Contingent Tax Liability

TO: School District Administrators

FROM: Division of Administration and Finance

SUBJECT: Contingent Tax Liability

All districts recently received a statement of contingent tax liabilities from the Kern County Auditor-Controller's Office. For almost all, liabilities have substantially increased over prior year estimates. The Auditor-Controller's Office tells us that the increase is due to substantial numbers of individual and business property owners requesting reductions in property tax assessments.

It is prudent for revenue limit and sometimes, basic aid districts, to protect themselves from cash flow difficulties. This is accomplished by impounding current property tax revenues in an amount sufficient to pay any successful challenges. A resolution to authorize impounds is attached to this bulletin.

Along with the resolutions, districts must write a letter to the County Auditor-Controller. In that letter, please include the following information:

1. The amount that you wish the Auditor-Controller to impound. This amount is indicated in the final column labeled "Net Estimated Contingent Tax Liability as of 6-30-96."

2. Be specific as to when you wish the impounding to occur. Please direct the Auditor- Controller to impound from your April and May tax collections.

3. Please instruct the Auditor-Controller's Office to deposit impound account interest proceeds to the district's general fund.

If you need to release impounds, please contact an administration and finance consultant and we will discuss timing considerations for the release. Direct any questions concerning these actions to the appropriate consultant.


BEFORE THE GOVERNING BOARD
OF THE ________________________ SCHOOL DISTRICT
OF KERN COUNTY, STATE OF CALIFORNIA

In the Matter of:

IMPOUNDMENT OF LOCAL TAX
REVENUES TO ANTICIPATE PENDING
CLAIMS AND/OR LITIGATION
________________________________________ RESOLUTION

NO.______ 

WHEREAS, the Auditor-Controller of the County of Kern has recently informed the District of potential adverse consequences to local tax and general fund monies of the District attributable to pending court action; and

WHEREAS, several claims are now pending before the Assessment Appeals Board which, if determined favorably to the taxpayer, will substantially impact revenues of the District through a forced refund; and

WHEREAS, counsel has advised the Board that a school board may not defer repayment of a tax refund over an installment period of up to ten (10) years pursuant to Education Code Section 35201 due to hardship or any other factor; and

WHEREAS, Education Code Section 14240 authorizes this Board to direct the County Auditor to impound local tax revenues pending determination of court action or administrative tax protests so that such money remains outside the scope of further Board action pending resolution of the dispute;

NOW, THEREFORE, the Board resolves as follows:

1. The Superintendent is authorized and directed to develop a projection of the appropriate amount of money to be impounded in light of the above tax protests and court litigation.

2. The superintendent shall report that amount to the Board and notify the County Auditor-Controller of the exact dollar amount to be impounded and the day on which such impound is to be made.

3. The amount so impounded shall be derived entirely from anticipated local tax revenues. No part of the impounded funds shall come from the general reserve or current perating year monies of the District.

The foregoing resolution, on motion of ___________________________, and seconded

by ____________________________________, was duly passed and adopted this _____

day of _________________, 19___, by the following vote:

AYES: _____ NOES: _____ ABSENT: _____ ABSTENTIONS: _____

BOARD OF TRUSTEES OF THE

____________________________________________ SCHOOL DISTRICT

By: _________________________________________
Member Authorized Agent

_____________________________________________

_________________________________
Member

_________________________________
Member

_________________________________
Member

_________________________________
Member

_________________________________
Member


I HEREBY CERTIFY that the foregoing is a full, true, and correct excerpt from the Journal of the Board of Trustees of the __________________________ School District pertaining to the adoption of the foregoing Resolution at a regular meeting held on ____________________, 1996.


____________________________________________________________________

Authorized Agent of the Board of Trustees of the __________________ School District,

County of Kern, State of California

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Salary Information for 1996-97

TO: School District Administrators

FROM: Division of Internal Operations

SUBJECT: Salary Information for 1996-97


The Office of the Kern County Superintendent of Schools will again compile and reproduce 1996-97 salary schedules for all school districts within the county. Please send the following materials to the Personnel Office no later than February 17, 1997:

1. All certificated salary schedules, including teachers, administrators, and special personnel.

2. Classified salary schedules for 1996-97.

3. Survey regarding fringe benefits and related information (attached).

4. Survey of Substitute Salaries 1996-97 (attached).

As soon as the above information has been received, the certificated and classified schedules will be reproduced and forwarded to all districts. Information regarding administrative salaries will be distributed upon request of the Superintendent. It is urgent that your copies be sufficiently legible for reproduction. If salaries for 1996-97 have not been finalized, please advise us that you are still in negotiation and send the schedules currently being used. Upon completion of negotiations and final adoption, please forward all new schedules to the Personnel Office.

