[00:00:03]
OKAY. I'D LIKE TO CALL THIS OCTOBER 24TH, 2022, SPECIAL SESSION, WORK SESSION ON CAPITAL FACILITIES,
[1. Call to Order]
ONE OF OUR ANNUAL REPORTS TO ORDER AND ALSO SPECIAL PRESENTATION BY PIPER SANDLER AND COMPANY.WE REALLY APPRECIATE YOU BEING HERE TONIGHT.
THAT'S GREAT. LOOKING FORWARD TO THAT.
SOME GREAT INFORMATION FOR BOTH THE BOARD AND THE PUBLIC.
WE REALLY APPRECIATE YOU BEING HERE.
THERE'S FOOD OUTSIDE THE DEAL.
THE CAMERAS MIGHT GO OFFICE AS WE GOT HINTED, WHEN WE FOCUS TOWARDS THE POWERPOINT, YOU CAN CHOOSE YOUR CHEWING SCENES AS YOU AS YOU WANT DURING THAT TIME.
[2. Facilities Discussion]
WATERS, DO YOU WANT TO START IT OR WE TURN IT RIGHT OVER TO KEVIN? NOW, LET'S JUST START.WE HAVE AN HOUR AND A HALF, BUT IT'S GOING TO BE CHOCK FULL OF INFORMATION.
SO WE AGAIN, I'LL ECHO YOUR THOUGHTS, MARK.
I APPRECIATE OUR GUESTS BEING HERE TO GIVE US SOME BOND INFORMATION.
KEVIN'S GOING TO PRESENT FOR ABOUT A HALF HOUR ON THE PROJECTS THAT WERE COMPLETED.
THEN WE'LL HAVE THE BOND PRESENTATION JUST TO GIVE THE BOARD SOME INFORMATION, AND THEN KEVIN HAS SOME INFORMATION TO PILE ON TOP OF THAT THAT WILL FIT IN TERMS OF PRICES AROUND WHAT WHAT POTENTIAL PRICES WOULD BE FOR THE LAST BOND THAT WE RAN IN THE DISTRICT.
NOW UPDATED AND JUST SOME DISCUSSION ABOUT POSSIBILITY OF IF THE BOARD WOULD LIKE TO EVEN CONSIDER A CAPITAL LEVY, WHAT THAT MIGHT LOOK LIKE AND HOW THAT COULD PLAY IN THE PICTURE.
SO WITH THAT, MR. JOLMA, YOU KNOW, I WISH TO ECHO WHAT MR. WATERS SAID. USUALLY I HAVE AN HOUR AND A HALF FOR, TO SHOW YOU A PROJECT AND REVIEW OUR FIVE YEAR PLAN AND WE DISCUSS IT IN DEPTH.
THIS ONE'S GOING TO BE MORE OF A PRESENTATION REVIEW WITH COMMENT LATER.
BUT YEAH, SO WE'RE CRAMMED IN HERE TODAY.
HOW ABOUT OUR FIRST SLIDE? SO WE'RE GOING TO DO LOOK AT PROJECTS WE'VE DONE IN THE LAST SCHOOL YEAR, MY LAST LEVY BUDGET YEAR.
SO THIS IS A BUILDING JUST STRAIGHT SOUTH OF US WHERE OUR PRINT SHOP IS.
WE PUT A NEW ROOF ON AND A NEW HVAC SYSTEM IN THAT BUILDING THIS SUMMER.
ALSO TO HELP US GET READY FOR THE TO GET CAM IN THERE, WE ADDED A FEW EXTRA.
THESE ARE SPLIT SYSTEMS WHICH ARE SERVED TO HEAT THOSE OPEN AREAS.
NEXT. THIS WAS A LITTLE PROJECT WE GOT ASKED TO DO SOMETIME IN MARCH OR APRIL, AND WE'RE GOING TO BE DOING THE SAME OVER AT PRAIRIE HIGH SCHOOL, OVER AT THE BATTLE GROUND WEIGHT ROOM BATTLE GROUND HIGH SCHOOL WEIGHT ROOM.
I WISH I'D TAKE ONE MORE PICTURE.
THE ONE ON THE RIGHT IS AFTERWARDS.
I HAVE REPLACED THE LIGHT SINCE THEN AS WELL, AND IT JUST IT TURNED OUT REALLY COOL.
FOOTBALL TEAMS SEEMED EXCITED ABOUT IT.
EVERYONE ELSE NOT TOO BIG OF A PROJECT WE DID THAT WAS ALL DONE IN HOUSE.
NEXT YEAR WILL BE THREE, REPLACING ROUGHLY 5.1 ACRES OF CARPET IN THAT BUILDING.
SO THIS JUST SHOWING THAT UPPER HAND LEFT WHERE WE RAN INTO THE OLD ASBESTOS TILES AND WE HAVE TO REMEDIATE ALL OF THAT BEFORE WE CAN PUT IN OUR NEW OUR NEW FLOOR. AND THE BOTTOM IS JUST WHAT IT LOOKS LIKE.
BOTTOM LEFT IS WHAT IT LOOKS LIKE AFTER WE'VE CLEANED OFF THE TILES.
AND THEN OF COURSE, THE LARGER PICTURE, THAT'S INSTALLATION.
AGAIN, THIS IS JUST SOME OTHER PROJECTS WE DID.
WE REPLACED CARPETING AND A TEN PLEX AT CAPTAIN STRONG, AS WELL AS TWO ROOMS AT MAPLE GROVE PRIMARY AND JUST WANTED TO GIVE A SHOT OF THE BATTLE GROUND HIGH SCHOOL BAND ROOM.
I DIDN'T GIVE YOU A BEFORE AND AFTER, BUT IT TURNED OUT REAL NICE AFTERWARDS.
THIS IS A PROJECT THAT WE ALSO FINISHED THIS SUMMER.
PLAY SHEDS WHERE WE CONTINUE TO ADD PLAY SHEDS AROUND THE DISTRICT.
I JUST LOVE THIS SETTING UP IN AMBOY BEFORE, IF YOU RECALL THAT RUNDOWN, THE PLACE COVERED PLAY SHED WAS FIVE OR 600 YARDS AWAY FROM THE SCHOOL BACK WHERE THE OLD SCHOOL WHERE I TORE THAT ONE DOWN.
SO WE PUT THIS IN THERE COURTYARD LAST SUMMER AND GETTING GOOD REVIEWS.
[00:05:03]
WE FINISHED UP AT THE TUKES VALLEY CAMPUS.WE HAD SOME WORK AT OUR GUYS COULDN'T DO.
WE HAD TO BRING IN A SANDBLAST PROFESSIONAL SAND BLASTER ON SOME OF THESE CANOPIES.
I JUST WANTED TO SHOW YOU WE WERE IN TWO SUMMERS.
WE'VE COMPLETELY PAINTED THE ENTIRE CAMPUS.
THAT'S WHAT IT TURNS OUT LOOKING LIKE WHEN WE'RE DONE.
GRADUATION AGAIN, WE CHANGED OUR FORMAT THIS YEAR.
OBVIOUSLY, WE DID A LOT OF WORK IN HOUSE PAINTERS PAINTED IT, ALL THE CABINETRY YOU CAN SEE WE DID GOT A LOT OF GRIEF FOR THOSE YELLOW CABINET TOPS, BUT I LOVE THEM.
IT'S GOT A NICE SEVENTIES VIBE.
THE GREEN WALL BEING PAINTED ON THE RIGHT.
SCOTT MC DANIELS PUT IN HIS IT AND ALL OF HIS WIRELESS, SO EVERYBODY HAS THAT.
SO I JUST PUT A BUNCH OF PICTURES IN HERE.
THAT UPPER PICTURE IS THE GYM AND OUR STORAGE AND WHAT WE'VE BEEN, WHICH WILL LEAD ME TO MY DISCUSSION OF THE WAREHOUSE AND MAINTENANCE FACILITY WE NEED TO DO.
