6/3/2014 - Regular Board MeetingTHAMES VALLEY DISTRICT SCHOOL BOARD
SPECIAL BOARD MEETING
2014 JUNE 3,7:00 P.M.
BOARD ROOM,EDUCATION CENTRE
AGENDA
V-verbal
M material
1.CALL TO ORDER - O CANADA V
2.APPROVAL OF AGENDA M
3.CONFLICTS OF INTEREST V
4.PRESENTATION OF THE 2014-2015 PRELIMINARY BUDGET (To be distributed)M
5.ADJOURNMENT V
12.0
THAMES VALLEY DISTRICT SCHOOL BOARD
SPECIAL MEETING,PUBLIC SESSION
2014 JUNE 3
The Board met inspecial session on 2014 June 3 inthe Board Room at the Education Centre, meeting in
public session from 7:00 p.m. to 8:45 p.m.The following were In attendance.
TRUSTEES
R.Tisdale
J.Bennett
R.Campbell
D.Clark
J.Coghlin
T.Grant
G.Hart
Absent:P.Jaffe
W.Huff
D.Idlbe
B.McKinnon
S.Polhill
M.Reld
P.Sattler
J.Todd
C.Tully
ADMINISTRATION AND OTHERS
L.Elliott
K.Dalton
J.Pratt
C.Beal
K.Edgar
M.Moynihan
V.Nielsen
K.Wilkinson
K.Bushell
K.Young
M.Deman
D.MacPherson
S.Powell
K.Aitken
S.Macey
J. Knight
P.Hearse
J.Berkin
T.Knox
1.CALL TO ORDER-O CANADA
Board Chair R.Tisdale called the meeting to order at 7:00 p.m.The meeting was opened with the
playing of O,Canada..'^
i /"!'•
2.APPROVAL.OFAGENDA-
The agenda was approved on motion of T. Grant,seconded by J. Todd.
3.CONFLICTS OF INTEREST -No conflicts of interest were declared.
Chair Tisdale reminded Trustees that questions regarding the Directors Entry Plan and input Into the
planning processes for next year is due 2014 June 6.
4.PRESENTATION OF THE 2014-2015 PRELIMINARY BUDGET
Budget Advisory Committee Chair J.Coghlin opened the discussion on the 2014-2015 Budget.She
expressed her appreciation to the members of the Budget Advisory Committee and the staff in the
Finance department.
Associate Director J.Pratt introduced the Finance staff who played a key role in the development of the
draft budget.He thanked Director L.Elliott,Senior Administration,Trustee Coghlin and the Budget
Advisory Committee for their support and direction related to budget considerations.
Supt.C. Beal presented the financial overview of the draft Budget for 2014-2015 via PowerPoint
presentation (Appendix A). Next steps were discussed Including public input to the Board on 2014 June
10 and the deadline for submission to the Ministryof Education on 2014 June 30.
The Administration responded to Trustees'questions including whether the preliminary budget would
generate layoffs within the system.Associate Director Pratt confirmed that none were anticipated for
2014-2015 and any staffing reductions would be accomplished through attrition, in terms of clerical staff
in relation to Section 23,the Administration is confident that the level of staffing is appropriate for the
number of students and programming being offered.
in response to a question,it was noted that the anticipated start date for International Education
revenue generation could be as early as February 2015 and/or September 2015.
The Grants for Student Needs for the 34-Credit Threshold are based on 311 Full-time Enrolment (FTE).
20UJunB 3...2
4.PRESENTATION OF THE 2014-2015 PRELIMINARY BUDGET -cont'd
Discussion ensued regarding school budgets and student fees and whether parent groups and/or
Student Councils (to share with students/parents)are privy to accessing information on howfunds are
spent. It was noted that parent groups are able to request a categorized budget to assist with
fundraising efforts.Supt. D.MacPherson added that the practice of providing information relating to
student fees and how monies are spent is available. However, the practice has been inconsistent
across the secondary panel.
A request fora breakdown on legalfees was noted.Infonmation will be provided to Trustees priorto
the finalizatlon of the budget.
Responding to a question regarding an increase in custodial suppliesand services, itwas confirmed
that the increase Is a result of the additions and renovations for Full-Day Kindergarten.
Chair TIsdale expressed her appreciation to the Finance team forthe budget presentation.
5.ADJOURNMENT
The meeting adjourned at 8:45 p.m. on motionof D.Clark,seconded by M.Reld.
