CFW Caldwell Flores Winters, Inc. Facilities Planning, Public - PowerPoint PPT Presentation

Kern Community College District School Facilities Improvement District (SFID) March 2013 CFW Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration

Improvement Districts  In 1997 K ‐ 12 school districts and community college districts were granted the authority to form School Facilities Improvement Districts (SFIDs) and, in doing so, allow the issuance of General Obligation (G.O) bonds by the SFID  SFIDs allow the voters of the specified geographical area, who enjoy the maximum benefits of the improvements to be funded by the G.O. bond, to vote on the measure  SFIDs are established within a defined geographical area that must be mapped and recorded with the county and state  Districts may customize the boundaries of the SFID, based on the improvements required  SFIDs are formed by a vote of the District’s Board of Trustees after holding a public hearing  The District has been very successful in creating Special Districts such Kern and as Mammoth to meets its various facilities needs, however significant facilities needs remain  A new SFID could improve Bakersfield, Porterville, and Cerro Coso colleges, including the programs available at the Delano Center, to further promote educational opportunities in those communities Caldwell Flores Winters, Inc. 1 Facilities Planning, Public Finance, Program Administration

Kern CCD SRID  Kern Community College District includes most of Kern County, a small portion of San Bernardino County, the southern portion of Tulare County, and portions of Inyo and Mono Counties  The District currently operates three college campuses and four State approved instructional centers  In 2002 the Kern Community College District formed the Safety, Repair and Improvement District (SRID) to address the various priority facility needs of the Bakersfield, Cerro Coso, and Porterville College Campuses  The voters within the specified geographical area approved $180 million in general obligation bonds for purposes of financing capital projects  The District has been able to improve the educational facilities at various campuses and offer a positive impact on student learning in these communities, but additional needs remain today Caldwell Flores Winters, Inc. 2 Facilities Planning, Public Finance, Program Administration

Mammoth SFID  In the past, the five ‐ county service area covering approximately 24,000 square miles has benefitted from the successful implementation of School Facilities Improvement Districts (SFIDs)  In 2000, the District formed the Mammoth Schools Improvement Facilities District to propose a $15 million bond to District voters. The voter approval rate was 76%  The boundaries for the Mammoth SFID were co ‐ terminous with the town of Mammoth Lakes (except for the area comprising the Municipal Airport) Caldwell Flores Winters, Inc. 3 Facilities Planning, Public Finance, Program Administration

Existing SFIDs Kern SRID Mammoth SFID Caldwell Flores Winters, Inc. 4 Facilities Planning, Public Finance, Program Administration

Options  Kern CCD has the opportunity to establish a regional funding source with one or more School Facility Improvement Districts focused on the following communities : 1) Porterville 2) Delano 3) Cerro Coso 4) Bakersfield  A new SFID via a Prop. 39 G.O. bond program may provide a viable option to achieve multiple objectives: • Address remaining facilities needs to support the District’s educational vision • Develop an expanded set of programs and offerings tailored to an area’s needs • Provide resources to strengthen CTE programs and improve career pathways Invest in technology infrastructure to geared towards 21 st century education • Caldwell Flores Winters, Inc. 5 Facilities Planning, Public Finance, Program Administration

Option 1: Porterville SFID Boundary Map  The proposed Porterville SFID would be created along the boundaries of the Porterville USD Caldwell Flores Winters, Inc. 6 Facilities Planning, Public Finance, Program Administration

Option 1: Porterville SFID Assessed Valuation  The proposed Porterville SFID’s 2013 Assessed Valuation (A.V.) is approximately $5.2 billion and has only experienced one year of negative growth  Annual A.V. growth has averaged 5.20% in the last 10 years Historical Assessed Valuation Growth Year Secured Unsecured Total % Change 2002 ‐ 03 $3,048,477,567 $115,422,195 $3,163,899,762 2003 ‐ 04 $3,178,563,995 $118,424,175 $3,296,988,170 4.21% 2004 ‐ 05 $3,659,513,130 $123,642,835 $3,783,155,965 14.75% 2005 ‐ 06 $3,888,743,946 $145,005,797 $4,033,749,743 6.62% 2006 ‐ 07 $4,106,598,487 $144,949,119 $4,251,547,606 5.40% 2007 ‐ 08 $4,490,582,202 $182,373,590 $4,672,955,792 9.91% 2008 ‐ 09 $4,725,956,766 $159,048,847 $4,885,005,613 4.54% 2009 ‐ 10 $4,716,803,784 $176,257,228 $4,893,061,012 0.16% 2010 ‐ 11 $4,723,433,244 $197,408,588 $4,920,841,832 0.57% 2011 ‐ 12 $4,656,154,571 $202,537,406 $4,858,691,977 ‐ 1.26% 2012 ‐ 13 $5,004,145,096 $201,143,554 $5,205,288,650 7.13% Average 5.20% Caldwell Flores Winters, Inc. 7 Facilities Planning, Public Finance, Program Administration

