remaining 15% complete their forms

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• New Student Applications: On Track with a Few Exceptions for End of February Lottery
• 262 applications submitted so far: comparable to where we were last year
• All entry grades are looking on track to fill their assigned sections with the exception that we are waiting to see whether Lodestar will have enough TK and K to fill two sections each or just 1 each
• Lodestar K-2 remains the lowest enrolled and will likely continue to have 2 sections for 1st and 2nd
• We are factoring this in when deciding how many seats to open and how many to potentially “overbook” to factor in disenrollment and ensure we hit enrollment targets for Day 10, Census, and SY overall

​

• Enrollment Team Active Outreach Strategy & SchoolMint System are supporting higher levels of applications compared to what we are hearing from other charters:
• Decision to leave Oakland Enrolls & Stay with School Mint appears to have helped us last year and again this year
• We’ve continued to expand our digital marketing strategies, but don’t have enough comparative data yet to see the year over year impacts

45

Entry Grade Estimation of Likelihood We Are On Track to Fill Budgeted Seats

TK/K: We are on track for 2 sections of TK at LH and possibly at LS. Last year we ended up continuing to get applications and fully enrolled students well after lottery and expect to see this again. We will make a call on LS TK & K Section 2 after ITR & Lottery

6th Grade: We are on track for full sections at both sites.

9th Grade: Although applications are slightly lower, we have stronger rising 8th grade classes and expect to fully enroll at both sites for 9th grade

2025-26 Budget vs. Actuals

Revenues

July 2025 to December 2025

47

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2025-26 Budget vs. Actuals

Expenses

July 2025 to December 2025

48

Cash Flow vs. Bond Covenants as of December 2025

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49

WILL UPDATE

The purple line represents July-December actuals and a revised projection for January thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of December 2025

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50

Review the December check Register

51

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• December 2025 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 1/8/26

Board of Directors - 1/14/26

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

54

2025-26 Finance Update Overview

Executive Summary (January 2026)

55

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,610 students, but current enrollment YTD average is 1620 (and currently at 1,610), exceeding projections.

​

• Applications for 2026-27 have outpaced last year so far and we appear on track for on-time application targets in key entry grades–further update in February when we are closer to lottery.

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2025-26 Budget vs. Actuals

Revenues

July 2025 to November 2025

56

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2025-26 Budget vs. Actuals

Expenses

July 2025 to November 2025

57

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Cash Flow vs. Bond Covenants as of 11/30/2025

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58

WILL UPDATE

The purple line represents July-November actuals and a revised projection for December thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of 12/31/2025

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59

Review the November check Register

60

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• November 2025 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 11/20/25

Board of Directors - 12/3/25

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

63

2024-25 Audit Update

64

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• Audit completed
• First clean audit with no compliance findings in four years
• Final audit report delayed.
• Federal government has not yet released the final 2025 Compliance Supplement.

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2025-26 Finance Update Overview

Executive Summary (October 2025)

65

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,580 students, but current enrollment is 1,622, exceeding projections.

​

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ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2025-26 Budget vs. Actuals

Revenues

July 2025 to October 2025

66

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2025-26 Budget vs. Actuals

Expenses

July 2025 to October 2025

67

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Cash Flow vs. Bond Covenants as of 10/31/2025

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68

WILL UPDATE

The purple line represents July-October actuals and a revised projection for November thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of 10/31/2025

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69

Review the October check Register

70

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• October 2025 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 9/25/25

Board of Directors - 9/30/25

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

73

2025-26 Finance Update Overview

Executive Summary (Sept 2025)

74

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Enrollment projections at LCPS remain strong despite citywide declines in Oakland.

​

• LCPS budgeted for 1,580 students, but current enrollment is 1,627, exceeding projections.

​

​

ERC Update:

• The other approval is in appeal; (total potential refund is ~$600K)

​

2025-26 Budget vs. Actuals

Revenues

July 2025 to August 2025

75

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2025-26 Budget vs. Actuals

Expenses

July 2025 to August 2025

76

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Cash Flow vs. Bond Covenants as of 8/31/2025

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77

WILL UPDATE

The purple line represents July-August actuals and a revised projection for September thru June

The green line is the original adopted budget

Cash vs. Bond Covenants as of 8/31/2025

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78

This Month’s Key Financial Questions

79

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• What are the key takeaways from our 2024–25 audit?