WE WERE ABSOLUTELY JAM PACKED.
IT WAS A FULL TIME JOB JUST COORDINATING FURNITURE IN AND OUT, RELOCATING A SCHOOL INTO THERE, TAKING ALL THE FURNITURE FROM THE DISTRICT, TAKING ALL THE COVID CHANGES FROM THE DISTRICT. SO IT WAS JUST A REAL HASSLE.
BUT WE DID IT. WE ALSO RE PLUMB THE BUILDING, OUR PLUMBERS, OUR PLUMBERS.
WE REPLACED THOSE MY PAINTERS HAVING A LITTLE FUN UP THERE IN THE RIGHT.
I TOLD THEM TO PRETEND I WASN'T THERE.
AND THEN ON THE LOWER RIGHT WHERE WE ALSO, WE ALSO USE 32ND CLEANER AND AND POWER WASH THE SO IF YOU'VE NOTICED THE CAMPUS IT WILL GET TO IT. GO AHEAD. THERE'LL BE MORE PICTURES.
THAT'S ONE OF THE ROOMS WE IN THE UPPER LEFT.
THAT WAS WHERE ALL THE PAINT CAME FROM THAT WENT IN THAT LOCKER ROOM.
REALLY, WE WERE ABLE TO MAKE THAT ROOM SHINE ACTUALLY LOWER LEFT.
YOU CAN SEE US PAINTING ALL THESE OVERHANGS IN THE IN THE CAMPUS HERE.
YOU'LL I HOPE YOU'VE NOTICED THAT IT LOOKS A LOT TIDIER AND PAINTED UP THE FELL ON THE CENTER THEY'RE SHOVING [INAUDIBLE] PLUMBING PECS, PLASTIC PLUMBING WHERE WE PLUMB THE ENTIRE BUILDING, THE B BUILDING.
AND JOSH AND I SPENT A LOT OF TIME WITH OUR SCIENCE TEACHERS GOING OVER THE SCIENCE LABS.
WE'D NEVER DONE ONE IN A MODULAR, SO IT WAS A DIFFERENT STEP.
THEY'RE ACTUALLY MUCH LARGER THAN A STANDARD CLASSROOM.
MOST STANDARD MOST CLASSROOMS ARE TWO MODULAR NEXT TO EACH OTHER.
THIS ONE'S THREE. WE ADD AN ENTIRE MODULE.
IT'S GOING TO BE FANTASTIC WHEN WE'RE DONE WITH IT.
UPPER LEFT THERE, WE HAD TO ADD A CONVERTED A RESTROOM INTO AN ADA RESTROOM.
THAT'S WHERE THE COUNSELOR IS.
DOWN LEFT IS KIND OF AN INTERESTING PICTURE.
I'M STANDING RIGHT BETWEEN THE FOLDING WALL BETWEEN THE CLASSROOMS IS OPEN AND I'M SHOOTING A PICTURE SHOWING TWO CLASSROOMS. THAT'S THE ONE ON THE LEFT IS THE NEW LIGHTING.
THE ONE ON THE RIGHT IS THE OLD LIGHTING.
SO IT REALLY, REALLY JAZZED THAT UP.
WELL, THAT UPPER IS SPLITTING THE LIBRARY INTO TWO CLASSROOMS. FUNNY THING ABOUT THAT, THAT'S HOW THE SCHOOL WAS CONSTRUCTED.
IT WAS ORIGINALLY CONSTRUCTED.
THE HVAC SYSTEMS WERE SEPARATE.
THE SO THAT'S HOW IT WAS BUILT ORIGINALLY.
AND THAT PICTURE ON THE BOTTOM IS THE PICTURE ON THE TOP FINISHED.
THE COURTYARD HERE WAS NOT SAFE ENOUGH FOR KIDS TO BE RUNNING AROUND.
THE FIRST FEW DAYS. I WAS OUT HERE WATCHING THE KIDS AND I JUST SAID, THAT'S NOT GOING TO WORK.
[00:10:05]
SO WE SPENT A LITTLE MONEY, NOT TOO MUCH 14,000 GROUND OFF ALL THE OLD TETHERBALL THINGS THAT WERE ALL TRIPPING HAZARDS AND TOOK CARE OF LOW SPOTS BY THE DRAIN WHERE THERE'S BEEN SETTLING OVER 55 PLUS YEARS.AND THEN ON THE THE RIGHT HAND SIDE IS THE BEAM REPLACEMENT ON THE WE REPLACED ALL THOSE BEAMS. THERE WAS A BAD DESIGN.
THERE'S OUR FIRST DAY ON CAM WITH THE TWO CATERPILLARS.
AND THE LAST PICTURE THAT I TOOK, YOU CAN SEE THE WEATHER CHANGED.
IT SHOWS THE FOUNDATION OF OUR FIRST BUILDING.
I HOPE YOU GUYS ARE VERY PLEASED WHEN IT'S DONE.
I WHIPPED THROUGH THAT CAMP SCHEDULE, SO I JUST WANTED TO GIVE SOME UPDATES.
LAST WEEK, JOSH WENT DOWN TO THE THE FACTORY AND LOOKED AT WHERE WE WERE ON THAT MODULAR AND THEN FINISHED UP OUR DESIGN ON THE ADMIN BUILDING. WE'VE NEVER DONE ANYTHING LIKE THE ADMIN BUILDING EITHER.
SO MY TENTATIVE GOAL IS TO MOVE.
MY GOAL IS TO GET THE FOUR CLASSROOMS OUT OF THIS BUILDING SO THAT WE CAN MOVE OUR PROFESSIONAL DEVELOPMENT BACK HERE AND GET THIS CAMPUS, GET SOME RELIEF FOR CASEY.
THEN SHORTLY THEREAFTER, I'LL MOVE THE NEXT SIX CLASSROOMS. THE 3 TO 6 GRADE MODULAR WILL BE BUILT IN THE FACTORY DECEMBER THROUGH MARCH, WITH ARRIVAL HERE MID-MARCH IN SIX WEEKS. TENTATIVE MOVE IN MAY ONE, WE MAY JUST SAY, NO, LET'S NOT DO THAT.
LET'S JUST GO FOR ANOTHER FIVE WEEKS.
LET'S NOT SEND THEM OUT INTO THE MIDDLE OF A CONSTRUCTION SITE.
CONSTRUCT ADMINISTRATION, MODULAR.
THAT'S THE 300 BUILDING WE'RE CALLED IN SIX WEEKS.
I SHOULD HAVE A MOVE IN ON THAT IN JULY 24TH.
DO I HAVE ANOTHER ONE? LISA YEAH, SO THAT'S KIND OF QUICKLY REVIEW IN THE SUMMER PROJECTS WE DID.
ANY QUESTIONS ON ANY OF THOSE? OKAY, LET'S MOVE ON TO TALKING ABOUT THE NEXT FIVE YEARS, FOUR YEARS.
IT'S A REVIEW OF THIS YEAR AND THEN LOOKING AT THE NEXT FOUR YEARS.
CAN WE GET THAT? BIGGER, BIGGER, BIGGER.
THE YOU KNOW, THE GOOD THE REALLY GOOD THING ABOUT THIS IS A THREE PAGE DOCUMENT.
AND I WAS STRUGGLING TO FILL IN THE LAST TWO YEARS.
I'M NOT STRUGGLING, BUT I HAD TO GO LOOK FOR NEW PROJECTS.
THIS STARTED OUT AS A 16 PAGE DOCUMENT NOT TOO MANY YEARS AGO.
JUST BEFORE MR. HOLLIWAY CAME.
WE HAD A HUGE, HUGE BACKLOG IN DEFERRED MAINTENANCE, AND FOR SIX OR SEVEN YEARS WE'VE TURNED A 16 PAGE LIST INTO THREE.