Confirmed:
Chairperson
2014-201 4
OF THE 2014-15
PRELIMINARY
BUDGET
June 3,2014
Appendix A
0E3
PPC3PD
Thames Valley District School Board We build each student's tomorrow,every day.
\J ^^014-201 g^Prelin^inary Budget
Budget Advisory Committee
Jennifer Coghlin,Budget Advisory Committee Chair
Trustee Graham Hart
Trustee Warren Huff
Trustee IVlatt Reid
Trustee James Todd
Thames ValleyDistrictSchool Board
We build each student's tomorrow,every day.
Jo 14-201 --'PreI imi na ry Budget
Provincial Economic Outlool<
o Deficit projection for 2013-14 of $11.3B ($.4B less than
projected)
o Fifth consecutive year of lower than forecasted deficits
o Provincial government remains committed to elimination
of deficit by 2017-18
o 2014 Budget not passed by Legislative Assembly in iVIay
o General election called on May 2,2014 to take place on
June 12,2014
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
•014-2015-^Preliminary Budget
Grants for Student Needs (GSN)
o Released March 27,2014
o EFIS available April 24,2014
o Support for stability in school board budget planning
•GSN regulations made by LGIC before announcement
•FDK funding fully integrated into GSN (transferred
from EPO)
•Details of EPO funding
o Provincial funding for education for 2014-15 $22.5B;
$20.8B in 2013-14
o 3.1%increase (excluding FDK transfer effect)
Thames Valley District School Board
We build each student^s tomorrow,every day.
2014-201 J -'P'reIiniinary Budget
I .....1 II
GSN -Labour Framework
o Continued support for labour framework agreements to
offset costs of:
•Additional sick leave plan
•Additional maternity leave benefit plan
•Salary differential between ETFO and other teachers
o In the absence of new collective agreements,current
provisions continue:
•day increment
• No change in sick leave,maternity leave,and other
benefits levels
• No unpaid days
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
\J ^''
^014-2015 -^Prelinriinary Budget
GSN -School Board Efficiencies
and IVIodernization (SBEIVI)
o Consultations in November 2013
o GSN focus on more efficient use of school space
o Capital funding to support consolidations and right-sizing
schools
o Funding to increase planning capacity for underutilized
schools
o Revised top-up funding for school operations and
renew/al
o Further consultation with sector
Thames Valley District School Board We build each student's tomorrow,every day.
ioi4-201 j'"Pf^liminary Budget
GSN -Salaries and Benefits
o Salary benchmarks frozen at 2013-14 rates,except ETFO
o ETFO salary benchmark equal to other teachers'benchmarks
o Continued reduction of .167%in benefit benchmarks -
elimination of retirement gratuities -third year of 12 year
phase-out
o Teacher and ECE Qualification and Experience grants
recognize increments on 97'^^day
o Increases to supply teacher benchmarks to support sick
leave plan changes (10 to 11 days)
o Funding to offset costs due to increased maternity leave
benefits and other leave benefits
Thames Valley District School Board We build each student's tomorrow,every day.
1 I '^014-201 ^'-"Prelirriinary Budget
GSN -Cost Pressures
Transportation
o 2%increase for bus contracts,netted against surplus
o Continuation of Fuel Escalation and De-escalation allocation
o Full funding to hold boards harmless from declining
enrolment and to offset school consolidation transportation
pressures
Utilities
o Increase of 2%to non-staff benchmarks for increases in
commodity prices
o Additional 7.3%for projected electricity increases
Thames Valley District School Board We build each student's tomorrow,every day.
ioi4-201^''Preliminary Budget
GSN -Funding Formula Reforms
o Ministry has adjusted the fornnula for two grants in
2014-15:
1.Special Education High Needs Amount (HNA)
2.Board Administration and Governance Grant
(BAGG)
o Impact of these modifications redistributes the current
provincial grant allocation dollars amongst school
boards (i.e.revenue neutral for the province)
o Four year phase in of new model
Thames VaileyDistrict School Board
We build each student's tomorrow,every day.
_Joi4-201 j^Pl^lirrjiinary Budget
GSN -HNA Formula Reform
o Historical claims-based allocation (ISA 2,3)is
being replaced by a statistical model based on
demographics
o Financial impact to TVDSB's HNA grant is
minor in 2014-15
o FDK enrolment at 1.0 FTE in 2014-15 generates
additional HNA in GSN
o Total HNA (excluding SIP)is $36.6M ($34.5M in
2013-14)
10
Thames Valley District School Board We build each student's tomorrow,every day.