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• Are we on track to meet our enrollment and Average Daily Attendance (ADA) targets for the 2025–26 school year, and how might any variances affect our state revenue projections?

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Preview 2025-26 1st Interim Budget

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Revenues Estimated

• Enrollment growth projected to increase revenues about $850K
• Interest income will increase about $200k

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Expenses

• Special Education costs expected to continue rising

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Closer monitoring of actual revenues and expenditures vs. budget, specifically in the following areas:

• Facilities costs
• Special Education costs due to increased caseloads and contracting demands
• Overall people costs - FTEs - particularly focused on grant funded roles in the out years, benefits, and Substitute costs (for absences and leaves)

Review the August check Register

81

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• August 2025 Bill Payment - Link

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• 2025-26 Vendors over $50K - Link

Part I: LCPS Board Discussion on Long-Term Financial Strategy

Agenda today and outlining Nov and Dec

Synthesis and Analysis

83

Goals For November 5th Meeting

• Guard Rails - Identifying the ranges for Days cash, Restricted vs. Unrestricted cash reserves, and debt service ratio, and impact borrowing / not borrowing would have on unrestricted cash reserves.
• Feedback on a “Draft” Decision Tree - Identifying the key points we may need to make a decision to finance (grants, insurance specifically)

Goals For December 3rd Meeting

• Discuss the Types of Financing available: Line of Credit, Borrowing against Facility through Foundation, Bonds, etc.
• Scenarios building (multi-year low/mid/high from our first interim), as well as scenarios for cash/debt service ratio
• Narrow decision making window and process

Today’s Goals

• Framing our four key variables - our knowns, unknowns, and best estimates
• Having a Board discussion to discuss key questions and ideas around the four key variables

Financial Long term strategy and our Mission/Vision

Need to have / Want to have / Next level Wish List

84

WANT TO HAVE -

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• FTE additions directly connected with Strategic Priorities

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• Building / Investing in Program spaces for sports and athletics practice spaces and elementary play/recess spaces,

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• Updated CTE classroom spaces in our high schools aligned to our pathways.

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• Classroom spaces for 1700+ students for 2 sectioned TK-5, and 3 full sections of 6-12.

• Staffing for Alumni Programming Supports

NEXT LEVEL WISH LIST -

Note: These are a short list of examples that would take a multi year strategy and planning and structure/work of the Lighthouse Support Foundation:

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• Acquiring another charter school or CMO

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• Local Workforce / College / Career development for our graduates and members of the community

• Additional land / facility purchases and investments (scratch kitchen for meal programs, classroom, parking, athletics, workforce housing, vans and busses, HS OAL football, etc.)

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• Early Childhood Development

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NEED TO HAVE:

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• Sustainable and competitive compensation and staffing model that can keep up with local bargaining, cost of living and our restricted and unrestricted FTE allocations;

• Sustain increasing number of special education and specialized program students and costs;

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• Sustainable and Viable Facilities and Capital Investments of our current facilities.

Deeply thinking about Four Key Variables

Guiding Questions

85

As we think through our long term financial strategy, what are the implications for the following:

1. Revenue Assumptions:
1. Enrollment and attendance
2. Competitive state and federal grants
3. Planning around restricted / unrestricted dollars

2. Sustainable Operating Expenses

• Staffing model vs State funding
• Staffing around restricted / unrestricted dollars
• Special Education
• “Rent” vs. overall Budget

3. Capital and Facilities Expenses:

• Costs of projects to date
• Future short term projects (next 3 to 5 years)
• Deferred maintenance strategy

4. Financing for Sustainability

• Current Bonds
• Future Borrowing and Sources of Financing (Bonds, LOC, Foundation)
• Interest / Investment Revenue
• Leveraging our new Foundation

Variable #1: Revenue

Knowns, Unknowns, and Forecasts

86

What we don’t know (yet):

• Charter Renewals and East Oakland schools ecosystem
• ADA/Attendance: Can we get to 93%-94% consistently? (currently at 93.5%)
• Grants: State finances will shape availability of competitive grants
• New Shift in fundraising: foundation and individual donor

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What we know:

• Enrollment: Budgeted at 1580; currently at 1627; waitlist in 50% of our grades
• Grants: Development team winning competitive state grants
• Grants: Have approx. $6M in grants to spend down over next 2 years.

