Master Plan Update March 13, 2017 Today Review planning process - - PowerPoint PPT Presentation

SLIDE 1

Master Plan Update

March 13, 2017

Hayfield Community Schools

SLIDE 2

Today…

• Review planning process

and milestones

• Recap facility assessments
• Introduce ROM cost and

savings

• Review preliminary

illustrations

• Discuss strategy and next

steps

SLIDE 3

Planning Process Described

Ideation

• Identify Vision
• Goals/Objectives

Assessment

• Physical Needs
• Educational Needs
• Functional Needs

Options

• Based on Ideation

and Assessment feedback, develop

• ptions for

achieving vision

Consensus

• Stakeholders

decide whether to pursue one of the

• ptions (or create

their own)

SLIDE 4

Planning Milestones

Master Planning Initiates

• Planning Kick-Off Meeting
• Ideation
• Initial project prioritization
• Determine scope of facility

analysis

Mid-Audit Plan Review

• Continue strategic “Ideation”
• Review staff survey results
• Review preliminary assessments
• Gain direction from District

Master Plan Review

• Detailed review of FIM options
• Rough Order of Magnitude (ROM)

project savings and budgets

• Review preliminary funding

Scenarios

Options and Consensus

• Scope & funding workshops as

needed

• Selection of project scope if Board
• pts to put some of the plan into

action

Final Project Report

• Review of investment grade

project costs and savings

• Detailed financial review of plan

scenarios

Plan Approval by the Board

• Selection of project scope and

funding

• Submit required documents to the

MDE

November 14, 2016 March 13, 2017 March / April, 2017 June, 2017 July, 2017 September 14, 2016

SLIDE 5

Asessments

SLIDE 6

Asset Condition

Master Planning Process

SLIDE 7

Hayfield Schools Facility Age Breakdown

Source: Minnesota Department of Education

0 to 20 Years 39% 40+ Years 61%

SLIDE 8

10 20 30 40 50 60 70 80 Years

Average Life Expectancy Actual Age of Equipment

System Age Summary

SLIDE 9

10 20 30 40 50 60 70 80 Years

Average Life Expectancy Actual Age of Equipment

System Age Summary

SLIDE 10

Indoor Learning Environment

Master Planning Process

SLIDE 11

Indoor Air Quality / Ventilation

SLIDE 12

CO2 and Cognitive Performance

“Is CO2 an Indoor Pollutant? Higher Levels of CO2 May Diminish Decision Making Performance”; William J. Fisk, Usha Satish, Mark J. Mendell, Toshifumi Hotchi, Douglas Sullivan; Indoor Environment Group Lawrence Berkeley National Laboratory Berkeley, CA; March 2013

SLIDE 13

SLIDE 14

Space CO2 Testing

SLIDE 15

SLIDE 16

SLIDE 17

Temperature and Humidity

SLIDE 18

SLIDE 19

SLIDE 20

High School Indoor Environment Survey

11% 37% 26% 3% 54% 3% 6% 57% 6% 49% 17% 20% 6% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Temp Too Hot (Winter) Temp Too Cold (Winter) Air Too Dry (Winter) Air Too Humid (Winter) Temp Too Hot (Summer) Temp Too Cold (Summer) Air Too Dry (Summer) Air Too Humid (Summer) Too Much Air Too Little Air Too Noisy Unpleasant Odors Lights Too Bright Lights Too Dark Dis-Satisfied Satisfied Very Satisfied

Survey conducted from 09/20/16 to 10/20/16. T

• tal of 35 responses.

SLIDE 21

SLIDE 22

Elementary Indoor Environment Survey

4% 22% 30% 0% 22% 11% 0% 37% 4% 15% 15% 7% 0% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Temp Too Hot (Winter) Temp Too Cold (Winter) Air Too Dry (Winter) Air Too Humid (Winter) Temp Too Hot (Summer) Temp Too Cold… Air Too Dry (Summer) Air Too Humid (Summer) Too Much Air Too Little Air Too Noisy Unpleasant Odors Lights Too Bright Lights Too Dark Dis-Satisfied Satisfied Very Satisfied

Survey conducted from 09/20/16 to 10/20/16. T

• tal of 27 responses.

SLIDE 23

Acoustics

SLIDE 24

Up to 60% of classroom activities involve speech between students, indicating the importance of environments that support clear communication. Inappropriate levels of background noise can also inhibit reading and spelling ability, behavior, attention, concentration, and academic performance. ANSI-ASA design standards call for background noise levels to be below 35 dB(A) at the source (e.g. unit ventilator), as measured when the room is empty, the door is closed, and only the HVAC equipment is running.

SLIDE 25

SLIDE 26

Building Finishes

SLIDE 27

SLIDE 28

Functional Needs

Master Planning Process

SLIDE 29

SLIDE 30

Preliminary Prioritization

Project Architectural Work Scope User Group

1 Additional parking lots and repaving, Sidewalks 1 3 Secure entrances 1 5 Dedicated spaces for after school programs (SAC) 1 8 Elementary classroom walls 1 9 Upgrade elementary restrooms 1 11 Restroom partition replacement 1 12 Flooring Replacement: Carpet, Gym Floors, VCT 1 13 Home economics classroom remodel 1 14 Structural issues 1 15 Automatic door openers 1 16 Window & door replacement 1 17 Sealing the exterior envelope and envelope repairs 1 4 Enlarged dining area 2 21 Library Upgrades 2 2 Extended drive 3 20 New façade 3 6 Performing arts addition 4 7 Locker room addition 4 10 Choir room sound issues 4 18a Toilet rooms at outdoor concessions 4 18b Screen at ball field 4 19 Update outdoor learning center 4

Priority Importance Urgency When 1 High High 2018 2 High Medium 3 to 5 years 3 Medium Medium 6 to 10 years 4 Medium Low 10+ Years 5 Low Long-Term Never Key for District Prioritization

