December 17, 2004

ESUHSD NEWS BRIEFS

Board approves negative certification for First Interim Report

On Dec. 14, Jack Mahrt, ESUHSD’s chief financial officer, presented the board with the first interim report, 2004-2005, for discussion and approval. The board approved a negative certification for the First Interim Report.

The report included estimates of income and expenditures through 2007. Current reserve regulations mandate that 1.5 percent of expenses must be maintained for districts to receive a positive certification. The First Interim Report had an ending balance plus reserve of $2,920,547, which is a negative 2 percent of unrestricted expenses.

This is why ESUHSD has a negative certification for the First Interim Report and the two subsequent years.

“The district will continue to monitor income and aggressively monitor expenses over the remainder of the fiscal year,” said Mahrt.

On a positive note, the board received a “good news” legal opinion that said the proceeds from a VTA land sale could be transferred to the general fund, according to Trustee Craig Mann. “This helps offset our ~$12 million deficit by $4.3 million.”

He added that the proceeds from selling traffic allocations related to the $13 million land sale to Citation Homes helped the district by another $1.2 million.