[PPT] - Facility and Financial Overview Brandywine Heights Area School PowerPoint Presentation

SLIDE 1

Facility and Financial Overview

Brandywine Heights Area School District

SLIDE 2

BHASD Mission: “Our Mission is to enable students to strive for success in an ever-changing global society.”

Agenda

1. Overview of facilities 2. Addressing immediate concerns with facilities 3. Long range planning of facilities 4. Financial overview

SLIDE 3

Def efine e Goals Analyze Data ta Develop Options Recommendations

Educational Visioning Financial Guiding principles Indicators of quality Establish benchmarks Infrastructure improvements Educational improvements Community Use Cost Estimating Operational Savings Phasing Prioritize Projects Short and Long Term Planning Final report Option Selection

Infor

rmation
n

Gatheri ring

Space analysis Energy modeling Benchmarking Educational adequacy Program Compliance Right sizing the box Building Capacity Analysis Enrollment Analysis Facility Assessments Utility cost history Current Use of Space Program & Preliminary Options Existing Documents

Facility Analysis Process (March – October)

Crabtree, Rohrbaugh & Associates Architects

Evaluate current building conditions
Plan for future building use

Board Board

1

STEP

2

STEP

3

STEP

4

STEP

5

STEP

3

SLIDE 4

Current Status

f Buildings

 Built in 1960  1980 addition  1990 addition/renovation  1999 2 portable classrooms/removed 2011  2011 - Roof replacement  2016-2017 – LED upgrades and HVAC added  Built in 1955  1968 addition  1995 addition/renovations - new auditorium seats, hallway flooring  2004 renovations  2011 - Roof replacement, lighting and HVAC upgrades  2017-2018 - LED upgrades and HVAC added  Built in 2003  2017-2018 - LED and mechanical upgrades

High School

465+ students

Intermediate & Middle School

535+ students

Elementary School

400+ students

SLIDE 5

Facility Analysis Overview

Current Condition  Building infrastructure has been well-maintained across the district  Elementary entryway procedures are a targeted safety concern  High School roof degrading; 1-2 years of life remaining Future Building Use

 Elementary Building 98% capacity usage (optimal operating capacity 85%)  Middle School interior façade worn

 Auditorium built in 1956; last refurbished in 1995 with new seats  Hallways updated in 1995

 Facility utilization increased 650 hours last year for a total of 1700+ hours utilized by community afterhours  Athletic facilities stadium enhancements and field discussions

SLIDE 6

Project Timeline

SLIDE 7

SLIDE 8

Current Elementary Entrance

BUILDING MAP IMAGE REMOVED

SLIDE 9

BRANDYWINE HEIGHTS ELEMENTARY SCHOOL OFFICE RECONFIGURATION

Summer 2019

PRELIMINARY COST- $400,000 - $600,000

BUILDING MAP IMAGE REMOVED

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BRANDYWINE HEIGHTS ELEMENTARY SCHOOL OFFICE RECONFIGURATION

Summer 2019

SLIDE 11

High School Roof Concern

Summer 2019

Infrared Scan of Roof Pink = failure points measured by saturated areas

SLIDE 12

High School Roof Replacement

EPDM roofing material upgrade to 90 mils thick 30 year warranty and flashing Wider coverage area = reduced joints/seams

PRELIMINARY COST- $1.6-$1.7 Million

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SLIDE 14

Elementary School Enhancements

PRELIMINARY COST- $6-$7.3 Million (excludes entryway cost)

SLIDE 15

Intermediate & Middle School Interior Enhancements (First Floor)

PRELIMINARY COST- $3.0-$3.8 Million

SLIDE 16

Intermediate & Middle School Interior Enhancements (Second Floor)

PRELIMINARY COST- $3.0-$3.8 Million

SLIDE 17

Athletic Facilities – Intermediate/Middle School

PRELIMINARY COST- $1.6-$4.6 Million

*Wide range of potential scope and discussion about both school sites

1. DOCK PARKING RECONFIGURATION 2. OUTDOOR LEARNING AMPITHEATRE 3. BLEACHERS & LIGHTING 4. ADA ACCESS, SIDEWALKS & FENCING 5. TURF FIELD ($1.2m) ($500,00 maintenance every 10 years) 6. ALL WEATHER TRACK ($1m) 7. RELOCATION OF BASEBALL FIELD 8. NEW PARKING LOT FOR STADIUM

