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Home My WebLink About01-23-12 BOT Agenda PacketThe Regular Meeting of the Board of Trustees will begin immediately following the conclusion of the Board of Trustees Workshop but not prior to the posted start time. Mission Statement Westlake Academy is an IB World School whose mission is to provide students with an internationally minded education of the highest quality so they are well-balanced and respectful life-long learners. Page 1 of 3 WESTLAKE ACADEMY Vision Statement Westlake Academy inspires students to achieve their highest individual potential in a nurturing environment that fosters the traits found in the IB Learner Profile. Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-Minded, Caring, Risk-takers, Balanced and Reflective BOARD OF TRUSTEES MEETING AGENDA January 23, 2012 WESTLAKE TOWN HALL 3 VILLAGE CIRCLE – 2ND FLOOR WESTLAKE, TX 76262 COUNCIL CHAMBERS/MUNICIPAL COURT ROOM Workshop Session 5:30 p.m. Page 2 of 3 Workshop Session 1. CALL TO ORDER 2. REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Board Member requests that report be removed and considered separately. a. Discussion of the Quarterly Financial “Dashboard” report for the quarter ended November 30, 2011. 3. DISCUSSION ITEMS a. Discussion of Westlake Academy Financial Forecast, Enrollment, and Facilities’ Needs. (1 hour) 4. EXECUTIVE SESSION The Board will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071(2) – Consultation with School Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Charter amendment 5. RECONVENE MEETING 6. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. 7. BOARD RECAP / STAFF DIRECTION Page 3 of 3 8. ADJOURNMENT ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, on January 19, 2012, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Kelly Edwards, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Board Member requests that report be removed and considered separately. a. Discussion of the Quarterly Financial “Dashboard” report for the quarter ended November 30, 2011. Westlake Academy Item # 2– Reports Page 1 of 2 WESTLAKE ACADEMY AGENDA ITEM Curriculum: Finance Meeting Date: January 24, 2011 Staff Contact: Debbie Piper Workshop Finance Director Subject: Quarterly Financial “Dashboard” report for the quarter ended November 30, 2011 and Local Grant Summary EXECUTIVE SUMMARY The 1st quarter “Dashboard” report for the FY 2011-2012 is attached. Our goal is to have a concise and easy to understand document regarding the financials of our Academy operating fund – General Fund. The remaining funds are grant funds related to federal, state and local funds with specific requirements as to the expenditures. The columns represent: (1) Adopted Budget with (2) a 3 month YTD calculated column and (3) the “Actual YTD” as of 11/30/2011. This actual number is compared to the calculated column (2) giving you the (4) percentage variances. A summary is presented at the bottom of the page indicating the net revenues over (under) expenditures along with the projected ending fund balance for the Adopted Budget and the Actual YTD. The operating days remaining in Fund Balance have been calculated using operating expenditures. Please note the “Analysis” is color coded and corresponds to the specific line-item on the “Dashboard” report. All “cautionary” and “critical” items are detailed with explanations of the variances. Beside each major category or function on the analysis report, you will find a number that reflects the exact variance in that function/line-item that corresponds to the percentage on the “Dashboard”. Also included is a summary of all expenditures related to the Academy, including grants and expenditures to date. This will give the Board an all-inclusive picture of the total operating costs of the Academy. APPLICABLE STRATEGIC PLAN DESIRED OUTCOME High Student Achievement Strong Parent & Community Connections Financial Stewardship & Sustainability Student Engagement – Extracurricular activities Effective Educators & Staff WESTLAKE ACADEMY VALUES Maximizing Personal Development Academic Excellence Respect for Self and Others Personal Responsibility Page 2 of 2 Compassion and Understanding FISCAL IMPACT Funded Not Funded N/A RECOMMENDATION / ACTION REQUESTED/ OPTIONS No action required ATTACHMENTS: • FY 2011-2012 Local Grants – Quarter Ended 11/30/11 • Quarterly Financial Dashboard – Quarter Ended 11/30/11 • Analysis of Dashboard for Quarter Ended 11/30/11 Annual Budget/Total Expended Grant Amount To-Date Balance General Fund 5,334,446$ 1,465,256$ 3,869,190$ Grants: IDEA - Part B, Formula (Special Ed)61,541 31,012 30,529 Education Jobs Grant 91,375 24,992 66,383 Fund 100 12,937 4,955 7,982 Hudson Foundation 73,430 22,869 50,561 Westlake Academy Foundation 337,598 120,954 216,644 Sub-Total Grants 576,881 204,782 372,099 Total Expenditures 5,911,327$ 1,670,038$ 4,241,289$ General Fund Includes Athletic Activities and Transportation/Parking Funds IDEA - Part B, Formula This fund classification is to be used to account, on a project basis, for funds granted to operate educational programs for children with disabilities. Education Jobs Fund This federal program provided $10 billion in assistance to states to save or create education jobs. Jobs funded under this program are exclusively for school-level employees that provide educational and related services for early childhood, elementary, and