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June 7, 2011 - Committee of the Whole Board Meeting
Committee of the Whole Board Meeting
Limestone District School Board
June 7, 2011

        A Committee of the Whole Board Meeting of the Limestone District School Board was held in the Board Room at the Limestone Education Centre, 220 Portsmouth Avenue, Kingston, on Tuesday, June 7, 2011, at 6:00 p.m.                             
Present Trustees:
L. French, Vice-Chair
G. Beavis
H. Brown
H. Chadwick
D. Jackson
S. Ruttan
Present Staff:
K. Burra, Assistant to the Director
D. Fowler, Manager of Facility Services
B. Hunter, Director of Education
D. Kirkpatrick, Recording Secretary
P. Lynch, Manager of Financial Services
N. Marsh, Superintendent of Education
R. Richard, Superintendent of Business
W. Toms, Manager of ITS and Planning Officer

        The meeting was chaired by Vice-Chair French.  She reported that regrets were received from Trustees Crawford, Goodfellow, and Murray.


        Vice-Chair French reported that had Trustee Goodfellow been present at this evening’s meeting she would have declared a conflict of interest as her son is an employee of the Limestone District School Board, and she would have withdrawn from the meeting.


        MOVED BY Trustee Jackson, seconded by Trustee Beavis, that the agenda, as distributed, be approved.–Carried


        Superintendent Richard advised that at the two previous Committee of the Whole (Budget) meetings, Trustees received the Preliminary 2011-2012 Revenue Budget and the 2011-2012 Expenditures Budget in the same format as they had in past years.  He said that tonight Manager Lynch will review the Ministry compliance budget and the Public Sector Accounting Board (PSAB) budget for both the Operating and Capital budgets.  

        Superintendent Richard indicated that Trustees received a binder tonight, which includes Ministry of Education Information (which started the budget process), Education Funding for 2011-2012 GSNs, 2011-2012 Funding in Addition to GSNs (EPO funding outside of the GSNs), 2011-2012 Budget–Public Input (three submissions – Secondary School Administrators’ Organization, Association of Elementary School Administrators, and one communication from a member of the public), Staffing Complement, 2011-2012 Operating Budget (PSAB Basis), 2011-2012 Capital Budget (PSAB Basis), and Budget Risk Factors.

        Superintendent Richard stated that Manager Lynch will review the full staffing complement that underpins the expenditure budget.  He said that 80% of the budget is staff salaries and benefits.  He indicated that Manager Lynch will also review the PSAB Operating Budget and the PSAB Capital Budget.  Superintendent Richard stated that he will then review the information related to the budget risk factors.

        Manager Lynch reported that staffing is the crux of the operating budget, as it represents 80% of it.  He said that the FTE staff changed from 2,227.6 to 2,209.4, which represents a reduction of 18 staff throughout the system.  He said that the change is modest, considering enrolment decline and certain other budget pressure items, most notably in special education.  

        Manager Lynch stated that the first page of the staffing information outlines the teaching and school administrators complement.  He said that there was a change to reflect Ministry approval for Section 23 programs, which is different than what we applied for.  He commented that for teaching staff, the difference is in special education.  He said that the special education budget is in excess of $30 million, and approximately 95% of that amount is for staffing.  He said that we use strategies to balance that budget within its funding allocation.

        Manager Lynch remarked that in the teaching lines for the regular program, there were staffing changes as a result of  the PDT and enrolment projections.  He reported that the elementary teachers line has an increase in planning time, and in the secondary panel, an increase for program improvement that was part of the PDT.

        Manager Lynch advised that in the school administrators lines there was one change in the complement, noting that the overall reduction of one was in the elementary administrators line.  He said that there was no change in the secondary administrators line.

        Manager Lynch reported that there was a reduction of 18 staff in total, and this was provided for in the expenditure budget.