THAT'S PERFECT. THAT'S THE GIST.
JUST SO YOU KNOW, EVERYBODY. OH, AND YOU HAVE A YOU HAVE A COPY OF THAT.
YEAH. ELECTRONIC AND PAPER ALSO.
YEAH, I GOT ANOTHER COPY SEE HERE.
SO I PRETTY MUCH WENT OVER ALL THE YOU'VE SEEN PICTURES OF THE 21-22 BUDGET YEAR.
SO WE'VE ALREADY REVIEWED LAST YEAR.
YES. LET'S JUST START AT THE TOP RIGHT THERE.
YEAH. RIGHT, RIGHT ON THE BUDGET NUMBER.
YEAH. JUST AND THEN JUST GO FROM THAT DOWN.
NOW EVERY YEAR I BUDGET SNOW REMOVAL, 20,000 WAREHOUSE CARPET GOING TO REPLACE THAT IN THE OFFICES IT'S JUST A SHAMBLES 16 FOOT MORE YOU'VE ALREADY WE'VE ALREADY APPROVED THAT PURCHASE AND IT'S ALL IN ORDER.
MOSTLY EVERYTHING YOU'RE GOING TO SEE IS GOING TO BE MANY, MANY SECURITY PROJECTS.
[00:15:04]
THAT'S THAT WAS OUR OUR INTENTION AND OUR GOAL THIS YEAR IS TO GET ALL THE WE'VE DONE ALL OF OUR FENCING ON THE EXTERIORS AND NOW IT'S TIME TO MOVE TO THE FRONT ENTRIES.NEXT, I'LL BE THE OTHER ENTRIES.
BUT SO AT AMBOY, I BELIEVE I AM BRINGING THAT TO THE BOARD.
YEAH, I'LL BE BRINGING THAT TO THE BOARD NEXT BOARD MEETING.
AND WE WANT TO JUMP IN AND START REPLACING THE HALLWAY CARPETS AT BATTLE GROUND HIGH SCHOOL.
THIS YEAR WE'RE GOING TO TURN THAT THOSE INTO TILE HALLWAYS, SO THAT'S MUCH EASIER TO CLEAN.
I'VE GOT A ROOF I NEED TO REPLACE ON BATTLE GROUND.
CAPTAIN STRONG BOARD HAS ALREADY APPROVED THIS PROJECT.
IT'S ALL THE PARTS AND PIECES ARE ORDERED.
THEY'LL BE HERE FOR INSTALLATION ON CHRISTMAS BREAK.
WE TOURED THAT AND I'M PROBABLY STILL THREE WEEKS AWAY BEFORE I'LL HAVE THAT QUOTE.
DAYBREAK BOTH WE'VE WALKED PRIMARY.
WE'RE WALKING THE MIDDLE SCHOOL TO WEDNESDAY, BUT WE WALKED THE DAYBREAK CAMPUS.
I BELIEVE WE'VE ALREADY APPROVED THAT ONE AS WELL.
GLENWOOD. THE BOARD HAS APPROVED THE REVISED MAIN ENTRY AGAIN, SAME STATUS PARTS AND PIECES ORDERED LOCALLY. INSTALL CHRISTMAS BREAK.
I GOT A LIBRARY ROOF THAT I NEED TO REPLACE AT GLENWOOD.
HAVE WE'VE PATCHED AND FIXED THIS HVAC SYSTEM FOR QUITE A FEW YEARS.
WE ARE GOING TO REPLACE THE UNIT THAT HEATS THE MAIN OFFICE AREA OF MAPLE GROVE.
WE WILL ALSO HAVE NOT WALKED THIS ONE YET.
IF WE DON'T, I HAVE TO, OTHERWISE IF IT GOES DOWN AGAIN WE WON'T HAVE HEAT AND COOLING MAPLE GROVE PRIMARY.
WE HAVE WALKED. THAT BOARD HAS APPROVED THAT.
NO. YES BOARD HAS APPROVED THAT.
THAT WILL BE DONE AFTER OURS AS SOON AS WE HAVE THE PARTS PRAIRIE HIGH SCHOOL AS WELL.
WE GOT TO REVISE THEIR MAIN MAIN ENTRY.
SECURITY HAVE NOT WALKED OUT WITH THEM.
I HAVE NOT WALKED THE MAPLE GROVE TO THE MIDDLE SCHOOL YET, BUT I ALREADY HAVE IT IN MY HEAD.
I'VE GOT A PORTABLE OVER THERE. I HAVE TO REPLACE THAT ROOF THIS YEAR.
WE HAVE NOT WALKED MIDDLE YET.
SO I'LL HAVE HAD THAT WALK WEDNESDAY AND THEN.
YEAH, SAME THING THERE, FOLKS.
WE'VE WE'VE APPROVED THAT ONE AND NO, WE HAVE NOT.
THAT'LL BE WITH AMBOY AND IT'LL BE AMBOY AND YAKULT CALLED NEXT BOARD MEETING BUDGET.
MICHELLE'S GOING TO COVER ME HERE, BUT WE'RE GOING TO GET THOSE ENTRYWAYS DOWN.
WE'VE STILL GOT 10 MINUTES AT LEAST.
DO YOU WANT TO TALK ABOUT SOME FUTURE YEARS COMING? AND CAN YOU GO BACK TO THE TOP OF THE LIST? TOP OF THE LIST. LIKE SOME OF THE PROJECTS AND YOU'RE THINKING AROUND THE ONES THAT ARE NOT NEXT YEAR, BUT FUTURE WISE, WHAT YOU'RE THINKING IS THERE? CAN YOU EXPAND OUT? IT'S HARD TO READ. YOU GUYS HAVE YOU GUYS ALL HAVE THE I DON'T EVEN KNOW THAT.
WE HAVE TO KNOW WHEN YOU'RE GOING TO DO THEM.
BUT THAT'S FINE. WE CAN SEE ENOUGH THERE.
YEAH. AGAIN, WE HAVE IT IN FRONT OF US SO WE CAN ALWAYS LOOK AND FOLLOW ALONG.
SO WE JUST WENT OVER THE 22-23 BUDGET.
SO THE 23-24, YOU'LL STILL HAVE SNOW REMOVAL.
I'M GOING TO HEAR FROM MR. CHAMPION ABOUT MY FIELD HOUSE A YEAR AWAY KCC BUILDING.
WE'RE GOING TO REPLACE THEIR CARPET.
WELL, I GUESS I'M GOING DOWN TO NEXT YEAR.
I DON'T KNOW WHAT YOU'D LIKE ME TO.
AND IN THE NEXT FOUR YEARS, THEY'RE ALL SHOWN BEING COMPLETED IN THE NEXT FOUR YEARS.
[00:20:05]
I THINK PERHAPS THE BOARD WOULD BE INTERESTED IN KNOWING WHAT SOME OF THE REASONING BEHIND WHY YOU FEEL LIKE YOU HAVE TO DO THOSE PROJECTS MORE.SO, YOU KNOW, I MEAN, WHAT I SEE IN THE NEXT YEAR, THERE'S SOME ROOF THINKING.
SO I SEE YOU GOT SECURITY ON THIS NEXT YEARS AND THEN SOME ROOFS ON THAT.
I'M WONDERING HOW ARE OUR PORTABLE.
YEAH. HOW ARE THE ROOFS HOLDING UP.
WELL YOU'VE SEEN TWO IN THERE AND I'VE GOT THREE MORE I'VE GOT TO DO THE FOLLOWING YEAR.
WE'VE GONE TO TEN FLEXES MOSTLY, WHICH ARE METAL ROOFS.
SO THOSE ARE, THOSE ARE LASTING FINE.
BUT THAT'S WHAT I'VE DONE IN HERE IS I'VE, THERE'S A LOT OF ROOFS I NEED TO ADDRESS.