secondary education. Fund 100 This locally defined fund is used to account for grants awarded to the Academy by the Westlake Academy Foundation to be used to develop, retain, and recruit "legacy teachers"; educators who make a positive and lasting difference in the lives of students they teach. Hudson Foundation These funds represent various grants received from the Hudson Foundation Westlake Academy Foundation These funds represent various grants received through-out the fiscal year from the Westlake Academy Foundation, i.e. technology, recruitment, etc. EXPENDITURES WESTLAKE ACADEMY Quarter Ended 11/30/11 1 Prior Yr ACTUAL ADOPTED 3 month Annual 3 months YTD Actual Budget YTD 11/30/2011 Dashboard Local Interest Earned 441$ 1,500$ 375$ 629$ 167.7% Local Gifts and Donations-BS 321,297 627,000 156,750 297,197 189.6% Local WAF Salary Reimbursement 14,262 31,662 7,916 14,847 187.6% Local Other Local Revenue 2,772 15,000 3,750 21,464 572.4% Local Athletics 12,024 37,980 9,495 17,068 179.8% Local Transportation Fees - 25,000 6,250 13,878 222.0% Local Parking Fees 7,106 12,840 3,210 8,490 264.5% Local Food/Beverage - 3,000 750 - 0.0% State State Foundation Revenue 859,469 4,281,649 1,070,412 880,750 82.3% State TRS On-behalf - 208,437 - - 100.0% TOTAL 1,217,371$ 5,244,068$ 1,258,908$ 1,254,322$ 99.6% Positive Cautious Negative >95%75% - 95%< 75% Prior Yr ACTUAL ADOPTED 3 month Annual 3 months YTD Actual Budget YTD 11/30/2011 Dashboard Instructional 11 709,853$ 2,839,281$ 877,811$ 911,669$ 103.86% Resources & Media 12 20,734 90,134 27,866 27,071 97.15% Curriculum and Staff Dev 13 7,638 87,800 27,145 12,812 47.20% Instructional Leadership 21 38,278 131,742 40,730 51,233 125.79% School Leadership 23 75,779 333,805 103,201 89,961 87.17% Guidance & Counseling 31 42,738 220,628 68,211 73,906 108.35% Health Services 33 19,167 59,700 18,457 15,414 83.51% Food Services 35 3,241 9,657 2,986 2,734 91.57% CoCurricular Activities 36 21,041 122,726 37,943 22,021 58.04% Administration 41 91,289 601,746 186,040 69,878 37.56% Maintenance & Operations 51 89,564 587,169 181,533 95,464 52.59% Data Processing 53 42,703 159,874 49,428 60,082 121.56% Community Services 61 16,593 66,244 20,480 29,021 141.70% Facility Acquisition/Construction 81 23,940 7,401 3,990 53.91% TOTAL 1,178,618$ 5,334,446$ 1,649,233$ 1,465,256$ 88.84% Payroll & Related 61xx 969,864$ 3,772,080$ 1,166,201$ 1,260,125$ 108.05% Prof & Contracted Srv 62xx 127,015 962,025 297,426 128,914 43.34% Supplies & Materials 63xx 36,950 258,447 79,903 39,540 49.48% Other Operating Costs 64xx 44,790 341,894 105,702 36,677 34.70% TOTAL 1,178,619$ 5,334,446$ 1,649,233$ 1,465,256$ 88.84% Positive Cautious Negative < 100%101%-110%>111% Prior Yr Adopted Adopted YTD 3 month Annual YTD Actuals Actual Budget Budget 11/30/2011 38,752$ (90,378)$ (390,325)$ (210,934)$ 36,967 - - (49,807) - - Beginning Fund Balance (Audited)**767,490 914,660 914,660 914,660 Ending Fund Balance 806,242 811,442 524,335 703,726 Assigned Fund Balance 114,838 103,684 103,684 103,684 Ending Fund Balance (Unassigned)691,404$ 707,758$ 420,651$ 600,042$ # of Operating Days 57 48 29 41 Daily Operating Cost $12,123 $14,615 $14,615 $14,615 Expenditure Legend: SUMMARY Net Revenues Over (Under) Exp Other Resources Other Uses WESTLAKE ACADEMYGeneral Fund Quarter Ended 11/30/11 OBJECT CODES REVENUES ADOPTED BUDGET Revenue Legend: EXPENDITURES ADOPTED BUDGET FUNCTION 2 WESTLAKE ACADEMY Analysis of Dashboard for Quarter Ended 11/30/2011 GENERAL FUND REVENUES WAF Salary Reimbursement – 187.6% (+$6,931) • Executive Director received an increase effective 10/1 • The general ledger is used by the Finance Department to determine the 50% reimbursement amount from the Foundation. Finance will be meeting with Region XI Educational Service Center (service center) to verify these amounts. Other Local Revenue - 572.4% (+$17,714) • Revenues were re-classed from Trust &Agency (T&A) accounts to General Fund due to the nature of the expenditures. Art, drama, and DP Spanish fees are examples of T&A accounts being moved into the General Fund. In addition, the back to school fees collected, from the approximately 100 new students, were not included in the adopted budget. Athletics – 179.8% (+$7,573) • Difficult to calculate a 3 month revenue expectation due to the various sports and the timing of the fees paid for each Transportation Fees – 222% (+$7,628) • Transportation Fees - budgeted $25K - received approximately $13,328 in transportation revenue through “Back to School” fees. After adopting the current budget the administrative team made the decision to not charge additional transportation fees for athletic transportation in the Academy owned vehicles for FY 11/12 school year. This will reduce the transportation revenues by approximately $12,500 over the fiscal year. Parking Fees – 264.5% (+$5,280) • Parking Fees - budgeted $12,840 - collected $8,490. Additional funds are anticipated to be collected through the end of the school year. • Majority of parking fees received at beginning of the fiscal year Food and Beverage - 0% (-$750) • The Academy contracts with Victual to cater lunch for the students. First quarter payment has not been received to-date. 3 WESTLAKE ACADEMY Analysis of Dashboard for Quarter Ended 11/30/2011 GENERAL FUND State Foundation Revenue – 82.3% (-$189,662) • The Academy increased enrollment by approximately 100 students in the current