Finance Committee

Board of Directors

LCPS Finance Report Update

2024-25

Finance Committee - 5/29/25

Board of Directors - 6/4/25

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

3

2024-25 Budget and Finance Overview

Executive Summary (June 2025)

4

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• LCPS ADA average is projected to end the year at 91.4%; 1545 students
• Enrollment Projections at LCPS look strong 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 1677 seats held pending registration (1349 Intent to return + 328 lottery acceptances); still budgeting 1580

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REVENUE:

• LCFF Revenue (no change from last meeting):

​

EXPENSE:

• Benefits Expense (no change from last meeting):

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ERC Update:

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

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2025-26 Budget and Finance Overview

Preparation for Next Fiscal Year

5

HIGH LEVEL FACTORS FOR FY26

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• Budgeting Recommendations for 2025-26
• Set a budget on approximately 1,580 students with 92% attendance level; Includes an additional cohort of TK at Lighthouse
• Governor's Budget set 2.3% Cola for LCFF revenue
• Compensation increase by the standard step movement on the salary scale for all Staff (~2%)
• No major changes in Budget between FY 25 and FY 26

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2024-25 ADA EOY Overview

Enrollment and Attendance (as of 4/28)

6

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• 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).

Cash Flow vs. Bond Covenants (2024-25) as of 4/30/25

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8

WILL UPDATE

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

The green line is the original adopted budget

Cash Flow vs. Bond Covenants (End of April 2025)

​

9

Budget to Date

By Revenues and Expenses (July-April)

10

WILL UPDATE

Feb w/Jan figures

Form J13a summary

11

Executive Summary:

• Purpose of Form J13A:
• To request state approval to waive lost instructional time due to emergency school closures and avoid potential funding penalties.
• Closure Lighthouse Details:
• K–8: Closed April 15 – May 2, 2025 (14 instructional days); Reopened May 5, 2025
• High School: Closed April 15 – May 29, 2025 (32 instructional days); Scheduled to reopen in August 2025
• Next Steps: Finalize documentation and submit to:
• Oakland Unified School District
• Alameda County Office of Education
• California Department of Education (CDE)
• Critical Deadline:
• We must receive the approval letter from CDE before the final audit fieldwork in September to avoid audit findings.

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Services Contracts for June Board Approval

12

LCPS Staff recommend Board Approval for:

• Winning Bid for Custodial Services for 25-26SY–By Friday will have completed evaluation of all 5 bids received and will bring a recommendation to the Board for approval. Contract language specifies a one year contract with ability to extend up to two years. This follows our general fiscal policy procurement processes but is not subject to our Federal Procurement policy.
• Total Cost: Not to exceed $450,000 for custodial, landscaping, maintenance and deep cleaning services.

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• RFP for Contract Security Services for 25-26SY–By Friday will have completed evaluation of the 2 proposals received and will bring a recommendation to the Board for approval. Contract language specifies a one year contract with ability to extend up to two years. This process follows our Federal Procurement policy as the source of funds is from the Federal Safety Grant.
• Total Cost: Not to exceed $290,000 for site security services.

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• Alarm System Licensing & Installation Switch Over–LCPS staff is proposing to spend up to $370,000 to upgrade and switchover our alarm system onto the same access control system 10 year license as our camera, PA, and visitor management system from our current Bay Alarm System.
• Total Cost: Anticipate saving $150-200K total over 10 years based on current annual costs for Bay Alarm of $30-35K/year compared to only $160K for Verkada system plus using up to $200K from Bipartisan Safety Grant funds to cover the labor and materials portion.

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25-26SY Enrollment Projections & Budget Implications Update Mid-Spring/ Pre-Registration: As of 6/4

13

Executive Summary:

​

1677 Seats Held Pending Registration BUT Still Budgeting to fill 1580 seats factoring in 1.5% returning attrition and 25-35% new student summer melt

• ITR: Strong Overall Retention Still Expected–Current Family Registration nearly complete
• 1349 families (96% of 1397 since last reported) Completed Registration–15-20 still outstanding
• 1330 Likely to Return - Based on 2-year average disenrollment we should factor ~1.2-1.5% not coming back–trending closer to 4% (which is higher than last two years)
• LS K-5 & LS MS slightly lower (94-95%) with all other schools closer to 96-98%

​

Current Projections: 1545-1580 students depending on degree of summer melt and returning family disenrollment factors (see ITR “Likely to Return” and New “Summer Melt” numbers to understand how we arrived at this projection)

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25-26SY Enrollment Projections & Budget Implications Update Mid-Spring/ Pre-Registration: As of 6/4

14

• Lottery Acceptance/Offers Out (Highly Subject to Change)
• 328 (+28 since 4/9) Offers Accepted/4 Offers Pending/85 (+11 since 4/9) Waitlist/262 (-2 since 4/9) Declined/Rescinded–We are continuing rolling admissions and are completing registration right now for new and returning families (nearly all returning are complete)
• Bright Spot: Majority of new acceptances (18) are for Lodestar campus where we are most under enrolled and 9 new for Lighthouse
• Entry Grades:
• TK, 6th, and 9th looking overall strong across all schools/campuses
• Kinder still low at both schools
• New Student “Summer Melt” Factor: On average over the last 2 years 65-75% of acceptances convert to actual new students so we are factoring closer to 210-245 new students to actually enroll based on preliminary application/offer acceptance/decline–we expect this modeling will be more realistic in capturing summer melt.