THE THE GREAT THING IS WHEN I, WHEN I STARTED THIS 16 PAGE LIST, IT WAS ALMOST HALF OF IT WAS SAFE, DRY AND WARM IS HOW WE LIVED TO GET ROOFS WAS HALF THE ALMOST HALF THE LIST.
WE HAVE REALLY ATTACKED THE ROOFS.
WE MAY HAVE A FEW A HANDFUL OF STUBBORN ROOFS THAT ARE STUBBORN LEAKS THAT LIKE TO REOCCUR.
BUT YEAH, NOW WE'RE INTO THE NEXT PHASE.
I'M GOING TO START WORKING ON MY 15 YEAR OLD, MY MY 14 YEAR OLD BUILDINGS.
IT'S TIME TO START RECODING THEM TO GET ANOTHER 15, 20 YEARS OUT OF THOSE.
DO IT BEFORE THEY'RE IN SHAMBLES.
FOR INSTANCE, LET'S START STARTING WITH THE TOP THERE.
WHAT'S YOUR WHAT'S YOUR THINKING ON THE NEW MAINTENANCE FIELD FACILITY AND WAREHOUSE? WHEN DO YOU WHEN DO YOU ENVISION GETTING STARTED ON THAT? YEAH, I'M IN CONTACT NOW WITH A.
HUGE MULTINATIONAL, LARGE NATIONAL COMPANY THAT DOES THESE, AND ONE OF THEIR LOCAL BRANCHES IS HERE IN PORTLAND AND THEY SUPPLY UNDER THE SOURCE WELL CONTRACT, WHICH IS WHAT WE'VE DONE ALL THESE PORTABLES ON.
THEY HAVE MY DESIGN AND THEY'RE WORKING ON A PRELIMINARY RIGHT NOW.
SO WE'LL START TO GO BACK AND FORTH ON THAT ON THE DESIGN.
YOU'RE RIGHT. I DON'T HAVE THAT PLUGGED IN BECAUSE IT'S 5.5 MILLION.
I MEAN, I'M NOT I JUST I'M CURIOUS TO FROM A TIMELINE PERSPECTIVE, IS THAT A IS THAT A PRIORITY? IS THAT WHAT THE IT'S 1 TO 2 YEARS? YES. YES.
CAN YOU EXPLAIN YOUR THINKING THERE? OKAY. THIS IS OUR SUMMER CAMP.
CAMPUS HAS TAKEN UP ONE OF THE BATTLE GROUND HIGH SCHOOL'S MAIN SOCCER FIELDS.
AND ORIGINALLY, I'D PLANNED TO REPLACE THIS CAMPUS NORTH OF THE STADIUM WHERE THE TWO SOFTBALL FIELDS ARE.
AND THEN THERE'S ANOTHER SOCCER FIELD.
THAT SOCCER FIELD DOESN'T DRAIN.
WELL, IT WAS DONE BY VOLUNTEERS IN THE NINETIES POTENTIAL THAT WE WOULD REPLACE THAT IN TURF NOT GRASS AND ALLOW HAVE SOME MORE.
IT JUST INCREASES THE PLAYABILITY, THE VIABILITY OF THE SITES IT'S UP FRONT COST BUT YOU COULD BE PLAYING A GAME TODAY ON A TURF FIELD.
SO I ALSO HAVE THAT VALUE PLUGGED IN AT PRAIRIE HIGH.
THERE'S ANOTHER THOUGHT THERE.
WE'VE THE THE CHURCH, THE BAPTIST CHURCH SOFTBALL FIELD THAT WE'VE RENTED SINCE THE DAY WE'VE BEEN IN THAT BUILDING OR JV PLAYS THEY HAVE GIVEN US THIS SEASON.
BUT BY NEXT SEASON I HAVE TO HAVE A NEW FIELD BUILT SOMEWHERE.
SO I'VE BEEN WORKING WITH THE AD, IT'S TIED ON THAT SITE AND WE'RE TRYING TO FIGURE OUT IF WE IF THE BEST CONCEPT IS TO JUST GO BUILD A STANDALONE, STANDALONE TURF SOFTBALL FIELD OR IS IT TO GO BUILD A LARGER FIELD THE SIZE OF A SOCCER FIELD THAT ALSO HAS SOFTBALL LINES PAINTED ON IT? THE CONCEPT THAT WE'RE WORKING ON AND THE COMPLEXITY OF THOSE SITUATIONS AND ADDING A TURF FIELD IS PART TITLE NINE SITUATION IS THAT WE COULDN'T JUST, FOR INSTANCE, ADD A TURF SOFTBALL FIELD.
WE'D HAVE TO MAKE SURE THERE WAS AN EQUIVALENCY.
WE COULDN'T JUST, YOU KNOW, AND THEN OF COURSE, WE HAVE THE EQUITY ISSUES BETWEEN SCHOOLS.
[00:25:05]
YOU KNOW, WHO GETS WHO GETS A TURF THAT'S ON ANOTHER FIELD FIRST, IT'S ON ANOTHER SET OF PROJECTS.SO THERE ARE ISSUES LIKE THAT WE NEED TO CONSIDER.
I DON'T KNOW, AS I LOOK DOWN THE LIST, I SEE LOOKING AT A COVERED LAUREN COMES TO MIND BECAUSE THEY'RE SO DESPERATE IN IN IN SOME OF THEIR FIXES THE COVERED WALKWAYS ARE ONE OF THE AREAS THAT THEY STRUGGLE WITH THE COVERED PLAY SHED WOULD BE A GOOD THING I SEE YOU'VE GOT YOU'VE GOT THOSE ON THE LIST FOR POTENTIALLY 23-24.
THERE'S A LOT OF PROJECTS I'VE MOVED OFF OF GLENWOOD AS WE'RE ALL AWARE.
WE KEEP WAITING TO PUT MONEY INTO THAT SCHOOL BECAUSE WE THINK WE'RE GOING TO REPLACE IT.
BUT IF WE DON'T REPLACE IT, THERE'S SOME THINGS I CAN DO.
YEAH. SO YOU BRING UP AN INTERESTING ISSUE AND BOARD.
THIS IS THE ONE THAT WE'VE STRUGGLED WITH.
I MEAN, I THINK ONE OF THE REASONS THAT SOME OF OUR BUILDINGS HAVE IN THE PAST, NOT NOW, I THINK KEVIN HAS DONE A GOOD JOB OVER THE LAST SIX, SEVEN YEARS TO WHERE WE ARE NOW.
BUT ONE OF THE THINGS THAT HAPPENED TO US IS THAT WE GET INTO THIS MINDSET WHERE WE CONTINUE TO WAIT FOR A BOND TO BE PASSED AND OUR THINKING IS, WELL, WE DON'T WANT TO PUT MONEY INTO A BUILDING, OBVIOUSLY, IF WE'RE GOING TO TEAR IT DOWN.
BUT IN THE MEANTIME, WHAT HAPPENS THEN IS OUR BUILDINGS START TO SLIDE INTO.
I MEAN, WE HAVE SOME EQUITY ISSUES THAT ARE ASSOCIATED WITH THAT.
AND AND TYPICALLY THERE ARE OLDER BUILDINGS.
AND SO, YOU KNOW, WE GOT WHAT WE GOT.
THERE ARE SOME THINGS WE WOULD LIKE TO DO AT PLEASANT VALLEY.
IF WE WERE TO RUN A BOND, WHERE DO WE ,YOU KNOW, WHERE DOES THAT COME.
SO THOSE ARE THOSE ARE QUESTIONS THAT WE NEED TO TO TACKLE.
SO HOW MANY YEARS IS IS IS SPENDING $100,000 AT ONE OF THOSE BUILDINGS.