fiscal year. The TEA sets the payment schedule based on the prior year’s attendance records. The Academy has been receiving payments based on FY 10/11 enrollment until the December payment and will now make up for the shortfall through the remaining months of the fiscal year. • The Academy projected student enrollment of 627 students and currently has 611 enrolled due to student turnover. The Academy started the year with 621 students and is in the process of on-boarding students to backfill the recent student turn-over. Because much of the turnover prior to the school year starting occurred in the DP programme, those positions were not able to be completely backfilled. We are in the process of on- boarding new students which will increase enrollment to approximately 621 students. EXPENDITURES Instructional – 103.86% ($33,858) • $78,391 – Payroll overage is due to accruals. The payroll calculation for the 3 month projection is based on 7 out of 26 payrolls. (3.71 months) This calculation will be a little low because more expenditures are booked than paid out at the beginning of the fiscal year. This is because the teachers are paid over 12 months and only work 10 months. In other words, what they earn is booked as an expenditure during each pay period, but what they are actually paid is less than this amount and booked as a liability. Their summer months are paid from this liability account . This overage “evens out” by year- end. • We are working with the service center on several teachers who are allocated incorrectly to various functions and should have corrected by the end of January. Instructional Leadership – 125.79% ($10,503) • $11,658 – Payroll overage is due to accruals. • Same explanation as above Guidance & Counseling - 108.35% ($5,695) • $2,007 – Payroll – As stated previously, Finance will be reviewing ALL payroll accounts with service center • $2,790 – Software license was paid at beginning of year. 4 WESTLAKE ACADEMY Analysis of Dashboard for Quarter Ended 11/30/2011 GENERAL FUND Data Processing - 121.56% ($10,654) • $13,847 – Payroll – Maru Busico deFlight is coded incorrectly to this function. She was moved to 100% Function 11 (Teaching). Funds will be re-classed to Function 11. Community Services - 141.70% ($8,541) • $8,541 – Payroll - Executive Director received an increase effective 10/1/11 which was more than the adopted budget. We have confirmed we have paid the correct amounts but working with service center regarding the amounts posted to the general ledger. 5 DISCUSSION ITEMS a. Discussion of Westlake Academy Financial Forecast, Enrollment, and Facilities’ Needs. (1 hour) Westlake Academy Item # 3 – Discussion Items Page 1 of 3 WESTLAKE ACADEMY AGENDA ITEM Curriculum: PYP/MYP/DP Meeting Date: January 23, 2012 Staff Contact: Tom Brymer, Discussion Superintendent Subject: Discussion of Westlake Academy Financial Forecast, Enrollment, and Facilities’ Needs EXECUTIVE SUMMARY This agenda item is a follow-up to Board discussion and information on this topic presented by Staff at the January 9, 2012 Workshop. At that meeting, the Board indicated a consensus that favored school enrollment and facility expansion. However, the Board requested additional information regarding another phased option focused on starting enrollment growth in the PYP grades (K-5) to deal with growth and provide for facility needs. Academy facility needs identified in the March 2011 Project Management Services, Inc. Report (i.e. “the Hayes Report”) are:  PYP Cafetorium  Middle School Building  High School Building  Performance Hall (shell only)  Primary Bldg Addn.  Media Center That option would perform as follows:  Year 1 (FY 11-12) of the 5 year planning period: design a PYP cafetorium  Year 2 (FY12-13) of the 5 year planning period: construct the PYP cafetorium, as well as purchase/install additional portable buildings  Year 3 (FY 13-14) of the 5 year planning period: a.) open the new PYP cafetorium, b.) increase PYP enrollment (K-5) to 5 sections adding 365 students, c.) bring on additional teachers, d.) begin utilizing the new portable buildings, and d.) design the remaining $13 million in identified campus improvements.  Year 4 (FY14-15) of the 5 year planning period: commence construction of the remaining $13 million in campus improvements, as well as increase G6-12 student enrollment by 100 students by increasing class size to 25.  Year 5 (FY15-16) of the 5 year planning period: open the new $13 million of new campus facilities, as well as expand the Secondary Grades student enrollment by adding a fourth section (149 new students) As a part of the Council’s 2010 evaluation of the Superintendent, a performance goal for that position was established to create a long-range facility plan for Westlake Academy. This was driven by the fact that the Board had approved moving forward with an expanded block schedule for the secondary grades, which required additional students. These additional students were necessary to populate the desired new courses that would be offered which, in turn, required additional teachers and the use of portable buildings. Use of portable buildings increased the Board’s desire to have a long range plan for permanent campus facilities. Page 2 of 3 The Superintendent applied for a grant from the Hudson Foundation to hire a professional school facility planner. The Town used this grant award to retain the services of Project