Gal Galena ena Un Unit S School D ool Distri rict # #120 120 - - PowerPoint PPT Presentation

Gal Galena ena

Un Unit S School D

• ol Distri

rict # #120 120

• - - - - - - - - - - - - - - - - - - - - - - -

Facilities Presentation 17 January 2017

The Challenges . . .

The largest financial challenge for any school district is constructing a new building. Our challenge is exacerbated because two of our three buildings have significant issues:

• GPS has overcrowding and safety concerns
• GHS has excessive infrastructure needs

Our Dilemma . . .

Ad Address both GPS and GHS issues at at one e ti time

• Requires a much larger voter-

approved bond

• The financing logic is simple:

One building requires a large bond; Two buildings require a larger bond Ad Address the GPS issue first, fo followe wed by the GHS issue

• Requires a voter-approved bond for

the first building project

• Requires a second voter-approved

bond for the second building project

• The District will have to invest

significant dollars in the necessary infrastructure of GHS over the next 10+ years

We’ve tried . . .

2012 2012 Referendum:

• 1 Building
• $33.0M total project cost
• $24.0M voter-approved bond

ØReferendum failed: Yes: 882 (26.8%) No: 2411 (73.2%) ØVote Differential: 1529 2016 2016 Referendum:

• 2 Buildings
• $27.97M total project cost
• $15.7M voter-approved bond

ØReferendum failed: Yes: 1197 (43.9%) No: 1528 (56.1%) ØVote Differential: 331

Aerial O Outline o

• f

Building M Model E E.2

PK-6 on current GMS campus 7-12 on current GPS campus GHS is removed GPS is deconstructed

Galena Unit School District #120

Potential Facility Improvements Timeline

Estimated Cost of Building Model E.2

Original Cost of this Model $30,000,000 Less Furniture & Technology Allowances

• $800,000

Smaller Building Savings

• $600,000

Adjusted Building Cost $28,600,000 Unaccounted Cost: Purchase of land north of GMS $175,000

Making Assumptions

When determining how the District is going to pay for a project of this magnitude, we have to make certain assumptions. This is not unlike preparing an annual budget, which consists of assumptions. To protect the sustainability of the District, you must:

• Project revenues low
• Project expenditures high

If either or both projections are inaccurate, the District maintains sustainability. This same process must be used for a 20-year financing commitment. Whereas adverse outcomes in an annual budget produce ripples, adverse outcomes in a 20-year commitment produce waves.

Funding Proposal with Assumptions

Capital Fund $3,005,000 Non-Voter-Approved Bonds QZAB (Bonds) $695,000 Re-Enter Staff Savings ($275,000 per year) $3,600,000 1¢ Sales Tax Revenue ($420,000 per year) $5,500,000 Voter-Approved Bonds Referendum on the April 2017 ballot $15,800,000 TOTAL $28,600,000

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

1¢ Sales Tax Receipts

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

Abating the Tax from the G.O.B. 2003

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

• $15.8M project cost

would be $16.88M bond to wrap in 1st year interest and cover bonding costs

• Would increase more

with deductions in columns 1, 3, 4

• With other bonds, we

are safely below our

• verall debt limit of
• approx. $26.1M

GUSD #120 Overall Debt Limit

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

• $15.8M project cost

would be $16.88M bond to wrap in 1st year interest and cover bonding costs

• Would increase more

with deductions in columns 1, 3, 4

• With other bonds, we

are safely below our

• verall debt limit of
• approx. $26.1M

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

• $15.8M project cost

would be $16.88M bond to wrap in 1st year interest and cover bonding costs

• Would increase more

with deductions in columns 1, 3, 4

• With other bonds, we

are safely below our

• verall debt limit of
• approx. $26.1M

Sustainability Considerations

Potential Risk: More Actions from the Governor and General Assembly

Sustainability Considerations

Potential Risk: Proposal to Freeze Property Taxes

Sustainability Considerations

Imbalance in the Salary Schedule

Funding Proposal with Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $3,005,000 $695,000 $3,600,000 $5,500,000 $15,800,000

Implications: Implications: Implications: Implications: Implications:

• Will almost completely

and immediately deplete the Capital Fund

• Because of column 4,

the Capital Fund will remain depleted for the next 20 years

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $275,000 per year

• Savings will not be

realized immediately, per the potential timeline

• Is based upon

$420,000 per year (committing nearly all revenue for 20 years)

• Alternate Revenue

Bonds require a 25% surplus in revenue

• A more realistic figure

is $344,000

• From this we abate the

General Obligation 2003 Bonds

• An even more realistic

figure would be $229,000

• $15.8M project cost

would be $16.88M bond to wrap in 1st year interest and cover bonding costs

• Would increase more

with deductions in columns 1, 3, 4

• With other bonds, we

are safely below our

• verall debt limit of
• approx. $26.1M

Funding Proposal with Modified Assumptions

Cash on Hand Non-Voter-Approved Bonds Voter-Approved Bonds Capital Fund QZAB Re-Enter Staff Savings 1¢ Sales Tax Revenue April Referendum $2,505,000 $695,000 $2,000,000 $3,000,000 $21,800,000

Implications: Implications: Implications: Implications: Implications:

• Will leave

approximately $500,000 in the Capital Fund

• Because of the

adjustment in column 4, an additional $100,000 will be added annually

• Board approved on

September 20, 2016

• Interest-free bonds
• Is based upon an

abstract premise of saving $150,000 per year

• Savings is guaranteed,

but how much and when is fluid

• Is based upon

$229,000 per year

• Establishes the

required 25% surplus in revenue for A.R.B.

• Still adds

approximately $100,000 annually to the Capital Fund

• We still are able to

abate taxes from the G.O. Bonds from 2003

• $20.4M project cost

equates to a $21.8M bond to wrap in 1st year interest and cover bonding costs

• With other bonds, we

are safely below our

• verall debt limit of
• approx. $26.1M

Property Tax Implications

OR

A P Phasing Al Alternative

Address the GPS overcrowding by beginning construction on the GMS portion

• f the plan

Here’s a Closer Look

Here are the Projected Costs