Our best estimate Forecasts:

• TK: Strong likelihood LCPS can fill 4 sections of TK in 2026-27 based on waitlists/demand
• Enrollment: Strong likelihood of increasing enrollment over next two years - 1620 to 1660 based on 2025 performance
• Shift in Revenue from Unrestricted / Restricted sources due to key grant timelines (currently 60% vs. 40% in terms of staffing)

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Board Questions about future state of Revenue:

• What clarifying questions do you have about our Revenue?
• In terms of our revenue, what are you most excited about? What give you the most pause?
• What strategies do you want staff to consider to increase / sustain Revenue?

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Variable #2: Sustainable Operating Expenses

Knowns, Unknowns, and Forecasts

87

Board Questions about our future operating expenses:

• What clarifying questions or thoughts do you have, particularly around ensuring year to year financial sustainability vs. our expenses?
• What strategies do you want staff to consider to sustain operating expenses and a competitive compensation philosophy and model?
• In terms of the new LSF and property ownership, what are you most excited about? What give you the most pause?

What we don’t know (yet):

• Charter Renewals and East Oakland schools ecosystem
• State Funding in CA: Unclear economic picture for next 2 to 5 years
• Days Cash on Hand: We have not set (beyond bond covenants) yearly and multiyear targets
• Market Compensation/Benefits: Charters and Districts are bargaining and we anticipate increases.

What we know:

• Compensation: Personnel makes up ~65% of our yearly budget. Our salaries are competitive vs. OUSD/area charters, but not Berkeley / San Leandro USD.
• Operating the Lighthouse Support Foundation (LSF): We have launched the foundation and now own 444 Hegenberger; a debt free ~$40M asset with ~$2M in rent yearly

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Our best estimate Forecasts:

• By 2028-29: Likelihood to get to a fully enrolled TK-12 model (~1700) will require a slight increase in FTE.
• Increasing SPED costs: growth and program investment (~$8-9M+)
• Foundation Investments: We recently moved to a sweep account yielding ~4% interest; we could choose to invest LSF Revenue in a higher yield (of the $2M yearly)

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Variable #3: Capital and Facility Expenses and Assumptions

Knowns, Unknowns, and Forecasts

88

Board Questions about our Facility Assumptions:

• What clarifying questions do you have about our short and long term facilities needs?
• In terms of our overall facilities picture, what are you most excited about? What give you the most pause?
• What would you want to see in our Asset / Deferred Maintenance Strategy and Plan moving forward? (Anna’s FOX fellowship project)

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What we don’t know (yet):

• State Facilities Grants: We will find out in October if we will receive up to $.4.5M for TK and HVAC improvements
• Insurance: We are still in process from our Roof / Structural fixes
• Asset and Deferred Maintenance Strategy and Plan: To be completed by June 2026

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What we know:

• Past Expenses: We have spent $3.1M in facilities (TK, Roof, other) with our reserves
• Future Expenses: We will need to spend at minimum $1M in continued TK (LH phase 2) classrooms
• Project Management: Strength of our Operations team

Our best estimate Forecasts:

• HVAC repairs and updates: We estimate that we will need to spend $2.5M in the next 3 years. (based on current CalSHAPE work)
• Future classroom and Facilities investments (short term wish list): Outside of TK and HVAC, we estimate that we could spend $3M on Lodestar elementary classrooms, outdoor play spaces, and deferred maintenance.

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Variable #4: Financing for Sustainability

Knowns, Unknowns, and Forecasts

89

Board Questions about future state of Revenue:

• What clarifying questions do you have about our current debt?
• In terms of our current and potential future debt, what are you most excited about? What give you the most pause?
• How should we determine our debt strategy, including how much and where (LCPS or LSF) the debt should be held?
• What strategies do you want staff to consider vs. our debt considerations?

What we don’t know (yet):

• Grants/Insurance outcomes will determine how much to potentially borrow.
• The range of debt LCPS and/or LSF should carry: We have not set an appropriate range of debt
• Days Cash on Hand: We have not set (beyond bond covenants) yearly and multiyear targets; particularly with future borrowing considerations (120 days could result in bond rating)

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What we know:

• Our current Debt: 3 years into a yearly obligation of $1.9M toward debt of $26.8M on a 40 year term. Current rate is 5.5%
• Reimbursement Resolution: We have an option to borrow / $2.7M for spring/summer projects in 2025 for TK and Roof
• Call Date: 2029 option to refi current debt

Our best estimate Forecasts:

• Lighthouse Support Foundation (LSF): Borrowing power and Line of Credit flexibility
• If we borrowed $3M to 5M (6%, 30 years), our yearly debt obligation would be increase by $250K to $450K
• Debt service ratio: We will most likely maintain (without/with borrowing) of 1.74 to 1.47 - which is above our bond covenants.