SLIDE 31

Project Selection Matrix

SLIDE 32 1 2 3 4 Utility O&M Total A Accessibility X X X X A.1 Automatic Door Openers 1 LTFM $0 $0 $0 $0 $7,100 X A.2 Upgrade Elementary Restroom Facilities Caution 1 LTFM $0 $0 $0 $0 $516,000 C Energy Management and Controls X X X X C.1 Energy Management and DDC Caution LTFM $11,650 $1,200 $12,850 $7,200 $497,800 24.4 X X X X C.2 Pnuematic/Electric Control System Improvements Alarm LTFM $800 $100 $900 $0 $66,000 35.9 E Electrical Systems E.1a Lighting Retrofit to LED with Some Fixture Replacement Caution EO $21,500 $6,450 $27,950 $64,500 $561,500 15.2 E.1b Lighting Retrofit to LED with Exterior Fixture Replacement Caution LTFM $26,600 $8,000 $34,600 $68,200 $610,800 13.8 X X X X E.1c Lighting Retrofit to LED with Exterior & Office Fixture Replacement Caution LTFM $28,300 $8,100 $36,400 $68,200 $617,800 13.4 X X X X E.2 Variable Speed Drives/Ventilation Control EO $1,900 $0 $1,900 $2,000 $37,250 15.0 X X X X E.3 Variable Speed Drives/Pumps EO $1,350 $0 $1,350 $1,500 $22,250 13.1 EQUIP Capital Equipment/Assets X X EQUIP.1 Replace Kitchen Hood Alert H&S $0 $0 $0 $0 $185,000 X X EQUIP.2 Replace Freezer Flooring Alert LTFM $0 $0 $0 $0 $5,900 EQUIP.3 Snow Removal Equipment Ref $0 $0 $0 $0 $80,000 EXT Exterior Envelope Including Roofing X X X X EXT.1 Seal Building Envelope to Minimize Air Leakage 1 EO $2,800 $0 $2,800 $0 $30,250 9.2 X X X EXT.2 Structural-Elementary Wall Separation Alert 1 LTFM $0 $0 $0 $0 $20,000 X X EXT.3 North Classroom Window Replacement Alert 1 LTFM $0 $0 $0 $0 $43,250 X X EXT.4 Elementary Classroom Window Replacement Caution 1 LTFM $0 $0 $0 $0 $55,500 X X EXT.5 Replace Older Exterior Doors Caution 1 LTFM $0 $0 $0 $0 $38,500 X EXT.6 Tuckpointing, Expansion Joint and EIFS Repair Caution LTFM $0 $0 $0 $0 $224,000 EXT.7 Repair/Replace Roofing Systems Caution LTFM $0 $0 $0 $0 $1,890,000 G Grounds, Site, and Surroundings X X G.1a Bituminous Surface Replacement Alert LTFM $0 $0 $0 $0 $415,000 G.1b Bituminous Surface Improvements Alert LTFM $0 $0 $0 $0 $942,000 X X X X G.2 Replace Sinking Telephone/Light Pole Alert LTFM $0 $0 $0 $0 $15,500 X X G.3 Site Drainage Improvements Alert LTFM $0 $0 $0 $0 $85,000 X X G.4 Sidewalk Lighting Improvements Caution LTFM $0 $0 $0 $0 $24,750 X X G.5 Landscaping Improvements LTFM $0 $0 $0 $0 $85,000 G.6 Extended Driveway Improvements 3 Ref $0 $0 $0 $0 $639,000 G.7 New Parking Area Improvements 1 Ref $0 $0 $0 $0 $179,000 HAZ Hazardous Materials X X X HAZ.1 Asbestos Abatement Alert H&S $0 $0 $0 $0 $160,000

Hayfield School

Annual Savings Rebate / Grant Net Cost Simple Payback Funding Sources Facility Illustration FIM Code Facility Improvement Measures (FIMs) District Priority Asset Condition

SLIDE 33 1 2 3 4 Utility O&M Total INT Interior Spaces and Finishes X X INT.1 Carpet Replacement Caution 1 LTFM $0 $0 $0 $0 $236,000 X X INT.2 Home Ec Cabinet and Countertop Replacement Caution 1 LTFM $0 $0 $0 $0 $118,000 X X INT.3 Original Gym Floor Replacement Alert 1 LTFM $0 $0 $0 $0 $283,000 X X INT.4 West Gym Floor Replacement Alert 1 LTFM $0 $0 $0 $0 $128,000 X X X X INT.5 New Gym Bleacher Stair Tread Replacement Alarm H&S $0 $0 $0 $0 $2,750 LS Life Safety Systems X X LS.1 Fire Alarm and Sprinkler System Improvements Alarm H&S $0 $0 $0 $0 $677,000 X X X X LS.2 Wrestling Room Ceiling Improvements Danger H&S $0 $0 $0 $0 $19,500 M Mechanical Systems X M.1 Steam Trap Repair/Replacement - Bad Traps Alert EO $2,300 $350 $2,650 $0 $25,500 8.4 X M.2a Central Boiler Plant Replacement - Retain Steam Alarm LTFM $1,450 $200 $1,650 $0 $538,000 326.1 X X X M.2b Central Boiler Plant Replacement - Convert to Hot Water Alarm LTFM $2,800 $750 $3,550 $0 $741,000 208.7 X M.3a Auxiliary Boiler Plant Replacement - Steam to HW Converter Caution LTFM $900 $350 $1,250 $0 $58,000 27.4 X X X M.3b Auxiliary Boiler Plant Replacement - New Hot Water Boiler Caution LTFM $1,700 $350 $2,050 $0 $73,000 23.0 X X X M.4 Heating Distribution System - Convert to HW Alarm H&S $800 $200 $1,000 $0 $1,780,000 1780.0 X X X X M.5 Destratification Fans EO $850 $0 $850 $0 $16,000 14.5 X X X X M.6 Condenser Coil Rejuvenation Caution EO $1,400 $250 $1,650 $0 $30,500 14.3 X X X X M.7 Condenser Refrigerant System Optimization EO $1,250 $150 $1,400 $0 $16,500 9.9 P Plumbing Systems X X X X P.1 Domestic Water Fixture Efficiency Improvements EO $2,650 $400 $3,050 $0 $33,250 9.3 X X X P.2 Restroom Partition Wall Replacement Alert 1 LTFM $0 $0 $0 $0 $47,000 X X X P.3 Restroom Waste Piping Replacement Alert LTFM $0 $0 $0 $0 $247,000 X X X P.4 Elementary Sewer Piping Replacement Alert LTFM $0 $0 $0 $0 $185,000 P.5 2000 Addition - Restroom Domestic Water Piping Caution LTFM $0 $0 $0 $0 TBD X X X P.6 2000 Addition - Locker Room Shower Controls Caution LTFM $0 $0 $0 $0 $1,250 PROG Programmatic / Educational Adequacy Enhancements PROG.1 Remodel Open Concept Elementary Classroom Spaces 1 Ref $0 $0 $0 $0 $3,890,000 PROG.2 New Performing Arts Center 4 Ref $0 $0 $0 $0 TBD PROG.3a Locker Room Improvements 4 Ref $0 $0 $0 $0 TBD PROG.3b Locker Room Remodeling 4 Ref $0 $0 $0 $0 TBD PROG.4 Concession Stand Improvements 4 Ref $0 $0 $0 $0 TBD PROG.5 Athletic Field Improvements 4 Ref $0 $0 $0 $0 TBD PROG.6 Outdoor Learning Center Improvements 4 Ref $0 $0 $0 $0 TBD PROG.7 Cafeteria Improvements 1 Ref $0 $0 $0 $0 $2,160,000 PROG.8 Dedicated SAC and Flex Space 1 Ref $0 $0 $0 $0 $344,000 PROG.9 Storage Space Improvements 4 Ref $0 $0 $0 $0 TBD PROG.10 New Exterior Façade 3 Ref $0 $0 $0 $0 $816,000 PROG.11 High School Media Center Remodel 2 Ref $0 $0 $0 $0 $382,000 S Electronic Security Systems S.1 Intercom and Camera Access Control Systems Caution Ref $0 $0 $0 $0 $6,800 S.2 Provide Fully Secure Main Building Entrance 1 Ref $0 $0 $0 $0 $659,000