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

Lighthouse Campus as of 6/4

15

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

Lodestar Campus as of 6/4

16

Finance Committee - 5/1/25

Board of Directors - 5/7/25

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

18

2024-25 Budget and Finance Overview

Executive Summary (May 2025)

19

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• LCPS ADA average is projected to end the year at approximately 91%-92% (currently at 91.4%); 1555 students
• Enrollment Projections at LCPS look strong 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 1697 seats held pending registration (1397 Intent to return + 300 lottery acceptances); still budgeting 1580

​

REVENUE:

• LCFF Revenue (no change from last meeting):
• The LCFF impact of LCPS decrease in enrollment / attendance is -$521K in FY25
• Received approx. $170k in Local Revenue (Retirement adjustment)

​

EXPENSE:

• Benefits Expense (no change from last meeting):
• Slightly higher due to vacation accrual reconciliation

​

ERC Update:

• The IRS confirmed that one of three ERC (Employee Retention Credit) approvals as made recently; We anticipate in June/July a payment of $2.37M (not including interest over 4 yrs + 7% tax attorney fees)
• The other approvals - one is in appeal; the other is still pending.

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2025-26 Budget and Finance Overview

Preparation for Next Fiscal Year

20

HIGH LEVEL FACTORS TO CONSIDER FOR FY26

​

• Facilities Bond 2025 - the earliest this would be incorporated into the budget is 1st Interim of the next school year
• TK Project- Estimated funding timeline (End of Summer / Fall 2025)
• Bond amount $1.5M - $3M; Estimated annual repayment cost $127-$252k

​

• Budgeting Recommendations for 2025-26
• Set a budget on approximately 1,580 students with 92% attendance level; Includes an additional cohort of TK at Lighthouse
• Will use 2.43% Cola for LCFF revenue assumptions
• Compensation is expected to increase by the standard step movement on the salary scale for all Staff (~2%)
• Expect the Governor’s May Revise update to finalize FY26 budget assumptions

• Finance Team Support over next few months:
• Onboarding Hung Mai, our new LCPS Senior Director of Finance
• New Update: Anna Martin COO - accepted into the national FOX Fellowship for COOs/CFOs of Charter Networks
• Will be working with Stacey Lawrence (GrowthFit Partners) as a fractional CFO.
• Areas of support:
• Support onboarding of new Senior Director of Finance
• Budget for Upcoming school year and Long-Term finance model that can be adjusted for our variable context (grants, enrollment, contingencies); Implementing the draft model from Bellwether
• Support in our Facilities Bond process in partnership with Stifel

​

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 4/28)

21

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• 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).

Cash Flow vs. Bond Covenants (2024-25) as of 3/31/25

​

23

WILL UPDATE

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

The green line is the original adopted budget

Cash Flow vs. Bond Covenants (End of March 2025)

​

24

Budget to Date

By Revenues and Expenses (July-March)

25

WILL UPDATE

Feb w/Jan figures

25-26SY Enrollment Projections & Budget Implications Update Mid-Spring/ Pre-Registration: As of 4/30

26

Executive Summary:

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1697 (+19) Seats Held Pending Registration BUT Still Budgeting to fill 1580 seats factoring in 1.5% returning attrition and 25-35% new student summer melt

​

• ITR: Strong Overall Retention Still Expected–Current Family Registration launching 3/28
• 1397 families (96%, up 3 since 2/28) responded Yes–
• 1376 Likely to Return - Based on 2-year average disenrollment we should factor ~1.2-1.5% not coming back
• LS K-5 & LS MS slightly lower (94-95%) with all other schools closer to 96-98%

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25-26SY Enrollment Projections & Budget Implications Update Mid-Spring/ Pre-Registration: As of 4/30

27

• Lottery Acceptance/Offers Out (Highly Subject to Change)
• 300 (up 19 from 3/25) Offers Accepted/13 Offers Pending/74 (+10 from 3/25) Waitlist/264 (16+ since 3/25) Declined/Rescinded–Are continuing rolling admissions and are completing registration right now
• Bright Spot: Majority of new acceptances ~20 are for Lodestar campus where we are most underenrolled
• Entry Grades:
• TK, 6th, and 9th looking overall strong across all schools/campuses
• Kinder still low at both schools
• On average over the last 2 years 65-75% of acceptances convert to actual new students so we are factoring closer to 190-225 new students to actually enroll based on preliminary application/offer acceptance/decline–we expect this modeling will be more realistic in capturing summer melt.

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

Lighthouse Campus as of 4/30

28

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

Lodestar Campus as of 4/30

29

Finance Committee - 4/8/25

Board of Directors - 4/9/25

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

31

2024-25 Budget and Finance Overview

Executive Summary (March 2025)

32

ENROLLMENT UPDATE - getting ready for 2025-26 SY

• LCPS ADA average is projected to end the year at approximately 91%-92% (currently at 91.4%); 1555 students
• Enrollment Projections at LCPS look strong 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 1678 seats held pending registration (1397 Intent to return + 281 lottery acceptances);

​

REVENUE:

• LCFF Revenue (no change from last meeting):
• The LCFF impact of LCPS decrease in enrollment / attendance is -$521K in FY25
• Received approx. $170k in Local Revenue (Retirement adjustment)

​

EXPENSE:

• Benefits Expense (from last meeting):
• Slightly higher due to vacation accrual reconciliation