BUILDING MAP IMAGE REMOVED

SLIDE 18

Athletic Facilities – High School

PRELIMINARY COST- $1.1-$5.4 Million 1. NEW PARKING LOT & DROP-OFF FOR STADIUM 2. BLEACHERS & LIGHTING 3. RELOCATION OF SOFTBALL FIELD 4. REDUCTION OF FRONT PARKING LOT 5. TURF FIELD ($1.2m) ($500,00 maintenance every 10 years) 6. ALL WEATHER TRACK 7. POTENTIAL STADIUM ENTRY & PROGRAM EXPANSION

*Wide range of potential project options

BUILDING MAP IMAGE REMOVED

SLIDE 19

Overall perception of schools
Community Investments; stadium – community

for games, grandparents for events like race for education; auditorium; ADA accessibility

Property value equates to school ranking

WHY should we make these investments in

ur schools?

National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20.

https://www.publicschoolreview.com/blog/what-is-the-connection-between-home-values-and-school-performance

Realator.com One out of five home buyers said they would pay six to 10 percent above their budget for the right school.

https://www.realtor.com/advice/buy/the-right-school- district-how-much-do-schools-affect-real-estate-prices/

A 2017 study by the National Association of Realtors (NAR) found 26 percent of home buyers considered the quality of schools when looking for a new home. https://www.opendoor.com/w/blog/how-school-ratings-impact-home-prices

SLIDE 20

Financial Overview

SLIDE 21

Financial Health of the District

Current Financial Status

Revenue:
<1% Federal subsidy
31% State subsidy
68% Local (91% residential/9% commercial)

SLIDE 22

Assessed Value

Where does local tax come from?

Assessed value of land

x

millage rate = local real estate taxes

Land Value Growth from:

Commercial NEW construction
Residential structural change
Assessment appeal

SLIDE 23

Millage to Dollar Equivalency (2018-2019)

How much does 1 Mill equal compared to others in the county? = 2nd lowest in county

Minimal growth, minimal

additions

SLIDE 24

Millage Comparison

2nd highest = assessed value worth Other Districts catching up

SLIDE 25

Tax Increase History

Board has done an excellent job maintaining fiscal responsibility over past 5 years

SLIDE 26

Financial Health of the District

Current Financial Status

Expenditures:
Mandated 33.43% PSERS Rate (50% reimbursed by State)
Health Insurance 7%
Contractual agreements ~3%
Contractual salaries = 2.8%
Cyclic process for major purchases for annual spending consistency

SLIDE 27

Financial Health of the District

SLIDE 28

Financial Health of the District

$100 million increase to Education Funding last year in State = $40,000 for BHASD > MINIMAL IMPACT

SLIDE 29

Financial Health of the District

PSERS Expense and Budget Impact

Year Rate Total Expense Total Budget % increase $ increase % of Budget 2011-2012 8.65% $1,033,806 $28,304,800 4% 2012-2013 12.36% $1,500,749 $28,622,600 45% $466,943 5% 2013-2014 16.93% $1,993,902 $29,791,204 33% $493,153 7% 2014-2015 21.40% $2,521,058 $29,993,609 26% $527,156 8% 2015-2016 25.84% $2,953,509 $30,495,190 17% $432,451 10% 2016-2017 30.03% $3,738,060 $32,392,811 27% $784,551 12% 2017-2018 32.57% $4,418,480 $33,175,040 18% $680,420 13%

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Financial Health of the District

6 Year Curriculum Cycle Cyclic Budgeting Process for consistent spending

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Financial Health of the District

Cyclic Budgeting Process for consistent spending

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025 K-2 Students 3-12 Students Offices Teachers/Admins PLTW - Laptops 25,000 25,000 PLTW - Desktops 25,000 25,000 Graphic Arts 30,000 30,000 Operations 520,000 520,000 520,000 530,000 530,000 530,000 540,000 540,000 Equipment 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 TOTAL 770,000 765,000 740,000 775,000 780,000 775,000 760,000 785,000

4-year Staggered Technology Cycle

Device: Unknown Device: iPads (tablets) Device: Unknown Device: HP x360 (laptops) District Speciality Labs District Device: HP All-in-One (desktops) Device: Unknown Device: HP Elitebook Device: Unknown

SLIDE 32

Financial Health of the District

Budget Summary  Overall the District is in good financial standing  Primarily residential tax base - 91%  Established consistent/cyclic costs to avoid budget spikes  Expenses rising (Pension obligation, contracts, healthcare, etc)  Mitigating costs = limiting tax increases

SLIDE 33

How do we pay for any future projects?