/•
ioi4-201^"Preliminary Budget
GSN -BAGG Formula Reform
o Three of seven grant components being replaced
New formula is based on ten core functions (eg.HR,Finance,
Payroll,Purchasing,IT,Director's Office,etc.)
No change to allocations for:
•Trustees
•Reporting Entity Project
•Parent Engagement
•Regional Internal Audit
Financial impact of new model to TVDSB's BAGG is minor in
2014-15 ($120K decrease)
FDK enrolment at 1.0 FTE in 2014-15 generates additional
BAGG funding
o Total BAGG allocation is $18.6M ($17.7M in 2013-14)
o
o
o
o
11
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
Summary of Enrolment Data
2014-2015 2013-2014
-Preliminary Approved Increase /
Budget Budget (Decrease)
Elementary
FDK 10.012.00 3.520.50 6,491.50
JK/SK 0.00 1,406.27 (1,406.27)
Grade 1 to 3 15,804.00 15.324.50 479.50
Grade 4 to 8 25,236.17 25,187.50 48.67
Pupils of the Board 51,052.17 45.438.77 5,613.40
Other Pupils 85.33 81.50 3.83
Total Elementary 51,137.50 45,520.27 5,617.23
Secondary<21
Grade 9 to 12 21,816.04 22,819.27 (1,003.23)
High Credit 311.00 380.00 (69.00)
Pupils of the Board 22,127.04 23,199.27 (1,072.23)
Other Pupils 236.80 225.50 11.30
Total Secondary<21 22,363.84 23,424.77 (1,060.93)
Total Enrolment 73,501.34 68,945.04 4,556.30
12
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
ioi 4-201 j-"Pfelirrjiinary Budget
54,000
53,000
52,000
51,000
50,000
49,000
48,000
47,000
46,000
45,000
fcj#H
Average Dally Enrolment
Elementary
Actual 2001-02 to 2012-13,Projected 2013-14 to 2017-1B
IGSNAOE DFOKEPOAOE
m
•III
•^Oa.^Oj.13
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
io 14-201 i Pre Iiminary Budget
28,000
37,000
26,000
25,000
24,000
23,000
22,000
21,000
20,000
Average Dally Enrolment
Secondary
Actual 2001-02 to 2012-13,Projected 2013-14 to 2017-18
Regular DHigh Credit
14
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
ioi 4-201^''Pfeliminary Budget
75,000
74,000
73,000
71,000
70X00
69,000
«,000
67,000
66,000
68,000
64,000
2013<14
Average Daily Enrolment
Combined Elementary and Secondary
Projected 2013-14 to 2017-18
Regul^oFDKEPO DHignCretfit
a014-X5 2015*16 2016-17 2017-lB 15
Thames Valley District School Board We build each student's tomorrow,every day.
•014-2015 -'Preliminary Budget
GSN -34 Credit Threshold
GSN Revenue Impact of 34 Credit Threshold
Pupil Foundation j
I
$(1.8M)
Continuing Education I.IM
Other Grants (.4iV])
;Total $(:1.2M)
16
Thames Valley District School Board
We build each student's tomorrow,every day.
i I
2014-2015''Preliminary Budget
GSN -Capital Funding
o Construction benchmarl<s increase by 4%
o New schools,additions,renovations based on capital priority
business cases
o School condition Improvement funding to address school
renewal capital needs ($1.25B over three years)
o Temporary accommodations (portable moves,leases and
purchases)and land purchases for capital priorities
o Top-up funding changes for School Operations allocation for
excess capacity to limit top-up to 95%capacity
o Savings from these changes will be reinvested to support
policy development and capital planning capacity
17
Thames ValleyDistrict School Board
We build each student's tomorrow,every day.
joi 4-201 j -"Pfelirr])inary Budget
Board Supported Capital
o Capital initiatives that the Ministry will not fund
o Capital Projects self-funded by Board:
•Minor system and program related projects
•Education Centre repairs
•Board priorities
E.G.Tech Renewal
French Immersion
18
Thames ValleyDistrict School Board We build each student^s tomorrow,every day.
2014-201 Pre Iiminary Bud get
Capital Deficit
o Difference between total Board supported capital spending
and amount appropriated in accumulated surplus
o Capital deficit is key metric reviewed by the Ministry
-$10.6iVl at August 31,2013
-Projected $5.7M at August 31, 2015
o Boards have been asked to reduce the capital deficit "GAP"
with ultimate goal of elimination
Capital Deficit Funding Sources
o Amount appropriated from accumulated surplus
o Future property sales
o Energy management savings
19
Thames Valley District School Board We build each student's tomorrow,every day.