Management Services, Inc., led by Mr. Peter Hayes, a firm that has performed facility planning for several Texas charter schools. Mr. Hayes presented his report to the Board at their March 12, 2011 workshop. The report identified the need for $13-15 million in campus facilities. Further, the report contained recommendations on self-funding of these facilities via a large enrollment increase. Board direction at that time was to schedule time at the Board’s annual planning retreat for further discussion of what we now call the “Hayes Report”. At the Board’s May 20, 2011 planning retreat, the Hayes Report was reviewed in greater detail with the various projects in it broken down into capital projects and included in a draft of the Town’s five (5) year Capital Improvement Plan. This was done so that the debt issuance required to implement Hayes’ recommendations could be examined in conjunction with all Town capital project requirements over this period. At this planning retreat, the Board’s direction to Staff was to examine the feasibility of a more phased, incremental approach, as opposed to the approach for facility construction recommended by the Hayes Report (which requires a large enrollment increase to fund the facilities identified which would be constructed at one time). During the Board’s June 9, 2011 budget workshop on the WA 2011-12 Budget, the Board gave direction to have further Board discussion of this topic at an upcoming workshop. This item was on the Board’s September 12, 2011 workshop agenda where additional incremental options were presented by the Staff for Board discussion. At this workshop, the Board requested some additional options be examined and brought back to them for further discussion at a future workshop. Following the September 12, 2011 Board workshop, Staff had numerous planning sessions, including one all-day session, to examine the campus facility needs, the Hayes Report recommendations, the phased options presented on September 12th, as well as the additional options the Board requested at that time. At the December 5, 2011 Board Workshop, per the Board’s request in September, the Staff presented another report that identified other options that might be viable. In that report, each option, whether new or previously identified, was discussed and examined by Staff within the following context: 1.) Does the option advance WA’s vision, values, and mission? 2.) Does the option achieve our Strategic Plan’s desired outcomes, thus moving us closer to our Vision, Values, and Mission? 3.) Does the option provide for the Academy’s future financial viability (without which we cannot achieve our Vision)? At the January 9, 2012 workshop, Staff provided the Board with a report answering their questions from the December 5, 2011 workshop. The Board indicated a consensus that favored enrollment expansion, but wished to have the additional option described above (i.e. begin with PYP enrollment growth) explored further. That analysis will be provided at this workshop. It should be noted that, during the entire course of these discussions, the Staff has provided the Board with financial forecasts that show the Academy’s current operating deficit, and how each option contributes to removing it or making it larger, while at the same time addressing or not Page 3 of 3 addressing the campus’ facilities. APPLICABLE STRATEGIC PLAN DESIRED OUTCOME High Student Achievement Strong Parent & Community Connections Financial Stewardship & Sustainability Student Engagement – Extracurricular activities Effective Educators & Staff WESTLAKE ACADEMY VALUES Maximizing Personal Development Academic Excellence Respect for Self and Others Personal Responsibility Compassion and Understanding FISCAL IMPACT Funded Not Funded N/A Note: Fiscal impacts of the various options have been identified in order to facilitate the Board’s deliberations on this subject at its workshops. Each of the options has varying financial impacts- some positive, some negative. RECOMMENDATION / ACTION REQUESTED/ OPTIONS Review the information presented followed by Board discussion and provide direction to Staff on this topic. ATTACHMENT: 1. Additional analysis on the option describe above with financial analysis will be sent out under separate cover. 2. Excerpt from Town of Westlake Municipal Adopted Budget 2011-12 Fiscal Policies. 3. Excerpt from Westlake Academy Adopted Budget 2011-12 Fiscal Policies. 4. Option Financial Analysis from 12-5-11 Report to Board on Academy Expansion Options. 5. Desired Outcome Analysis on Options Discussed in 12-5-11 Report to Board on Academy Expansion FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS K. Performance Measures & Productivity Indicators - Where appropriate, performance measures and productivity indicators will be used as guidelines to measure efficiency, effectiveness, and outcomes of Town services. This information will be included in the annual budget process as needed. L. Contingent Appropriation - During the budget process, staff will attempt to establish an adequate contingent appropriation in each of the operating funds. The expenditure for this appropriation shall be made only in cases of emergency, and a detailed account shall be recorded and reported. The proceeds shall be disbursed only by transfer to departmental appropriation. All transfers from the contingent appropriation will be evaluated using the following