FEB 09 2023 LFSF Town Meeting
Agenda ● Introduction : Presenters, Opening Remarks, Meeting Objectives & Logistics ● Who is the Board? ● LFSF in #’s ● Tuition Setting Process & Financial Metrics ● Hot Topics ● Community Questions Submitted Prior to Meeting ● Live Q&A
Presenters/Participants Armelle DIAZ Finance Director Emmanuel TEXIER Head of School Mireille SAGNE Admissions Director Chris ALLEXANDRE President of Board Andrea DELAROQUE Campus Stewardship & Real Estate Committee Ryan HOVERMAN Secretary of Board Pierre-Yves LESAICHERRE Finance Committee Samy PEYRET Treasurer
Opening Remarks ● We understand tuition increases are very challenging ● Highest increase ever, also in the highest inflation context seen in 40 years ● Tuition is an important decision for our school and most important/difficult decision for the board: We don't treat these decisions lightly and follow a detailed and structured process (which we will explain) ● Tuition increase is difficult for families, in particular for those not benefiting from financial aid (despite increase in aid) ● We acknowledge we could have done a much better job in explaining ahead of time and do more proactive communication/explanation ● We reminded community of “Ask The Board” communication line, received many questions (all answered) and we will continue ● Created an online FAQ for everyone’s benefit ● Today is an opportunity to provide a more in depth update, answer all other questions and continue our efforts of transparency. ● Board has nothing to hide. We are parents and volunteers. We make difficult decisions and want to make sure they are understood. Our commitment is to the school, to the parents and to be fully transparent. ● We extended the enrollment deadline to allow that dialog in best way and are committed to do better in the future (like today)
Meeting objectives & logistics ● Objective: Explain data behind the tuition increase AND answer the community questions AND give outlook on future (tuition, cost reduction actions…) by : ● Prepared a detailed update on LFSF school key figures, financials, process and rationale behind the announced tuition increase. All key topics will be covered. ● Used all questions sent ahead to tailor update. We will answer all questions (grouped) in Q&A section as well as any questions raised in the forum through moderator ● Meeting chosen to be online to provide equal access to all parents ● Extended meeting up to 2 hours based on amount of questions. Expecting 45mn presentation by our Head of School and the Board of Directors ● Q&A Logistics: ● At any time during this meeting, send your questions via the Q&A panel ● A moderator (Ryan) will read your questions in the Q&A session ● All questions will be open for the community to see ● Please be respectful of other community members, administration and board members. We are here to share information and discuss LFSF ● We will answer as many questions as possible until 9:00PM. ● Any remaining unanswered questions will be answered in writing in coming days
Going Forward ● We are committed to continuing our efforts of transparency in the best possible way. We will follow up on this town hall with an update before end of school year ● We want to address the issue of the community not feeling enough engagement from the Board with a commitment to having community town halls 2x per year to enhance information sharing ● Members of the community are welcome to send questions to “Ask the Board” or attend a Board session (dates are on the Parent Portal) to raise their questions and engage. Board meetings are online and in person (Ortega) ● Information will continue to be posted to the Board portion of the Parent Portal (Veracross) ● The Board will begin working on additional community engagement efforts
Who is the Board?