        Manager Lynch presented the following 2011-2012 PSAB Operating Budget, as follows:

Old basis of presentation
Ministry Compliance
PSAB presentation
Allocations from Funding Model
Operating Grants
($246,000) 1
Debt Charges
Capital Debt  
$       457,000

$    1,992,000

$      467,000

$   1,992,000

$      457,000

$   1,992,000
($    246,000)
Other revenues
$    7,146,000
$    7,146,000
$    7,146,000
Deferred capital contributions
$ 7,343,000 2
$    7,343,000
$    7,343,000
School activities revenue
$    200,000 3
$       200,000
$ 6,500,000 7
$    6,700,000
Total Revenue
$ 7,297,000
$   6,500,000
$ 7,297,000
$   7,071,000
Operating Deficit
($  1,195,000)
$               0
($  1,195,000)
($    571,000)
($   1,766,000)

        Manager Lynch reviewed the following notes:

1       Reallocation of operating revenue to capital budget to match expenditures classification
2       Deferred capital contributions revenue offset to depreciation expense
3       LDSB Charitable Trust Fund revenues offset to expenditures
4,5,6   from Page 2 expenditures have no revenue offset
7       School non-Board funds and School Council funds revenues offset to expenditures

        Manager Lynch reviewed the following information from Page 2:

Old basis of presentation
Ministry Compliance
PSAB presentation
Supplies and services expenditures
$   39,202,000
($  246,000)1
$  38,956,000
$  38,956,000
Compensation expenditures
$    536,000 4
$              0 5
Debt Charges

$   2,449,000

$    2,449,000

$      35,000 6

$    2,484,000
Depreciation expense
$ 7,343,0002
$   7,343,000
$   7,343,000
School activities expenditures
$    200,000 3
$      200,000
$ 6,500,000 7
$   6,700,000
Total Expenditures
$ 7,297,000
$ 7,071,000

        Manager Lynch reviewed the following notes:

1       Reallocation to capital budget of costs of furniture and equipment tangible capital assets net of capital renewal expenditures charged to operating budget that are not tangible capital assets (2010-2011: $200,000)
2       Depreciation expense on capital assets (2010-2011: $6,661,000)
3       LDSB Charitable Trust Fund expenditures (2010-2011: $200,000)
4       Increase in post retirement and other employee future benefits liabilities (2010-2011: $496,000)
5       Increase in accrued vacation pay liability included in compliance budget for 2011-2012 (2010-2011: $90,000)
6       Increase in accrued interest charges on Ontario Financing Authority long-term debt (2010-2011: $43,000)
7       School non-Board funds ($5,900,000) and School Council funds ($600,000) expenditures (2010-~2011: $5,750,000 and $450,000 for schools and school councils respectively)
        Manager Lynch stated that an operating deficit from a statutory point of view is $1,195,000, and under PSAB it is $1,766,000 which is what the financial statements will reflect at year-end 2012.  He said that the PSAB Operating Budget is $244,428,000.


        Manager Lynch reviewed the following assumptions related to the PSAB Capital Budget:

  •         School Renewal expenditures assumed to be equal to the annual allocation of $3,616,000.  New three year School Condition Improvement expenditures equal to initiative, $1,910,000.
  •         Good Places To Learn expenditures include completion of the Napanee District Secondary School project in 2010-11.  The remaining balance of the initiative, $1,480,000 to be spent in 2011-2012 on other projects still to be identified.  Completion of this initiative has been extended to August 31, 2012.
  •         Sydenham High School addition allocation is $3,760,000 and would be completed for September 2012.  Construction expenditures are assumed to commence in the summer of 2011.  Funding for the addition will be OFA financed after completion in fiscal 2012-2013.
  •         Bath Public School renovation construction commences summer 2011, to be completed in fall 2011.
  •         Kingston East and Greater Napanee new schools assume construction commences in the summer of 2011 and would be completed for September 2012 opening.  Funding for both new schools will be OFA financed after completion in fiscal 2012-2013.
  •         New Sharbot Lake school assumes construction starts in the spring of 2012 with completion for September 2013.  Funding will be OFA financed after completion in fiscal 2013-2014.
  •         Full day kindergarten capital initiative, renovations and additions, approved for five schools.  Expenditures assumed to be equal to allocation of $2,853,000 and completed in 2011-2012.
  •         Energy efficient schools initiative assumes remaining unspent allocation, $1,661,000 is spent on projects to be identified in 2011-2012.  Completion of initiative extended to August 31, 2012.
  •         Ministry of Education renewable energy initiatives, Green Schools, approved for five projects with an allocation of $1,857,000.  Projects will be completed in 2010-11; therefore, not in the 2011-2012 budget.
        Manager Lynch reviewed the 2011-2012 PSAB Capital Budget.  He reported that total expenditures for renovations to schools is $7,006,000, indicating that $5,526,000 will come from School Renewal and $1,480,000 will come from Good Places to Learn.  He further reported that the expenditure in 2011-2012 for the addition at Sydenham High School is $2,490,000 and the renovations at Bath Public School is $550,000.

