Declaration of

Surplus Discussion
School District of University City
September 19, 2019
SDUC Vision

Where all
students graduate
college and career
ready.
 SDUC Mission

Transform the life of every

student every day.
 Objective

To revisit previous information regarding

the McNair Building; present potential
relocation plans for staff and programs;
and present budget projections utilizing
sale proceeds
 McNair Building-
Background Information

A Facilities Update Presentation regarding the McNair Building

took place at the May, 17, 2018 Board of Education Meeting,
summarizing the following information:
• Historical use of the McNair building
• Square footage utilization
• Cost of operation
• Potential Sites for Early Childhood expansion
 McNair Building-
Background Information
The conclusions from the presentation were:
• Central Office admin., Lieberman Learning Center, and Adult
Education & Literacy can operate in less square footage than
currently used
• Central Office admin., Lieberman Learning Center, and Adult
Education & Literacy do not need to be based in the same
building and are not required to be located at the McNair site
• There are several other sites or options for Early Childhood
expansion, including satellite locations in elementary schools, a
second site for early childhood, or a supercenter, which would
not have to be located at the McNair site
 McNair Building-
Additional Information
• 2018-2019 McNair operating costs - $150,000
(utilities and custodial services)
• Projected McNair capital costs over the next 3-5 years-
$250,000 (technology infrastructure, roofs & HVAC
replacements, security improvements, etc.)
• Additional investment in space modifications for the
Lieberman Learning Center to enhance how it can better
serve our students
 LLC/AEL Location Needs

• Lieberman Learning Center and Adult Education & Literacy

are best located near a major street accessible by public
transportation, such as Olive Blvd.
• Lieberman Learning Center and Adult Education & Literacy
require more versatile, non-traditional space for instruction
• Lieberman Learning Center and Adult Education & Literacy
operate on a non-traditional schedule, with programming
taking place in shorter sessions, including morning,
afternoon, and evenings
 LLC/AEL Proposed
Relocation
Lieberman Learning Center could operate out of an available
leased storefront along the Olive Corridor:
• Easily accessible and closer to many LLC students
• Designed with more versatile, non-traditional space that aligns
with the programmatic needs

Adult Education & Literacy could operate out of satellite locations

currently used, such as public library, church spaces, etc.
• Estimated Annual Lease Costs: $71,400-$84,000
• Estimated Build-out & furnishing Costs:$150,000
Proposed Layout of
LLC/AEL Space
 Central Office Proposed
Relocation
• Central Office can adapt to any space to support the day-to-day
operation of the school district
• It is advantageous to utilize extra or underutilized space within
the school district facilities to minimize District operating costs
• There is approximately 8,616 square feet of space designated
within UCHS that could accommodate central office without
negatively impacting operation of the school

Estimated Renovation Cost:$800,000

 Financial Considerations
• Proceeds from the sale of property are deposited in the capital
project fund
• Used for construction projects and large purchases

• Proceeds from the sale of Nathaniel Hawthorne and Delmar-

Harvard have enabled the District to fund its capital needs and
divert revenue sources to the operating fund
• Zero property tax revenue was placed in the capital projects
fund in 2019-20
• The potential sale of the McNair property could allow an
additional revenue source (merchants and manufacturing
surtax) to be placed in the operating budget, rather than capital
projects
 Operating Budget Projection
Scenario 1: Status Quo

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026

1) Operating Revenue 42,138,260 42,691,394 42,891,394 43,641,394 43,241,394 44,016,394 44,191,394 44,991,394

McNair Proceeds 0 0 0 0 0 0 0 0

2) Operating Expenditures 42,306,993 43,365,985 43,731,872 44,257,371 44,797,449 45,355,820 45,932,935 46,529,253

Budget Reductions 0 0 (100,000) (100,000) 0 0 0 0

3) Surplus (Deficit) (168,733) (674,591) (840,478) (615,977) (1,556,055) (1,339,426) (1,741,541) (1,537,859)

4) Underspending (one-time savings) 0 500,000 500,000 500,000 500,000 500,000 500,000 500,000

5) Ending Fund Balance 7,282,450 7,107,859 6,767,381 6,651,404 5,595,349 4,755,923 3,514,382 2,476,524

6) Fund Balance Percentage 17.21% 16.58% 15.65% 15.20% 12.63% 10.60% 7.74% 5.38%
 Operating Budget Projection
Scenario 2: Utilize $1.8M of sale proceeds

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026

1) Operating Revenue 42,138,260 42,691,394 42,891,394 43,641,394 43,241,394 44,016,394 44,191,394 44,991,394

McNair Proceeds 0 600,000 600,000 600,000 0 0 0 0

2) Operating Expenditures 42,306,993 43,365,985 43,731,872 44,257,371 44,797,449 45,355,820 45,932,935 46,529,253

Budget Reductions 0 0 (100,000) (100,000) 0 0 0 0

3) Surplus (Deficit) (168,733) (74,591) (240,478) (15,977) (1,556,055) (1,339,426) (1,741,541) (1,537,859)

4) Underspending (one-time savings) 0 500,000 500,000 500,000 500,000 500,000 500,000 500,000

5) Ending Fund Balance 7,282,450 7,707,859 7,967,381 8,451,404 7,395,349 6,555,923 5,314,382 4,276,524

6) Fund Balance Percentage 17.21% 17.98% 18.43% 19.31% 16.69% 14.62% 11.70% 9.29%
 Operating Budget Projection
Scenario 3: Utilize $2.4M of sale proceeds

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026

1) Operating Revenue 42,138,260 42,691,394 42,891,394 43,641,394 43,241,394 44,016,394 44,191,394 44,991,394

McNair Proceeds 0 600,000 600,000 600,000 600,000 0 0 0

2) Operating Expenditures 42,306,993 43,365,985 43,731,872 44,257,371 44,797,449 45,355,820 45,932,935 46,529,253

Budget Reductions 0 0 (100,000) (100,000) 0 0 0 0

3) Surplus (Deficit) (168,733) (74,591) (240,478) (15,977) (956,055) (1,339,426) (1,741,541) (1,537,859)

4) Underspending (one-time savings) 0 500,000 500,000 500,000 500,000 500,000 500,000 500,000

5) Ending Fund Balance 7,282,450 7,707,859 7,967,381 8,451,404 7,995,349 7,155,923 5,914,382 4,876,524

6) Fund Balance Percentage 17.21% 17.98% 18.43% 19.31% 18.05% 15.95% 13.02% 10.59%
Declaration of Surplus Discussion

Questions?