Becoming Sustainable

2016-17 Budget
May 2, 2016

Becoming Sustainable
Background
Last year, when the budget was developed, Becoming Sustainable was
identified as the theme to align the Budget and Facilities Planning over a
multi-year period.
This allows the district to proceed strategically aligning district efficiencies
and savings within the facilities plan. The goal being to have a financially
sustainable operating budget for September 2016.

Becoming Sustainable
Proposed Plan for 2016-17
Educational Enhancements
Generate additional savings beyond the rollover deficit to fund reductions to
secondary class sizes on an ongoing basis
Unfinished Facilities Plan
Use accumulated surplus to not make cuts on the savings imbedded on the
Rutherford closure
Becoming Sustainable
Continue with planned year-two reductions, but at a lesser level than originally
forecasted

Becoming Sustainable
Proposed Plan for 2016-17
Modification since April 25, 2016 Budget Meeting:

Reviewed benefit costs and determined with existing contingencies, can be

less conservative on benefit rates, generating savings of $200,000.
Will charge one-time moving costs on school consolidations to accumulated
surplus, freeing up $160,000.
Transportation reductions to only affect out-of-catchment trips (Cedar/South
Wellington) and transportation from Davis Road to Ladysmith Secondary.

Becoming Sustainable
Proposed Plan for 2016-17
Modification since April 25, 2016 Budget Meeting:

Limit custodial reductions to service space removed on school consolidation.

From 5.0 FTE to 2.0 FTE.
Only reduce carpenters by 1.0 FTE from the original proposal of 2.0 FTE. This
reduction may be partially mitigated due to summer work required on the
school consolidations.
Ground reductions will be maintained. We are not anticipating any layoffs for
this group due to attrition.

Becoming Sustainable
Proposed Plan for 2016-17
Modification since April 25, 2016 Budget Meeting:

Catchment routes will be maintained for another year while Transportation

Policy review is underway.
The cost savings originally proposed for reduction will be charged to
accumulated surplus.

Becoming Sustainable
Two Year Plan

Department
Maintenance
Custodial
Transportation
Total

Becoming Sustainable: 2 Year Plan

2 Year
Savings for
Target 2015-16 2016-17
Total
2016-17
11.0
7.3
2.3
9.6 $ 194,000
22.0
6.0
2.0
8.0
120,000
6.0
2.7
2.7
175,000
39.0
13.3
7.0
20.3 $ 489,000

Becoming Sustainable
Accumulative Surplus is the net result of operating assets less operating
liabilities.
Should BE used to support strategic initiatives related to Board goals,
but not ongoing costs.

Should BE used for one time investments which either create

enhanced learning opportunities or operational efficiencies.
Should NOT be used to support ongoing costs, as this is contrary to
Becoming Sustainable.

Becoming Sustainable
Accumulative Surplus to be used to help balance 2016-17 budget:
$500,000 anticipated saving on closing Rutherford not yet realized.
$160,000 - moving costs due to school consolidations. This is a one
time cost.
$230,000 defer proposed reductions by maintaining the majority of
existing routes while Transportation Policy is being redeveloped.

Becoming Sustainable
Current Financial Health
Anticipated Accumulative Surplus (Operating Fund) at June 30, 2016 to be
between $3,500,000 to $4,000,000.
Restricted Reserves for 2016-17
Contingent Reserve of 2%: $2,400,000
Costs allocated to balance budget $890,000
Remaining funds, from $0 to $710,000 are available to support other
one-time initiatives.

Becoming Sustainable
Accumulated Operating Surplus

Year

2015-16 (EST)

2014-15

2013-14

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Amount
Unrestricted

Restricted

6,000,000

7,000,000

8,000,000

9,000,000

Becoming Sustainable
Transportation Overview
Action Sheet