        Manager Lynch advised that the total expenditure in 2011-2012 for the new school in the Kingston East Area is $12,000,000, the new school in Greater Napanee is $11,027,000, and the new school in Sharbot Lake is $5,000,000.

        Manager Lynch indicated that the total expenditure for Full day kindergarten is $2,854,000.

        Manager Lynch reported that the total expenditure for the Energy Efficient Schools initiative is $1,661,000 and that the Green Schools initiatives expenditure is $0 as we expect schools to be completed by August 2011.

        Manager Lynch reported that the total capital expenditures budget for 2011-2012 and the total capital financing are $42,588,000.

        Manager Lynch reviewed information concerning the Capital Expenditures that qualify as tangible capital assets, noting that $500,000 of school renewal expenditures will be charged to the operating budget as maintenance expense.  Some Furniture and Equipment operating expenditures will be classified as tangible capital assets additions (i.e. $746,000) and these will be reallocated from the operating budget.  He said that the Tangible Capital Assets Additions total $42,834,000.

        Manager Lynch stated that the numbers reflect expenditures for a particular year and for many of our projects we have Ministry approvals or projects that span several years.  He said that the budget is a reflection of one year.  He said that the numbers do not reflect a complete budget for a project or complete Ministry approval for a project.

        In response to a question, Manager Lynch stated that the Board has sufficient operating lines at the bank with regard to the unfinanced projects, but the Board has to absorb the interest costs.  He indicated that the Board has a healthy cash balance at this time.  Manager Lynch stated that interest charges on the new schools would be capitalized, which adds to the value of the project for depreciation purposes.  With regard to the Good Places To Learn grant, the Board has had to absorb the interest charges for all these years until they are long-term financed the following year.

        In response to a question, Manager Lynch stated that the three new school projects do not touch the Board’s operating line.  He said that the Board has to manage the interest charges and our Board is in good shape to do so.

        Manager Lynch indicated that the capital expenditures budget is a total of $42,588,000.

        Superintendent Richard reviewed the Summary of 2011-2012 Budget Risk Factors and Corresponding Mitigation Strategies, as outlined in the binder that was distributed to Trustees.  He said that this is provided as information.

        In response to a question, Superintendent Richard stated that in terms of capital projects, the number one mitigation factor built into the budget is contingencies, which we allow for as part of the approval project.  He indicated that this could be added to the list.

        Director Hunter reviewed Senior Staff’s response to the public requests, as follows:

Association of Elementary School Administrators

Budget Priority #1 – Professional Learning – we have kept $230,000 in the budget for professional learning.  There was a reduction in funding by the Ministry, but we did not lower our professional development numbers in the budget.

Budget Priority #3 – Site-Based Financial Model – we have not changed our model.

Expanded Opportunities – we are expanding Core French Primary programming into the north and we are expanding classroom itinerant music into the Sydenham High School family of schools.  We are also committed to look at new programs for the new schools.

Secondary Schools Administrators’ Organization

Secondary School Central Programs Budget – this has been retained.  

Learning Resources – The Ministry of Education provides special funding for specific things, and if the Board receives this funding, we will provide funding to the schools.  We have not changed this line; it is the same as what was included  in the budget from last year.

Gymnasium Inspections and Repairs – we have retained central funding and we use that funding to address the issues.

        With regard to Information Technology priorities in both the elementary and secondary panels, Manager Toms distributed information outlining the ITS budget, as contemplated in year one of the five-year ITS Strategic Plan.  He reported that the total ITS budget is $1,515,806.  He reviewed the following information:

Year 1 Infrastructure Costs:            $517,800
Includes all secondary servers and wireless infrastructure, 15 elementary servers and wireless infrastructure, and contract services to complete (based on budget – more if final costs are below budget)

Board office server/network device upgrades to support schools – $85,000

Wide Area Network – Annual    $695,680
Through manager negotiations with provider, increase in bandwidth to internet to 1 gb at same cost – was 100 mb.

