Gal Galena ena Un Unit S School D ool 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 Address the GPS issue first, Ad at one at e ti time fo followe wed by the GHS issue • Requires a much larger voter- • Requires a voter-approved bond for approved bond the first building project • The financing logic is simple: • Requires a second voter-approved One building requires a large bond; bond for the second building project Two buildings require a larger bond • The District will have to invest significant dollars in the necessary infrastructure of GHS over the next 10+ years
We’ve tried . . . 2012 Referendum: 2012 2016 2016 Referendum: • 1 Building • 2 Buildings • $33.0M total project cost • $27.97M total project cost • $24.0M voter-approved bond • $15.7M voter-approved bond Ø Referendum failed: Ø Referendum failed: Yes: 882 (26.8%) Yes: 1197 (43.9%) No: 2411 (73.2%) No: 1528 (56.1%) Ø Vote Differential: 1529 Ø Vote Differential: 331
Aerial O Outline o of 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 2017 2018 2019 Activity J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Campaign April 4, 2017 Election PK-6 Additions/Renovations Planning/Design PK-6 Additions/Renovations Bid Award, October 2017 Bidding PK-6 Additions/Renovations Construction PK-6 Additions/Renovations August 2018 Occupancy 7-12 New High School Planning/Design 7-12 New High School Bid Award, February 2018 Bidding 7-12 New High School Construction 7-12 New High School August 2019 Occupancy
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 • Board approved on and immediately September 20, 2016 deplete the Capital Interest-free bonds • 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 • Board approved on and immediately September 20, 2016 deplete the Capital Interest-free bonds • 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 • Board approved on • Is based upon an and immediately September 20, 2016 abstract premise of deplete the Capital Interest-free bonds saving $275,000 per • Fund year Because of column 4, Savings will not be • • the Capital Fund will realized immediately, remain depleted for per the potential the next 20 years 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 • Board approved on • Is based upon an and immediately September 20, 2016 abstract premise of deplete the Capital Interest-free bonds saving $275,000 per • Fund year Because of column 4, Savings will not be • • the Capital Fund will realized immediately, remain depleted for per the potential the next 20 years 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 • Board approved on • Is based upon an • Is based upon and immediately September 20, 2016 abstract premise of $420,000 per year deplete the Capital Interest-free bonds saving $275,000 per (committing nearly all • Fund year revenue for 20 years) Because of column 4, Savings will not be Alternate Revenue • • • the Capital Fund will realized immediately, Bonds require a 25% remain depleted for per the potential surplus in revenue the next 20 years timeline
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 • Board approved on • Is based upon an • Is based upon and immediately September 20, 2016 abstract premise of $420,000 per year deplete the Capital Interest-free bonds saving $275,000 per (committing nearly all • Fund year revenue for 20 years) Because of column 4, Savings will not be Alternate Revenue • • • the Capital Fund will realized immediately, Bonds require a 25% remain depleted for per the potential surplus in revenue the next 20 years timeline • A more realistic figure is $344,000
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