 Elementary project = applied for an Act 44 Safe Schools Grant through the State; financed through savings  Future projects = Borrow funds to pay for projects authorized and prioritized by the Board of School Directors

 Estimating between $12-$16 million for scope of projects

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Current Debt Service

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Loan Potential

Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750,000 Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750,000

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Loan Potential

Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750,000 Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750,000

250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32

215,592 437,948 146,260 64,152 64,152 2,034,152 472,144 2,357,204 2,135,122 1,978,902 77,721 92,201 92,094 1,652,281 1,960,982 236,814 299,783 299,671 299,556 464,434 2,425,065 2,426,015 2,425,015 2,422,065 737,165 85,584 94,268 93,772 93,260 92,724 92,160 91,560 95,960 1,780,210 628,910

BHASD Net Debt Service Payments Assuming Scenario 1A ($12 Million New Money)

2002 DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.84MM NM Step 3: $2.47MM NM

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Loan Potential

Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750,000 Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750,000

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Loan Potential

Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750,000 Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750,000

250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32

215,592 437,948 146,260 62,304 62,304 1,962,304 472,144 2,357,204 2,128,757 1,903,155 81,473 96,704 96,596 1,584,637 2,058,856 133,934 238,095 301,412 301,301 301,185 301,064 2,225,935 2,358,035 2,359,435 2,358,885 1,376,385 157,664 155,804 160,432 159,920 159,384 158,820 158,220 157,620 1,142,020 2,516,870 1,037,160

BHASD Net Debt Service Payments Assuming Scenario 2A ($14 Million New Money)

2002 DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.85MM NM Step 3: $4.56MM NM

SLIDE 39

Loan Potential

Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750,000 Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750,000

SLIDE 40

Loan Potential

Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750,000

250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32

215,592 437,948 146,260 60,324 60,324 1,885,324 472,144 2,357,204 2,127,025 1,822,673 85,877 101,988 101,880 1,513,056 1,984,396 451,467 238,854 302,377 302,266 302,150 302,029 1,836,900 2,285,700 2,284,650 2,286,800 2,062,000 233,561 230,862 230,366 234,854 229,184 233,620 237,870 231,970 456,220 2,518,720 2,521,800 1,570,160

BHASD Net Debt Service Payments Assuming Scenario 3A ($16 Million New Money)

2002 DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.86MM NM Step 3: $6.66MM NM

Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750,000

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What does this buy us?

$12 Million $14 million $16 million

OPTION 1 OPTION 2 OPTION 1 OPTION 2 OPTION 1 OPTION 2 OPTION 3

ES Gym and 4 Classrooms

     

ES Gym and 8 Classrooms



IS/MS Refurbishment

      

High School Roof

     

Intermediate/Middle School Fields Bleacher and Lights

   

Bleacher, Lights, & Syn. Turf

 

Bleacher, Lights, Track, & Syn. Turf High School Fields Parking and Softball Reconfig.

  

Lighting, Bleachers, Parking



Parking, Track, and Turf



SLIDE 42

Impact to Taxes

Summary:

No “Plancon” or State reimbursement for project
Options to not exceed means
Reasonable pay down period – approx. 10 years
Reduce debt payment from $3.2m to ~$2.5m/year
Paying less per year for debt = savings in annual payment will help to
ffset rising operational costs
Why not let debt drop off?
Continue to save $3.5m/year for 4 years after current debt to pay for project = 2026

enough funds saved to start projects

Act 1 limits
2.7% = $542,140

To take a new loan out – it would take 7 years of max tax increases to raise enough money to cover a $3.5 million loan (without any other operational expense increases)

Important for long term health of district to maintain debt as public agency
Project will not raise taxes
Dropping annual loan payment from $3.2 to $2.5
increasing overall operational expenses may necessitate tax increase

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Next Steps

 Community Presentations  Community Survey = February 15-March 1  March Board meeting = survey data presented  April Board meeting = project prioritization and financing discussions  May – August = Elementary and High School work  2019-2020 Future Project planning

SLIDE 44

questions

SLIDE 45

Thank you

Community Survey = https://goo.gl/UxfxGY