Mountain View Whisman School District

Agenda Item for Board Meeting of 11/16/2017

Agenda Category:  REVIEW AND DISCUSSION

Agenda Item Title:  Transfer the Excess Lease Revenue from Fund 40 Special Reserve for Capital Facilities to the General Fund 01 (5 minutes)

Estimated Time: 

Person Responsible:  Dr. Robert Clark, Associate Superintendent/Chief Business Officer

Background: 

At the November 5, 2015 board meeting, the Board voted to open Fund 40 Special Reserve for Capital Facilities and to maintain excess lease revenues from long-term leases for the purpose to open Slater Elementary School.  At subsequent board meetings, the board voted to issue Certificates of Participation (COP) to fund the construction of Slater Elementary School, the new General/Special Education Preschool on Montecito Ave, and the new District Office.  The purpose of the excess lease revenues changed to pay the annual payments for the Certificates of Participation (COP).  The Board also clarified the order of funds to make the annual COP payment: 1) Developer Fees (Fund 25); 2) German International School of Silicon Valley (Fund 40); and, 3) Google funds for both Slater and Theuerkauf leases (Fund 40).  The annual payment for the COP is approximately $2.6 million.

For the 2016-2017 school year, the District received approximately $2.5 million in Fund 25 Developer Fees and that amount was used to make the annual COP payment.  The remaining outstanding balance of $146,266 was paid by the GISSV lease payment.  The remaining GISSV funds and the Google funds total approximately $1,444,221.

Staff would like to explore the concept of transferring any excess lease revenue beyond the annual payment amount of the COP from Fund 40 to the General Fund 01 each year to help reduce the operational deficit.