​

2025-26 Budget and Finance Overview

Preparation for Next Fiscal Year

33

HIGH LEVEL FACTORS TO CONSIDER FOR FY26

​

• Facilities Bond 2025 - the earliest this would be incorporated into the budget is 1st Interim of the next school year
• TK Project- Estimated funding timeline (End of Summer / Fall 2025)
• Bond amount $1.5M - $3M; Estimated annual repayment cost $127-$252k

​

• Budgeting Recommendations
• Set a budget on approximately 1,580 students with 92% attendance level; Includes an additional cohort of TK at Lighthouse
• Will use 2.43% Cola for LCFF revenue assumptions
• Compensation is expected to increase by the standard step movement on the salary scale for all Staff (~2%)
• Expect the Governor’s May Revise update to finalize FY26 budget assumptions

• Finance Team Support over next few months:
• Will be working with Stacey Lawrence (GrowthFit Partners) as a fractional CFO.
• Areas of support:
• Support hiring/evaluation of new Senior Director of Finance
• Budget for Upcoming school year and Long-Term finance model that can be adjusted for our variable context (grants, enrollment, contingencies); Implementing the draft model from Bellwether
• Support in our Facilities Bond process in partnership with Stifel

​

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 1/27)

34

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• End of January 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).

Cash Flow vs. Bond Covenants (2024-25) as of 2/28/25

​

36

WILL UPDATE

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

The green line is the original adopted budget

Cash Flow vs. Bond Covenants (End of Feb 2025.)

​

37

Budget to Date

By Revenues and Expenses (July-Feb)

38

WILL UPDATE

Feb w/Jan figures

25-26SY Enrollment Projections & Budget Implications Update Mid-Spring/ Pre-Registration: As of 3/26

39

Executive Summary:

1678 Seats Held Pending Registration BUT Still Budgeting to fill 1580 seats factoring in 1.5% returning attrition and 25-35% new student summer melt

• ITR: Strong Overall Retention Still Expected–Current Family Registration launching 3/28
• 1397 families (96%, up 3 since 2/28) responded Yes–
• 1376 Likely to Return - Based on 2-year average disenrollment we should factor ~1.2-1.5% not coming back
• LS K-5 & LS MS slightly lower (94-95%) with all other schools closer to 96-98%
• Lottery Acceptance/Offers Out (Highly Subject to Change)
• 281 (up from 162 2/28) Offers Accepted/10 Offers Pending/64 (up from 62 on 2/28) Waitlist/246 Declined/Rescinded–Have passed initial acceptance date and are continuing rolling admissions
• Entry Grades:
• TK, 6th, and 9th looking overall strong across all schools/campuses
• Kinder looking low at both schools–we believe this is due to TK becoming the more common grade for entry for new to school families
• On average over the last 2 years 65-75% of acceptances convert to actual new students so we are factoring closer to 175-205 new students to actually enroll based on preliminary application/offer acceptance/decline–we expect this modeling will be more realistic in capturing summer melt.

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

Lighthouse Campus as of 3/25

40

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

Lodestar Campus as of 3/25

41

Finance Committee - 2/27/25

Board of Directors - 3/5/25

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

43

2024-25 Budget and Finance Overview

Executive Summary (January 2025)

44

ENROLLMENT UPDATE:

• Declining Enrollment:
• Oakland is continuing to experience challenges resulting with declining enrollments across the city which primarily affects LCFF revenues;
• LCPS ADA average is projected to end the year at approximately 91%-92% (currently at 91.5%)

​

REVENUE:

• LCFF Revenue:
• The LCFF impact of LCPS decrease in enrollment / attendance is -$521K in FY25
• Received approx. $170k in Local Revenue (Retirement adjustment)

​

EXPENSE:

• Benefits Expense:
• Slightly higher due to vacation accrual reconciliation

​

2024-25 Budget and Finance Overview

Preparation for Next Fiscal Year

45

HIGH LEVEL FACTORS TO CONSIDER FOR FY26

​

• Facilities Bond 2025
• TK Project- Estimated funding timeline (End of Summer / Fall 2025)
• Bond amount $1.5M - $3M
• Estimated annual repayment cost $127-$252k

​

• Enrollment Assumptions
• Set a budget on approximately 1,580 students with 92% attendance level
• Includes an additional cohort of TK at Lighthouse
• LCPS is currently at month 7 was at 1560 students

​

• Budgeting Recommendations
• Will use 2.43% Cola for LCFF revenue assumptions
• Compensation is expected to increase by the standard step movement on the salary scale for all Staff (~2%)
• We will create a scenario with and without the budget augmentations from the Governors January budget proposal
• Expect the Governor’s May Revise update to finalize FY26 budget assumptions

​

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 1/27)

46

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• End of January Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1564 with 5 students accepted/pending registration (2/25).

Cash Flow vs. Bond Covenants (2024-25) as of 1/31/25

​

48

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 Flow vs. Bond Covenants (End of Jan 2025.)

​

49

Budget to Date

By Revenues and Expenses (July-Jan)

50

WILL UPDATE

Feb w/Jan figures

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

As of 2/28

51

Summary:

Budget to fill 1580 seats factoring in 1.5% returning attrition and 35% new student summer melt

• ITR: Strong Overall Retention Expected
• 1394 families (96%) responded Yes–
• 1373 Likely to Return - Based on 2-year average disenrollment we should factor ~1.2% not coming back
• LS K-5 & LS MS slightly lower (94-95%) with all other schools closer to 97-98%
• Lottery Acceptance/Offers Out (Highly Subject to Change)
• 162 Offers Accepted/139 Offers Out/62 Waitlist/46 Declines–Offers open until 3/14 and will continue rolling admissions
• Entry Grades:
• TK, 6th, and 9th looking overall strong across schools
• Kinder looking low at both schools–we believe this is due to TK becoming the more common grade for entry for new to school families
• On average over the last 2 years 65% of acceptances convert to an actual new students so we are factoring closer to 196-230 new students to actually enroll based on preliminary application/offer acceptance/decline–we expect this modeling will be more realistic in capturing summer melt.