WHAT'S THE EXPECTATION FOR HOW LONG THAT THAT PROJECT LASTS AND WHEN IS IT OKAY THEN TO TO MOVE ON TO THAT NEXT PHASE, WHICH IS POTENTIALLY A REPLACEMENT? THAT'S THE DIFFICULTY THAT WE HAVE AND THAT'S SOMETHING THAT WE NEED TO CONSIDER AS WE MOVE FORWARD.
IT'S WHETHER OR NOT WE CHOOSE TO REPLACE LAWN AND GLENWOOD OR DO WE DO WE PUT SOME MONEY IN LOCAL MONEY AND NOT PUT STATE MONEY INTO IT TO MAINTAIN OUR ELIGIBILITY? I'VE WALKED BOTH OF THOSE SCHOOLS MANY TIMES AND THEY'RE NICE SCHOOLS.
SO THAT'S PART OF IT. WHICH DO WE AND I'LL LEAD INTO OUR NEXT DISCUSSION HERE, BUT THAT'S LIKE ALL MY LAST SET OF SCENARIOS WE CAN TALK ABOUT AND PUT SOME NUMBERS TOGETHER.
AS I MENTIONED EARLIER, WE LOOKED AT WHAT IT WAS, THE 2018 BOND.
SO THAT'LL THAT'S ALL JUST LAID OUT FOR YOU.
AND THEN WE WERE JUST TALKING, WELL, WHAT IF WE CONSIDER A CAPITAL PLAN AND INSTEAD OF REPLACING THOSE SCHOOLS, WHICH IS 60% VOTE AND WE'VE BEEN TOLD KNOW THREE OR FOUR TIMES, MAYBE WE DO SOMETHING ELSE.
SO THAT'LL THAT'LL BE ANOTHER DISCUSSION.
WE'RE REALLY ON DISCUSSION ONE HERE, ONE ON ONE.
WE CAN DIVE INTO SCENARIOS SOON, BUT YOU HAVE A LOT OF OTHER THOUGHTS ON THE WEBSITE AND NOW I'D LIKE TO GIVE A HAND OVER TO MICHELLE SCOTT FOR HER PRESENTATION.. SO, MIC WORKING HERE?
[00:30:06]
YOU CAN HEAR ME? OKAY.THANK YOU. SO, AS AN INTRODUCTION, MY NAME IS MARK CROSSING.
I WORK WITH ESD 112, AND I'VE WORKED FOR QUITE A WHILE AS THE DISTRICT'S FINANCIAL ADVISOR.
SO LOOK AT ME AS KIND OF AN EXTENSION OF YOUR STAFF THAT WORKS FOR THE ESD.
SO I WORK AS AN EXTENSION STAFF, AS A FIDUCIARY FOR YOU TO KIND OF PROVIDE YOU ADVICE ON HOW TO ACCESS THE BOND MARKETS AND THEN MANAGE ANY BOND SALES THAT COME UP AND MAKE SURE THAT YOU'RE REPRESENTED ON THAT SIDE.
SO, FOR EXAMPLE, WE'RE WORKING TOMORROW.
TREVOR AND I ARE WORKING TOMORROW WITH EVERGREEN SCHOOL DISTRICT, SELLING SOME OF THEIR EXISTING BONDS AND MANAGING THAT PROCESS AND WORKING WITH ALL OF YOUR NEIGHBORS PRETTY MUCH, AND ALSO DISTRICTS THROUGHOUT THE STATE.
TREVOR WORKS AS YOUR UNDERWRITER, AND I'LL LET YOU DESCRIBE TREVOR WHAT THAT ROLE IS.
A PLEASURE TO BE HERE. THANKS FOR HAVING US.
TREVOR CARLSON WITH PIPER SANDLER, WE ACT AS BOND UNDERWRITER AND MARK MENTIONED, ACCESSING THE MARKET FOR ULTIMATELY THE WAY THAT YOU WOULD ACCESS THE BOND MARKET THROUGH AN INVESTMENT BANK LIKE PIPER SANDLER.
SO HAPPY TO BE HERE AND THANKS FOR THE OPPORTUNITY.
SO WHEN WE START LOOKING AT THE PROJECT FUNDING FUNDING GOALS, WE'RE NOT LOOKING AT JUST BONDS OF CAPITAL, BUT WE'RE TRYING TO LOOK AT THE DISTRICT'S TOTAL TAX RATE PERSPECTIVE BECAUSE THAT'S WHAT INDIVIDUAL HOMEOWNERS SEE.
CAPITAL AND TECHNOLOGY ARE KIND OF THE SAME TYPE OF VOTER APPROVAL.
SO YOU CAN COMMUNICATE THAT TO VOTERS AND THEY'LL KNOW WHAT TO EXPECT OVER TIME.
SO THAT'S KIND OF OVERARCHING.
WHAT WHAT WE TRY TO WORK WITH HERE IS THAT WE TALK A LITTLE BIT ABOUT CAPITAL FUNDING SOURCES.
KEVIN MENTIONED, YOU KNOW, THIS IS THE FIRST SHOT AT IT, RIGHT? YOU'RE TRYING TO FIGURE OUT WHAT YOU'RE GOING TO DO AND HOW MUCH YOU'RE GOING TO TAKE.
TAKE ON WILL REALLY DEPEND ON WHAT FUNDING SOURCE IS THE BEST TO MEET THOSE.
YOU DON'T WANT TO FINANCE COMPUTERS OVER 20 YEARS.
THE FIRST ONE IS STATE SCHOOL CONSTRUCTION ASSISTANCE.
AND THIS ONE'S REALLY IN KEVIN'S BALLPARK.
THE STATE FUNDING IS FRANKLY QUITE INADEQUATE AND IT COMES DOWN TO LOCAL SHARE.
SO THEN WE TALK ABOUT LOCAL SHARE.
THAT'S WHAT WHAT ARE VOTERS APPROVING AND HOW CAN YOU FINANCE SOMETHING OVER TIME? THE FIRST ONE IS BONDS.
AND THE BEST WAY TO THINK ABOUT THAT IS BONDS BEING YOUR HOME MORTGAGE.
SO AGAIN, IF IT'S SOMETHING THAT'S KIND OF A BIGGER PROJECT THAT SOMEONE'S GOING TO LAST FOR A LONG PERIOD OF TIME AND YOU CAN'T AFFORD TO PAY FOR IT OVER A SHORT PERIOD OF TIME, YOU STRETCH THAT OVER A LONGER PERIOD OF TIME, AND THAT'S WHAT A BOND IS.
IT'S ESSENTIALLY A LOAN THAT'S GOING TO COVER THAT AND YOU PAY BACK OVER OVER TIME.
SO YOU GET IT NOW VERSUS A CAPITAL LEVY WE'LL TALK ABOUT.
BUT YOU COLLECT THAT OVER TIME.
BUT AGAIN, I THINK THE BEST ANALOGY TO BE THINK ABOUT YOUR THIS IS A BOND IS A HOME MORTGAGE.
I USE THE TERM TAXPAYER EQUITY IN HERE BECAUSE WHEN YOU THINK ABOUT A 20 OR 30 YEAR BUILDING THAT'S GOING TO LAST 20 OR 30 YEARS, FINANCING THAT OVER SOME LONGER PERIOD OF TIME MEANS THAT PEOPLE THAT ARE BENEFITING FROM THAT BUILDING OVER THAT TIME ARE CONTRIBUTING TO THE COST OF IT.
AND THAT'S KIND OF THE TAXPAYER EQUITY PIECE.
AND FOR EXAMPLE, EVERGREEN SCHOOL DISTRICT, WHEN WE LOOKED AT THEIR INITIAL PROJECT, THEY LOOKED AT DOING THE CAPITAL LETTERS FOR ALL THEIR BUILDING AND PRETTY MUCH CONCLUDED THAT PEOPLE OVER SIX YEARS WOULD BE PAYING FOR BUILDINGS THAT PEOPLE OVER 30 YEARS ARE GOING TO BENEFIT FROM.
