Alameda County Office of Education

L. Karen Monroe February 1, 2017

Superintendent
RECEIVED
FEB 1 s2017
BOARD OF EDUCATION Craig Bueno, President
LVJUSD
Board of Education Superintendent
Joaquin Rivera Livermore Unified School District
Trustee Area I
685 East Jack London Blvd.
Amber Ch ildress Livermore, CA 94551
Trustee Area 2

Ken Berri ck RE: 2016-17 First Interim Report

Trustee Area 3

Aisha Knowles
Trustee Area 4 Dear President Bueno:

Fred Sims In accordance with Education Code Section 42127, we have examined the First
Trustee Area 5
Interim Report of Livermore Valley Joint Unified School District for fiscal year
Ei leen McDonald 2016-17 to determine if it complies with the Criteria and Standards adopted by the
Trustee Area 6 State Board of Education, and if it allows the District to meet its financial
Yvonne Cerrato obligations during the upcoming fiscal year.
Trustee Area 7
Based on our review and analysis, we are satisfied that the First Interim Report
approved by the District' s Governing Board on December 13, 2016 reflects the
financial status of the District and is consistent with the State' s Criteria and
Standards. We therefore concur with the District's positive certification with our
concerns outlined below.

Public Disclosure Documents, Deficit Spending and Multiyear Projection

(MYP)

The MYP indicates that the District will be able to maintain at least a three percent
Reserve for Economic Uncertainties in the General Fund through 2018-19. However,
the MYP does not reflect the most current Public Disclosure of Collective Bargaining
Agreement (CBA) documents approved by the Board of Trustees on December 13,
2016. After taking the fmancial impact of the CBA into consideration, we project that
the District will incur deficit spending in the unrestricted General Fund of
approximately $3.5 million in 2016-17, $3 million in 2017-18 and $5.2 million in
2018-19. The CBA documents include unspecified expenditure reductions of
approximately $2.6 million in 2017-18 and $5.3 million in 2018-19, which mitigate
the deficit spending mentioned above. Without these expenditure reductions, the
313 WWinton Ave.
District will not be able to maintain a three percent Reserve for Economic
Hayward, California
Uncertainties in 2017-18 and 2018-19. In addition, without these expenditure
94544- 1136
reductions, the District's General Fund ending balance for 2018-19 is projected to be
(51 0) 887-0152 negative (approximately $3 .7 million). We encourage the District to implement the
expenditure reductions identified in the CBA to maintain the fiscal health of the
www.acoe.org District.
 Labor Negotiations

We remind the District that as part of our Assembly Bill (AB) 1200 oversight
responsibilities, the Alameda County Office of Education (ACOE) reviews all
collective bargaining agreements. We request that the District provide us with an
analysis of the cost of any settlement and its impact on the operating budget
10 working days prior to the date the District Governing Board will take action on
the proposed agreement.

Conclusion

We want to acknowledge and express our appreciation to Susan Kinder and the
District staff, the Governing Board, and the community for their continued
diligence and hard work. If you have any questions or concerns regarding our
review process, please feel free to call me at (510) 670-4140, or contact JeffPotter
at (510) 670-4277.

Sincerely,

L. Karen Monroe, Superintendent

Alameda County Office of Education

LKM:sm

cc: Board of Education, Livermore Valley Joint USD

Kelly Bowers, Superintendent, Livermore Valley Joint USD
Susan Kinder, Chief Business Official, Livermore Valley Joint USD
Jeffrey B. Potter, Executive Director, ACOE

313 WWinton Avenue I Hayward, California 94544-1 136 I (51 0) 887-0 152 I www.acoe .org