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

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

Lighthouse Campus as of 2/28

53

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

Lodestar Campus as of 2/28

54

RFP Update:

Selection & Contract Award Recommendation

55

Summary:

• LCPS Staff recommends awarding the RFP contract to Bjork Construction not to exceed $1,355,000 (proposal plus budgeted hard cost contingency) and issuing a Notice to Proceed for Phase 1 construction at minimum.
• LCPS staff with consultation from PCSD and YMC issued a publicly noticed Request for Proposals following the process outlined in the timeline and conducted cost-estimating through architectural subcontractor to ensure evaluation of all proposals could be correctly evaluated.
• All due diligence to follow LCPS Procurement Policy requirements was met.
• Despite only receiving one complete & responsive proposal, LCPS & Blueprint (formerly PCSD) recommend awarding contract as it came in favorably priced relative to cost-estimating and scored highly on scoring matrix and from past experience with Bjork as part of the DBE team that completed last year’s capital improvement projects.
• Contract (draft included in pre-read) to be finalized following Board approval, final negotiations on price, and final review by legal counsel.
• Estimated Cost: $1,250,609.50 plus budgeting for $105K in hard cost contingency (~9%) (with possibility of further reductions in price if accept value engineering options and/or approve Phase 1 and 2 to run concurrently. (This is only part of overall budget–see project budget slide--it is inclusive of contractor contingencies, though the pricing for Phase 2 could go up as it is over a year out and pricing of materials and labor may rise significantly and cannot be locked in beyond 1 year if a Notice to Proceed is not issued.
• See full deck with all information on RFP selection process and recommendation here and as found in separate Board agenda item and pre-read.

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Compensation Strategy - 25-26 & Beyond

Proposal & Requested Board Action for 25-26SY

​

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56

57

Previous LCPS Finance Report Updates

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2024-25

Finance Committee - 1/31/25

Board of Directors - 2/5/25

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

59

2024-25 Budget and Finance Overview

Governor’s Budget Update (January 2025)

60

Likely

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• Cola - 2.43%
• TK-Funding expected to continue
• ELOP - Will continue, shift in Tier 1 (was 75% UPP now anything greater than 50% UPP which stretches the pool of funding for those already in Tier 1. Note: LCPS is ~96%UPP

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• SB740 - Expect to increase to $1,470/ADA (CY is $1,448/ADA)

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• Universal Meals - to continue
• Learning Recovery Block Grant
• Likely to be funded but with less flexibility

Need more updates

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• CTE - requires a new CTE Master Plan and was referenced to as a “Chaotic System” LCPS currently receives multiple CTE related grants.

​

• Prop 28 Art & Music
• FY24/25: $107/student plus $74/low income student
• FY25/26: $122/student plus $84/low income student

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• Block Grant - One time discretionary to help address pricing increases

​

• Teacher Professional Development - Once time and is pending trailer bill language

Other Highlights

​

• Mid-year Audit Guide Amendments
• Can be high stakes, retroactive and punitive
• Continue to monitor Prop 28 Art & Music program

​

• FY 25/26 Audit Guide
• State Controller
• Controversy from Charter Auditing Task Force
• Auditor Independence
• Deeper dive on "related party" ; relationships within the org

​

• CSDC Recommendations
• Run projections with and without budget augmentations
• Plan with the 2.43% Cola
• Monitor economic conditions
• Ensure cash can withstand state deferrals

2024-25 Budget and Finance Overview

Preparation for Next Fiscal Year

61

HIGH LEVEL FACTORS TO CONSIDER FOR FY26

​

• Facilities Bond 2025
• TK Project- Estimated funding timeline (End of March 2025)
• Bond amount $1.5m - $3m
• Estimated annual repayment cost $127-$252k

​

• Enrollment Assumptions
• Set a budget on approximately 1,575-1,585 students with 93% attendance level
• Includes an additional cohort of TK at Lighthouse
• LCPS is currently at 1568

​

• Budgeting Recommendations
• Will use 2.43% Cola for LCFF revenue assumptions
• We will create a scenario with and without the budget augmentations from the proposal
• Compensation is expected to increase by the standard step movement on the salary scale for Certificated Staff (~2%)
• Expect the Governor’s May Revise update to finalize FY26 budget assumptions

​

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 1/27)

62

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• End of January Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1568 with 9 students accepted/pending registration (11/20).

Cash Flow vs. Bond Covenants (2024-25) as of 12/31/24

​

64

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 Flow vs. Bond Covenants (End of Dec 2024.)

​

65

Budget to Date

By Revenues and Expenses (July-Dec)

66

WILL UPDATE

Oct

​

Compensation Strategy - 25-26 & Beyond

Proposal & Requested Board Action for 25-26SY

​

​

67

Executive Summary: Request for Board Approval

• LCPS Staff Request the Board Approve the following compensation variables for our upcoming budget that:
• Maintains the existing base teacher salary scale (and allows all staff to go up the standard step based on one year of experience)
• Slightly increases the add-ons for preliminary & clear licensure to $3/6K (from $2500/ 5k)
• Sets a COLA of ~2% for staff which is equivalent to the average increase for teachers who are not fully licensed and is funded by the LCFF increase proposed in the Governor’s budget–subject to change if the final June budget drastically changes
• Includes a staff commitment to consolidate positions to balance the budget–more to come in March
• Next Steps:
• Following Board decision, LCPS will prepare addendums for all eligible to return teachers to sign by/before March 1st and for other staff by/before March 15th.

