Bedford Public Schools November 2018 Bond Proposal Update May 2018 - - PowerPoint PPT Presentation

Bedford Public Schools

November 2018 Bond Proposal Update May 2018

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Presentation Overview

• Due Diligence Activities
• November 2018 Bond Program Review
• Financial Considerations
• Preliminary Schedule and Next Steps

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Due Diligence Activities

Due Diligence Activities

• BPS Facilities Committee conducted a deep dive into the capital needs for each

District facility.

• Categorized needs into critical, deferred, and enhancement items by building.
• BPS engaged a professional structural engineer to review wooden beams at

Douglas Road and Jackman Road Elementary Schools. Findings include that the beams are structurally sound and can remain in place with only minor repairs made at 8 select locations. BPS should continue to monitor the beams accordingly.

• Reviewed operational, safety and security, and educational goals.
• BPS reviewed financial considerations with the District’s financial advisor. Current
• ptions include 20-year and 25-year finance terms.

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November 2018 Bond Program Review

November 2018 Bond Program Review

• Identified $34,290,000 worth of needs District needs to address in the next 5

years

• Douglas Road Elementary - $4.0M
• Jackman Road Elementary - $4.5M
• Monroe Road Elementary - $860K
• Smith Road Elementary - $3.3M
• Bedford Junior High - $8.8M
• Bedford High - $12.7M

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Bedford Public Schools Bond Program Cost Breakdown

Remodeling / Interior Finishes - $23.3M Contingency - $2.03M Sitework - $3.83M Soft Costs (Contingencies, Prof. Fees, Issuance Cost) $ 2.5M Construction Manager Fees & Costs - $2.7M Election/Issuance/Interest Earnings - $TBD

Presentation Overview

• Due Diligence Activities
• November 2018 Bond Program Review
• Financial Considerations
• Preliminary Schedule and Next Steps

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14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Repair and/or repave deteriorated parking lots at six (6) schools,

the administration building and the transportation / maintenance building

• Replace damaged concrete sidewalks
• Repair damaged underground storm lines
• Replace damaged fencing
• Site restoration

Bond Features: Sitework

14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Replace roofing

Bond Features: Building Envelope

14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Upgrade toilet rooms
• Replace interior doors and hardware
• Replace gym floor at Junior High and refinish gym floor at High

School

• Replace corridor lockers and gym lockers at Junior High
• Replace gym bleachers at Junior High and High School
• New food service equipment at High School

Bond Features: Interior

14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Repair and/or repave deteriorated parking lots at six (6) schools,

the administration building and the transportation / maintenance building

• Replace damaged concrete sidewalks
• Repair damaged underground storm lines
• Replace damaged fencing
• Site restoration

Bond Features: Sitework

14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Install air conditioning at Douglas Road, Jackman Road and Smith

Road Elementary Schools, Junior High and original building classrooms at the High School

Bond Features: Air Conditioning

14% 12% 12% 29% 15% 17%

May 2018 Bond Program Review

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• Install secure entry at Junior High and High School
• Installation of new windows
• Replacement of exterior entry doors
• Install new exterior building lighting and parking lot lights
• Install generator at high school
• Fire alarm system upgrades
• Install access control system at each school
• Upgrade surveillance & security system at each school

Bond Features: Security & Life Safety

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Financial Considerations

Financial Considerations

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• BPS reviewed financial considerations with the District’s financial advisor. Current
• ptions include a 20-year and 25-year finance options.
• Due to the useful life calculations for the majority of the proposed infrastructure

improvements (i.e. building envelope, mechanical, electrical, and plumbing improvements) a 25-year bond program aligns with the District’s critical needs

• BPS is submitting through the State of Michigan’s Department of Treasury with a

Qualified School Bond proposal.

• The School Bond Qualification and Loan program was established by the

Michigan Constitution of 1963 and amended by Public Act 92 of 2005 to provide a state credit enhancement and loan mechanism for school district bond issues. The bonds must be qualified by the State Treasurer and the bond proceeds must be used for capital expenditure purposes.

Financial Considerations

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BEDFORD PUBLIC SCHOOLS COUNTY OF MONROE, STATE OF MICHIGAN SCHOOL BUILDING AND SITE BONDS (GNERAL OBLIGATION – UNLIMITED TAX)

SUMMARY OF PROPOSED BOND

Bond Proceeds Ballot Info for New Debt Alone Scenario Table No. Bond Amount Less: Est. Capitalized Interest Estimated Bond Proceeds for Project* Bond Term Estimated Interest Cost Estimate Interest Rate First Year Millage Average Millage Total Mills All Debt Increase (Decrease) in Debt Levy 20 Year Term Table_21a $35,340,000 $1,192,725 $34,377,752 20 yrs., 3 mo. $20,736,675 4.50% 1.99 1.87 1.99 1.99 NOTATION:

• The interest rates used on the table represent conservative rates. If the bonds were sold in the current market, the interest rate would be less than shown above. However, due to the fact

the bond sale is at least 6 months away, we recommend using a conservative interest rate when computing the millage impact. Otherwise, if the interest rates rise, the District would be forced to levy a higher millage than the millage given in the pre-election information ASSUMPTIONS: * Net capitalized interest, and estimated cost of insurance, plus estimated interest earnings during construction.

• December 2017 and December 2018 Debt Levy of 0.00 mills
• November 2018 vote, Bonds dated February 2019
• First debt levy for proposed bonds: December 2019
• An annual change in Taxable Value of 4.30% for 2018, 2.48% (the projected 5 year historical average) for the following 5 years and 3.0% thereafter.

May 30, 2018

Financial Considerations

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$100,000 Home Value $200,000 Home Value

Example tax impact for $35,000,00 bond at 20 year term:

For a $100,000 Home Value ($50,000 Taxable Value): Approximately $8.29 per month ($99.50 annually) For a $200,000 Home Value ($100,000 Taxable Value): Approximately $16.58 per month ($199 annually) BEDFORD PUBLIC SCHOOLS COUNTY OF MONROE, STATE OF MICHIGAN SCHOOL BUILDING AND SITE BONDS (GNERAL OBLIGATION – UNLIMITED TAX)

SUMMARY OF IMPACT OF BONDING ON PROPERTY TAXPAYERS

Estimated Initial Tax Increase*

Scenario Table No. Bond Amount Estimated Increase in Debt Levy $50,000 Taxable Value $60,000 Taxable Value $75,000 Taxable Value $90,000 Taxable Value $100,000 Taxable Value $125,000 Taxable Value $150,000 Taxable Value $175,000 Taxable Value $200,000 Taxable Value $225,000 Taxable Value $250,000 Taxable Value $275,000 Taxable Value

20 Year Term Table_21a $35,340,000 1.99 99.50 119.40 149.25 179.10 199.00 248.75 298.50 348.25 398.00 447.75 497.50 547.25

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Preliminary Schedule & Next Steps

Preliminary Schedule & Next Steps

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Key Dates (November 2018 Election)

• May 29, 2018 – Pre-Bond Presentation
• May 31, 2018 – Pre-Bond Presentation
• May 31, 2018 – Committee of the Whole Meeting to Finalize Bond Scope
• June 5, 2018 – Pre-Qualification Meeting with Department of Treasury
• June 28, 2018 – Board of Education Approve Application for Pre-Qualification
• August 2, 2018 – Board of Education Adopt Resolution Calling Election
• November 6, 2018 – Election Day

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Questions & Answers

Questions & Answers

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• Are there any additional critical facility needs that are not addressed in this

proposal?

• Should BPS consider a 20 year bond term or a 25 year bond term?
• Other considerations?

Helping to Plan the Future

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