Option 1: Porterville SFID Est. G.O. Bond Proceeds Est. G.O. Bond Proceeds  The Porterville SFID could generate up to $39 million in bond proceeds by establishing a tax rate of $25 per $100,000 of assessed value  All options would require a 55% voter approval Option 1: Porterville SFID Est. Bond Proceeds at Various Tax Rates Tax Rate 2014 2017 2020 2023 Total $25 $ 18,858,162 $ 8,844,245 $ 3,038,007 $ 8,696,354 $ 39,436,767 $20 $ 15,086,530 $ 7,075,396 $ 2,430,405 $ 6,957,083 $ 31,549,414 $15 $ 11,314,897 $ 5,306,547 $ 1,822,804 $ 5,217,812 $ 23,662,060 $10 $ 7,543,265 $ 3,537,698 $ 1,215,203 $ 3,478,542 $ 15,774,707 * Includes Porterville USD G.O. Bond Program Assumptions • Annual Assessed Valuation Growth: 4% • Total Bond Series: 4; 25/30 year term Caldwell Flores Winters, Inc. 8 Facilities Planning, Public Finance, Program Administration

Option 1: Porterville SFID Voter Demographics Voter Age  Based on previous elections, a November 2014 MALE bond election for a Porterville SFID would 45% require approximately 8,102 “yes” votes in order to pass  District demographics are comparable to other local voters who have supported improving FEMALE Political Party 55% local community colleges OTHER 23% DEMOCRATS Projected Voter Turnout 34% Election Date: Nov. 2014 Total District Voters: 28,204 Gender Projected Turnout: 52% AGE 18 ‐ 24 AGE 65+ 12% Estimated Total Ballots Cast: 14,731 24% REPUBLICANS 43% AGE 25 ‐ 34 Yes Votes Req. To Win Prop 39 Election (55%): 8,102 16% Suggested "Yes" File Goal To Win: 10,533 Source: Political Data AGE 55 ‐ 64 18% AGE 35 ‐ 44 *Voter data not currently not available for Strathmore Union ESD 14% AGE 45 ‐ 54 16% Caldwell Flores Winters, Inc. 9 Facilities Planning, Public Finance, Program Administration

Option 2: Delano SFID Boundary Map Boundary Map  The Proposed Delano SFID includes the combined area currently consisting of the Delano Joint Union HSD, McFarland USD, and Wasco Union SD Caldwell Flores Winters, Inc. 10 Facilities Planning, Public Finance, Program Administration

Option 2: Delano SFID Assessed Valuation  The 2013 Assessed Valuation (A.V.) for a Delano SFID is more than $ 9.4 billion  A.V. has more than doubled in the last 10 years and the annual A.V. growth has averaged 9.37% Historical Assessed Valuation Growth Year Secured Unsecured Total % Change 2002 ‐ 03 $3,765,561,785 $151,642,104 $3,917,203,889 2003 ‐ 04 $3,970,591,596 $160,497,268 $4,131,088,864 5.46% 2004 ‐ 05 $4,461,604,209 $157,846,918 $4,619,451,127 11.82% 2005 ‐ 06 $4,757,642,979 $171,433,782 $4,929,076,761 6.70% 2006 ‐ 07 $5,780,993,490 $188,391,018 $5,969,384,508 21.11% 2007 ‐ 08 $6,516,098,549 $231,429,963 $6,747,528,512 13.04% 2008 ‐ 09 $7,485,050,116 $219,761,613 $7,704,811,729 14.19% 2009 ‐ 10 $7,183,487,913 $262,232,379 $7,445,720,292 ‐ 3.36% 2010 ‐ 11 $7,577,002,535 $247,531,074 $7,824,533,609 5.09% 2011 ‐ 12 $8,145,027,296 $297,684,758 $8,442,712,054 7.90% 2012 ‐ 13 $9,104,676,856 $328,728,883 $9,433,405,739 11.73% Average 9.37% Caldwell Flores Winters, Inc. 11 Facilities Planning, Public Finance, Program Administration

Option 2: Delano SFID Est. G.O. Bond Proceeds Est. G.O. Bond Proceeds  The Delano SFID could generate up to approximately $71 million in bond proceeds by establishing a tax rate of $25 per $100,000 of assessed value  Alternatively, lower tax rates would generate the revenues set forth below  All options would require a 55% voter approval Option 2: Delano SFID Est. Bond Proceeds at Various Tax Rates Tax Rate 2014 2017 2020 2023 Total Tax Rate 2014 2017 2020 2023 Total $25 $ 34,176,144 $ 16,028,188 $ 5,505,699 $ 15,760,170 $ 71,470,201 $20 $ 27,340,915 $ 12,822,551 $ 4,404,559 $ 12,608,136 $ 57,176,161 $15 $ 20,505,686 $ 9,616,913 $ 3,303,419 $ 9,456,102 $ 42,882,120 $10 $ 13,670,457 $ 6,411,275 $ 2,202,279 $ 6,304,068 $ 28,588,080 * Includes Delano HSD, McFarland USD, and Wasco Union HSD G.O. Bond Program Assumptions • Annual Assessed Valuation Growth: 4% • Total Bond Series: 4; 25/30 year term Caldwell Flores Winters, Inc. 12 Facilities Planning, Public Finance, Program Administration