Timeline for Teacher & Other Staff Compensation

Oct-Dec: Staff conducts compensation benchmarking & research to present to Board in Jan. along with draft of considerations & preliminary strategy

January: Staff does further modeling and reviews proposed plan with Finance Committee for fiscal sustainability/feasibility testing once January draft of Governor’s budget arrives

February Board Meeting: Approval of Present Compensation Strategy vs Budget and Approve our Teacher Salary Rubric & Proposed COLA

Mid-Late February: If needed, Board calls Special Meeting to complete final approval (if Gov budget is late or if other issues arise preventing approval at regular Board meeting)

End of February: Following approval, all staff eligible to return receive addendums with updated salary for Upcoming SY. Any positions consolidated or not yet approved are informed of consolidation or delay in being able to greenlight and do not receive addendums until/unless position is greenlit in budget.

Grounding in Our Compensation Philosophy & Value Proposition for Teachers and Staff

• Our existing LCPS Compensation Philosophy articulates our guiding values around compensation and total rewards and seeks to ensure we are externally competitive and internally equitable while balancing our aims to provide competitive and fair pay in the Bay Area labor market while also making fiscally prudent decisions in service of financial stewardship that allows us to achieve excellent student outcomes.
• Coming out of our recent strategic planning process: We are continuing to focus on financial stability (Strategic Priority #5) and are in the process of re-evaluating and better articulating our total rewards and value proposition for staff with a particular focus on teachers, leaders, and our career pathways.
• The 2025-26 Compensation Proposal is in line with our compensation philosophy and we believe will continue to allow us to compete for top talent while remaining fiscally conservative based on current budget assumptions.

Teacher Comp Proposal: 1.9% average increase based on No Change to Teacher Base Salary Scale but all staff moving up a step and slightly increasing the targeted add-on (from $2.5/5K to $3/6K) for fully credentialed teachers (additional .55% increase for staff who qualify for that add-on) to continue to stay competitive for more experienced talent.

What does this proposal do?

• Continues to fund the strategic market adjustment made last year to ensure LCPS’ competitiveness with surrounding districts and CMOs for fully licensed, more experienced teachers (whom we most want to retain) in line with our compensation philosophy
• Is fiscally conservative and stays in line with the projected modest LCFF funding increase (2.43%) in the Governor’s proposed budget and the current fiscal and enrollment environment
• Continues to propose staffing cuts rather than reducing or freezing salaries to ensure a balanced budget in face of enrollment uncertaintanty.

​

Keep Scale Flat/Go Up 1 Step in Experience

$149K

(Avg. 1.9%)

Fully Credentialed Teacher Add-On Increase

$49.5K

(Avg. 0.55%)

Total Average Increase

$198.5K

( Avg. 2.45%)

Rationale & Potential Fiscal & Market Position Impact for Part 1– Maintain the Scale & Allow All Staff to Go Up 1 Step

Rationale & Relative Market Position:

• This is fiscally conservative. We propose holding tight and waiting to see where the market lands before planning for future increases.
• Surrounding districts and CMOs have made modest increases to their scales and cost of living continues to rise.
• However, we are monitoring area districts and CMOs as they are in the final year of CBAs.
• We continue to attract early career teachers (without credentials) due to our strong investments in our career pathways & tuition assistance.

​

Rationale & Potential Fiscal & Market Position Impact for Part 2–

Maintain & Slightly Increase Targeted Add Ons for Preliminary & Clear Cred. Teachers

Fiscal Rationale & Relative Market Position:

• Maintaining the targeted add-on for Preliminary and Clear credentialed teachers was a wise strategic market adjustment and supported strong teacher retention last year.
• It rewards staff who have attained licensure and have more experience and expertise–and lowers other costs as we have to invest less in their training, tuition assistance, and support.
• Raising this add-on slightly (from $2.5/5K to $3/6K) continues to better ensure our position in the market to attract and retain our more experienced teachers, particularly years 3-8, who are more likely to achieve stronger student outcomes and who are in higher demand.

Where Would This Place Us In The Market?

• LCPS remains competitive for new and early career teachers without full licensure when our tuition assistance is factored in
• Bumping the Credential Add-On slightly is a minor additional cost that helps address weaknesses in our scale in Years 2-9 for fully credentialed teachers where we most want to compete
• Allows us to remain generally at/above the 50th percentile per our Comp Philosophy

Other Staff Draft Proposal–

Allow to Go Up a Step or 2% Average COLA Increase for Off Rubric

Rationale:

• We are currently continuing our annual compensation analysis of non-teaching staff compensation and our annual review of position control with the aim of tightening and consolidating positions.
• We will consolidate select positions and will propose a conservative COLA–We are currently aiming for ~2% average in line with the average not fully licensed teacher increase (also ~2%).
• We may propose modest strategic re-comping of certain positions to continue to ensure salaries are externally competitive and internally equitable in line with our Compensation Philosophy.