Software Licenses – Annual            $171,000
        Supports all existing software licensing for Microsoft, FirstClass, etc.

Other                                   $ 46,326
        PD, Office Expenses, Mileage, Operations

        Manager Toms advised that last year the secondary panel received $140,000 for devices and in-school support.  The elementary panel received $84,000.  Those amounts are not included in the budget for 2011-2012.  He said that the information he distributed explains ITS’ plan for these in next year’s technology budget.

        Trustee Chadwick stated that we did not reduce the ITS budget in 2011-2012 in the area of infrastructure.  She said that we reduced the allocation to the schools for school-based purchasing, but that right now the system base is part of a five-year plan.

        Manager Toms stated that this has been discussed with the Elementary School Principals and the Superintendent and that he is meeting with the Secondary School Principals tomorrow.  He said that year one reflects implementing the infrastructure in all secondary schools, and  includes 15 elementary schools having servers.  In year two, we plan on completing the rest of the elementary schools and with the remaining funding, we will revise the work stations and labs for schools.

        Manager Toms said that the network project is $1 million, and we are juggling the costs of the  existing contract to improve connection speed from the Board to the Internet and to provide for services, as we move forward with construction of the three new schools.

        In response to a question, Manager Lynch stated that some of the costs would be capital and are a component of the furniture and equipment line that is moved over to the capital budget.

        In response to a question, Manager Toms stated that the classroom computer allocation  that we get in the Ministry funding model is $517,000.

        In response to a question, Manager Lynch reported that the following five schools have qualified for full day kindergarten: Centennial Public School ($1.3 million), Harrowsmith Public School ($439,000), Bayridge Public School ($439,000), Cataraqui Woods Elementary School ($439,000), and Bath Public School ($219,000).

        Trustee Chadwick brought forward the matter of hiring an additional staff person to support system needs such as website, graphic design, document production and further communications tasks.

        Following discussion, the following motion was brought forward:

        MOVED BY Trustee Jackson, seconded by Trustee Beavis, that Senior Staff provide a report with regard to the hiring of an additional staff person to support communications related tasks; it being noted that the report is to include a tentative job description for the position; and it being further noted that this matter can be discussed fully at a future Trustee Retreat.–Carried

        MOVED BY Trustee Jackson, seconded by Trustee Chadwick:

1.       That the Board approve a PSAB Operating Budget of $244,428,000 for the 2011-2012 budget year.

2.      That the Board agrees to maintain $1,195,000 of Accumulated Surplus available for Compliance in order to cover the operating deficit of $1,195,000 for Ministry of Education compliance purposes.

3.      That the Board approve a PSAB Capital Budget of $42,588,000 for the 2011-2012 budget year.
        Trustee Ruttan asked if the Board ever entertained the idea of having an outside financial expert review the budget.  She indicated that she is asking this question because she is a new Trustee.

        It was stated that the Board does have a comprehensive support structure around its budget process.  It was indicated that the Board has an Audit Committee, with outside members on it, the Board’s Financial Statements are reviewed by the Board’s external auditor (KPMG) and the Board also has a Finance Committee.  It was also indicated that the Board hires certain staff who possess the requisite financial experience and qualifications.  

        Director Hunter advised that the Board has always balanced its budget as required, and that it goes to the Ministry of Education, and that is their subject to their scrutiny, as well as scrutiny of the Audit Committee and the Ministry of Education internal auditor.  If there was anything untoward, Director Hunter stated that she was confident that the Ministry of Education would follow-up.

        Trustee French suggested that during the Trustee Orientation process, information be provided with regard to the comprehensive support structure around the Board’s budget process.  

Committee to Rise and Report

        MOVED BY Trustee Brown, seconded by Trustee Chadwick, that the Committee of the Whole Board rise and report to the Board.–Carried


        MOVED BY Trustee Jackson, seconded by Trustee Chadwick, that the meeting adjourn at 7:50~p.m.–Carried