Current Board From top left: Sophie BAMBUCK, Tom CLAVEL, Andrea DELAROQUE, Michele SAUZIER* Jennifer STEINMANN, Courtney OSTERMANN, Pierre-Yves LESAICHERRE, Katia BLOOM, Samy PEYRET, Ryan HOVERMAN. Emmanuel TEXIER (HOS), Chris ALLEXANDRE, Rick SEEFELDT*, George-Axelle BROUSSILLON-MATSCHINGA* Missing: Romain PIRRACCHIO*, Renaud LEVASSEUR, Maryam GHOFRANIHA** Janelle SALENAVE** *Elected or re-elected during the Dec 2022 elections **Appointed: 2023
Board Members Name Year Joined Professional Skills Campus Child(ren) enrolled Andrea Delaroque 2021 Legal; Human Resources; Real Estate Sausalito Angie Elgamal 2019 Technology; Cybersecurity Alumni Chris Allexandre 2020 Operations, Finance; Non-Profit; Advancement Ortega Courtney Ostermann 2018 Marketing; Finance Ortega George-Axelle Broussillon Matschinga 2019 DEIJ Ashbury Janelle Sallenave 2023 Operations; Finance; Non-Profit Sausalito Jennifer Steinmann 2021 Operations; Human Resources; Finance Ortega Katia Bloom 2018 Legal; Governance; Human Resources Ashbury Maryam Ghofraniha 2023 Marketing; Strategic Partnerships Ashbury Michelle Sauzier 2022 Marketing Ortega Pierre-Yves Lesaicherre 2020 Finance; Investment; Advancement Ortega Renaud Levasseur 2021 Finance; Operations Sausalito Rick Seefeldt 2021 Finance; Non-Profit; Real Estate Ashbury Romain Pirracchio 2022 Healthcare Sausalito Ryan Hoverman 2020 Technology; Product Mgt; Program Mgt Sausalito Samy Peyret 2019 Finance Alumni Thomas Clavel 2021 Marketing; Communications Ashbury
How Do Elections Work? ● The LFSF Board is comprised of 17 Trustees: 10 elected and 7 appointed. ● When there’s a vacancy created for an elected trustee, the members vote for a new trustee at the annual membership meeting in December. ● Standard Election Process ○ About a month before the annual meeting, a notice of elections goes out to all the members of the community along with a call for candidates to submit their materials by a certain date. Any member of the community is eligible to run for election. ○ A couple of weeks before the election, a letter goes out to the members along with the names of the candidates and a link for members to review their submitted materials. ○ A week before the annual meeting the voting system opens. The voting system closes on the day of the annual meeting, but only if the requirement of the LFSF bylaws that at least ¼ of all members entitled to vote actually have done so to reach the requisite election quorum. Are you interested in figuring out if serving on the Board is right for you? Please reach out, join a task force, contribute your knowledge and wisdom, and learn what Board service is all about!
LFSF in #’s
LFSF in #’s: Bay Area Trends San Francisco ● 2020 to 2021 Population Change: -54,813 (-6.3%) ○ 2nd highest % loss in USA ● 2021 Births: 7,944 (-10.4% Change) ○ 2010-2019 Average: 8,876 ● International Migration ○ 2020: +2,118 ○ 2021: +957 ■ 2010-2019 Average: 5,312 Marin ● 2020 to 2021 Population Change: -1,570 (-0.6%) Source: March 2022 US Census Migration Data: https://www.census.gov/data/tables/time-series/demo/popest/2020s-total-metro-and-micro-statistical-areas.html#par_textimage
LFSF in #’s: Post-Covid K-5 Trends San Francisco ● Private School Enrollment is down 13% ● Public School Enrollment is down 9% ● Top-Tier Private Schools have maintained enrollment (including LFSF) ○ Smaller schools, especially Catholic Schools, are losing enrollment/closing Marin ● Private School Enrollment is down 5% ● Public School Enrollment is down 20%-30% ● The Covid bump is over and many private schools are losing students, including LFSF Competition is now much higher against all other schools
