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May 3, 2011 - Committee of the Whole Board (Budget) Meeting
Regular Meeting
Limestone District School Board
May 3, 2011

        A Committee of the Whole Board (Budget) Meeting of the Limestone District School Board was held in the Board Room at the Limestone Education Centre, 220 Portsmouth Avenue, Kingston, on Tuesday, May 3, 2011, at 7:25 p.m.                             
Present Trustees:
L. French, Vice-Chair
        G. Beavis
        H. Brown
        H. Chadwick
        E. Crawford
        D. Jackson
        P. Murray
        S. Ruttan
Present Staff:
K. Burra, Assistant to the Director, Safe Schools
J. Douglas, Communications Officer
B. Fraser-Stiff, Superintendent of Education
R. Holmes, Supervising Principal
B. Hunter, Director of Education
D. Kirkpatrick, Recording Secretary
A. Labrie, Manager of Human Resources
P. Lynch, Manager of Financial Services
A. McDonnell, Supervising Principal
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 Trustee Goodfellow, who if was present, would have declared a conflict of interest as her son is an employee of the Limestone District School Board.


        None of the Trustees who were present at this evening’s meeting declared a conflict of interest.


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


        Manager Lynch provided an overview of the Preliminary 2011-2012 Revenue Budget, as listed below.  

2011-2012 Budget
Revised Estimates
Original 2010-2011 Budget
Total GSN funding allocations
Ministry of Education
Municipal Tax Revenue


$157, 331,000

Other revenues
$   7,070,000
$   8,233,000
$    6,585,000
Capital revenues taken into income
$     289,000
$               0
Deferred revenues taken into income
$       23,000
$               0

        Manager Lynch indicated that the total preliminary operating revenue budget for 2011-2012 is $228,782,000.  He said that the budget is not yet prepared on Public Sector Accounting Board (PSAB) basis nor does it comply in all respects with the Ministry of Education accounting requirements for the 2011-2012 Estimates, noting that will be done at a later date.  He said that the information being presented this evening is the same as previous years so that the Board will have an easier comparison to make.

        Manager Lynch said that the comparatives include the 2010-2011 Original Budget and the 2010-2011 Revised Estimates, noting that the grant revenue due to additional enrolment and EPO grants increased the Revised Estimates revenue.

        Manager Lynch said that of the $221.7 GSN portion, $162.8 million (73%) comes from the Province and $58.9 million comes from the municipal tax base.  He said there are other revenues of $7,070,000.

        Manager Lynch reported that the Board approved the use of Accumulated Surplus – Internally Appropriated WSIB Reserve in the amount of $990,000 to balance the budgeted deficit calculated for compliance purposes in 2010-2011.  He said that it is currently estimated that the Board will end the year in a balanced financial position for 2010-2011.

        Manager Lynch reported that the above-noted information excludes an estimated $6.2 million of school and school council revenues and $200,000 of LDSB Charitable Trust fund revenues that will be consolidated in the budget submission to the Ministry of Education.

        Manager Lynch reviewed the new PSAB and balanced budget rules, as follows:

  •         Under Ministry balanced budget rules, a balanced budget is calculated in accordance with PSAB with some transitional measures.  A deficit is determined without regard to reserves and is limited to the lesser of 1% of revenue and any accumulated surplus amounts that are available for compliance.  Available for compliance amounts are similar to old operating reserve funds like WSIB.
  •         Expect that year-end August 31, 2011 will have an Accumulated Surplus – available for compliance amounts of $3.8 million for WSIB and $600,000 unappropriated.
  •         Capital budgets, including most debt costs, are not part of the operating budget.  When the expenditure budget is presented to Trustees the operating and capital budgets will be presented and approved separately.
  •         There are some permanent changes to the operating budget under PSAB.  Boards will have depreciation expense in the operating budget.  Some costs such as employee future benefits and accrued interest will be included in the operating budget on an actuarial or accrual basis rather than a cash basis.  Some of these changes will be excluded from the balance budget calculation on a transitional basis.  Half of the increase in accrued vacation balance will go into the compliance budget for 2011-2012.
  •         PSAB and some Ministry accounting requirements were implemented in the August 31, 2010 audited financial statements.
  •         Trustees should be aware that boards may receive a qualified audit opinion for 2010-2011 because the Ministry accounting requirements may not be in accordance with PSAB in one material respect, the accounting for capital revenues.  We prepared the 2010-2011 budget using their deferred capital contributions (DCC) but not for the 2009-2010 year-end.  DCC will be used again for this 2011-2012 budget.
        Manager Lynch reviewed the following information:

2011-2012 Budget
Revised Estimates
Original 2010-2011 Budget
Allocations from Funding Model
Operating Grants
Debt Charges
  Permanently Financed
  Capital Debt Support Interest

$       457,000
$    1,992,000

$      457,000
$   1,887,000

$      457,000
$   1,887,000
Total GSN funding allocations
School Renewal Capital
School Condition Improvement
$    3,616,000
$    1,910,000
$    3,690,000
$                  0
$    3,677,000
$                  0
Total Capital allocations
$    5,526,000
$    3,690,000
$   3,677,000
Capital Debt Support – Principal
$    1,121,000
$       971,000
$      971,000

        Manager Lynch stated that the allocations from the GSNs include: $221.7 of operating grants, $5.5 million in school capital grants and $1.1 million in grants for debt support, noting that interest payments are part of the operating grants.

        Manager Lynch advised that the School Renewal allocation of $3.6 million is down $60,000 due to enrolment decline, noting that there is no change to cost benchmarks.  He further advised that the is a new capital allocation, School Condition Improvement, noting that the $1.9 million is the first year of a three-year plan, although amounts for years 2 and 3 have not yet been announced.

        Manager Lynch reported that the Debt Charges Permanently Financed of $457,000 is to cover the 55 School Board Trust debt, noting that pre-amalgamation liabilities were not permanently financed until 2003.  He further reported that the Capital Debut Support Interest includes the 20-year financing with RBC Royal Bank for the Frontenac Secondary School and Bayridge Secondary School additions, as well as five OFA long-term financings (all 25 years, with the first in late 2006 and the latest in March 2011 to cover 2009-2010 expenditures).  He said that Capital Debt Support - Principal includes the same RBC and Ontario Financing Authority (OFA) loans.

        Manager Lynch noted the following enrolment forecast:

2011-2012 Budget
Revised Estimates
Original 2010-2011 Budget
Average Daily Enrolment
    Full-Day JK/SKI EPO funded
    Adult, Cont Ed, Summer School




        Manager Lynch reported that the elementary 12,060 ADE pupils is a decline of only 48 pupils from the 2010-2011 budget, noting however, that when pupils in the Full-Day Kindergarten programs are added, there is actually an increase.  He advised that year 2 of the Full-Day Kindergarten Program includes three more schools, and therefore, the enrolment of 262 FTE is actually 524 pupils attending full day.

        Manager Lynch stated that there is only a decline of 26 secondary pupils from the 2010-2011 budget, noting that actual enrolment in 2010-2011 is much better than budget.

        Manager Lynch indicated that Adult, Continuing Education and Summer School show an increase from the budget mainly because in 2010-2011 the budget assumed the Algonquin and Lakeshore Catholic District School Board would run summer school in the summer of 2011, but the LDSB will now run this program in the summer of 2011 and 2012.

        Manager Lynch commented that enrolment is the largest factor in GSN funding.

        Manager Lynch advised that the above-noted enrolment information includes11 First Nations secondary pupils and 25 elementary and 115 secondary International Visa pupils.  He stated that Full-Day learning pupils are funded 0.5 FTE in the regular GSNs (in elementary enrolment above) and 0.5 FTE through EPO grants (in Full-Day JK/SK above).

        Manager Lynch indicated that adult enrolment numbers include: 500 ADE (495 in 2010-11 budget), Continuing Education 38 ADE (37 in 2010-11 budget) and Summer School 110 ADE (45 in 2010-11 budget).

        Manager Lynch reviewed the following information:


2011-2012 Budget
Revised Estimates
Original 2010-2011 Budget
Operating GSN Allocations
Pupil Foundation
$ 101,219,000
$    99,433,000
$    98,146,000
School Foundation
$   16,346,000
$    16,088,000
$    15,949,000
$ 117,565,000
$  115,521,000
$  114,095,000
Special Education
$   32,282,000
$    29,889,000
$    29,716,000
$     3,298,000
$      3,166,000
$      3,166,000
Distant schools and Outlying Schools
$     1,245,000
$      1,232,000
$      1,279,000
Remote and rural
$     1,296,000
$      1,294,000
$      1,274,000
Learning opportunities
$     3,498,000
$      3,280,000
$      3,286,000
Adult and continuing education
$     2,210,000
$      1,799,000
$      1,898,000
Teacher compensation
$   13,074,000
$     12,674,000
$    12,616,000
New Teacher Induction Program
$        167,000
$          136,000
$         136,000
$   14,356,000
$    14,488,000
$    14,487,000
Administration and governance
$     5,719,000
$      5,687,000
$      5,633,000
Restraint Savings
School operations
$   21,312.,000
$    21,100,000
$    21,007,000
Community use of schools
$        311,000
$        307,000
$         307,000
Rural and small community
$        150,000
$        153,000
$         151,000
Program enhancement
$         598,000
$        608,000
$         608,000
First Nations supplement
$         626,000
$        626,000
$         620,000
Safe schools
$         387,000
$        377,000
$         372,000
Declining enrolment
$      1,259,000
$     1,070,000
$      1,497,000
$  219,263,000
$ 213,407,000
$ 212,148,000

        Manager Lynch stated that the Operating GSN allocations indicate a $219 vs. $212 million, which is a 3.4% increase.

