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.