Your browser does not support JavaScript!
June 10, 2013 - Committee of the Whole Board (Budget) Meeting
Committee of the Whole Board (Budget) Meeting
Limestone District School Board
June 10, 2013

A Committee of the Whole Board (Budget) Meeting of the Limestone District School Board was held in the Barry C. O’Connor Board Room at the Limestone Education Centre, 220~Portsmouth Avenue, Kingston, on Monday, June 10, 2013, at 6:00 p.m.                                        
Present Trustees:
L. French, Vice-Chair
G. Beavis
H. Brown
H. Chadwick
E. Crawford
A. Goodfellow
D. Jackson
B. Milligan, Student Trustee
P. Murray
S. Ruttan
Present Staff:
M. Baumann, Manager of Financial Services
K. Burra, Supervisor of Safe and Caring Schools and Assistant to the Director
D. Fowler, Manager of Facility Services
B. Hunter, Director of Education
D. Kirkpatrick, Recording Secretary
A. Labrie, Superintendent of Human Resources
S. Lehman, Supervising Principal
A. McDonnell, Supervising Principal
R. Richard, Superintendent of Business
K. Smith, Communications Officer
W. Toms, Manager of ITS and Planning Officer
        The meeting was chaired by Vice-Chair French.  She called the meeting to order, advising that regrets were received from Student Trustee Yun.

APPROVAL OF AGENDA

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

DECLARATION OF CONFLICT OF INTEREST

        No Trustee declared a conflict of interest.

        Superintendent Richard indicated that when we ended the June 3, 2013 Committee of the Whole Board (Budget) Meeting, it appeared that the Board would have a deficit of approximately $2.3 million, which exceeded the Ministry’s requirement that a school board’s deficit must be under 1% of total in-year operating revenue.  He said that since the last meeting, staff has reviewed where further reductions in terms of expenditures could be made.  He indicated that Manager Baumann would walk Trustees through the additional reductions we have been able to find.

REVIEW OF PRELIMINARY 2013-2014  PSAB OPERATING BUDGET

        Manager Baumann highlighted the following areas where cost reductions were made in Compensation in the 2013-2014 Operating Budget:

Professional/Paraprofessional/Technicians:

  • Programmer/Liaison Officer retiring and the position will not be replaced; a reduction of $70,000.
Facilities Services:

  • Certified Painter, Heating/Ventilation/Air Conditioning Technician and Utility Person vacant positions will not be filled; a reduction of $199,000.
Manager Baumann reviewed the following areas where cost reductions were made in Supplies and Services in the2013-2014 Operating Budget:

Transportation:

  • Tri-Board has just completed work the bus route optimization review, and found more efficiencies that resulted in $137,000 of additional savings.
Debt Charges – Capital Debt Support: OFA Interest:

  • Interest applicable to 2013-2014 has been added for the new OFA loan for Southview Public School and École Sir John A. MacDonald Public School.  An equal amount of funding has also been included.  
Manager Baumann reported that the unfinanced operating expenditures for 2013-2014 are budgeted at $1.93 million.

REVIEW OF 2013-2014 PSAB CAPITAL BUDGET

        Manager Baumann referred to the Preliminary 2013-2014 Capital Budget, and reviewed the Capital assumptions, as follows:

  • School renewal expenditures have been set at the annual allocation of $3.9 million. School condition improvement expenditures have been set at the annual allocation of $1.9 million (year 3 of 3);
  • Full-day kindergarten capital initiative, renovations and additions, have been approved for year 5 schools.  Expenditures have been set at the year 5 allocation of $8.9 million, with completion in 2013-2014;
  • Sydenham High School addition work to continue to fiscal 2013-2014.  The balance of approved funding net of anticipated expenditures in 2012-2013 will roll forward to offset completion work in fiscal 2013-2014.  Funding for the addition will be OFA financed after completion in 2013-2014;
  • New Granite Ridge Education Centre work to continue in fiscal 2013-2014.  The balance of approved funding net of anticipated expenditures in 2012-2013 will roll forward to offset completion of work in fiscal 2013-2014.  Funding for the addition will be OFA financed after completion in 2013-14;
  • Kingston North expenditures expected in 2013-2014 for consulting and architect fees;
  • Playground equipment is the anticipated 2013-2014 cost for school playgrounds.  Several schools have been fundraising and some have indicated their intent to utilize fundraising proceeds to purchase playground equipment; and
  • $300,000 of school renewal is charged to operating budget as maintenance expense and $796,000 of furniture and equipment expenditures classified as tangible capital assets additions.
Manager Baumann referred to the 2013-2014 PSAB Operating Budget expenditures and reviewed the adjustments for Ministry compliance, as follows:

  • Reallocation to capital budget of costs for furniture and equipment tangible capital assets less capital renewal expenditures and interest expense charged to operating budget that are not tangible capital assets. (2012-2013: $246,000);
  • Depreciation expense on capital assets. (2012-2013: $10.6 million); and
  • LDSB Charitable Trust Fund expenditures. (2012-2013: $200,000).
Manager Baumann reviewed the adjustments for Public Sector Accounting Board (PSAB) presentation, as follows:

  • Decrease in other employee future benefits liabilities which include WSIB, retirement gratuities and retirement health, dental and life insurance. (2012-2013: $981,000);
  • Decrease in accrued interest charges on OFA long term debt. (2012-2013: $55,000); and
  • School non Board funds and School Council funds expenditures. (2012-2013: $6.2 million).
Manager Baumann reviewed the 2012-2014 PSAB Operating Budget Revenue adjustments for Ministry compliance, as follows:

  • Reallocation of operating revenue to capital budget to match expenditures classification;
  • Deferred capital contributions revenue to offset depreciation expense; and
  • LDSB Charitable Trust Fund revenues offset to expenditures.
Manager Baumann reviewed the following adjustment for Public Sector Accounting Board (PSAB) presentation:

  • School non-Board funds and School Council funds revenues offset to expenditures.
Manager Baumann advised that unfinanced operating expenditures for 2013-2014 budgeted at $1.997 million, which is within the 1% limitation of $2.1 million, and the Board has sufficient accumulated unrestricted surplus to offset the deficit.  She indicated that this is after $1.076 million in cost reductions incorporated which include the $670,000 mentioned previously, plus another $406,000 noted earlier in the presentation.

