Good financial news for local campuses

Considering the many financial difficulties faced by public schools in past years, reporting on a continuing trend of good economic news for Placentia-Yorba Linda campuses is a pleasure.

Here's the latest:

--A state-required interim report on the local district's financial solvency recently submitted to the county schools superintendent shows “the district can meet its financial obligations for the year ending June 30, 2016, and two subsequent years.”

The upbeat document from James Pham, the district's director of fiscal services, notes that revenue is expected to total nearly $252 million, with about $1.7 million left after all the bills are paid at the end of the current fiscal year.

And, although expenditures are expected to exceed income for both of the next two years, the district's reserve balance “designated for economic uncertainties” will remain in the $12 million range, with unappropriated reserves very close to five percent of budget for all three years.

This year's enrollment is 25,636, projected to drop 138 students next year and 155 more the following year. Average daily attendance will approach 97 percent for 185 days of instruction.

Pension costs will rise from this year's 10.73 percent of payroll to 12.58 percent in 2017 and 14.43 percent in 2018 in the State Teachers Retirement System and from 11.85 percent this year to 13.05 percent in 2017 and 16.6 percent in 2018 in the Public Employees Retirement System.

--A savings of $13.4 million could come from issuing new “certificates of participation” with a principal amount not to exceed $88 million to prepay certificates issued in 2006 and used to build Yorba Linda High School and refinance a 2003 lease payment obligation.

“The current market has reached historic lows and refunding the 2006 certificates produces significant savings,” Assistant Superintendent David Giordano reported to trustees at a recent meeting.

Savings will be reduced by expenses in issuing new certificates and refunding the older ones.

--An incentive for teachers to not wait until the end of the school year to announce retirements or resignations will double this year to $2,000, if they give notice by Jan. 15. The usual $1,000 incentive will apply for teachers who provide notice from Jan. 16 through March 1.

The notifications “can help in the early recruitment and retention of highly qualified teachers,” according to officials. “The sooner an employee notifies the district of their intent to terminate their employment, the earlier we are able to offer a contract to a potential teacher.”

--Solar power systems mounted on carports and shade structures might meet some of the district's energy needs, if a $48,625 feasibility study shows promise. Vendor selection and contract and design reviews costing $93,750 could come next, based on the study results, according to a report by Paul Juarez, the district's energy conservation specialist.