Hayfield School (cont.)

Annual Savings Rebate / Grant Net Cost Simple Payback Funding Sources Facility Illustration FIM Code Facility Improvement Measures (FIMs) District Priority Asset Condition

SLIDE 34 1 2 3 4 Utility O&M Total T Technology Systems - Non-Instructional T.1 Upgrade Telephone System Caution Ref $0 $0 $0 $0 $114,000 V Ventilation / Dehumidification Systems X X X X V.0 Ventilation Assessment and Pre-Engineering/Pre-Design H&S $0 $0 $0 $0 $9,250 X V.1a Classrooms - Replace Unit Vents with Vertical Unit Ventilators Alarm H&S

• $1,500

$0

• $1,500

$0 $1,300,000 V.1b Classrooms - Replace Unit Vents with Vertical Unit Vents & Dehumid Alarm H&S

• $6,400

$0

• $6,400

$0 $1,510,000 X X X V.1c Classrooms - Replace Unit Vents with Central AHU Systems & Dehumid Alarm H&S

• $6,000

$0

• $6,000

$0 $3,910,000 V.1d Classrooms - Replace Unit Vents with Displacement Ventilation & Dehumid Alarm H&S

• $5,400

$0

• $5,400

$0 $4,110,000 X X X V.2 HS Cafeteria - Replace Unit Vents with Central AHU Systems & Dehumid Alarm H&S

• $6,000

$0

• $6,000

$0 $326,000 X X X V.3 HS Media Center - Replace Unit Vents with Central AHU System & Dehumid Alarm H&S

• $350

$0

• $350

$0 $63,000 X X X V.4 HS Offices - Replacement with Central AHU System & Dehumidification Alarm H&S

• $100

$0

• $100

$0 $295,000 X X X V.5 Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid Alarm H&S

• $9,200

$0

• $9,200

$0 $308,000 X X V.6 Replace Ag Shop Air Handling Unit Alarm H&S

• $400

$0

• $400

$0 $50,000 X X V.7 Replace Wood Shop Air Handling Unit Alarm H&S

• $550

$0

• $550

$0 $40,000 X X V.8 Replace Home Economics Rooftop Air Handling Unit Alarm H&S

• $1,400

$0

• $1,400

$0 $130,000 X V.9 Add Dehumidification to New Gym Ventilation AHU Acceptable H&S

• $3,000

$0

• $3,000

$0 $360,000 X V.10 Add Dehumidification to New Addition Classroom AHU Acceptable H&S

• $10,150

$0

• $10,150

$0 $1,760,000 X X V.11a Elementary - Furnace Unit Replacement - Multiple AHU's Alert H&S

• $14,550

$0

• $14,550

$0 $924,000 V.11b Elementary - Furnace Unit Replacement with One Central System Alert H&S

• $5,250

$0

• $5,250

$0 $3,140,000 X X V.12 Replace Elementary Rooftop Units Caution H&S

• $5,250

$0

• $5,250

$0 $222,000 Project Summary X Illustration 1 Total $57,600 $12,600 $70,200 $78,900 $3,385,250 X Illustration 2 Total $58,250 $13,000 $71,250 $78,900 $9,620,000 X Illustration 3 Total $58,250 $14,500 $72,750 $78,900 $13,390,900 X Illustration 4 Total $58,250 $14,500 $72,750 $78,900 $16,250,900

Hayfield School (cont.)

Annual Savings Rebate / Grant Net Cost Simple Payback Funding Sources Facility Illustration FIM Code Facility Improvement Measures (FIMs) District Priority Financial Impact Asset Condition

Priority Importance Urgency When 1 High High 2018 2 High Medium 3 to 5 years 3 Medium Medium 6 to 10 years 4 Medium Low 10+ Years 5 Low Long-Term Never Key for District Prioritization

SLIDE 35

Funding Considerations

SLIDE 36

Retiring Debt

SLIDE 37

Revenue Timing

• LTFM Plans due

to MDE

Jul ‘17

• Preliminary Levy

Certification

Sep ‘17

• Final Levy

Certification

• Levy can go

down, but not up

Dec ‘17

SLIDE 38

Minnesota K-12 Funding Options

Description MN Statute Use of Funds

Does this generate new dollars to District budget Does this require Voter Approval What kind of borrowing? Will there be a new tax impact associated with levy Who pays for the levy and which tax base is utilized Max Term