SO IT REALLY WASN'T VERY EQUITABLE FOR THE TAXPAYERS THAT LIVED THERE DURING THOSE SIX YEARS.
BUT IF IT'S SHORTER TERM PROJECT, THAT'S A DIFFERENT THING.
SO THAT'S WHY THE BONDS WE CAN CONTROL WHAT THE COST ARE OVER TIME.
THERE'S A VALIDATION REQUIREMENT WHERE PEOPLE HAVE TO TURN OUT AND PEOPLE HAVE TURNOUT.
BUT SINCE THE ALL MAIL IN BALLOTS, THAT REALLY HASN'T BEEN A PROBLEM.
SO WE'VE GOT ENOUGH BALLOTS THAT THE VALIDATION HAS BEEN OC.
[00:35:03]
LEGALLY, YOU CAN HAVE A 40 YEAR TERM ON A BOND, BUT THE MOST COMMON TERM IS 20, 21 YEARS FOR A SCHOOL BOND.AND JUST AS YOUR HOME MORTGAGE, IT'S THE SAME TRADE OFF.
YOU PAY MORE INTEREST THE LONGER YOU FINANCE IT.
I ACTUALLY WORKED WITH TWO DISTRICTS OVER MY CAREER THAT FAILED BY ONE VOTE.
AND ONE OF THEM, MY FATHER IN LAW LIVES IN THAT DISTRICT.
SO SO NON VOTED BONDS ARE REALLY GENERALLY FOR KIND OF SHORTER PROJECTS OR SMALLER PROJECTS.
YOU HAVE LESS CAPACITY TO STATE UNDER THE STATE LAW, YOU CAN'T BORROW AS MUCH UNDER NON VOTED BONDS.
SO YOU'RE ESSENTIALLY THE GENERAL FUND IS YOUR REPAYMENT SOURCE OR THE FUNDING SOURCE SUCH AS YOUR CAPITAL FACILITIES COLLECTIONS, YOU KNOW, FOR THE IMPACT FEES, THOSE SORTS OF THINGS.
BUT YOU DON'T HAVE ANY TAXABLE PIECE OF THAT.
NOW, ONE THING YOU MIGHT SEE IS THAT IF IT'S REAL COMMON FOR DISTRICTS TO SAY, LISTEN, THEY PURCHASED SOME LAND, THEY DID A CAPITAL LEVY, THEY PAID FOR THAT THEY COLLECTED OVER A COUPLE OF YEARS PERIOD TIME SO WE COULD BORROW AGAINST THAT CAPITAL.
SO WE KNOW THAT MONEY IS GOING TO COME IN FROM THE CAPITAL.
YOU DON'T GET TO THE CAPITAL, YOU GET A LITTLE BIT MORE.
SO NONVOTING BONDS REALLY AREN'T MEANT TO FINANCE LONG TERM PROJECTS.
YOU JUST DON'T HAVE THE CAPACITY.
IN A WAY, IT CAN BE POLITICALLY DIFFICULT BECAUSE IF THE VOTERS SAY NO ON SOMETHING AND YOU TURN AROUND AND YOU AND YOU DO IT ANYWAY WITH A NON VOTER BOND, I'VE SEEN DISTRICTS COME INTO TURMOIL AND SAY, HEY, WE TOLD YOU NO ON THIS AND YOU DID IT ANYWAY.
IT MIGHT COME OUT IN YOUR NEXT OPERATING ELECTION, BUT YOU CAN'T DO NON VOTER BONDS.
I KIND OF THINK OF IT AS A THIRD RAIL OF WASHINGTON SCHOOL FINANCE.
JUST BECAUSE IT IS THE GENERAL FUND IS GOING TO PAY BACK END OF THE DAY CAPITAL PROJECTS LEVIES.
NOW THE CAPITAL PROJECTS LEVY TECHNOLOGY LEVY AND CAPITAL PROJECTS LEVY ARE REALLY THE SAME THING.
BUT THE MAIN BENEFIT IS THAT ONLY REQUIRES A 50% VOTER APPROVAL.
AND SO WE SEE DISTRICTS TURNING MORE TO THAT VERSUS BONDS FOR PROJECTS THAT THEY CAN FUND.
SO, FOR EXAMPLE, KEVIN JUST KIND OF THREW OUT A SCENARIO, WHAT WOULD A $50 MILLION CAPITAL? AND I'M PROBABLY JUMPING AHEAD OF YOU HERE A LITTLE BIT, BUT BUT YOU KNOW, WE PUT THE ABACUS TO IT HERE TODAY AND SAY, WELL, YOU'RE GOING TO COLLECT PROBABLY SEVEN AND A HALF MILLION DOLLARS THE FIRST YEAR, 8 MILLION, THE SECOND YEAR, IT'D BE ABOUT $0.44 PER THOUSAND.
IT'D BE A SIX YEAR CONSTRUCTION PERIOD TO DO THOSE THINGS.
IF YOU CHOSE TO SAY, DO $12 MILLION THE FIRST YEAR, YOU COULD DO NON-VOTING DEBT TO FUND THOSE COLLECTIONS AND HAVE THE REPAYMENT BE THE SOURCE, THE SOURCE BEING LEVY COLLECTIONS WHEN THEY COME IN.
BUT THAT'S KIND OF A SIDE SIDE ISSUE.
BUT SO THINK ABOUT THE CAPITAL LEVY AS A AS AN OPTION FOR IF YOU DECIDE BONDS AREN'T REALLY GOING TO FIT YOUR NEEDS AND YOU COULD STRETCH THE CONSTRUCTION OVER A PERIOD OF TIME, CAPITAL LEVY MAY WORK, BUT MOST DISTRICTS USE THEM FOR TECHNOLOGY, SO THEY KEEP A TECHNOLOGY LEVY IN PLACE, KIND OF CONTINUALLY ROLL IT BECAUSE THE TECHNOLOGY DOESN'T LAST MORE THAN SIX YEARS TYPICALLY.
AND SO IT'S A GOOD FUNDING SOURCE FOR THAT.
AS MARK MENTIONED, 5% IS THE STATUTORY MAXIMUM FOR ALL OF THE DEBT THAT CAN BE OUTSTANDING FOR A SCHOOL DISTRICT AND A COUPLE OF DIFFERENT THINGS THAT ARE AT PLAY HERE.
NUMBER ONE, INCREASES AN ASSESSED VALUE, DERIVE THAT NUMBER HIGHER.
AND THEN AS YOU PAY OFF DEBT, RIGHT, THAT NUMBER BECOMES GREATER.
SO FROM A KIND OF A MATRIX PERSPECTIVE OR CALCULATION PERSPECTIVE, RIGHT NOW IN CALENDAR 22, ASSESSED VALUE, 13.7 BILLION 5% OF THAT NUMBER.
[00:40:02]
TRACKED OUT THE DEBT THAT'S ON THE BOOKS NOW.WE'VE 672 MILLION ARE GOING TO JUMP IN AHEAD OF MYSELF IN A COUPLE OF SLIDES.
SO AROUND A 21% NUMBER THAT IS PRELIMINARY, IT WILL BE CLOSE, BUT IT WON'T BE EXACT.
SO WITH THAT NUMBER, RIGHT, THAT DROPS DOWN AT 5% TO NORTH OF 800 MILLION.
AND THAT 21% INCREASE GOING FORWARD.
WE'VE MODELED AN EXTREMELY CONSERVATIVE, 4% ASSESSED VALUE GROWTH RATE.
AND I THINK ONE OF THE REASONS WHY IS THIS TOP BULLET POINT.
WE WOULD LOVE TO HAVE PROMISES MADE, PROMISES KEPT RIGHT AS FAR AS TAX RATES.
TREVOR, IF I MIGHT, THE OTHER REASON WE USE THAT 4% GROWTH, AND THAT IS IF YOU THINK YOU'RE A HOMEOWNER, RIGHT, IN THE DISTRICT, THE 4% REALLY WHAT WE'RE DOING IS WE'RE HAVING YOUR PAYMENTS GROW BY 4% OVER TIME.