Finance Committee - 11/21/24

Board of Directors - 12/4/24

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

77

2024-25 Budget and Finance Overview

Executive Summary

78

• Declining Enrollment:
• Oakland is continuing to experience economic and safety challenges resulting with declining enrollments across the city which primarily affects LCFF revenues; Media coverage of OUSD and SFUSD.
• The LCFF impact of LCPS from lower enrollment of 50-60 students will result with net decrease in revenues of $629k
• New Revenue:
• We will be incorporating $400k of new restricted grants for the 24-25 SY that will help ease some of the impact to the bottom line into.

​

• Cash:
• Though we received the first two installments owed from prior year ($1.5m); we anticipate there will be continued delays from the state on when we will receive the current year installments
• Remaining bond funds +$400k has been received
• Will carry us through December

​

• Covenants and Budget Revision for First Interim:
• We are meeting our bond covenant as our cash balance ended October 60 days cash on hand

.

​

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 11/20)

79

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• End of October Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1562 with 9 students accepted/pending registration (11/20).

2024-25 Enrollment and Attendance Strategy

​

• Today:
• We last provided the update with 1562 with 9 accepted offer / not yet registered
• 93.0% attendance
• We used the 1560 figure that you will see in the 1st Interim revised budget update
• Table Below: Illustrates the enrollment and ADA used to update 1st Interim

Cash Flow vs. Bond Covenants (2024-25) as of 10/31/24

​

82

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 Flow vs. Bond Covenants (End of Oct.)

​

83

Budgeted vs Projected Revenue

Waterfall Chart

84

WILL UPDATE

NOV

Budgeted vs Projected Revenue - Waterfall Chart

85

Budget to Date

By Revenues and Expenses (July-Oct)

86

WILL UPDATE

Oct

Capital Projects Updates

Cal Shape HVAC Updates 12/4

87

CalSHAPE HVAC Replacement & Maintenance Project Update & Request for Approval:

• Project Status: Funds Released/Ready to Award Contract
• CDE has finally released the funding to all three LEAs (totaling $185,078) allowing us to move forward with contract award to complete the work permitted in the grant (HVAC assessment & maintenance)

​

• Staff Contract Approval & Piggybacking Proposal:
• LCPS staff proposes to use the piggybacking method as outlined in Section 3 of our LCPS Federal Procurement policy to piggyback on the Auburn Unified School District’s RFQ solicitation & contract award that allowed for piggybacking for their contract with Alco Building Solutions (ABS)
• LCPS plans to submit the piggybacking documentation and proposed contract to the Board for approval for December 4th Board meeting pending legal counsel’s final review (expected by this Friday)

​

• Budget Impact: Cost neutral–contract & task order is solely restricted to not exceed the award amount

​

​

Capital Projects Updates

TK Phase 1 and 2 Project Updates - 12/4

88

Lighthouse TK Phase 1 & Phase 2 Tenant Improvement Project Update & Request for Approval:

• Project Status: Architect Engaged, Need to Approve Modular Design Firm & Prepare to Issue RFP in Jan.
• LCA is completing initial designs for Phase 1 & Phase 2 and we have submitted the Phase 1 modular unit design to the firm that completed the high school unit (United Partition Services) and now need to secure their design services (costing $12,000) to complete the portion of architectural plans needed for a contractor to bid on Phase 1. UP’s total quote is $89,025.14 but only the $12,000 “Design for Permitting” scope is needed as payment to move forward with the design phase of the project. The second scope for purchasing and construction of the modular unit will not be released or approved until and unless a contractor is awarded a contract following of the RFP process this spring.
• Staff is working towards bringing the RFP and budget/financing proposal to the Board in January for approval before issuance and would not plan to award until March pending financing being secured
• Staff Request for Board Approval:
• LCPS staff requests that LCPS Board approve Rich Harrison to enter into a contract with United Partition not to exceed $90,000. This will allow us to pay upfront for the permitting/design work for the Phase 1 modular unit ($12K) and lock in pricing and ensure we can be placed on UP’s spring fabrication schedule for materials/construction/tax costs ($77,025.14) which will be encumbered if/whenLCPS selects a GC.
• Budget Impact: $12,000 now for additional modular design for permitting fees; likely $77-80K later if/when Phase 1 construction and selection of a GC is approved by the Board. This would add $90K to the already approved $190K for project management and architectural services.

​

Finance Committee - 10/31/24

Board of Directors - 11/6/24

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

90

2024-25 Budget and Finance Overview

Executive Summary

91

• Declining Enrollment:
• Oakland is continuing to experience economic and safety challenges resulting with declining enrollments across the city which primarily affects LCFF revenues; Media coverage of OUSD and SFUSD.
• The LCFF impact of LCPS from lower enrollment of 50-60 students will result with an approximate decrease in revenues of $800k-$1m
• New Revenue:
• We will be incorporating ~$320k of new restricted grants for the 24-25 SY that will help ease some of the impact to the bottom line into.
• Additionally, there is one grant pending.
• Cash:
• Updated to reflect some cash receipts that we expect in November rather than end of October
• Direct communication $1.5m

​

• Covenants and Budget Revision for First Interim:
• We are meeting our bond covenant as our cash balance ended September above 70 days cash on hand
• We will have an updated budget revision for 1st Interim (December) based on current assumptions.
• Launch of Bellwether phase 2 of Strategic Plan
• LCPS will partner with Bellwether to launch the strategic priorities for governance, finance, operations, facilities, and yearly management.
• The legal process to start a 509 a3 support organization has begun.

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 10/25)

92

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• End of October Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1560 with 15 students accepted/pending registration (10/22).