Energy Efficiency Project 123B.65 Multiple Uses No No Several

• ptions

No Not Applicable 15 years Referendum Revenue / Operating Levy Revenue 126C.17 Day-to-day

• perations

Yes Yes Typically, none Yes House, garage, and one acre; RMV 10 Years School Building Bonds 475 & 123B.02 Capital Expenditures Yes Yes General Obligation Yes All taxable property; NTC 30 years or useful life Capital Projects Levy 123B.63 Capital expenditures defined in 126C.10

• subd. 14

Yes Yes Certificates

• f

Participation Yes All taxable property; NTC 10 Years Capital Facilities Bonds 123B.62 Capital expenditures defined in 126C.62 No No General Obligation No All taxable property; NTC 15 years or useful life Capital Equipment Notes 123B.61 Capital expenditures defined in 126C.61 No No General Obligation No All taxable property; NTC 10 years or useful life Long-Term Facility Maintenance Levy 123B.595 Deferred capital expenditures & Health and Safety projects Yes No General Obligation Yes All taxable property; NTC 30 years or useful life Lease Levy / Capital Levies 126C.40 Capital expenditures defined in 126C.40 Yes No Certificates

• f

Participation Yes All taxable property; NTC 30 years or useful life Abatement Bond

469.1812 to 469.1815

School Parking Lot Improvements Yes No General Obligation Yes All taxable property; NTC 15 years or useful life

SLIDE 39

School Building Bonds

SLIDE 40

2017 Special Election Blackout Dates

JANUARY

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

FEBRUARY

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

MARCH

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

APRIL

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

MAY

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

JUNE

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

JULY

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

AUGUST

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

SEPTEMBER

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

OCTOBER

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

NOVEMBER

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

DECEMBER

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

SLIDE 41

2015 Legislative Changes

Elimination of Alternative Facilities Bonding and Levy Program and Health & Safety Revenue

• Existing “Alt Facility” districts held harmless

Introduction of Long-Term Facilities Maintenance Revenue

• Increases facilities’ revenue/levy authority for smaller districts

Laws 2015, 1st Special Session, Chapter 3, Article 6, sections 1–4 and 14 (2015 Education Act), established a Long-term Facilities Maintenance Revenue Program for school districts. The new program replaces the current Health and Safety Revenue, Deferred Maintenance Revenue and Alternative Facilities Bonding and Levy programs, beginning in FY 2017. In sum:

SLIDE 42

LTFM Revenue

Allowed uses of LTFM…

Deferred capital and maintenance projects; Increasing accessibility of facilities; or Health and Safety projects under section 123B.57

LTFM may NOT fund…

New facilities, remodeling, portable classrooms Violence protection/security

SLIDE 43

LTFM Revenue

Initial Formula

• $193/APU for FY 17
• $292 for FY 18
• $380 for FY 19 (and

later)

Added Revenue

• Existing Debt

Service for Alt. Facility Bonds

• New H&S projects

> $100,000

Total “New” LTFM Revenue

SLIDE 44

Hayfield’s LTFM Revenue

$- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Maximum LTFM Revenue

LTFM State Aid LTFM Local Levy

SLIDE 45

Potential Strategy

SLIDE 46

Potential Implementation Strategy

Phase the Projects

Phase I – Infrastructure Needs

• Wrap around retiring debt; use Board levy authorities

Phase II – Functional Needs

• 2018 or 2019 Bond referendum

SLIDE 47

Preliminary Project Illustrations

SLIDE 48

Unesco, Inc. may provide advice that may be considered to be Municipal Advisor advice as defined in Securities and Exchange Rule 15Ba1-1. Any municipal securities or financial products information provided is for general informational and educational purposes only. Unesco, Inc. is not a Municipal Advisor and are not subject to the fiduciary duty required of Municipal Advisors when providing advice on municipal financial products or issuance of municipal securities. Any advice provided by us with respect to municipal financial products or issuance of municipal securities should be discussed with your registered Municipal Advisor before taking any action. Should there be questions or concerns about Unesco, Inc.’s role in this project, talk immediately with your Municipal Advisor and/or seek appropriate legal advice.

Financial Disclaimer – IRMA Disclosure

SLIDE 49

Infrastructure Needs

Phase I

SLIDE 50

Potential LTFM Illustrations

Illustration 1

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Steam Trap Repair/Replacement - Bad Traps
• Central Boiler Plant Replacement - Retain Steam
• Auxiliary Boiler Plant Replacement - Steam to HW Converter
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Classrooms - Replace Unit Vents with Vertical Unit Ventilators

Illustration 2

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• Replace Sinking Telephone/Light Pole
• Asbestos Abatement
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid

Illustration 3

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Replace Kitchen Hood
• Replace Freezer Flooring
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Bituminous Surface Replacement
• Replace Sinking Telephone/Light Pole
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Asbestos Abatement
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• New Gym Bleacher Stair Tread Replacement
• Fire Alarm and Sprinkler System Improvements
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units

Illustration 4

• Automatic Door Openers
• Upgrade Elementary Restroom Facilities
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Replace Kitchen Hood
• Replace Freezer Flooring
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Tuckpointing, Expansion Joint and EIFS Repair
• Bituminous Surface Replacement
• Replace Sinking Telephone/Light Pole
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Asbestos Abatement
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• New Gym Bleacher Stair Tread Replacement
• Fire Alarm and Sprinkler System Improvements
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Add Dehumidification to New Gym Ventilation AHU
• Add Dehumidification to New Addition Classroom AHU
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units

SLIDE 51

Illustration 1 Scope Inclusions

Hayfield Community School

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System

Improvements

• Lighting Retrofit to LED with Exterior & Office

Fixture Replacement

• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Steam Trap Repair/Replacement - Bad Traps
• Central Boiler Plant Replacement - Retain Steam
• Auxiliary Boiler Plant Replacement - Steam to

HW Converter

• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency

Improvements

• Classrooms - Replace Unit Vents with Vertical

Unit Ventilators

Total Value of Facility Reinvestment: 3,464,150 $ Grants/Rebates:

• $

Capital Buy-Down

• $

Net Investment Financed 3,464,150 $ Total LTFM Debt Equalization from State of MN: 226,899 $ Annual Contribution from General Fund:

• $

Annual Tax Impact on $105K Home: (37.72) $ Annual Tax Impact on 320 acres Ag. Homestead: (668) $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre):

(3.42) $

Financial Summary

Operational Cost Savings $1,118,592 LTFM Levy $2,345,558

Sources of Funding

SLIDE 52

$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Pay As You Go LTFM Levy Bonded LTFM Levy Lease Levy Debt Service Levy New H&S Bond Levy New G.O. Bond Levy

SLIDE 53

Illustration 2 Scope Inclusions

Hayfield Community School

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Steam Trap Repair/Replacement - Bad Traps
• Central Boiler Plant Replacement - Retain Steam
• Auxiliary Boiler Plant Replacement - Steam to HW Converter
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Classrooms - Replace Unit Vents with Vertical Unit Ventilators
• Structural-Elementary Wall Separation
• Asbestos Abatement
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Cafeteria - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System & Dehumidification
• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid

Operational Cost Savings $1,156,482 LTFM Levy $8,542,418

Sources of Funding

Total Value of Facility Reinvestment: 9,698,900 $ Grants/Rebates:

• $

Capital Buy-Down

• $

Net Investment Financed 9,698,900 $ Total LTFM Debt Equalization from State of MN: 388,643 $ Annual Contribution from General Fund:

• $

Annual Tax Impact on $105K Home: (6.61) $ Annual Tax Impact on 320 acres Ag. Homestead: (117) $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre):

(0.60) $

Financial Summary

Items in RED are changes from previous illustration

SLIDE 54

$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Pay As You Go LTFM Levy Bonded LTFM Levy Lease Levy Debt Service Levy New H&S Bond Levy New G.O. Bond Levy

SLIDE 55

Illustration 3 Scope Inclusions

Hayfield Community School

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Structural-Elementary Wall Separation
• Asbestos Abatement
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Cafeteria - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Media Center - Replace Unit Vents with Central AHU System & Dehumid
• HS Offices - Replacement with Central AHU System & Dehumidification
• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Kitchen Hood
• Replace Freezer Flooring
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Bituminous Surface Replacement
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• Fire Alarm and Sprinkler System Improvements
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units

Operational Cost Savings $1,194,578 LTFM Levy $12,275,222

Sources of Funding

Items in RED are changes from previous illustration

Total Value of Facility Reinvestment: 13,469,800 $ Grants/Rebates:

• $

Capital Buy-Down

• $

Net Investment Financed 13,469,800 $ Total LTFM Debt Equalization from State of MN: 819,205 $ Annual Contribution from General Fund:

• $

Annual Tax Impact on $105K Home: 6.03 $ Annual Tax Impact on 320 acres Ag. Homestead: 107 $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre):

0.55 $

Financial Summary

SLIDE 56

Illustration 4 Scope Inclusions

Hayfield Community School

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Structural-Elementary Wall Separation
• Asbestos Abatement
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Cafeteria - Replace Unit Vents with Central AHU Systems & Dehumid
• HS Media Center - Replace Unit Vents with Central AHU System & Dehumid
• HS Offices - Replacement with Central AHU System & Dehumidification
• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Kitchen Hood
• Replace Freezer Flooring
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Bituminous Surface Replacement
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• Fire Alarm and Sprinkler System Improvements
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units
• Upgrade Elementary Restroom Facilities
• Tuckpointing, Expansion Joint and EIFS Repair
• Add Dehumidification to New Gym Ventilation AHU
• Add Dehumidification to New Addition Classroom AHU

Operational Cost Savings $1,205,272 LTFM Levy $15,124,528

Sources of Funding

Items in RED are changes from previous illustration

Total Value of Facility Reinvestment: 16,329,800 $ Grants/Rebates:

• $

Capital Buy-Down

• $

Net Investment Financed 16,329,800 $ Total LTFM Debt Equalization from State of MN: 1,067,562 $ Annual Contribution from General Fund:

• $

Annual Tax Impact on $105K Home: 18.06 $ Annual Tax Impact on 320 acres Ag. Homestead: 320 $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre):

1.64 $

Financial Summary

SLIDE 57

Potential LTFM Illustrations

Illustration 1

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Replace Sinking Telephone/Light Pole
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Steam Trap Repair/Replacement - Bad Traps
• Central Boiler Plant Replacement - Retain Steam
• Auxiliary Boiler Plant Replacement - Steam to HW Converter
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Classrooms - Replace Unit Vents with Vertical Unit Ventilators

Illustration 2

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• Replace Sinking Telephone/Light Pole
• Asbestos Abatement
• New Gym Bleacher Stair Tread Replacement
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid

Illustration 3

• Automatic Door Openers
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Replace Kitchen Hood
• Replace Freezer Flooring
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Bituminous Surface Replacement
• Replace Sinking Telephone/Light Pole
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Asbestos Abatement
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• New Gym Bleacher Stair Tread Replacement
• Fire Alarm and Sprinkler System Improvements
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units

Illustration 4

• Automatic Door Openers
• Upgrade Elementary Restroom Facilities
• Energy Management and DDC
• Pnuematic/Electric Control System Improvements
• Lighting Retrofit to LED with Exterior & Office Fixture Replacement
• Variable Speed Drives/Ventilation Control
• Variable Speed Drives/Pumps
• Replace Kitchen Hood
• Replace Freezer Flooring
• Seal Building Envelope to Minimize Air Leakage
• Structural-Elementary Wall Separation
• North Classroom Window Replacement
• Elementary Classroom Window Replacement
• Replace Older Exterior Doors
• Tuckpointing, Expansion Joint and EIFS Repair
• Bituminous Surface Replacement
• Replace Sinking Telephone/Light Pole
• Site Drainage Improvements
• Sidewalk Lighting Improvements
• Landscaping Improvements
• Asbestos Abatement
• Carpet Replacement
• Home Ec Cabinet and Countertop Replacement
• Original Gym Floor Replacement
• West Gym Floor Replacement
• New Gym Bleacher Stair Tread Replacement
• Fire Alarm and Sprinkler System Improvements
• Wrestling Room Ceiling Improvements
• Central Boiler Plant Replacement - Convert to Hot Water
• Auxiliary Boiler Plant Replacement - New Hot Water Boiler
• Heating Distribution System - Convert to HW
• Destratification Fans
• Condenser Coil Rejuvenation
• Condenser Refrigerant System Optimization
• Domestic Water Fixture Efficiency Improvements
• Restroom Partition Wall Replacement
• Restroom Waste Piping Replacement
• Elementary Sewer Piping Replacement
• 2000 Addition - Locker Room Shower Controls
• Classrooms - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Cafeteria - Replace Unit Vents with Central AHU Systems &