YOU MIGHT HAVE TWO OR 3% OF THAT BE FROM NEW CONSTRUCTION IN THIS STEADY GROWTH.
SO IF, FOR EXAMPLE, YOU SAID, WELL, WE WANT TO THINK OUR ASSESSED VALUE TO GROW AND DO THESE PROJECTIONS AT NINE AND A HALF OR 10%, WELL THEN WE'RE GOING TO BUILD ALL YOUR PAYMENTS TO GROW AT NINE OR 10% AND YOUR TAX BILLS WOULD GO UP NINE OR 10% A YEAR.
MOST PEOPLE AREN'T GOING TO WANT THAT.
AND SO THAT'S KIND OF SOME OF THE REASONS FOR THE 4% OF ALL.
LONG TERM GRAPHICAL REPRESENTATION OF TAX EXEMPT MUNICIPAL BONDS, SKY HIGH BORROWING COSTS IN THE EARLY EIGHTIES, WE'VE SEEN INTEREST RATES MOVE UP DRAMATICALLY, SPECIFICALLY THIS CALENDAR YEAR AS INFLATION HAS REALLY TAKEN ROOT IN OUR ECONOMY AND AS THE FEDERAL RESERVE HAS TRIED TO COMBAT THAT BY INCREASING INTEREST RATES.
SO ALL TIME LOWS IN 20 2021, AND WE'VE KIND OF HAD A LITTLE BIT OF A HOCKEY STICK REBOUND IN THOSE BORROWING COSTS. WE BUILD THAT INTO OUR MODEL, WE ADD SOME CONTINGENCY AND I'LL HAVE MARK TALK A LITTLE BIT ABOUT THAT IN JUST A COUPLE OF MINUTES.
ANY QUESTIONS? AND HAPPY TO IF YOU NEED TO INTERJECT AND ASK QUESTIONS, HAPPY TO FIELD THOSE AS WE AS WE MOVE THROUGH SO YOU DON'T HAVE TO WAIT TILL THE END.
I THINK ONE REAL TAKEAWAY FROM THE SLIDE IS HAVE RATES HAVE GONE UP.
WE ALL HEAR IT ON THE NEWS, BUT WE'RE STILL RELATIVELY LOW RELATIVE TO HISTORY.
SO IT'S STILL A GOOD TIME TO BE BORROWING MONEY TO FINANCE PROJECTS.
I LOOK AT THESE PATTERNS AND I'VE BEEN IN THE BOND MARKET FOR A LONG TIME.
WE'VE BEEN PROJECTING INTEREST RATES ARE GOING TO GO UP EVERY YEAR FOR THE LAST 25 YEARS.
THIS MIGHT BE THE YEAR THAT IT HAPPENS.
BUT IF I LOOK AT THESE SPIKES UP, THESE RAPID SPIKES TYPICALLY DON'T LAST.
WHO KNOWS WHAT THEY'RE GOING TO DO? BUT THE BOTTOM LINE IS WE'RE KIND OF PREPARED.
THANK YOU. SO WE'VE BEEN ASKED TO DO A COUPLE OF SEVERAL DIFFERENT SCENARIOS.
SAY WHAT WOULD $0.50 PER THOUSAND COSTS A DOLLAR PER THOUSAND, A DOLLAR 50.
THAT'S CURRENTLY THE THINKING $300 MILLION AND $450 MILLION.
NOW, NONE OF THESE NUMBERS ARE ANYTHING THAT ANYBODY'S THINKING ABOUT RIGHT NOW.
BUT AS KEVIN SAID, THIS IS REALLY AN ITERATIVE PROCESS.
HE'LL HAVE A LIST OF PROJECTS.
WE'LL LOOK AT THE FUNDING SOURCES THAT BEST MATCHED THAT TYPE OF PROJECT LIST AND AND COSTS.
AND THEN IT'S ULTIMATELY UP TO THE BOARD TO DECIDE WHAT YOU WANT TO PUT BEFORE THE VOTERS AND WHAT YOU THINK THAT THEY WOULD WANT TO CONSIDER AND HOPEFULLY YOU THINK THEY WILL SUPPORT AND THEN YOU TAKE AN ACTION ON THAT.
SO THIS IS REALLY JUST THE FIRST STEP IN THAT.
BUT AS TREVOR MENTIONED, YOU'LL SEE WE'RE ADDING 1% TO TODAY'S INTEREST RATES FOR THESE.
[00:45:02]
PROJECTIONS AND THE BOND PAYMENTS ASSESSED VALUE GROWTH 4% OVER TIME.LONG TERM MENTIONED THAT AS WELL.
WE TYPICALLY WOULD SELL A LARGER BOND AUTHORIZATION LIKE THIS OVER MULTIPLE SALES.
SO WE'D SELL THE BONDS AS NEEDED TO FUND THE CONSTRUCTION.
SO SUMMARY OF THAT IS THE $150 MILLION AUTHORIZATION.
IF YOU GET DOWN THE BOTTOM LINE, THERE WOULD BE ABOUT $0.50 PER 1000.
THEN KIND OF RATABLY UP $300 MILLION OR $450 MILLION, $50.
THESE ARE APPROXIMATE NUMBERS.
NOW, IF YOU SAID WHAT'S THE MAXIMUM WE COULD GET FOR $0.50 PER 1000, IT MIGHT BE 155 MILLION OR SOMETHING LIKE THAT FROM NOW FOR INITIAL DISCUSSIONS IS A GOOD KIND OF WAY TO GET YOUR ARMS AROUND THE NUMBERS.
DO BONDS, DOES THE TAX RATE FOR BONDS, IS IT AS AS DOES IT FLUCTUATE LIKE A LEVY DOES? I MEAN, FOR INSTANCE, WE PASSED WE PASSED THE LEVY AT $1.95.
DOES THAT HAPPEN WITH BONDS AS WELL, OR IS IT STRUCTURED DIFFERENTLY? IT DOES. IT DOES HAPPEN THAT THE RATES HAVE COME DOWN OVER TIME, AND THAT'S BECAUSE WE'RE BUILDING LIKE A 4% GROWTH AGAIN IN THE BOND SIDE.
WELL, IF YOUR DISTRICT GREW AT 10%, WHAT HAPPENS? JUST THE WAY THE MATH WORKS IS THE TAX RATE WILL GO DOWN.
OTHERWISE YOU'D BE HAVING YOUR TAXES GO UP.
SO SO A 50%, IF WE WERE TO PROPOSE A 50% BOND AND WE SAW GROWTH IN THE DISTRICT, MORE HOUSES COMING IN AND THAT BECOMES SPLIT BETWEEN MORE PEOPLE, RIGHT? SO THEN THE TAX RATE DECREASES.
IS THAT CORRECT? SO IS IT IT'S SAFE TO ASSUME THAT YOU'D SEE IF YOU'RE IN A IF YOU'RE IN AN AREA WHERE GROWTH IS CONSIDERABLE, YOU WOULD SEE A DIP IN THAT TYPICALLY, YES, THAT WOULD BE THE CASE.
OKAY. I LIKE SEEING THESE THINGS GRAPHICALLY FOR ME, KIND OF A SHOW WHERE THE NUMBERS ARE THE GREEN BARS HERE ARE YOUR OPERATING LEVIES AND THAT ASSUMES THAT THE OPERATING LEVY KIND OF CONTINUES ON AFTER THE CURRENT AUTHORIZATION AT THE SAME TAX RATE.
BUT AS I MENTIONED, WE'RE LOOKING AT THE TOTAL TAX PACKAGE.
WELL, THAT'LL CHANGE THIS PLAN.