        Manager Lynch reviewed the following information:

  •         Pupil Foundation: $101.2 million – salary and benefits benchmarks reflect PDT agreements - OMERS increase covered as well.  Additions from PDT for elementary for planning time and staff to reduce grades 4-8 class size, professional learning, and for secondary for programming (staff).  Supplies and services amounts are frozen.  The professional development amount that was added back last year has again been cut this year.  Trustees may recall textbooks ($267,000) cut permanently.  Classroom computers ($267,000) is year 3 of what was supposed to be a two-year cut.
  •         School Foundation: $16.3 – salary and benefits benchmarks increased by 3%.  Allocation is school, not enrolment based, to cover principal, vice-principal and school secretary complement.  Sandhurst Public School closed for 2011-2012.
  •         Special Education: $32.3 million – benchmarks increased for PDT – significant increase for EA funding ($1.2 million) to add up to one hour of additional time to their work day for supervision. There is also a significant increase for Special Education Equipment Amount (SEA) of $1.4 million from $800,000 that will be fully offset by equipment expenditures.  Section 23 facilities of $1.6 million is due to one less program than 2010-2011.
  •         SEPPA (Special Education Per Pupil Amount) and HNPPA (High Needs Per Pupil Amount) total of $27.8 million vs. $27.2 million in 2010-2011 budget when educational assistant supervision funding is removed.  Both are enrolment adjusted.  Need to pay PDT increases of 3% within what is actually a 2% increase – HNPPA being cut to a per pupil amount, but maximum loss limited to 50%, then add back “Measures of Variability” amount, a demographic/test scores amount.
  •         Language – FSL of $2.6 million and ESL of $650,000 – both increased for PDT, and both are enrolment adjusted.
  •         Distant Schools and Outlying Schools: $1.2 million – increased for PDT – enrolment adjusted, but “distant” schools component being phased out over three years, but only impacts $32,000.
  •         Remote and Rural Schools: $1.3 million – enrolment adjusted.
  •         Learning Opportunities: $3.5 million – base amount, demographically driven.  Of $2.2 million, the increase of $300,000 reflects an update to 2006 Census data (same with ESL, Safe Schools and First Nations allocations) – literacy and numeracy assistance of $77,000 program is enrolment based.  Student Success of $690,000 is enrolment adjusted.  Last year added three amounts that had been EPO grants: High Skills Major of $182,000 (enrolment adjusted, was $270,000), OFIP $81,000 and School Effectiveness $224,000.
  •         Adult and Continuing Education: $2.2 million – benchmarks reflect PDT – enrolment adjusted – reflects LDSB running summer school in 2012 (Algonquin and Lakeshore Catholic DSB was budgeted to run 2011 summer school).
  •         Teacher Compensation: $13 million – based on each board’s teacher complement actual grid experience and qualifications.  Intended to cover salaries above pupil foundation benchmark.  Benchmarks reflect PDT.
  •         New Teacher Induction Program: $167,000 – based on each board’s new teacher complement from the year before.
  •         Transportation: $14.4 million – not final for Full-Day Kindergarten or provincial schools amount.  Allocation is now enrolment adjusted.   Two percent increase for operator and fuel costs, but LDSB does not get the increase because our grant exceeds expenditures.  One percent reduction for routing efficiency, but LDSB does not face this due to “high” rating in Tri-Board E&E Review.  Fuel costs escalator/de-escalator from benchmark pump price of $1.058 (vs. $1.037 last year) per litre, including HST (93.6 without HST vs. 91.8 last year).
  •         Administration and Governance: $5.7 million – benchmarks reflect PDT and enrolment adjusted, and then cut by 1.5%.
  •         Restraint Savings: $90,000 is Board’s share of $10 million for non-unionized staff.
  •         School Operations: $21.3 million – benchmarks reflect PDT agreements and OMERS increase.  Two percent increase for energy costs and 0% for other supplies and services costs. Grant is enrolment adjusted; top-up component is being reduced over two years, but not at rural schools.  Overall increase of 1.5% and we need to pay PDT and OMERS increases within this amount.
  •         Community Use of Schools: $311,000.
  •         Rural and Small Community Allocation: $150,000 – enrolment adjusted.
  •         Program Enhancement: $598,000 – per school amount that reflects closing of Sandhurst Public School.
  •         First Nations Supplement: $626,000 – includes estimate of native studies credits for 2011-2012 which adds $80,000 to cover teacher costs.  No change in Board’s “incidence” factor. Enrolment adjusted and benchmarks reflect PDT.
  •         Safe Schools: $387,000 – enrolment adjusted and benchmarks reflect PDT.