criteria: • Is the request of such an emergency nature that it must be made immediately? • Why was the item not budgeted in the normal budget process? • Why can’t the transfer be made within the department? IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Town will pursue the following optimum characteristics in its revenue system: • Simplicity - The Town, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase citizen understanding of Town revenue sources. • Certainty - A knowledge and understanding of revenue sources reliability increases the viability of the revenue system. The Town will understand, to the best of its ability, all aspects of its revenue sources and their performance, as well as enact consistent collection policies to provide assurances that the revenue base will materialize according to budgets, forecasts, and plans. • Equity - The Town shall make every effort to maintain equity in its revenue system: i.e. the Town shall seek to minimize or eliminate all forms of subsidization between entities, funds, services utilities, and customer classes within a utility. • Administration - The benefits of a revenue source will not exceed the cost of collecting that revenue. Every effort will be made for the cost of collection to be reviewed annually for cost effectiveness as a part of the Town’s indirect cost and cost of service analysis. • Adequacy, Diversification and Stability - The Town shall attempt, in as much as is practical, to achieve a balance in its revenue system. The Town shall also strive to maintain a balanced and diversified revenue system to protect the Town from fluctuations in any one source due to changes in local economic conditions which adversely impact that revenue source. B. OTHER CONSIDERATIONS. The following considerations and issues will guide the Town in its revenue policies concerning specific sources of funds: • Cost/Benefit of Incentives for Economic Development - The Town will use due caution in the analysis of any tax or fee incentives that are being considered to encourage economic development. A cost/benefit (fiscal impact) analysis will be performed as a part of the evaluation for each proposed economic development project. • Non-Recurring Revenues - One-time or non-recurring revenues will not be used to finance on-going operational costs. Non-recurring revenues will be used only for one- time expenditures such as long-lived capital needs or one-time major maintenance projects that occur infrequently. Non-recurring revenues will not be used for budget 306 FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS balancing purposes except to cover the one-time expenditures described above. • Investment Income - Earnings from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the equity balance of the fund from which monies were provided to be invested. • Property Tax Revenues - The Town shall endeavor to avoid a property tax by revenue diversification, implementation of user fees, and economic development. C. USER-BASED (DEMAND DRIVEN) FEES AND SERVICE CHARGES. For services that are demand driven and can be associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. The Town staff will endeavor to prepare a review of all fees and charges annually, but not less than once every three years, in order to ensure that these fees provide for, at minimum, full cost recovery of service. D. ENTERPRISE FUND RATES. Utility rates and rate structures for water and sewer services will be constructed to target full cost of service recovery. Annually the Town will review and adopt water and sewer utility rates and a rate structure that generates revenue sufficient to fully cover operating expenses, meet the legal restrictions of all applicable bond covenants, provide for an adequate level of working capital, and recover applicable general/administrative costs. The Solid Waste function will have rates that fully recover all costs and maintain an adequate balance. The Cemetery Fund will be structured to operate on lot sales and endowments. • General and Administrative (G&A) Charges – Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, customer billing, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. These charges will be determined through an indirect cost allocation study following accepted practices and procedures. E. INTERGOVERNMENTAL REVENUES. As a general rule, intergovernmental revenues (grants) will not be utilized for on-going operating costs. Any potential grant opportunity will be examined to identify all costs related to matching and continuation of program requirements. Staff will focus on one-time grants to avoid long-term implications. If it is determined that accepting a grant with on-going cost conditions is in the interests of the Town, all the operating and maintenance costs must be included in the financial forecast and their ultimate effect on operations and revenue requirements be known. F. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL A. Appropriations – The point of budgetary control is at the department level in the General Fund and at the fund level in all other funds. When budget adjustments among Departments and/or funds are necessary, they must be approved by the Town Council. B. Current Funding Basis - The Town shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) 307 diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. B. REVENUE CLASSIFICANTION AND SOURCES. The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local and come from the following sources : • State Education funding • State and Federal Grants • General Donations – The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. o Westlake Academy Foundation o House of Commons o Westlake Academy Athletic Club o Local Merchants • Specific Purpose Donations – Funds donated for a specific purpose C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL • Appropriations – The point of budgetary control is at the function level in the General Fund and Special Revenue Funds. When budget adjustments among functions are necessary, they must be approved by the Board of Trustees. • Current Funding Basis - The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) • Avoidance of Operating Deficits - The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of fund balance within the Fund. Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees.  Expenditure deferrals into the following fiscal year, short-term loans, or use of one-time revenue sources shall be avoided to balance the budget. • Periodic Program Reviews - The Superintendent or his designate shall undertake periodic staff and third-party reviews of Academy programs for both efficiency and effectiveness. Where appropriate, privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. • General and Administrative (G&A) Charges – To the extent practical, an annual analysis of G&A charges will be performed and funding allocated, if available. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy Page 51 operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. The charges will be determined through an indirect cost allocation study following accepted practices and procedures. • Purchasing - The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services. • Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. • Salary - The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools, to create a comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of surveyed schools. VI. FUND BALANCE • Fund Balance Reporting - The District shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Nonspendable, Restricted, Committed, Assigned, and Unassigned. • General Fund Unassigned Fund Balance - The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation. • Use of Fund Balance - Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Board of Trustees shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year- end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action. The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. The Board of Trustees shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned VII. INTERGOVERNMENTAL RELATIONSHIPS • Inter-local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of services, the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its students. Page 52 Su m m a r y of Ex p a n s i o n Op t i o n s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 22 23 24 25 26 27 28 29 30 A B C E G I J K L M N O P T U V W X Y Z A A A B A C De s c r i p t i o n To t a l # of St u d e n t s To t a l # of Te a c h e r FT E s To t a l # of St a f f FT E s Av g . # of Pr i m a r y St u d e n t s pe r Cl a s s Av g . # of Se c o n d a r y St u d e n t s pe r Cl a s s Ti m e to Co m p l e t i o n FF E & Se t u p Co s t s D e s i g n Co s t s Ca p i t a l Co n s t r u c t i o n Co s t s De b t Se r v i c e & Le a s e Co s t s # of Po r t a b l e Bu i l d i n g s Fa c i l i t y Size Sq / F t Ending Fund Balance FY 11/12Ending Fund Balance FY 12/13Ending Fund Balance FY 13/14Ending Fund Balance FY 14/15Ending Fund Balance FY 15/16Ending Fund Balance FY 16/1745‐Day Reserve RequirementUnassigned Fund Balance FY 11 / 1 2 ‐ Ba s e l i n e Da t a 6 2 1 4 4 2 3 . 2 2 0 2 0 0 $ ‐ $ ‐ $ ‐ $ ‐ 63,000 $ 657,001 $ 502,101 $ 336,152 $ (8,356) $ (375,124) $ (884,632) $ ‐ $ ‐ Op t i o n 1‐A4 Se c t i o n GK ‐ G1 2 (G 6 in MY P ) 1 , 1 5 0 7 8 . 4 3 3 . 0 2 0 2 5 2 yr s 4 mo s 1 , 3 0 2 , 7 7 9 11 , 7 2 5 , 0 0 9 87 0 , 0 0 0 11 2 , 3 9 0 657,001 502,101336,152291,080248,977210,0401,188,008(977,968) Op t i o n 1‐B4 Se c t i o n (G 6 in PY P ) 1 , 1 3 0 7 8 . 4 3 3 . 0 2 0 2 5 2 yr s 4 mo s 1 , 3 2 5 , 2 2 9 11 , 9 2 7 , 0 6 2 88 5 , 0 0 0 11 2 , 0 1 5 657,001 502,101336,152116,969(103,420)(324,941)1,167,347(1,492,287) Op t i o n 2‐A5 Se c t i o n Pr i m . & 4 Se c t i o n Se c . (G 6 in PY P ) 1 , 2 7 0 8 8 . 0 3 5 . 0 2 0 2 5 2 yr s 4 mo s 1 , 5 1 2 , 9 1 6 13 , 6 1 6 , 2 4 0 98 3 , 0 0 0 12 9 , 0 9 0 657,001 502,101336,1521,341,7511,725,3582,124,9241,311,974812,950 Op t i o n 2‐B5 Se c t i o n Pr i m . & 4 Se c t i o n Se c . (G 6 in MY P ) 1 , 2 7 0 8 9 . 4 3 5 . 0 2 0 2 5 2 yr s 4 mo s 1 , 4 8 2 , 1 8 8 13 , 3 3 9 , 6 9 2 99 0 , 0 0 0 11 8 , 8 8 3 657,001 502,101336,152301,751271,358250,9241,311,974(1,061,050) Op t i o n 34 Se c t i o n GK ‐ G1 2 (p h a s e d ) 1 , 1 5 0 7 8 . 4 3 3 . 0 2 0 2 5 3 yr s 1 , 3 0 4 , 4 8 8 11 , 7 4 0 , 3 9 4 88 0 , 0 0 0 11 2 , 3 9 0 657,001 502,101336,152142,519189,009116,5721,167,357(1,050,785) Op t i o n 45 Se c t i o n Pr i m . & 4 Se c t i o n Se c . (p h a s e d ) 1 , 2 7 0 8 8 . 0 3 5 . 0 2 0 2 5 3 yr s 1 , 4 4 6 , 0 3 2 13 , 0 1 4 , 2 8 5 97 5 , 0 0 0 11 7 , 5 9 0 657,001 502,101336,152(26,703)(250,499)(195,433)1,277,145(1,472,578) Op t i o n 5 S t a t u s Qu o 6 2 1 4 4 . 1 2 3 . 