LFSF in #’s: K-5 Private School Enrollment* SOURCE: CA Private School Affidavits: https://www.cde.ca.gov/ds/si/ps/index.asp *PRESCHOOL DATA NOT IN STATE AFFIDAVITS Mid-Year Enrollment 18-19 19-20 20-21 21-22 22-23 % Change 18-19 to 22-23 LFSF LFSF Ashbury K-5 304 296 306 291 304 0.0% LFSF Sausalito K-5 121 111 109 102 95 -21.5% Selected Private K-5 Schools FAIS 434 437 416 435 440 1.4% CAIS 313 N/A 313 312 309 -1.3% La Scuola 110 138 135 148 162 47.3% Ecole Bilingue 274 252 222 Not Reported 233 -15.0% Silicon Valley International 450 456 398 382 369 -18.0% Presidio Knolls 213 219 214 209 210 -1.4% MARIN: Marin Primary 149 137 136 116 127 -14.8% MARIN: Marin Horizon 111 112 102 IC 104 -6.3% MARIN: Mount Tamalpais School 126 121 135 153 144 14.3% MARIN: San Domenico 148 156 159 167 148 0.0% ALL San Francisco County PRIVATE ENROLLMENT K-5 10,815 10,145 9,685 9,230 9,408 -13.0% ALL Marin County PRIVATE ENROLLMENT K-5 3,041 3,006 3,085 2,996 2,886 -5.1%
LFSF in #’s: K-5 Public School Trends Year End Enrollment 17-18 18-19 19-20 20-21 21-22 22-23 % Change from 17-18 to 21-22 All SF Public Enrollment SF Public 26,859 26,937 26,937 26,317 24,542 Not Released Until Mid 2023 -8.6% MARIN: Larkspur-Corte Madera 1028 1026 1009 922 870 -15.4% MARIN: Mill Valley Elementary 2035 1909 1830 1695 1595 -21.6% MARIN: Reed Union (Tiburon) 875 822 760 706 610 -30.3% MARIN: Sausalito-Marin City 370 359 320 305 257 -30.5% SOURCE: CA Dept of Education Data Quest https://dq.cde.ca.gov/dataquest/dqcensus/EnrGrdYears.aspx?cds=2165474&agglevel=district&year=2020-21&ro=y
LFSF in #’s: Post-Covid 6-12 Trends ● SF Private School Enrollment is UP 4.5% from 2019-2020 ● SF Public School Enrollment is down 9% from 2019-2020 ● Parents appear to be willing to invest in private high school as the value is perceived as very high However, LFSF has not been able to capitalize on this trend to date
LFSF in #’s: 6-12 Private School Enrollment SOURCE: CA Private School Affidavits: https://www.cde.ca.gov/ds/si/ps/index.asp *Gr 6-8 only **18-19 State Data is incomplete for SF County so 19-20 is baseline Mid-Year Enrollment 19-20 20-21 21-22 22-23 % Change from 19-20 to 22-23 LFSF Ortega LFSF 6-12 379 356 360 350 -7.6% Selected SF Private 6-12 Schools FAIS 544 554 558 571 4.9% CAIS* IC 134 116 116 -13.4% La Scuola* 28 46 44 38 35.7% Silicon Valley International 175 175 169 178 1.7% Presidio Knolls* 28 49 57 61 117.9% Brandeis* 112 122 120 126 12.5% Saint Ignatius 1537 1582 1589 1590 3.5% Lick Wilmerding 528 542 549 549 4.0% Bay School IC 398 437 442 11.0% Urban 420 421 423 420 0.0% ALL San Francisco County PRIVATE ENROLLMENT 6-12 13,174 13,660 12,899 13,768 4.5%
LFSF in #’s: 6-12 Public School Trends Year End Enrollment 19-20 20-21 21-22 22-23 % Change from 19-20 to 21-22 All SF Public Enrollment SF Publics – 6-12 34,094 32,388 31,050 Not Released Until Mid 2023 -8.9% Marin Public - Tamalpais Union High District (Tam & Redwood) 5,126 5,166 5,060 -1.3% SOURCE: CA Dept of Education Data Quest https://dq.cde.ca.gov/dataquest/dqcensus/EnrGrdYears.aspx?cds=2165474&agglevel=district&year=2020-21&ro=y
LFSF in #’s: Enrollment Ortega Sausalito Ashbury Total 2016-2017 366 202 410 978 2017-2018 394 202 394 990 2018-2019 383 169 385 937 2019-2020 379 171 399 949 2020-2021 356 161 366 883 2021-2022 360 161 354 875 2022-2023 350 161 379 890 ● Bay Area population and number of student-age children has declined substantially ● Enrollment has been impacted by student relocation within the US & abroad (post-Covid)
