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Finance Committee

02/22/23

Dashboard & 2nd Interim

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FY23 LCPS Fiscal Dashboard

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<28 ADA>

<40>

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TODAY: FY23 Summary of Key Metrics for Bond Covenant (2/21)

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Key Metrics / Bond Covenant	Current (Feb, 2023)	Dashboard
Our Debt Coverage Ratio is important This is defined as LCPS’s ability to cover our debt service Our bond covenant sets this at 1.1	1.92 debt coverage ratio
Our Days Cash on Hand is important This is defined as our current cash divided by our operating expenses divided by 365 days; our daily cash rate is ~$88K Our bond covenant sets our days cash at 45 days	71 days (+10 days) from December) of cash on hand projected for end of year 73 days “hard” cash on hand as of February
Bond Covenant (June 2023 Projections) The bond covenant includes cash and 3 months of accounts receivables�	108 days (+8) Bond Covenant cash on hand 71 days (+10) “hard” cash projected at the end of fiscal year

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Second Interim Highlights

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Enrollment and Attendance = ADA

FY23 Enrollment =

2^nd Interim ~ 1,554 vs. 1,600 Budgeted (June, 2022)

FY23 2^nd Interim ADA =

~ 1,399 (90% attendance rate) vs. budgeted 1,440 (90%)

Current Enrollment in Aeries: 1560
Current ADA in Aeries: 1412
Gaps at Lodestar in K, 4th, 7th, and HS grades (~10 students per grade)

Cash

FY23 cash = to 71 days cash on hand (Daily operating expenses are ~$88k)
Current average of 71 Days cash on hand does not include days liquidity
Based on updated cash flow projections, days liquidity is closer to ~108 Days

Revenues Changes from Original Budget

Increases ~$6.7MM

$2.5MM Cola augmentation (6.28%)
$1.4MM Roger’s Foundation Grant
$1.0MM Learning Recovery Emergency Block Grant (Total award = $2.8m and expires in FY26)
$850k from California Community Schools Partnership Program (CCSPP)+
$350k from increase use of ESSER funds
$250k from California Technical Education Incentive Grant
$250k Educator Effectiveness (Prior Year Deferral)
$100k Local Measure G1 funds

Decreases ~$2.4MM

<$800k> Nutrition Service reimbursement lowered due to participation rates (55%)
<$1.5MM> LCFF due to decrease to ADA and adjustment to concentration portion calculation

Nutrition Service reimbursement lowered due to participation rates (55%)

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Budget Revision FY 23

Feb 23 – 2^nd Interim

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Changes in Assumptions from June Projection vs. Second Interim

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Expenses

Compensation -

Salaries for most filled positions were set after June; the updated salary and benefits line is accounted in the 1st interim report

Benefits -

Estimated a rate of 24%; actuals are closer to ~22

Books and Supplies -

Reduced the amount of meals as the student participation rate is closer to 55%.

Services and Other Operating Expenditures -

Service contracts increased to account for SPED positions we couldn’t fill
Additional SPED service costs for speech pathology, translation services, and other services.

Debt Service and Rent - Includes revised lease amounts per bond agreement

Revenues

LCFF 6.28% Cola Augmentation, Changes in SB 740 Reimbursements, Rogers Foundation Grant - �
3 New State Grants -�Did not receive formal documentation of 3 new grants

California Community Schools Partnership Program (CCSPP)
Career Technical Education Incentive Grant (CTEIG),
Learning Recovery Emergency Block Grant

1 Prior Year Deferral Grant –

Educator Effectiveness grant was deferred from prior year

Nutrition Services (Federal Funds) -

The direct impact of implementing universal meals participation patterns were not known.

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Budget Revisions Current Year Operations

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Budget Revisions w/Fund Balances for Operations

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FY23 Expenses by Category

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FY23 Second Interim & Year to Date Actual Expense (% of Year Completed = 58%)