        Superintendent Richard noted that there was input from the Association of Elementary School Administrators’ Association (AESA) and the Secondary School Administrators’ Organization (SSAO).  He said that Senior Staff reviewed all of the budget requests.  He said that the AESA outlined two budget priorities, one for professional development funding to remain at last year’s level for all of the different sectors in the Board.  He said that the funding is included in the 2013-2014 budget.  He indicated that AESA’s other priority was for technology.  He said that staff presented a five-year strategic plan, and for the last two years, funding was provided for infrastructure.  He said that we hope to wrap up the infrastructure process in 2013-2014, and then in the fourth year, we will start to refresh the process with regard to personal devices.

        Superintendent Richard reported that SSAO had requested the same in terms of IT technology.  He said that they had also requested funding for learning resources and furniture and equipment.  He said that these budgets for schools are stable, and the schools will receive the same amount of funding to plan for next year.

        Superintendent Richard advised that one presentation asked for a minor upgrade to the front doors at KCVI, and funding for that project was included in the Facility Services budget.

        Superintendent Richard indicated that the last two presentations at the Budget Consultation Meeting dealt with major infrastructure changes to KCVI and QECVI and spoke to some transitional issues with respect to anything coming out of the accommodation review with respect to Central Kingston.  He indicated that depending on the final decision of the Board, appropriate planning will take place into the future.  He further indicated that no funding has been included at this time.  However, in the 10-Year Capital Forecast, substantial changes are planned for all three high schools in the Central Kingston accommodation review area, but that is dependent on the final decision with respect to the accommodation review for Central Kingston.

REVIEW OF 2013-2014 BUDGET OPERATING RISKS

        Superintendent Richard reviewed a summary of 2013-2014 budget risk factors and corresponding mitigation strategies as follows:


Budget Risk Factor
Impact on 2013-2014 Budget
Likelihood of Occurring in 2013-2014
Mitigation Strategies

Unexpected significant increase in transportation fuel price
Low
Moderate
  • Risk offset by Ministry of Education funding formula provision, which provides additional partial funding
  • Bus route efficiencies offset negative impact of higher fuel costs on budget
  •   Continue to review potential of fuel hedging strategy
  •   Unexpected significant increase in utility costs
  •   Low
  •   Moderate
  • Continue to implement energy management strategies (e.g. complete energy efficient capital projects, continue with EcoSchools program, etc.)
  • Continue with provincial school boards’ electricity buying consortium
  •   Continue to review potential of fuel hedging strategy
  •    Other revenue (e.g. EPO Grants) less than budgeted
  •   Low
  •   Low
  • Reduce matching expenditures accordingly
  •   Maintain sufficient surplus to deal with possible one-time costs
  •   Significant capital project budget in 2013-2014.  Capital project costs greater than budgeted
  •   Moderate
  •   Moderate
  • Defer work on other capital projects as required
  •   Maintain sufficient surplus to deal with possible one-time costs


        Manager Baumann reviewed the following information:



Revenue
Old basis of presentation

Adjustments
Ministry Compliance

Adjustments

PSAB presentation
Allocations from Funding Model
 Operating  
     Grants
 Debt Charges
 Permanently
     Financed
 Capital Debt
      Support  
         Interest


$210,401,000

        457,000

     3,125,000


($192,000,000)


$210,209,000

       475,000

    3,125,000




$210,209,000

        457,000

     3,125,000
$213,983,000
($192,000,000)
$213,791,000
                 0
$213,791,000
Other revenues
Deferred Capital
    Contributions
School activities
    Revenues
$  15,618,000

$     8,371,000

         180,000
$  15,618,000
     8,371,000

        180,000



$   6,500,000
$  15,618,000
     8,371,000

     6,680,000

Total Revenue

$229,601,000

$     8,359,000

$237,960,000

$   6,500,000

$244,460,000

Expenditures

$231,531,000

$     8,426,000

$239,957,000

$   5,165,000

$245,122,000

Operating Deficit

($ 1,930,000)

        ($67,000)

($ 1,977,000)

$   1,335,000

(      $662,000)

        Manager Baumann stated that the PSAB Operating Budget for 2013-2014 will be $245,122,000.  She indicated that the PSAB Capital Budget for 2013-2014 will be $20,742,000 and that the Operating deficit for 2013-2014 will be $1,997,000.

        MOVED BY Trustee Jackson, seconded by Trustee Goodfellow:

1.      That the Board approve a PSAB Operating Budget of $245,122,000 for the 2013-2014 budget year;

2.      That the Board maintain $1,997,000 of Accumulated Surplus available for Compliance in order to cover the operating deficit of $1,997,000; and

3.      That the Board approve a PSAB Capital Budget of $20,742,000 for the 2013-2014 budget year.
                                                                                          Carried
        Vice-Chair French thanked Superintendent Richard, Manager Baumann and Financial Services staff for their work with regard to the budget.

Committee to Rise and Report

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

Adjournment

        MOVED BY Trustee Crawford, seconded by Trustee Chadwick, that the meeting adjourn at 6:35~p.m.–Carried