LFSF in #’s: Retention ● Our retention rate is typically lower than other private schools due to families transferring in the AEFE network. ● Post-COVID: Expatriate enrollment contributes directly to the declining enrollment trend ○ Departures Out of the Bay Area have tripled since 2020: About 60 non-returning students are due to relocation out of the Bay Area compared to 20-30 students prior to COVID ○ Departures are not compensated by arrivals: Only 40 were coming in from abroad this year NAIS trend : At all levels of education, the pandemic accelerated a drop in international students enrollment. ● Lower enrollment does not directly increase tuition rates as lost tuition is mostly offset by faculty and classroom savings. ● Expat children enrollment needs to be replaced by local, non-French/Francophone families who are less familiar with the French system and we need to continue to work on accessibility
Tuition Setting Process & Financial Metrics
Process Used to Set Tuition: 2023-24 September •Requested salary discussions with the Teacher’s Union (earlier than in past years) October •Business Office makes initial Revenue & Expense projections November •Enrollment projections made based upon announced departures, historical attrition & early applicants •First round Financial Aid collected December •Business Office and Board Finance Committee prepare & review budget scenarios January •January 4: Negotiations completed with the Teacher’s Union •January 12: Budget unanimously approved by Board after Finance Committee recommendation •January 18: Tuition levels announced to the community •January 25 Financial Aid grants announced We will specifically address how this schedule flows into the need for the enrollment decisions later in this presentation
LFSF in #’s: Revenue Sources 26 LFSF in #s: Revenue Revenue Sources Fundraising 3% Other 1%
LFSF in #’s: Expenses
Required Facility Projects ● For many years the school performed basic maintenance to keep costs low ● Today: Many fundamental systems are nearing end of life/need replacement Campus Project Estimated Cost Ortega Window Replacement Due to Impending Failure $600,000 19th Avenue Electric Fence Replacement $175,000 Floor Repair Due to Water Intrusion $100,000 Roofing Leaks $40,000 Sewer Pump Replacement $35,000 Ashbury Seismic Retrofitting $1,850,000 Window Replacement Due to Impending Failure $200,000 Fire Alarm System End of Life $200,000 Replace Worn Flooring $85,000 Boiler System End of Life $35,000 Sausalito (Lower Due to Leased Space) Classroom Door Replacement (Allows flooding) $100,000 Parking Lot Repavement $40,000 TOTAL ACROSS ALL CAMPUSES $3,460,000
LFSF in #’s: Cost Optimization ● Reduce Print Services by $10K ● Reduce Legal Fees by $40K ● Reduce Maintenance by $18K ● Reduce Relocation by $25K ● Reduce Discretionary Expenses by $5K ● Reduce Catering by $4K ● Reduce Classroom expenses by $19K ● Total Optimization of +$121K ● This is an area of Board attention and review each year ● When cuts are made, they must be done very selectively to ensure that we do not degrade our program/offerings. ● Most parents are asking us to increase offerings
• Financial Aid open to all, provided on a Need Basis – determination based on Income, Savings and Assets • Applications reviewed by SSS, a NAIS service that calculates a family’s EFC (Estimated Family Contribution) • LFSF Financial Aid can cover up to 60% of tuition and overnight field trips • Parents can also apply to French government scholarship (“bourse”) in parallel • Financial Aid budget increasing year-on-year from 2021 ($1.4 M) to 2022 ($1.8 M) to 2023 ($2.0M) In 2021-2022 - 497 students (56%) benefited from some financial aid: NEED BASED ● LFSF Financial Aid program: 94 students [$1,553,146] ● LFSF + the French government: 36 students [$664,147] ● French government: 15 students [$623,160] OTHER FINANCIAL AID PROGRAMS ● Sibling Discount: 266 students [$341,900] ● Non Tuition Aid (trips, exams...): 28 students [$13,797] ● LFSF Employee Tuition Remission: 54 students [$1,318,194] Financial Aid Overview