OFFICE OF KELLY F. BLANTON
KERN COUNTY SUPERINTENDENT OF SCHOOLS

SALARY AND FRINGE BENEFIT SURVEY

1996-97

District________________________________________________________________

Estimated ADA for 1996-97________________________________________________

Approximate percentage salary increase over 1995-96 ____________________________

Fringe Benefits Offered

 Item

 Employee Only

 Family

 Total Dollar Amount Per Employee

 
 

 
 

 
 

 
 

Administrative Salaries: (Please complete information not included on schedule.)

Transportation

 Salary

Fringe

Transportation (car or mileage)

 A. Superintendent

 

 

 

 B. Other Administrators

 

 

 

 C. Principals

 

 

 


Remarks:

 

 


Please return to the Personnel Office, Kern County Superintendent of Schools.

SURVEY OF SUBSTITUTE SALARIES

1996-97

Name of District ______________________________________________________

Daily rate for substitute teachers: $________________________________________

Long-term substitute rate, if different: $____________________________________

What do you consider long-term? _________________________________________

Are your long-term substitute teachers placed on your regular certificated salary schedule? If so, how do you determine where to place them?

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

Do you provide benefits for long-term substitute teachers? ______________________

Please add any other information you think might be helpful. ____________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

Please return to Personnel Office, Kern County Superintendent of Schools.

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Annual Audit

TO: School District Administrators

FROM: Division of Administration and Finance

SUBJECT: Annual Audit


Districts are reminded of the necessity to engage an auditor, or arrange with the County Superintendent of Schools to provide for the annual audit of their financial records and accounts. Education Code Section 41020 state that if a district does not provide for the audit by April 1, the County Superintendent shall provide for the audit.

Enclosed is a list of auditing firms who have expressed an interest in providing auditing services for school districts. This listing, however, may not be all inclusive and is offered only as a reference. Districts wishing to contract with a firm not on the list have the prerogative of doing so.

As soon as the auditor has been selected, a contractual agreement should be entered into. Attached are three (3) copies of the contract that should be used: one copy for the district, one for the auditing firm, and one copy to be returned to the County Superintendent of Schools, attention: Xxxxxx Xxxxx, by April 15.

One significant aspect that should be noted in the contract is that districts must withhold 10% of the audit fee until certification.

Also enclosed is an information form (pink) that should be completed and returned by March 31.

If you have any questions, please contact Xxxxxx Xxxxxxx, Director, District Accounting, (999) 999-9999.

AUDITING FIRMS - (Each county office should keep a list of its own).

(Contact the Kern County Superintendent of Schools for a copy of the contract.)



Office of Kelly F. Blanton
Kern County Superintendent of Schools
1300 17th St. - CITY CENTRE
Bakersfield, CA 93301-4533

Attention: Xxxxxxx Xxxxxxx


_____________________________ School District has contracted with the firm listed below to provide for the annual school audit:

Name: _____________________________________________________________

Address: ___________________________________________________________

City, State, ZIP: _____________________________________________________

Telephone Number: ___________________________________________________


______________________________ School District authorizes the Kern County Superintendent of Schools to provide for the annual audit of its school funds.

__________________________________________________________________
School District

Signed: ____________________________________________________________

Position: ___________________________________________________________

Date: ______________________________________________________________

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Governor's January Budget Proposal

TO: School District Administrators

FROM: Division of Administration and Finance

SUBJECT: Governor's January Budget Proposal


As you know, the governor's 1997-98 state budget proposal treats K-12 education fairly well in comparison to other programs. Approximately $1.7 billion of new revenue is proposed for K-12. Additionally, the Department of Finance estimates that $304 million of surplus funds for 1996-97 will be available to K-12 in 1997-98. The current education budget agreement allocates 50 percent of surplus funds to a third wave of equalization and 50 percent to a third wave of deficit reduction. The governor's budget proposal holds to this allocation agreement and allows this third wave to become part of the base.

The major components of new money for 1997-98 are:

Class-Size Reduction:

The governor proposes to expand the current program with basically the same allocation parameters as we now have. The administration designed the program to be a joint effort financially between Prop. 98 funds and district funds. Many of you would favor an increase in state funds for the current program before expansion to yet another grade. Also, some legislators are concerned about the fairness of the current program. Some urban legislators reportedly feel that suburban and rural schools can more easily find solutions to the facility requirements. Many urban school sites are fairly small in terms of land size and cannot adapt to the necessary classroom space.

Other Issues:

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