2 2 0 2 0 0 ‐ ‐ ‐ ‐ ‐ 63 , 0 0 0 657,001502,101336,152(8,356)(375,124)(884,632)746,288(1,630,920) Op t i o n 6‐A3 Se c t i o n s GK ‐ G1 2 (2 0 St u d e n t s / C l a s s ) 7 7 1 5 4 . 3 3 0 . 0 2 0 2 0 U n d e f i n e d 5 7 9 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 17 6 , 0 0 0 6 79 , 5 0 0 657,001(204,685)(681,077)(1,333,233)(2,012,346)(2,863,724)912,460(3,776,184) Op t i o n 6‐B3 Se c t i o n s GK ‐ G1 2 (2 0 ‐25 St u d e n t s / C l a s s ) 8 5 9 5 4 . 3 3 0 . 0 2 0 2 5 U n d e f i n e d 5 7 9 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 17 6 , 0 0 0 6 79 , 5 0 0 657,001329,089497,912490,160472,152281,016916,102(635,086) Op t i o n 7‐A4 Se c t i o n s GK ‐ G1 2 (2 0 St u d e n t s / C l a s s ) 1 , 0 2 8 7 1 . 8 3 7 . 5 2 0 2 0 U n d e f i n e d 1 , 1 0 1 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 24 8 , 0 0 0 12 91 , 5 0 0 657,001(304,253)(355,692)(624,284)(911,106)(1,414,105)1,131,140(2,545,245) Op t i o n 7‐B4 Se c t i o n s GK ‐ G1 2 (2 0 ‐25 St u d e n t s / C l a s s ) 1 , 1 4 5 7 1 . 8 3 7 . 5 2 0 2 5 U n d e f i n e d 1 , 1 0 1 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 24 8 , 0 0 0 12 91 , 5 0 0 657,001407,4461,216,2941,806,9082,401,5572,778,8821,135,9961,642,886 Op t i o n 8‐AD P Ex p a n s i o n (4 ‐se c t i o n s ) 6 8 8 4 6 . 3 2 3 . 3 2 0 2 0 2 yr s 2 0 8 , 0 0 0 ‐ ‐ 48 , 0 0 0 4 71 , 0 0 0 657,001203,268(40,872)(441,156)(864,785)(1,439,884)791,818(2,231,703) Op t i o n 8‐BD P Ex p a n s i o n (5 ‐se c t i o n s ) 7 2 5 4 8 . 5 2 3 . 3 2 0 2 0 2 yr s 2 9 2 , 5 0 0 ‐ ‐ 60 , 0 0 0 5 73 , 0 0 0 657,001188,11469,330(209,733)(509,005)(964,134)814,109(1,778,243) Op t i o n 9 M Y P / D P Cl a s s r o o m Ex p a n s i o n 7 3 9 4 3 . 9 2 5 . 4 2 0 2 5 U n d e f i n e d 1 0 0 , 0 0 0 ‐ ‐ ‐ ‐ 63 , 0 0 0 657,001746,5491,092,4211,286,7121,472,5021,511,663763,970747,694 Op t i o n 10 O r g a n i c Gr o w t h ‐ 4 Se c t i o n PY P (2 0 St u d e n t s / C l a s s ) 9 9 1 6 6 . 4 3 2 . 5 2 0 2 0 U n d e f i n e d 8 1 9 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 20 6 , 0 0 0 9 84 , 5 0 0 657,001(49,251)1,919(53,879)(32,122)(118,527)779,124(897,651) Op t i o n 11 P h a s e d 4 Se c t i o n s GK ‐ G1 2 (2 0 ‐25 St u d e n t s / C l a s s ) 1 , 1 4 5 7 1 . 8 3 7 . 5 2 0 2 5 U n d e f i n e d 5 7 9 , 5 0 0 16 0 , 0 0 0 1, 4 4 0 , 0 0 0 24 8 , 0 0 0 12 91 , 5 0 0 657,001412,439513,9001,112,1161,625,3652,107,0821,123,126983,955 Co s t of $1 Mi l l i o n of Co n s t r u c t i o n ov e r Ti m e (U s i n g th e Co n s t r u c t i o n Co s t In d e x ) 1,000,000 1,036,400 1,074,125 1,113,223 1,153,744 1,195,741 Co s t of Op t i o n 2A ov e r Ti m e (U s i n g th e Co n s t r u c t i o n Co s t In d e x ) 15,129,156 15,679,857 16,250,604 16,842,126 17,455,179 18,090,548 As s u m p t i o n s ‐ Al l Op t i o n s PY P Te a c h e r / S e c t i o n Ra t i o 1 . 4 6 F S P ‐ St a t e Fu n d i n g / St u d e n t 6 , 6 6 7 $ MY P / D P Te a c h e r / S e c t i o n Ra t i o 1 . 1 2 B l a c k s m i t h Av e r a g e Gi f t 1 , 0 0 0 $ PY P / M Y P Re t e n t i o n 10 0 % O p e r a t i n g Co s t / S q u a r e Fo o t 5 . 4 5 $ DP Re t e n t i o n 85 % M o d u l a r Bu i l d i n g Se t u p $ / Un i t 3 5 , 0 0 0 $ Av e r a g e Da i l y At t e n d a n c e (A D A ) 9 7 % D e b t Se r v i c e Co s t / $1 , 0 0 0 0 . 0 6 5 $ Gr o w t h / I n f l a t i o n 3% I n s t r u c t i o n a l Su p p l y Co s t / St u d e n t 3 5 0 $ Wa g e s an d Sa l a r i e s he l d fl a t th r o u g h 20 1 2 / 1 3 (s t e p ‐in c r e a s e in c l u d e d ) , al l ex p e n d i t u r e s in c r e a s e at th e es t i m a t e d ra t e of in f l a t i o n , al l re v e n u e s he l d fl a t th r o u g h FY 12 / 1 3 an d in c r e a s e at th e es t i m a t e d ra t e of in f l a t i o n be g i n n i n g FY 13 / 1 4 . Hayes Plan Options Staff Options Financial Stewardship & Sustainability Status Quo Option 1-A 1,150 Option 1-B 1,130 Option 2-A 1,270 Option 2-B 1,270 Option 3 1,150 Option 4 1,270 Option 5 Page: 14 621 Option 6-A Page: 15 771 Option 6-B Page: 16 859 Option 7-A Page: 17 1,028 Option 7-B Page: 18 1,145 Option 8-A Page: 19 688 Option 8-B Page: 20 725 Option 9 Page: 21 739 Option 10 Page: 22 991 Option 11 Page: 23 1,145 Effective Educators & Staff Student Engagement & Extra-curricular Activities 4 Sections of 20 students in PYP (K-5) & 4 Sections of 25 students in MYP/DP (6-12). Cost approximately $12 million to build necessary facilities and will take 28 months from start to finish. Cost of expansion (debt service) is covered by the increased student enrollment. This model’s revenues exceed expenditures, and the Fund Balance will build to approximately $210,040 over five years, but does not meet the 45-Day Reserve Requirement. High Student Achievement Strong Parent & Community Connection 2 Sections of 20 students in PYP (K-6) & 3 Sections of 20 students in MYP/DP (7-12). This model’s revenues are less then expenditures, and the Fund Balance will be depleted within three years without changes to the revenues/expenditures. Enrollment Narratives High School Building, Middle School Buildin, Media Center, Cafetorium Facility Acquisition 4 Sections of 20 students in PYP (K-6) & 4 Sections of 25 students in MYP/DP (7-12). Cost approximately $12 million to build necessary facilities and will take 28 months from start to finish. This model’s revenues are less then expenditures. This model’s revenues exceed expenditures, and the Fund Balance will be depleted within three years. High School Building, Middle