Tuition Increase Decision & History Preschool/ Elementary School Middle School High School 2014-15 19,580 20,780 25,690 2015-16 20,560 980 5% 21,820 1,040 5% 26,980 1,290 5% 2016-17 21,180 620 3% 22,480 660 3% 27,790 810 3% 2017-18 22,140 960 5% 23,500 1,020 5% 29,050 1,260 5% 2018-19 23,250 1,110 5% 24,680 1,180 5% 30,510 1,460 5% 2019-20 24,420 1,170 5% 25,920 1,240 5% 32,040 1,530 5% 2020-21 25,520 1,100 5% 27,090 1,170 5% 33,490 1,450 5% 2021-22 27,060 1,540 6% 28,720 1,630 6% 35,500 2,010 6% 2022-23 28,700 1,640 6% 30,400 1,680 6% 37,600 2,100 6% 2023-24 32,000 3,300 11% 33,500 3,100 10% 41,500 3,900 10% Key Drivers: ● Operational Expenses Increase (Utilities, Insurance, Services, Supplies, …) ● Negotiated Compensation Adjustment for Teachers/Staff ● Increased Investment in Facilities / Repairs
Additional Details: Cost Increases 2023-2024 ● Tuition proposal from Administration – Finance Committee review & approval – Full board review & approval ● Negotiated Compensation Adjustment for Teachers/Staff is the primary factor ○ 8% salary increase → 8.81% including scale jump → 9.9% with seniority and $2,000 increase in May 2022 ● Operational Expenses Increase (Utilities, Insurance, Services, Supplies,…) is a secondary factor ● Increased Investment in Facilities / Repairs Going forward ● Administration & Board understand the hardship for many families ● We want to limit future tuition increases to a financially responsible level ● Latest salary negotiation covers 2 years – 4% salary increase agreed for 2024-2025 ● Enrollment is a key factor - 97% of revenues for the LFSF ● Inflation is also a key factor – decreasing trend is favorable – most economists expect a level of 3% by 2024 ● With lower inflation, we expect operational expenses to increase at a much lower rate ● The administration & board are committed to continue to review every cost item and optimize LFSF cost structure through: ○ Overhead cost optimization ○ Operational cost and discretionary spending
What Does the Tuition Increase Cover? Faculty Compensation 73% Administration 6% General Expenses (IT, telecom, marketing, advertising, etc.) 10% Building & Facilities 11%
Competitive Reference - 23/24 2023-2024 Tuition Levels Preschool Elementary Middle High School FAIS $37,947 $37,947 $37,947 $54,821 Ecole Bilingue $33,655 $34,430 $38,405 Silicon Valley $35,680 $37,210 $39,060 $43,490 Chinese American $38,300 $39,600 $39,600 La Scuola $41,150 $41,300 $43,675 Marin Horizon $33,695 $40,916 $43,152 Marin Primary $38,485 $41,355 $43,905 Average Schools Listed $36,987 $38,965 $40,821 $49,156 Median Schools Listed $37,947 $39,600 $39,600 $49,156 Average Bilingual Schools $37,346 $38,097 $39,737 $49,156 Median Bilingual Schools $37,947 $37,947 $39,060 $49,156 LFSF $32,000 $32,000 $33,500 $41,500 LFSF % Avg 86.52% 82.12% 82.07% 84.43% LFSF % Median 84.33% 80.81% 84.60% 84.43% ● LFSF Offering the best Immersive Bilingual Bicultural French-American education ● Lower tuition than all comparable bilingual K-12 schools in the Bay Area ● LFSF offers the best value for money for a French bilingual education
Hot Topics
Sausalito ● The campus has had declining enrollment ○ Strategies are being evaluated to increase entry points (e.g. Happy Play-parent/child language immersion) ● Sausalito is break even - not a burden on LFSF finances (see P&L slide) ● The Administration and Board are currently working to make the lease with the City of Sausalito more favorable ● The impact of the State of California Regional Housing Needs Assessment (RHNA) has greatly been reduced due to LFSF involvement. The RHNA uncertainty has been causing concerns w/ parents ● We are one school - LFSF as a whole is stronger when we all are working together for LFSF success!