Dehumid

• HS Media Center - Replace Unit Vents with Central AHU System &

Dehumid

• HS Offices - Replacement with Central AHU System &

Dehumidification

• Replace HS Gymnasium Air Handling Unit HV-2; Add Dehumid
• Replace Ag Shop Air Handling Unit
• Replace Wood Shop Air Handling Unit
• Replace Home Economics Rooftop Air Handling Unit
• Add Dehumidification to New Gym Ventilation AHU
• Add Dehumidification to New Addition Classroom AHU
• Elementary - Furnace Unit Replacement - Multiple AHU's
• Replace Elementary Rooftop Units

SLIDE 58

Potential LTFM Illustrations

Illustration 1 Illustration 2 Illustration 3 Illustration 4 Total Value of Facility Reinvestment 3,464,150 $ 9,698,900 $ 13,469,800 $ 16,329,800 $ Annual Tax Impact on $105K Home (37.72) $ (6.61) $ 6.03 $ 18.06 $ Annual Tax Impact on 320 acres Ag. Homestead (668.17) $ (117.02) $ 106.86 $ 319.90 $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre)

(3.42) $ (0.60) $ 0.55 $ 1.64 $

SLIDE 59

Tax Impact of Scenarios 1 to 4 (Current Law)

Unesco is not acting as a municipal advisor or fiduciary on your behalf. Any municipal securities or financial products information provided is for general informational and educational purposes only and you should

• btain the advice of a licensed and qualified

financial advisor regarding such information. Unesco makes no representation or warranty regarding any financial projections, data or information provided, except as may be expressly set forth in a definitive agreement. The figures shown represent the preliminary estimated tax impact of a levy assessed on Net Tax Capacity. It is very preliminary as the 2015 NTC as reported on MDE's Pay 2017 tax levy certification is the basis for calculating the tax

• rate. This figure does not include other categories
• f the school district's property tax levy (including
• ther debt service taxes), nor does it include

property taxes for cities, townships, counties, or

• ther taxing jurisdictions.

Illustration 1 Illustration 2 Illustration 3 Illustration 4 ($460,347) ($80,623) $73,626 $220,398

• 4.8850%
• 0.8555%

0.7813% 2.3388% Estimated Market Value $50,000

• $14.65
• $2.57

$2.34 $7.02 $60,000

• $17.59
• $3.08

$2.81 $8.42 $70,000

• $20.52
• $3.59

$3.28 $9.82 $80,000

• $24.41
• $4.27

$3.90 $11.68 $90,000

• $29.73
• $5.21

$4.75 $14.23 $100,000

• $35.05
• $6.14

$5.61 $16.78 $125,000

• $48.37
• $8.47

$7.74 $23.16 $150,000

• $61.68
• $10.80

$9.86 $29.53 $175,000

• $74.99
• $13.13

$11.99 $35.90 $200,000

• $88.30
• $15.46

$14.12 $42.28 $250,000

• $114.92
• $20.13

$18.38 $55.02 $300,000

• $141.55
• $24.79

$22.64 $67.77 $105,000

• $37.72
• $6.61

$6.03 $18.06 $100,000

• $73.27
• $12.83

$11.72 $35.08 $250,000

• $207.61
• $36.36

$33.20 $99.40 $500,000

• $451.86
• $79.14

$72.27 $216.34 $750,000

• $696.11
• $121.91

$111.33 $333.27 $1,000,000

• $940.36
• $164.69

$150.40 $450.21

40 acres

$385,000

• $108.10
• $18.93

$17.29 $51.76

80 acres

$665,000

• $176.49
• $30.91

$28.23 $84.50

160 acres

$1,225,000

• $313.27
• $54.87

$50.10 $149.98

320 acres

$2,345,000

• $668.17
• $117.02

$106.86 $319.90

640 acres

$4,585,000

• $1,775.70
• $310.99

$284.00 $850.14 $5,000

• $2.44
• $0.43

$0.39 $1.17 $7,000

• $3.42
• $0.60

$0.55 $1.64 $8,500

• $4.15
• $0.73

$0.66 $1.99 $10,000

• $4.88
• $0.86

$0.78 $2.34 $12,000

• $5.86
• $1.03

$0.94 $2.81 Commercial / Industrial

Agricultural Homestead (assume dwelling is $105,000 and acreage assessed at $7,000)

Agricultural Non-Homestead (dollars per acre) Levy Amount

• Est. Tax Capacity Rate

Type of Property

Estimated Annual Tax Impact

Residential Homestead

Average District Home Value

SLIDE 60

Tax Impact of Scenarios 1 to 4 (w/Ag Credit)

Unesco is not acting as a municipal advisor or fiduciary on your behalf. Any municipal securities or financial products information provided is for general informational and educational purposes only and you should

• btain the advice of a licensed and qualified

financial advisor regarding such information. Unesco makes no representation or warranty regarding any financial projections, data or information provided, except as may be expressly set forth in a definitive agreement. The figures shown represent the preliminary estimated tax impact of a levy assessed on Net Tax Capacity. It is very preliminary as the 2015 NTC as reported on MDE's Pay 2017 tax levy certification is the basis for calculating the tax

• rate. This figure does not include other categories
• f the school district's property tax levy (including
• ther debt service taxes), nor does it include

property taxes for cities, townships, counties, or

• ther taxing jurisdictions.