Next Steps

Synthesis and Analysis

90

Goals For November 5th Meeting

• Consolidate the notes from Board Discussion and Update our “unknowns”
• Guard Rails in Policy - Identifying the ranges for Days cash, Restricted vs. Unrestricted cash reserves, and debt service ratio, and impact borrowing / not borrowing would have on unrestricted cash reserves.
• Feedback on a “Draft” Decision Tree - Identifying the key points for decision to finance (vs. grants, insurance)

For December 3rd Meeting

• Discuss the Types of Financing available: Line of Credit, Borrowing against Facility through Foundation, Bonds, etc.
• Scenarios building (multi-year low/mid/high from our first interim), as well as scenarios for cash/debt service ratio
• Narrow decision making window and process; Update our “unknowns” and sharpen our “estimates/forecasts”
• Anchor direction and strategy vs. First Interim budget, which could inform of winter/spring actions

Final Thoughts from this Exercise

• Is there anything else you think staff should be considering that wasn’t discussed?
• Of all the topics discussed what is the most important factor or strategy choice point you want staff to consider?

Finance Committee

Board of Directors

LCPS Finance Report Update

2025-26

Finance Committee - 8/28/25

Board of Directors - 9/3/25

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

93

Construction & Capital Improvement Costs

94

Considerations for Next Steps, Financing Options and Facilities Grants

95

1. LH Roof Truss Funding Options:
1. Insurance - We are waiting on insurance assessment report and decision regarding claim–May cover all, some or none of the costs depending–most likely is some to none of the costs
2. Out of pocket-By end of August all costs will have been paid out of cash reserves, which could be reimbursed through insurance or bonds, but not grant funds

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• Grant Funding Options:
• We have applied for 3 CSFIG grants for up to $1.5MM per LEA that would potentially help fund Phase 2 TK at Lighthouse and the HVAC repairs needed at both sites–funding awards will be made in the fall
• None can be used for roof truss or already paid project costs

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• Financing Options - With uncertainty regarding funding for current & future projects, we may reach out to Stifel for options for $X - $Y MM, after the completion of the facilities transfer to the foundation, grant responses, etc.

2024-25 Unaudited Actuals - Key Takeaways

96

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LINK: Statement of Activities and Balance Sheet

Revenues - Total: $44,758,154

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• Includes Employee Retention Credit (ERC) revenue - $3 Million for 2021 Quarter 1 and Quarter 2
• Quarter 3 - IRS initial disallowed; appeal in progress
• LCFF revenue decreased ~$900K due to lower enrollment and attendance from adopted budget
• Increased reliance on one-time funds with deadlines approaching to offset LCFF revenue decrease
• Includes CTC Teacher Residency Grant - $972,337
• Includes an audit elimination (CMO charges)

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2024-25 Unaudited Actuals - Key Takeaways

97

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Total Expenses: $43,247,566

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• Includes an audit elimination (CMO charges)
• In-house teacher coverages & Flexible Principal Approved Stipends: + $157K
• When teachers provide “coverages”, flexible stipends for clubs, ASP tutors, planning days, Office Hours, and After School Program converages
• Increased PTO per Audit Adjustment: + $253K
• PTO had not been accrued previously as an expense/liability, so we need to record this one-time large PTO expense per our FY 24 audit.
• However, going forward, the expense will be lower.
• Saving in Rental, leases and repairs: - $407K
• Increased summer school program: + $209K (ELOP)
• Increase in special education contract services
• Increased contract substitute teachers: + $838K vs June budget
• Includes both teacher absences and long term vacancies and leave coverages

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2024-25 Unaudited Actuals - Summary

98

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Summary

Accounting Department Updates

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99

• Revenue Accounting Changes
• Going forward, revenue will be posted directly to specific income accounts
• Deferral revenue will no longer be used for unrestricted income posting
• Improve accuracy and simplify year-end reconciliation

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• Chart of Accounts Updates
• Additional income accounts will be created for greater transparency
• Renaming of income and expenses accounts for clarity and consistency
• Chart of accounts will better reflect true spending categories and improving reporting for decision-making