Sausalito P&L REVENUE Net Tuition & Fees 4,940,240 EXPENSES Salaries & Benefits - Faculty & Admin 3,581,654 Student Expenses 98,300 Building & Facility Expenses 968,961 Depreciation 200,000 Total Expenses 4,848,915 NET PROFIT/LOSS +91,325
Sausalito / Ortega Connection Sausalito, a true pipeline for Ortega ● Sausalito provides a second pipeline to Ortega with similar matriculation rates as Ashbury ● 30% of Ortega students today are Sausalito grads ● Given our unique entry points we need as many pipelines as possible to fuel Ortega, which also has declining enrollment. ● Sausalito is not forced onto families, but is an option for families if an Ashbury section is full. In fact, every year, transfers are granted from SAU to ASH and ASH to SAU Challenges without Sausalito ● Only 28 of the 161 students enrolled in Sausalito live in the city (this number is declining in % and will continue to do so with the opening of La Petite Ecole in SF) ● Removing a campus from our pipeline could cause enrollment challenges for Ortega, causing a reduction in offerings or requiring even higher tuition ● Starting up a new campus in any location (buy or lease) will have very high startup costs (Millions of $s) with a higher base purchase price or lease rate/square foot
AEFE - homologation vs. convention What is the AEFE and its forms? AEFE - its mission AEFE is an agency run under the umbrella of French Ministry of Foreign Affairs. It was created to fulfill two objectives : educating students from French families AND students from host countries who currently represent 60% of total AEFE enrolled students. The homologation It validates, for schools outside of France, the fact that the program follows the principles, the content and the pedagogical organization of the French educational system. Each school worldwide adapts its program within set boundaries to fit the local educational system and the local culture. The convention with the AEFE There are 3 types of schools within the network: ● Schools with an homologation: private schools with French accredited curriculum otherwise independent from the AEFE (all schools in the US but LFSF) ● Schools with a convention: They have an administrative and financial agreement with the AEFE (LFSF is in this classification) ● Schools directly managed by the AEFE (no such schools in USA/Canada - mostly Europe and North Africa)
AEFE - What Does It Do For LFSF? LFSF is the only school in the United States linked to France by convention - We entered in late 2022 into a very strategic and specific engagement with AEFE. What does this mean? Financial and Operational asset: -LFSF pays a fee to the AEFE, which represents a % of the number of students enrolled - same WW for all AEFE conventioné schools -LFSF entered into a very strategic and specific agreement with AEFE in 4Q22 where AEFE is subsidizing fully the hiring (locally) of our HoS* (move was cost neutral for LFSF). Net payment is estimated $1.1M -In return LFSF receives ● 3 Campus Directors ● 4 Pedagogical Leads (who partially teach as well) Note: The enrolled children of these staff are paying full tuition (no faculty discount) (LFSF also hosts the Primary Pedagogical councilor for NA, HoS is managing examination center for NA and AEFE sports league) Know How: Teachers from across North America rely on these 4 LFSF teachers to be trained on the French curriculum. They are the reference for the curriculum - they also teach part-time, meaning LFSF does not need to hire full-time teachers Added attractiveness : AEFE Convention Status makes LFSF the flagship school in the USA which facilitates our participation in many events, it also allows us to currently have our HoS sitting at the Board of AEFE regional hub. This provides many opportunities for our school and our students A flexible, privileged relationship: The recent agreement is highly unique and strategic and was negotiated with highest level of French Education Nationale / AEFE. LFSF now is allowed to hire its Head of School locally (cost still covered by AEFE) providing for stability and still benefit from being a true AEFE school (differentiator vs other international schools) (*) up to 2022, HoS was AEFE employee and not employed locally by LFSF leading to a 3-5 year rotation - now fully locally employed and stable.