School Buildin, Media Center, Cafetorium, Primary School Addition 5 Sections of 20 students in PYP (K-5) & 4 Sections of 25 students in MYP/DP (6-12). Cost approximately $15 million to build necessary facilities and will take 28 months from start to finish. Cost of expansion (debt service) is covered by the increased student enrollment. This model’s revenues exceed expenditures. The Fund Balance will build to approximately $2.1 million over five years with approximately $812,000 undesignated. High School Building, Middle School Building, Performance Hall, Cafetorium, Primary School Addition, Media Center 5 Sections of 20 students in PYP (K-6) & 4 Sections of 25 students in MYP/DP (7-12). Cost approximately $14 million to build necessary facilities and will take 28 months from start to finish. Cost of expansion (debt service) is covered by the increased student enrollment. This model’s revenues exceed expenditures. The Fund Balance will build to approximately $250,000 over five years, but does not meet the 45-Day Reserve Requirement. High School Building, Middle School Buildin, Media Center, Cafetorium, Primary School Addition 4 Sections of 20 students in PYP (K-5) & 4 Sections of 25 students in MYP/DP (6-12). Cost approximately $12 million to build necessary facilities and will take 37 months from start to finish. Cost of expansion (debt service) is covered by the increased student enrollment. This model’s revenues exceed expenditures. The Fund Balance will build to approximately $116,572 over five years, but does not meet the 45-Day Reserve Requirement. Phase 1 Middle School Building, Media Center, Cafetorium Phase 2 High School Building 5 Sections of 20 students in PYP (K-5) & 4 Sections of 25 students in MYP/DP (6-12). Cost approximately $13 million to build necessary facilities and will take 37 months from start to finish. Cost of expansion (debt service) is covered by the increased student enrollment. This model’s revenues exceed expenditures. The Fund Balance will be depleted within two years. Phase 1 Middle School Building, Media Center, Cafetorium Phase 2 High School Building, Primary School Addition No additional facilities 3 Sections of 20 students in PYP (K-6) & 3 Sections of 20 students in MYP/DP (7-12). This model’s revenues are less then expenditures, and the Fund Balance will be depleted within one year due to setup, FFE, and lease costs. Cafetorium, 6 new portable buildings 3 Sections of 20 students in PYP (K-6) & 3 Sections of 25 students in MYP/DP (7-12). This model’s revenues exceed expenditures, and the Fund Balance will build to approximately $281,016 over the next five years, but does not meet the 45-Day Reserve Requirement. Cafetorium, 6 new portable buildings 4 Sections of 20 students in PYP (K-6) & 4 Sections of 20 students in MYP/DP (7-12). This model’s revenues are less then expenditures, and the Fund Balance will be depleted within one year due to setup, FFE, and lease costs. Cafetorium, 12 new portable buildings 2 Section of 20 students in PYP (K-6), 3 Sections of 20 students in MYP (7-10), & 4 Sections of 24 students in DP. This model’s revenues are less then expenditures, and the Fund Balance will be depleted within two years. Cafetorium, 4 new portable buildings 2 Section of 20 students in PYP (K-6), 3 Sections of 20 students in MYP (7-10), & 5 Sections of 24 students in DP. This model’s revenues are less then expenditures, and the Fund Balance will be depleted within three years. Cafetorium, 5 new portable buildings 2 Section of 20 students in PYP (K-6), 3 Sections of 25 students in MYP/DP (7-12). This model’s revenues exceed expenditures, and the Fund Balance will build to approximately $1.5 million over the next five years with approximately $747,000 undesignated. No additional facilities 4 Sections of 20 students in PYP (K-6) growing into 4 Sections of 20 students in MYP/DP (7-12) over the next 7 years. This model’s revenues are less then expenditures, and the Fund Balance will be depleted within one year due to setup, FFE, and lease costs. Cafetorium, 9 new portable buildings This is a combination of Option 6-B and 7-B. Will result in 4 Sections of 20 students in PYP (K-6) & 4 Sections of 25 students in MYP/DP (7-12). This model’s revenues exceed expenditures, and the Fund Balance will build to approximately $2.1 million over the next five years with approximately $980,000 undesignated. Cafetorium, 12 new portable buildings 4 Sections of 20 students in PYP (K-6) & 4 Sections of 25 students in MYP/DP (7-12). This model’s revenues exceed expenditures, and the Fund Balance will build to approximately $2.8 million over the next five years. Cafetorium, 12 new portable buildings Hayes Plan Options EXECUTIVE SESSION The Board will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071(2) – Consultation with School Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Charter amendment Westlake Academy Item # 4 – Executive Session Westlake Academy Item # 5 – Reconvene Meeting EXECUTIVE SESSION The Board will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071(2) – Consultation with School Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Charter amendment Westlake Academy Item # 6 – Take any Necessary Action, if necessary BOARD RECAP / STAFF DIRECTION Westlake Academy Item #7 Board Recap / Staff Direction Westlake Academy Item # 8 – Workshop Adjournment Back up material has not been provided for this item.