2024-25 Enrollment and Attendance Strategy

​

• Today:
• 1560 with 15 accepted offer / not yet registered
• 93.3% attendance
• Table Below: approximations at 1566 students at a range of 90% to 94% attendance.

Cash Flow vs. Bond Covenants (2024-25) as of 9/30/24

​

95

WILL UPDATE

Cash Flow vs. Bond Covenants (End of Sep.)

​

96

Budgeted vs Projected Revenue

Waterfall Chart

97

WILL UPDATE

NOV

Budget to Date

By Revenues and Expenses (July-Sept)

98

WILL UPDATE

Oct

Budget to Date

Revenue and Expense variables

99

Overall:

• We are 25% through the year and revenue and expenses are in alignment with the quarter.

Revenue

• Federal revenue accrued to reflect earnings based on expenditures
• Local revenue is a little lower for the first quarter as donations and foundation funds fluctuate throughout the year

Expenses

• Overall expenses are less than revenue
• Materials and supplies category as expected is higher at the start of the new school year

​

Looking Forward:

• Our first official budget revision is approaching as a part of the 1st Interim reporting requirements
• We are reviewing the current state of enrollment and its impact on the budget based on Census data as of October 2nd.

​

Finance Committee - 10/3/24

Board of Directors - 10/9/24

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

101

2024-25 Budget and Finance Overview

Executive Summary

102

• Declining Enrollment:
• Oakland is continuing to experience economic and safety challenges resulting with declining enrollments across the city which primarily affects LCFF revenues
• The LCFF impact of LCPS from lower enrollment of 50-60 students will result with an approximate decrease in revenues of $800k-$1m

​

• New Revenue:
• We were able to solidify approx. $360k of new restricted grants for the 24-25 SY that will help ease some of the impact to the bottom line.
• Additionally, there are two grants pending

​

• Covenants and Budget Revision for First Interim:
• We are meeting our bond covenant as our cash balance ended September above 70 days cash on hand
• We will have an updated budget revision for 1st Interim (November and December) based on current assumptions.

• Launch of Bellwether phase 2 of Strategic Plan
• LCPS will partner with Bellwether to launch the strategic priorities for governance, finance, operations, facilities, and yearly management.
• This is particularly important as we take steps to approve a 509 a3 support organization for facility purposes.

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 10/1)

103

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• From End of June to End of August Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• Today, we have 1552 with 22 students accepted/pending registration (10/1).

2024-25 Enrollment and Attendance Strategy

​

• Today:
• 1552 with 22 accepted offer / not yet registered
• 93.4% attendance
• Table Below: approximations at 1566 students at a range of 90% to 94% attendance.

Cash Flow vs. Bond Covenants (2024-25) as of 8/31/24

​

106

WILL UPDATE

Cash Flow vs. Bond Covenants (End of Aug.)

​

107

Budgeted vs Projected Revenue

Waterfall Chart

108

WILL UPDATE

NOV

Budget to Date

By Revenues and Expenses (July-August)

109

WILL UPDATE

Oct

Budget to Date

Revenue and Expense variables

110

​

Revenue

• Federal revenue accrued to reflect earnings based on expenditures
• Local revenue is a little lower for the first couple months as donations and foundation funds fluctuate throughout the year

​

Expenses

• Overall expenses are less than revenue
• Salaries and Benefits are lower in July as the school staff didn’t return to work until August
• Materials and supplies category as expected is higher at the start of the new school year

Important Finance Committee Updates

New CEO approval needed for Architect services for TK.

111

Project Purpose - The project is for additional improvements for the Lodestar campus located at 701-735 105th Ave, Oakland, CA and Lighthouse campus located at 444 Hegenberger, Oakland, CA, including additional classroom and bathroom space, administrative space and TK play area. Cost - PCSD Project Management cost is $100k with total project costs estimated to be $1.7M on the high end.

​

Project Management Agreement - PCSD

​

Capital Improvement Project Updates & Looking Ahead 2024-27 (Updated)

Staff Recommendation: Staff requests the LCPS Board to authorize Rich Harrison, CEO, to negotiate and execute a final contract for AE services for the Lighthouse TK Expansion project with a firm selected following LCPS’ procurement and fiscal policies not to exceed $100,000 (NOTE - changed from $75k). Staff will return to the LLC and LCPS Boards by November with an update on projected project costs to complete Phase 1 and Phase 2 and will not enter into any contract for construction services for either phase until and unless the Board has approved the financing and budget for the project.

Enrollment / Registration Update

Board of Directors - 9/4/24

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

113

2024-25 ADA EOY Overview

Enrollment and Attendance (as of 8/24)

114

L*

LH

L*

LH

L*

LH

Enrollment - Attendance

2024-25 Enrollment and Attendance Strategy

​

• From End of June to End of August Update:
• In June, we had 1627 students who have shared Intent to Return or Accepted our lottery/waitlist offer.
• However, we lost 57 students this summer (anticipated returning student) and some new student “no shows”
• Today, we have 1562 with 22 students accepted/pending registration (8/24).