•014-2015-"Preliminary Budget
20.000
15.000
10.000
5.000
Q.CM}a
(5.000)
(10.000)
(15.000)
(20.000)
(25.000)
(30.000)
L<^tta1IBpsitHinja5!atfAuau5t|ai?r2013J($WiHio^
•A,»A5
14.420
(10.S&1)
(24.984)
Board Funded Spending On Capital Accumulated Surplus Committed to Capital Deficit -'TTie Gap*
Assets Capital Projects
20
Thames Valley District School Board We build each student's tomorrow,every day*
Joi 4-201 -"Prelirriinary Budget
35.000
30.000
25.000
20.000
15.000
10.000
5.000
0.000
(5.000)
(10.000)
(15.000)
14.420
{10.5S4)
'•SD-Z.S IllicCTiLi fjSiGKXi
fa 250
_2a 354
171
S3)
•Board
Funded
Spending On
Capital
Assets
•Accumulated
Surplus
Committed to
Coital
Projects
•Capital
Deficit
This graph forecasts Capital Deficit,"The Gap",based on the following assumptions:L
a)the Board continues to annually appropriate accumulated surplus in the amount of $5.359M,less
amortization and interest.
b)the additions to Boanj Funded Spending on Capital Assets are equal to the previous year's increase in
accumulated surplus appropriated for capita!projects,"The Lag".
c)pnaceeds from the sale of pn^perties are applied when available to reduce the capital deficit.21
Thames Valley District School Board We build each student's tomorrow,every day.
_|o 14-201 j-^Prelirpinary Budget
Special Education
o Funding is provided by six separate grant allocations
o The majority of funding is calculated based on enrolment
o Funding can only be used for Special Education purposes
o For 2014-15,revenues are projected to total $100.0M (3.4%
increase over 2013-14 budget)
o Incremental Special Education expenses are budgeted to be
$102.9M (1.8%increase over 2013-14 budget)
o Projected 2014-15 underfunding of expenditures of $2.8M
m
22
Thames Valley District School Board We bui7d each student's tomorrow,every day.
i014-201^i -"Pfeliminary Budget
Annual Approvals
Kevin Bushel!
Budget Initiatives
ValNielson
Laura Elliott
Kevin Bushell
Celine Bourbonnais-
l\^acDon3ld
BarbSonier
Bonnie Willianfis
Board Supported Capital
(Amountnet of debt and fnterest payments k approximately iXI mlllfon)
Materials Handling
(Additfonat $480,000above 2013-2014 initiative amountof $200,000)
International Education Department
•Co-ordlnator (1.0 FTE)
•Program Budget
Education Centre Capital Renewal Project
Emergency Response-Secondary School Technology rooms
• Funded bySafe Schools-Accumulated Surplus
Additional5.0 FTE SecondaryTeachers to Support ProgrammingNeeds
Board RoomSound System Upgrade
110,000
90,000
5,358,591
680,000
200,000
1,050,000
139,500
476,776
30.000
2,576,276
jjhii
23
Thames ValleyDistrict School Board
We build each student^s tomorrow,every day.
014-201^'P'reliminary Budget
Staffing Related Reductions
Elementary Special Education Teachers 6.20 579,437
Secondary Special Education Teachers 2.00 197,131
System Staff Development (SSD)-Clerical 1.00 43,921
Media Services Plan 5;00 315,313
Section 23 -Derical Staff 2.00 97,511
Instructional Coaches 4.00 373,830
Elementary ESL Holdback 2.00 186,915
Secondary ESL Holdback 2.00 197,131
Subtotal 24.20 1,991,188
Non-Staffing Reductions
Copyright Licensing
Total Potential Budget Reductions
96,000
2j087jl88
24
Thames Valley District School Board
We build each student's tomorrow,every day.
o
5014-201^1-'Pfelirninary Budget
Commitment to System Priorities
Board Priority 2014-2015 2013-2014 2012-2013 !3 Year Total
Classroom Computers -300,000 350,000 i 650,000
Mental Health Initiative 200,000 200,000 200,000 600>000
First Nations/Native Language 145,502 127,724 83,157 356,383
i
Parent Involvement 3,500 3,500 3,500 10,500
Materials Handling 680,000 200,000 200,000 1,080,000
Full Day Kindergarten Deficit -1,840,982 1,587,128 1 3,428,110
Special Education 2,810,239 4,225,319 3,392,129 10,427,687
34 Credit Threshold Impact 1,220,869 1,437,430 -2,658,299
Musical Instrument Initiative 250,000 250,000 '500,000
Total 5,310,110 8,584,955 5,815,914 19,710,979
25
Thames Valley District School Board We burld each student's tomorrow,every day.