  •         Declining Enrolment: $1,259,000 – $816,000 for forecast enrolment decline in 2011-2012, balance is phase-in amount over two previous years.  Year two phase-in is 50% and year three is only 5%.  There is a loss in 2011-2012 budget of $590,000 from last two years 2009-2010 and 2010-2011.  Will lose $800,000 of the 2011-2012 total allocation of $1,259,000 in 2012-2013.
        Mr. Lynch reviewed the Board’s revenue sources, other than the Funding Model, as follows:
($000s)                                 2011-2012                       2010-2011                       2010-2011
                                                   Budget                       Revised Estimates           Budget

Other provincial grants
Literacy and Basic Skills - Training, C&U       $   283         $   342                 $   342
Employment Resource Centre
    - Training, C&U                                 146                     145                             145
Ontario Youth Apprenticeship    
    - Training, C&U                                 105                     105                             105
Adult ESL - Citizenship & Immigration            184                 195                             195
Tutors in the Classroom - MOE                      35                  70                              70
Ministry of Education – Full day JK/SK                   2,062               1,137                       1,137
Ministry of Education - Other Programs               933                  2,935                   1,088
                                                        $3,713          $4,859                  $3,012

Tuition Fees
International Students                           1,540              1,465                         1,410
First Nations Students                                      125                120                           175
Community Education & Outreach fees                      352                   341                            341
                                                                         $  2,017               $  1,926                         $1,926

Other revenues
Term lease rentals to agencies                     150                 125                          125
Term lease rental to school board                                 0                    185                            185
Community use                                              100                 100                            100
Cafeteria and beverage                             100                 125                          125
Interest                                                           200                 100                          100
Administrative cost recoveries                       47                  46                             46
Instructional cost recoveries                              170                 177                            177
International students other fees                          248                 290                          283
Continuing education contracts                     325                 300                          506
                                                                 $1,340         $  1,448                       $ 1,647

Total                                                                  $7,070           $8,233               $   6,585

        Mr. Lynch provided the following information:

Other Provincial Grants                                                 

  •         Literacy & Basic Skills – significant decrease after a one year, one time increase last year
  •         mployment Resource Centre – similar program
  •         Ontario Youth Apprenticeship Program – no change
  •         Adult ESL – decrease to reflect enrolment
  •         Ministry of Education – Early Learning Program – enrolment based – year 2 with three more schools – estimate only as no benchmarks or board by board estimates released yet by Ministry
  •         Ministry of Education Other – fewer EPO announcements so far
Tuition Fees

  •         International students – increase in fee as calculated by Ministry – same enrolment at elementary and increase (115 vs. 107) at secondary
  •         First Nations – increase in fee as calculated by Ministry – paid by Federal government – decrease in enrolment (11 vs. 16)
  •         Community Education and Outreach – no significant change

  •         School rentals:
  •                 Term leases – primarily to day care agencies
  •                 School board – French language public for first floor at Calvin Park finished in 2010-2011
  •                 Community use – similar usage
  •         Cafeteria and beverage – reduced sales assumption due to P/PM 150
  •         Interest – somewhat better rates
  •         Administrative cost recoveries – payroll for FCCC and accounting for Tri-Board Student Transportation Services Inc.
  •         Instructional cost recoveries – athletic programs and camps – similar
  •         International students – portion of fee above fee calculated by Ministry
  •         Continuing Education contracts – loss of one contract
        Manager Lynch stated that the amounts not included in the presentation, but will be included in the consolidated estimates and audited financial statements provided to the Ministry of Education are as follows:

  •         School Activities Funds: $6.2 million – approximately $600,000 of school council funds and $5.6 million in schools as “non board funds”
  •         Limestone District School Board Charitable Trust: $200,000
        Manager Lynch indicated that these amounts will be offset by an equal amount of expenditures.
        Chair French thanked Mr. Lynch for his report.

Next Meeting Date

        The next meeting of the Committee of the Whole Board to discuss the budget is scheduled for Monday, May 31, 2010, at 6:00 p.m.

Committee to Rise and Report

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


        MOVED BY Trustee Crawford, seconded by Trustee Jackson, that the meeting adjourn at 8:00~p.m.–Carried