Cash Flow vs. Bond Covenants (2023-24)

​

116

WILL UPDATE

Cash Flow vs. Bond Covenants (End of June)

​

117

Budgeted vs Projected Revenue

Waterfall Chart

118

WILL UPDATE

OCT/NOV

Budget to Date

By Revenues and Expenses (July)

119

WILL UPDATE

OCT/NOV

Budget to Date

Revenue and Expense variables

120

WILL UPDATE

OCT/NOV

Important Finance Committee Updates

Credit Line -

121

Update

​

WELLS FARGO

​

• Updated Wells Fargo account platform from business checking to a commercial account
• Commercial account opens up the opportunity to invest in sweep accounts and am waiting for Wells Fargo to present a proposal.
• Once we have activity with the commercial account, we can request an open line of credit

​

CHARTER ASSET MANAGEMENT (Alternative Option but more costly)

​

• Functions more like a loan (last time we checked in, the rates are prime (today is approx. 8.5%) plus a percentage (additional 3.5%)

​

JP MORGAN CHASE

​

• JP Morgan was not interested in offering lines of credit to customers acquired through the First Republic Bank closures

​

​

Important Finance Committee Updates

SB 740 Payments from CDE -

122

Update

​

• In May 2024, California School Finance Authority returned our message after numerous previous attempts to contact them and indicated that we should expect our first two installments out of three within 4-5 weeks.

​

• Today, we have yet to receive any payment for FY24 and will continue to follow up. The dollar pending even for the first two installments is $1.5m approximately. The total amount we can expect to receive is just shy of $2m.

Important Finance Committee Updates

ERC (Employee Retention Credit)

123

Update : The Following is Direct Message Update Regarding ERC:

​

• First, the IRS will process payments for 50,000 ERC claims in the coming weeks, meaning these payments should start arriving sometime in September 2024. While helpful, this amount reflects only 3.5% of the estimated 1.4 million outstanding ERC claims currently in queue with the IRS. As a reminder, ERC refund claim notices and payments arrive via USPS regular mail and at this time we do not know which, if any, of our clients will be included in this initial batch of payments. Please send me any notice(s) you receive related to the ERC immediately for review.

​

• Second, the announcement reported that the IRS will now begin processing claims filed from September 14, 2023 - January 31, 2024. Previously, the IRS stated that no claims filed during this period would be processed, as they were submitted after the IRS instituted its moratorium; we have not seen any indication regarding the speed at which the IRS will process claims filed within that time period. Processing for ERC claims filed from February 1, 2024 - present continue to be paused, and we will await guidance related to filing for those clients.

​

• Third, the IRS acknowledged some errors that it made related to its denial of 28,000 ERC claims over the past month. A few of our clients received denial letters and we are appealing each one on their behalf with the goal of overturning what we believe to be erroneous denials.

​

• In a separate announcement, the IRS stated it is reopening its voluntary disclosure program related to improper ERC claim filings; this program will be open until November 22, 2024.

​

Important Finance Committee Updates

Release of Funding from Willmington Trust for Facilities

124

Update - “Upon Completion of the Project” the following are the high level next steps:

​

​

(A) the Completion Certificate

​

(B) a written request of the Borrower and

​

(C) delivery of an Opinion of Bond Counsel substantially to the effect that such transfer would not, in and of itself, adversely affect the exclusion from gross income for federal income tax purposes of interest on the Tax-Exempt Bonds. Upon such transfer, the Project Fund shall be closed.

Important Finance Committee Updates

New PMA w/ PCSD (100K for up to 1.7M).

125

Project Purpose - The project is for additional improvements for the Lodestar campus located at 701-735 105th Ave, Oakland, CA and Lighthouse campus located at 444 Hegenberger, Oakland, CA, including additional

classroom and bathroom space, administrative space and TK play area.

​

Cost - PCSD Project Management cost is $100k with total project costs estimated to be approximately $1.7M

Project Management Agreement - PCSD

​

Capital Improvement Project Updates & Looking Ahead 2024-27 (Presented at the August 7 2024 Board Meeting

2024-25 Enrollment and Attendance Strategy

​

• Today:
• 1562 with 22 accepted offer / not yet registered
• 93.8% attendance
• Table Below: approximations at 1575 students at a range of 90% to 94% attendance.

Enrollment / Registration Update

Board of Directors - 8/7/24

LCPS Finance Report

2024-25 Timeline Overview

Month to Month - where we are headed!

128

2023-24 Intent to Return (Updated 8/2/2024)

Current Family Responses

We had 1449 students / families respond to our “Intent to Return” process this month (out of 1450 students - omitting seniors)

​

Highlights:

• 99.9% response rate
• 1377 “Yes” - 94.9%
• 37 “Maybe” - 2.5%
• 35 “No” - 2.4%
• ~ half of this group shared they are leaving Oakland / out of area
• 1 did not respond

​

​

2023-24 Lottery and Enrollment (8/2/2024)

1645 (Intent to Return + Accepted Offer); 1583 registered / 1630

• Continued movement of families out of area, as well as new applications.
• 1530 students have completed all their registration requirements as of July 12th.
• We are focused on TK-2 recruitment across both sites, and 6th, 9th, and 10th grades at Lodestar.

​

Enrollment / Registration Update

Board of Directors - 7/17/24

LCPS Finance Report

2023-24 Intent to Return (Updated)

Current Family Responses

We had 1448 students / families respond to our “Intent to Return” process this month (out of 1450 students - omitting seniors)

​

Highlights:

• 99.9% response rate
• 1378 “Yes” - 95.2%
• 34 “Maybe” - 2.3%
• 31 “No” - 2.1%
• half of this group shared they are leaving Oakland / out of area
• 2 did not respond

​

​

2023-24 Lottery and Enrollment

1621 (Intent to Return + Accepted Offer) / 1630

• Continued movement of families out of area, as well as new applications.
• 1530 students have completed all their registration requirements as of July 12th.
• We are focused on TK-2 recruitment across both sites, and 6th, 9th, and 10th grades at Lodestar.

​