•2014-201^"PfeIirriiinary Budget
Revenues
GSN Operating 775,914,267 713,866,859 62,047,408
other GSN 7,756,527 8,038,037 (281,510)
Other Revenues 33,732,847 69,209,120 (35,476,273)
Amortization of Deferred Capita!Contributions 27.488.784 25,911,735 1.577.049
Total Operating Revenues 844.892,425 817,025,751 27,866,674
Expenses
Salaries /Benefits 662,438,974 640,065,454 22,373,520
Other 154,092,011 155,039,339 (947,328)
Amortization 28.826.574 27.083.843 1.742.731
Total Operating Expenses 845.357,559 822.188.636 23.168,923
Compliance Surplus/(Deficit)(465,134)(5,162,885)4,697,751
26
Thames Valley District School Board We build each student's tomorrow,every day.
ioi 4-201^^Prelinfiiinarv Budget
2014-2015 Preliminary Expenses by Type -$845,357,559
Fees,Contractual Services
and Rent,5.27%^Other,1.61%
Capital Interest,1.09%
Supplies and Services,.
8.34%
StaffDevelopment,0.
mortzation,3.41%
Salaries and Benefits,
80.09%
27
Thames Valley District School Board We build each student's tomorrow,every day.
•014-201 g -"P reIinil inary Budget
Accumulated Surplus Continuity
2014-2015 Pfgliminarv Budget
Preliminary Revenues
Preliminary Expenses
Prellminary.Surplus/(Deficit)
844,892.425
845,357^59
(465,134)
Available for Compliance
Unappropriated Accumulated Surplus
Available for Compliance Hntemallv Appropriated!
Multi-Purpose Fund
Other Operating Appropriations
Committed Capital Projects
Total intemally Appropriated
Total Accumulated Surplus Available for Compliance
8,764,021
2,122,087
7,177,378
18,250,403
27,549,868
36313.889
(125,
(339,500)'
(339,500)1
t
J465jl34|^
Assumptions:
-fVoJected 2013-2014 Year End figures were calculated under the fotlowlng assumptions:
*Utupprapristed &Multi-Purpose Fund-an items ^rprt^riated to these linesin 2Q13-2014 were fuDy spent
*OtherOperatins Appropriatiafs mdude Catryforvwaids and ProersRi Appropriations
*CommittedCaphalProjeOs- Balanceinaeased in 2013-2014bythe value ot the BoardSupportedCapitalAppn^ation
8,638,387
2,122,087
6,837,878
18,250.403
27,210,368
35,848,755
m
28
Thames Valley District School Board
We build each student's tomorrow,every day.
•014-2013 -'Prelirtiiinary Budget
Public Sector Accounting Board (PSAB)Impact on "Compliance
Budget"and Accumulated Surplus Appropriations
Retirement Gratuities
Amount of Liability as of August 31,2012 to be appropriated over
employee average remaining service life (EARSL)-Sl.6M/year over
remaining 5.5 years
Post-Retirement Benefits
Amount of Liability as of August 31,2012 to be appropriated over
employee average remaining service life (EARSL)-$300K/year over
remaining 8 years
Capital
Board-approved capital projects'amortization costs not funded by
GSN and must be appropriated 23
Thames Valley District School Board We huild each student's tomorrow,every day.
Budget Approval
o School Boards required to approve balanced budget
o In-year deficit permissible if accumulated surplus available
o Use of accumulated surplus cannot exceed lesser of:
1.Accumulated surplus at end of previous year
2. 1%of Board's operating revenue
o 2014-15 Preliminary Budget deficit of $465,136 does not
require Ministry approval,to be offset by accumulated
surplus
30
Thames Valley District School Board We build each student's tomorrow,every day.
.^1Prelin^inary Budget
Public Input -June 10
Budget Debate &Approval -June 17
Submission to Ministry of Education
31
Thames ValleyDistrict School Board
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IIETCIIK
BUDGET
QUESTIONS
Thames ValleyDistrict School Board
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