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• Balance Sheet Reconciliation
• Comprehensive review of balance sheet for accuracy and compliance
• Write-off of outdated items
• Goal: present a cleaner, more accurate financial position to support strategic planning

Preview 2025-26 1st Interim Budget

100

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Revenues

• Enrollment growth projected to increase revenues
• Continued use of one-time funds before expiration deadlines

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Expenses

• Special Education costs expected to continue rising

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Closer monitoring of actual revenues and expenditures vs. budget, specifically in the following areas:

• Facilities costs
• Special Education costs due to increased caseloads and contracting demands
• Overall people costs - FTEs - particularly focused on grant funded roles in the out years, benefits, and Substitute costs (for absences and leaves)

Review the July check Register and 2024-25 Vendors over $50K

101

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• July 2025 Bill Payment - Link

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• 2024-25 Vendors Over $50K - link

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Prop 28 - Arts and Music Grants

102

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*Must be spent by 6/30/2026.

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25-26 Enrollment After Day 10

Board Update

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103

Current Enrollment: Day 10 At a Glance

Day 10 Stretch Goal: 1630 Budgeted Seats: 1580

Aeries Enrolled as of Day 10: 1623 (exceeded budgeted seats by 2.7%)

• Seats Filled: 870–Lighthouse / 755–Lodestar (2 concurrently enrolled students)
• Summer Melt (All Summer Withdraw/No Show/Inactive By Day 10): 127 Deactivated
• Pending Enrollment as of 8/25/25: 12 new students in process of enrolling
• Waitlist by Day 10: 81 at LH (24 TK) and 37 at LS (7 TK & 6 K)

Goal Attainment: 102.7% rel. to budget/99.5% rel. to Day 10 Stretch Goal

Potential Enrollment in Near Term: 1635

25-26SY Enrollment Season–Wins & Key Drivers

Overall Day 10 Enrollment Increased 5% from 1546 to 1625:

• Executed on strategy to under-budget and then over-enroll & “over” communicate with new & returning families during summer
• Used historical enrollment data trends to more realistically budget for lower enrollment scenario–Mostly this was the right conservative decision, but it did mean losing out on a section of TK at Lodestar that we could have likely filled
• Continued to strengthen our process for lottery and post-lottery acceptance, registration, and summer follow up/communications leading to less “summer melt” and resulting in greater conversion of accepted offers to new enrollments, including late summer applicants to replace summer melt fall out

25-26SY Enrollment Season–Wins & Key Drivers

Quality Applications Increased–From 490 to 682: Why?

• Leaving Oakland Enrolls and implementing the new instance of SchoolMint meant that if a family selected to apply with us they were more likely to accept our offer and convert to fully enrolled than when we were part of Oakland Enrolls’ common application and could be ranked from 1-18 choices
• Our Social/Digital Media Marketing was more effective:
• We used School Mint to run a targeted digital marketing campaign in addition to in-house social media from Dec-May that expanded our reach (194K+ impressions/36K+ clicks and 35 direct leads) as well as continuing to effectively recruit at in-person events, preschools, etc. into the summer resulting in 250 post-lottery apps

25-26SY Enrollment Season–Wins & Key Drivers

Reduced Summer Melt–Withdraws & No Shows Decreased by 18%:

• 69% who accepted applications actually converted to fully enrolled by Day 10 (up 8%) and we had 321 total NEW enrollments show up compared to just 218 last year (Up by 103)
• Why? Summer contact with all new AND returning families allowed us to reduce No Shows and capture Summer Withdraws BEFORE Day 1 to then take families off the waitlist quickly with FEC team continuing to recruit, accept, and convert new applications to fully enrolled deep into the summer/start of school year

Looking Ahead–Areas to Improve & Focus

3 Key Areas for Continued Growth & Focus:

• Effective Use & Monitoring of Enrollment Data (historical and actively shifting current season) to accurately monitor progress towards enrollment goals and continue to refine forecasting models for budgeting & planning
• Continue to Increase Total Number of Applications in Priority Grades: Although quality applications and the conversion of accepted to enrolled significantly improved, the total number of applications was similar to when we were in Oakland Enrolls and the total number of declined applications was similar (though the number and percent accepted was higher)
• Strategize to Rebuild Lodestar Enrollment: Although we made the right decision to run fewer sections of K-2nd grade at Lodestar so that we budgeted accurately for fewer students, long term, we will need to find ways to continue to plan for and strategically fill Lodestar seats–This may include opening more sections of TK or upper elementary grades in future

Finance Committee - 7/31/25

Board of Directors - 8/6/25

LCPS Finance Report

2025-26 Timeline Overview

Month to Month - where we are headed!