Community Questions & Comments Submitted Prior to Meeting
Fundraising Community Question: It seems that our $’s spent to fundraise $ are quite high. Can you comment on our fundraising efficiency? Our net fundraising has increased by 65% over the past 4 years from $724K to $1.2M Our most recent external audit showed that the cost to raise $1 was $0.23 – Net, we gain $0.77 for every dollar spent on fundraising staff/activities. – $0.23 to raise a dollar is a low average compared to other nonprofit independent schools* If we had no fundraising at the school, tuition would increase $1352 per student * Armanino independent accounting and business consulting firm
990 Forms Community Question: Why can’t I find recent LFSF 990 Forms? Can you be more transparent and share these? Reference: ● 990 forms highlight a nonprofit’s mission, program and finances for a prior year ● These forms must be filed with the IRS/United States Federal government each year ● Due to Covid-19, the US government is substantially delayed (~2-3 years behind) on processing 990 forms* ● Even in a normal environment, there is typically an 18-24 month window from submission to public release LFSF has submitted all 990 forms on time as required by law *https://projects.propublica.org/nonprofits/organizations/941660059
Enrollment Deadlines Community Question: Why should I enroll by the deadline? LFSF always has seats beyond Maternelle, so I can wait until the Summer. ● Once Re-enrollment ends, open seats are offered to new applicants in March (per Independent Schools of the Bay Area (ISSBA) Calendar) ● Re-enrollment numbers and new contracts allow us to confirm the class structure and to recruit the teachers needed for the following school year ● The admissions team is in contact with families who have not re-enrolled to understand their situation and best respond to their personal issues. ● Parent contracts can be cancelled before May 31. This process is common to most independent schools.
Insurance Costs Community Question: Can you explain what is driving the high increase in insurance costs over the last year? ● The original number in the FAQ showed a typo ● We expect our insurance premiums will increase by ~16% ○ Worker's Comp, Property, General Liability and Educator Liability make up the bulk of the insurance costs ● We work with a broker to ensure our policies are acquired at the best possible rate ● Insurance policies and costs are reviewed yearly ○ We review offerings and optimize coverages where the risk of self insurance is too high (e.g. LFSF recently added child abduction coverage) 22/23 Insurance Costs 23/24 Est. Insurance Costs $293k $340K
PPP Loans Community Question: What happened to the money LFSF received from the government PPP loans (that were forgiven)? ● The funds were used to pay teacher and staff salaries, including a one-time bonus to recognize remarkable work during challenging working conditions ● LFSF endured over $2M of extraordinary expenses due to the pandemic: ○ Partial refunds to parents for tuition, daycare, etc $0.6M ○ Additional staff to supervise pods $0.5M ○ Additional financial aid for COVID-impacted families $0.4M ○ Rent of additional facilities and facilities modifications $0.4M ○ IT investments $0.2M ○ PPE & Emergency supplies $0.1M
International Lycées Community Question: Why are Lycées in other high-cost International cities (London, Zurich, etc) so much cheaper than LFSF? ● LFSF is the lowest-priced bilingual school in the San Francisco area ● We are operating in the Bay Area, which has a very high cost of operation to run an independent private school ● All French schools around the world have prices that match the local market as it is mostly linked with the staffing and infrastructure cost. We also cannot have “Professeurs résidents” (paid from France at a set cost - US immigration laws) like many other conventionné schools in the rest of the world ● Each school has its specificities: competition (especially of other French US schools), level of excellence ie expectations in terms of education that go beyond the curriculum and the classroom
Tiered Tuition Community Question: Can the school research a tiered tuition model based upon family income for those above the Financial Aid threshold? ● We attempt to tier our tuition through Financial Aid based upon Expected Family Contributions but are currently investigating and benchmarking w/ other schools to evaluate other aid models
Discounts Community Question: Would the school consider offering discounts for students who have X years of attendance at LFSF? Can the sibling discount go back to a % vs a fixed dollar amount? ● We believe that our offering, including discounts, is very competitive with other schools: most independent schools have lower or no sibling discount. ● Any further discounts would require an increase in the overall tuition charged or an offsetting expense reduction ● The sibling discount is applied to all families regardless of need, but seniority is considered in the Financial aid process. ● How to use financial rewards to better attract and retain families is something that we are continually evaluating
Teacher Tuition Discounts Community Question: Why is the teacher tuition discount so much higher than other private schools? ● Teacher discounts are designed to encourage: ○ Teachers to come to our school from France ○ Teachers to enroll their children in our school and have at heart the quality of their educational experience ○ Contribute to a high % of native French students in the classroom ○ Teacher retention ● The level of teacher discount is a long-standing benefit that can only be adjusted if the teacher’s union was interested in doing so.