Illustration 1 Illustration 2 Illustration 3 Illustration 4 ($460,347) ($80,623) $73,626 $220,398

• 4.8850%
• 0.8555%

0.7813% 2.3388% Estimated Market Value $50,000

• $14.65
• $2.57

$2.34 $7.02 $60,000

• $17.59
• $3.08

$2.81 $8.42 $70,000

• $20.52
• $3.59

$3.28 $9.82 $80,000

• $24.41
• $4.27

$3.90 $11.68 $90,000

• $29.73
• $5.21

$4.75 $14.23 $100,000

• $35.05
• $6.14

$5.61 $16.78 $125,000

• $48.37
• $8.47

$7.74 $23.16 $150,000

• $61.68
• $10.80

$9.86 $29.53 $175,000

• $74.99
• $13.13

$11.99 $35.90 $200,000

• $88.30
• $15.46

$14.12 $42.28 $250,000

• $114.92
• $20.13

$18.38 $55.02 $300,000

• $141.55
• $24.79

$22.64 $67.77 $105,000

• $37.72
• $6.61

$6.03 $18.06 $100,000

• $73.27
• $12.83

$11.72 $35.08 $250,000

• $207.61
• $36.36

$33.20 $99.40 $500,000

• $451.86
• $79.14

$72.27 $216.34 $750,000

• $696.11
• $121.91

$111.33 $333.27 $1,000,000

• $940.36
• $164.69

$150.40 $450.21 $5,000

• $1.47
• $0.26

$0.23 $0.70 $7,000

• $2.05
• $0.36

$0.33 $0.98 $8,500

• $2.49
• $0.44

$0.40 $1.19 $10,000

• $2.93
• $0.51

$0.47 $1.40 $12,000

• $3.52
• $0.62

$0.56 $1.68 Type of Property

Estimated Annual Tax Impact

Residential Homestead Levy Amount

• Est. Tax Capacity Rate

Commercial / Industrial Agricultural Non-Homestead (dollars per acre)

Average District Home Value

SLIDE 61

Source: Minnesota Department of Education

$213 $162 $169 $192 $155 $185 $230 $130 $398 $296 $145 $154 $83 $157 $135 $180 $217 $186 $294 $35 $187 $347 $0 $100 $200 $300 $400 $500 $600

Statewide Average Hayfield Kingsland Lake City Blooming Prairie Stewartville Chatfield Byron Southland Grand Meadow Kasson-Mantorville

School Portion of Property Taxes Payable in 2016 on a $100,000 Homestead Residential Property

RMV Portion of Property Tax NTC Portion of Property Tax

SLIDE 62

Source: Minnesota Department of Education

$213 $162 $169 $192 $155 $185 $230 $130 $398 $296 $145 $154 $83 $157 $135 $180 $217 $186 $294 $35 $187 $347 $0 $100 $200 $300 $400 $500 $600

Statewide Average Hayfield Kingsland Lake City Blooming Prairie Stewartville Chatfield Byron Southland Grand Meadow Kasson-Mantorville

School Portion of Property Taxes Payable in 2016 on a $100,000 Homestead Residential Property

RMV Portion of Property Tax NTC Portion of Property Tax

Illustration 1 Illustration 2 Illustration 3 Illustration 4

SLIDE 63

Source: Minnesota Department of Education

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

18% 24% 35% 35% 40% 59% 69% 74% 78% 81% 82%

% Agriculture of Net Tax Capacity

SLIDE 64

Source: Minnesota Department of Education

$0 $5 $10 $15 $20 $25 $30 $35 $15.01 $3.41 $8.06 $13.15 $15.32 $17.58 $18.10 $18.22 $21.11 $28.64 $33.83

School Portion of Property Taxes Payable in 2016 on a 1-acre Non- homestead Agricultural Property valued at $7,000

Illustration 1 Illustration 2 Illustration 3 Illustration 4

SLIDE 65

Functional Needs

Phase II

SLIDE 66

Potential Referendum Illustrations

Illustration 5

• Intercom and Camera

Access Control Systems

• Provide Fully Secure

Main Building Entrance

• Upgrade Telephone

System Illustration 6

• New Parking Area

Improvements

• Cafeteria Improvements
• Dedicated SAC and Flex

Space

• Intercom and Camera

Access Control Systems

• Provide Fully Secure

Main Building Entrance

• Upgrade Telephone

System Illustration 7

• New Parking Area

Improvements

• Remodel Open Concept

Elementary Classroom Spaces

• Cafeteria Improvements
• Dedicated SAC and Flex

Space

• High School Media

Center Remodel

• Intercom and Camera

Access Control Systems

• Provide Fully Secure

Main Building Entrance

• Upgrade Telephone

System Illustration 8

• Snow Removal

Equipment

• Tuckpointing, Expansion

Joint and EIFS Repair

• Repair/Replace Roofing

Systems

• New Parking Area

Improvements

• Remodel Open Concept

Elementary Classroom Spaces

• Cafeteria Improvements
• Dedicated SAC and Flex

Space

• New Exterior Façade
• High School Media

Center Remodel

• Intercom and Camera

Access Control Systems

• Provide Fully Secure

Main Building Entrance

• Upgrade Telephone

System

SLIDE 67

Potential Referendum Illustrations

Illustration 5 Illustration 6 Illustration 7 Illustration 8 Total Value of Facility Reinvestment 804,800 $ 3,487,800 $ 7,759,800 $ 10,769,800 $ Annual Tax Impact on $105K Home 4.57 $ 19.78 $ 44.02 $ 61.09 $ Annual Tax Impact on 320 acres Ag. Homestead 80.87 $ 350.48 $ 779.76 $ 1,082.22 $

Annual Tax Impact on Ag., Non-Homestead Acre valued at $7000 ($/acre)

0.41 $ 1.79 $ 3.99 $ 5.54 $

SLIDE 68

Tax Impact of Scenarios 5 to 8 (Current Law)

Unesco is not acting as a municipal advisor or fiduciary on your behalf. Any municipal securities or financial products information provided is for general informational and educational purposes only and you should

• btain the advice of a licensed and qualified

financial advisor regarding such information. Unesco makes no representation or warranty regarding any financial projections, data or information provided, except as may be expressly set forth in a definitive agreement. The figures shown represent the preliminary estimated tax impact of a levy assessed on Net Tax Capacity. It is very preliminary as the 2015 NTC as reported on MDE's Pay 2017 tax levy certification is the basis for calculating the tax

• rate. This figure does not include other categories
• f the school district's property tax levy (including
• ther debt service taxes), nor does it include

property taxes for cities, townships, counties, or

• ther taxing jurisdictions.