110

Lodestar Charter Renewal Finance - �Multi-Year Budget Projection

111

• Current fiscal year 2025-26
• First three years of the renewal term 2026-27, 2027-28, 2028-29
• Link: Multi-Year Budget Projection

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Lodestar Charter Renewal Finance - �LCFF Calculator

112

• Current fiscal year 2025-26
• First three years of the renewal term 2026-27, 2027-28, 2028-29
• Revenues for State Aid, Education Protection Account (EPA), and Property Taxes
• Link: LCFF Calculator

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Lodestar Charter Renewal Finance - �Three-Year Cash Flow

113

• Current fiscal year 2025-26
• First three years of the renewal term 2026-27, 2027-28, 2028-29
• Positive Cash flow
• Link: Cash Flow

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Lodestar Charter Renewal Finance - �Most Recent Month’s Financial Statements

114

• May 2025 Financial Statements
• Balance Sheet, Income Statement, and Cash Flow
• Link: May Financial Statements

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Lodestar Charter Renewal Finance - �Budget Narrative and Assumptions

115

• Narrative on revenues and expenses
• Enrollment and ADA
• Link: Budget Narrative and Assumptions

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2025-26 Finance Update Overview

Executive Summary (Aug 2026)

116

TRENDS:

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• Enrollment Projections at LCPS look promising despite declining Enrollment in Oakland:
• Oakland is continuing to experience challenges resulting with declining enrollments across the city which primarily affects LCFF revenues;
• We are at 1664 seats held pending registration, 1620 fully registered (1333 Returning Confirmed + 293 New fully registered + 29 New Pending Registration/Recent offers + 9 transfers); still budgeting 1580
• Admin are calling all new families and confirming they still intend to join and teachers will make calls next week to all returning families–anyone who doesn’t respond is flagged to OMs as possible fall out/summer melt

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ERC Update:

• We have received two of the three approvals for ERC at $3M - that has been deposited. We paid a 7% tax attorney fee after audit confirmation to formally book the revenue.
• The other approval is in appeal; (total potential refund is ~$600K)

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This Month’s Key Financial Questions

117

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• Are we prepared (financially and operationally) to meet the demands of our final enrollment, whether we land above, below, or at target?

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• Are we positioned to manage upcoming facility costs?

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Currently Cash In Banks

118

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Chase Sweep Account

119

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*Earned interest above $3 Million

Combine All Banks Account to Chase

120

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*Earned interest above $3 Million

**$54,000 more than Wells Fargo�***All eggs in one basket

Construction & Capital Improvement Costs

121

Considerations for Next Steps, Financing Options and Facilities Grants

122

• LH Roof Truss Funding Options:
• Insurance - we are waiting on insurance assessment report and decision regarding claim–May cover all, some or none of the costs depending–most likely is some to none of the costs
• Out of pocket-By end of August all costs will have been paid out of cash reserves, which could be reimbursed through insurance or bonds, but not grant funds

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• Grant Funding Options:
• We have applied for 3 CSFIG grants for up to $1.5MM per LEA that would potentially help fund Phase 2 TK at Lighthouse and the HVAC repairs needed at both sites–funding awards will be made in the fall
• None can be used for roof truss or already paid project costs

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• Financing Options - With uncertainty regarding funding for current & future projects, we will reach out to Stifel for options for $X - $Y MM

Finance Committee - 7/2/25

Board of Directors - 7/9/25

LCPS Finance Report

Board Considerations: Current Financial Challenges and Risks August 2026

124

• Audit findings
• Facilities costs
• Bond Financing Options
• Summer construction
• Summer melt

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Revenues Impact �Enrollment 1,580 x 92% = 1,454(ADA) = $22,826,268�

125

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2025-26 ADA Overview

Enrollment and Attendance (as of 8/??)

126

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LH

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Enrollment - Attendance

2024-25 Enrollment / Waitlist Update

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• End of April Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1554 with 5 students accepted/pending registration (3/31).

25-26SY Enrollment Update Post-ITR / Lottery:

Lighthouse Campus as of 6/4

128

25-26SY Enrollment Update Post-ITR / Lottery:

Lodestar Campus as of 6/4

129