Illustration 5 Illustration 6 Illustration 7 Illustration 8 $55,718 $241,468 $537,228 $745,617 0.5913% 2.5623% 5.7008% 7.9121% Estimated Market Value $50,000 $1.77 $7.69 $17.10 $23.74 $60,000 $2.13 $9.22 $20.52 $28.48 $70,000 $2.48 $10.76 $23.94 $33.23 $80,000 $2.95 $12.80 $28.48 $39.53 $90,000 $3.60 $15.59 $34.70 $48.15 $100,000 $4.24 $18.39 $40.91 $56.78 $125,000 $5.85 $25.37 $56.44 $78.34 $150,000 $7.47 $32.35 $71.98 $99.90 $175,000 $9.08 $39.33 $87.51 $121.46 $200,000 $10.69 $46.32 $103.05 $143.02 $250,000 $13.91 $60.28 $134.12 $186.14 $300,000 $17.13 $74.25 $165.19 $229.26 $105,000 $4.57 $19.78 $44.02 $61.09 $100,000 $8.87 $38.44 $85.51 $118.68 $250,000 $25.13 $108.90 $242.28 $336.27 $500,000 $54.69 $237.02 $527.33 $731.87 $750,000 $84.25 $365.13 $812.37 $1,127.48 $1,000,000 $113.82 $493.25 $1,097.41 $1,523.09

40 acres

$385,000 $13.08 $56.70 $126.16 $175.10

80 acres

$665,000 $21.36 $92.58 $205.97 $285.87

160 acres

$1,225,000 $37.92 $164.32 $365.59 $507.41

320 acres

$2,345,000 $80.87 $350.48 $779.76 $1,082.22

640 acres

$4,585,000 $214.92 $931.41 $2,072.25 $2,876.06 $5,000 $0.30 $1.28 $2.85 $3.96 $7,000 $0.41 $1.79 $3.99 $5.54 $8,500 $0.50 $2.18 $4.85 $6.73 $10,000 $0.59 $2.56 $5.70 $7.91 $12,000 $0.71 $3.07 $6.84 $9.49 Commercial / Industrial

Agricultural Homestead (assume dwelling is $105,000 and acreage assessed at $7,000)

Agricultural Non-Homestead (dollars per acre) Levy Amount

• Est. Tax Capacity Rate

Type of Property

Estimated Annual Tax Impact

Residential Homestead

Average District Home Value

SLIDE 69

Tax Impact of Scenarios 5 to 8 (w/Ag Credit)

Unesco is not acting as a municipal advisor or fiduciary on your behalf. Any municipal securities or financial products information provided is for general informational and educational purposes only and you should

• btain the advice of a licensed and qualified

financial advisor regarding such information. Unesco makes no representation or warranty regarding any financial projections, data or information provided, except as may be expressly set forth in a definitive agreement. The figures shown represent the preliminary estimated tax impact of a levy assessed on Net Tax Capacity. It is very preliminary as the 2015 NTC as reported on MDE's Pay 2017 tax levy certification is the basis for calculating the tax

• rate. This figure does not include other categories
• f the school district's property tax levy (including
• ther debt service taxes), nor does it include

property taxes for cities, townships, counties, or

• ther taxing jurisdictions.

Illustration 5 Illustration 6 Illustration 7 Illustration 8 $55,718 $241,468 $537,228 $745,617 0.5913% 2.5623% 5.7008% 7.9121% Estimated Market Value $50,000 $1.77 $7.69 $17.10 $23.74 $60,000 $2.13 $9.22 $20.52 $28.48 $70,000 $2.48 $10.76 $23.94 $33.23 $80,000 $2.95 $12.80 $28.48 $39.53 $90,000 $3.60 $15.59 $34.70 $48.15 $100,000 $4.24 $18.39 $40.91 $56.78 $125,000 $5.85 $25.37 $56.44 $78.34 $150,000 $7.47 $32.35 $71.98 $99.90 $175,000 $9.08 $39.33 $87.51 $121.46 $200,000 $10.69 $46.32 $103.05 $143.02 $250,000 $13.91 $60.28 $134.12 $186.14 $300,000 $17.13 $74.25 $165.19 $229.26 $105,000 $4.57 $19.78 $44.02 $61.09 $100,000 $8.87 $38.44 $85.51 $118.68 $250,000 $25.13 $108.90 $242.28 $336.27 $500,000 $54.69 $237.02 $527.33 $731.87 $750,000 $84.25 $365.13 $812.37 $1,127.48 $1,000,000 $113.82 $493.25 $1,097.41 $1,523.09 $5,000 $0.18 $0.77 $1.71 $2.37 $7,000 $0.25 $1.08 $2.39 $3.32 $8,500 $0.30 $1.31 $2.91 $4.04 $10,000 $0.35 $1.54 $3.42 $4.75 $12,000 $0.43 $1.84 $4.10 $5.70 Type of Property

Estimated Annual Tax Impact

Residential Homestead Levy Amount

• Est. Tax Capacity Rate

Commercial / Industrial Agricultural Non-Homestead (dollars per acre)

Average District Home Value

SLIDE 70

Next Step…

SLIDE 71

Planning Milestones

Master Planning Initiates

• Planning Kick-Off Meeting
• Ideation
• Initial project prioritization
• Determine scope of facility

analysis

Mid-Audit Plan Review

• Continue strategic “Ideation”
• Review staff survey results
• Review preliminary assessments
• Gain direction from District

Master Plan Review

• Detailed review of FIM options
• Rough Order of Magnitude (ROM)

project savings and budgets

• Review preliminary funding

Scenarios

Options and Consensus

• Scope & funding workshops as

needed

• Selection of project scope if Board
• pts to put some of the plan into

action

Final Project Report

• Review of investment grade

project costs and savings

• Detailed financial review of plan

scenarios

Plan Approval by the Board

• Selection of project scope and

funding

• Submit required documents to the

MDE

November 14, 2016 March 13, 2017 March / April, 2017 June, 2017 July, 2017 September 14, 2016

SLIDE 72

Unesco 2125 2nd Street White Bear Lake, MN 55110 (952) 277-9142 Kevin.McGauley@UnescoCorp.co m

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