MAYBE WE CHANGE HOW THE BONDS ARE STRUCTURED OR IF YOU WANT TO ADD IN A TECHNOLOGY LEVY AND KIND OF SCRAPE THAT OUT OF THE THE COST OF GENERAL FUND, WE'D ADD THAT IN SO THAT WE KIND OF MODEL THESE TAX RATES.
WE CAN DECIDE WHAT YOUR PAYMENT SHOULD BE EACH YEAR FOR THAT 20 YEARS.
BUT YOU DO HAVE FLEXIBILITY AROUND THAT.
BUT YOU'LL SEE THESE EXISTING BONDS ARE THE DARK BLUE.
AND OUR CURRENT BOND RATE ARE OUR CONSTITUENTS ARE PAYING APPROXIMATELY $0.50, $0.52.
WE'RE PROJECTING NEXT YEAR IS GOING TO BE $0.44, 44,000.
I'VE GOT THE NUMBERS BACK IN THERE, BUT WITH THAT BIG GROWTH, IT'S GOING TO GO DOWN.
IT COULD EVEN BE LOWER. IT'S GOING TO BE ABOUT $0.44 PER THOUSAND.
MILLION AUTHORIZATION KEEPS THE TAX RATES OVER TIME ABOUT SAME AS THEY'D BE.
SO THAT COMPARES TO THE CAPITAL PIECE.
AS I'VE SAID, THAT WOULD BE ABOUT THAT AMOUNT WOULD GET YOU ABOUT $50 MILLION.
SO THAT'S A GOOD KIND OF COMPARISON I THINK WITHIN SO THE CAPITAL LEVY, AGAIN, YOU COLLECT OVER SIX YEARS THAT AMOUNT OF MONEY OVER SIX YEARS, YOU'RE LIKE YOU DON'T HAVE ANY INTEREST ASSOCIATED WITH IT WOULD EQUATE TO ABOUT A 44 CENT PER 1000 TAX RATE.
SO WHEREAS THE BOND AT 150 MILLION OVER 20 YEARS, WE'LL GET YOU ABOUT $0.50 PER 1000.
SO DOES THAT MAKE SENSE? YEAH. THE QUESTION.
I'M TRYING TO FOLLOW YOU. YEAH, I KNOW WE'RE KIND OF RUN THROUGH THESE NUMBERS QUICKLY, BUT THE BOTTOM LINE IS YOU COULD YOU COULD DO A CAPITAL LEVY, BUT YOU WON'T HAVE THE MONEY UP FRONT TO DO THE PROJECTS, AND IT'D BE ABOUT THE SAME COST AS $150 MILLION BOND AUTHORIZATION.
RIGHT. SO MY MIND THAT KIND OF COMES DOWN TO DO YOU THINK YOU GET 60% APPROVAL, RIGHT.
IF YOU COULD DO THAT, YOU CAN DO $150 WORTH OF PROJECTS.
IF YOU CAN ONLY GET 50% APPROVAL, WELL, MAYBE YOU'RE STUCK WITH $50 MILLION.
CAN YOU OVER EIGHT YEARS, CAN YOU PAY BACK A BOND EARLIER THAN 20 YEARS OR IS IT 20 YEARS? NO, NO, YOU CAN DEFINITELY PAY IT BACK EARLIER, BUT MOST DISTRICTS WOULDN'T DO THAT.
SO THAT'S REALLY KIND OF THE BOTTOM LINE.
IT'S JUST AS YOU KNOW, WE'D LIKE TO ALL PAY OUR HOMES OVER 15 YEARS VERSUS 30.
[00:50:02]
IT DOESN'T WORK THAT WELL. NOW, ONCE THE BONDS ARE SOLD, THEY'RE KIND OF OUT THERE AND YOU CAN'T PAY THEM OFF EARLY.MAYBE YOU SAID THIS BEFORE, BUT WHAT'S THE MAXIMUM LENGTH OF A CAPITAL? SIX YEARS. SIX YEARS? THAT'S A MAXIMUM. SO YOU SEE, YOU SAID THAT I JUST YOU'LL SEE DISTRICTS DO FOR YEARS FOR TECHNOLOGY.
KIND OF THE STRATEGY OF I'LL PUT THAT, MICHELLE, IS WHEN ARE YOU GOING TO WIN? ARE YOU GOING TO GO VOTERS FOR DIFFERENT THINGS? SO. SO THIS IS THE GRAPH OF THE $150 MILLION AUTHORIZATION.
YOU'LL SEE THAT THE YELLOW JUST GROWS AS YOU ADD ON MORE BONDS AND BRING THEM UP HIGHER.
AND YOU CAN YOU HAVE ALL OF THESE NUMBERS IN THE BACK IN THE APPENDIX.
THERE'S SOME ALL THE NUMBERS BEHIND THIS THAT ARE TOO SMALL TO PUT ON THE SCREEN WHERE THE MATH IS.
YOU TAKE THE AMOUNT YOU'RE GOING TO LEVY AND DOLLARS YOU DIVIDE IT BY THE VALUE OF THE DISTRICT, AND THAT GIVES YOU THE TAX RATE IN ALL THOSE DIFFERENT CATEGORIES FOR THE OPERATING LEVY, THE BONDS AND TECHNOLOGY LEVY.
SO AGAIN, WE THINK ABOUT IF THERE IS A STRATEGY FOR SCRAPING OUT TECHNOLOGY, FOR EXAMPLE, WELL, MAYBE THAT'S A SEPARATE VOTED ITEM AND THAT DOESN'T HAVE TO BE PART OF THE BOND ISSUE. WE ADD THAT INTO THE GRAPH IS A DIFFERENT DIFFERENT COLOR BAR.
AND AGAIN, WE'RE TRYING TO WORK WITH YOUR DISTRICT FINANCE STAFF TO MAKE SURE THAT WE'RE MATCHING THE NEEDS AND THE BEST TIMING AND THE BEST FIT ON THE FINANCING FOR THE TYPES OF PROJECTS YOU'RE GOING TO DO.
WE TALKED KIND OF TOUCH ON THE BOND PLANNING NOW.
WE'VE THROWN OUT THE TALKING ABOUT CAPITAL LEVEES AS WELL.
MOST OF THESE BULLETS AND TIME FRAMES ARE ABOUT THE SAME FOR BONDS VERSUS CAPITAL LEVEES.
SO TREVOR CAN TALK ABOUT WHERE YOU STAND AND.
YEAH. AND REALLY JUST SOME INFORMATIONAL ITEMS FOR YOU TO UTILIZE.
THIS IS A GREAT RESOURCE FOR YOU TO TO LOOK AT LATER.
IF YOU'RE LIKE ME, YOU MIGHT THINK OF THAT CRAZY QUESTION AS YOU'RE DRIVING TO WORK THE NEXT DAY.
MIGHT NOT BE THE THE MOST FAIR WAY TO COMPARE.
JUST TO GIVE YOURSELF A REFERENCE POINT, RIGHT? MASSIVE DIFFERENCES IN ASSESSED VALUE BETWEEN WOODLAND AND YOURSELF.
BUT WHAT I THOUGHT WAS INTERESTING THERE TOO, IS THE THE BOND RATES THAT WERE LISTED, IF YOU JUST LOOK AT THE BOND RATES AND NOT EVEN THE TOTAL TAX, THERE'S SOME HEFTY BONDS.
YES, QUITE A FEW IN THE I WOULD SAY DOLLAR 50 TO $2 RANGE.
AND THEN PAGE 15, WE JUST WANT TO GIVE YOU MAYBE A LITTLE BIT BETTER APPLES TO APPLES COMPARISON WHERE SIMILAR SIZED FROM AN ASSESSED VALUE PERSPECTIVE, WE COULD RUN THIS BASED ON ENROLLMENT, BUT ACROSS THE STATE DISTRICTS THAT HAVE A SIMILAR ASSESSED VALUE RANKED FROM HIGHEST TO LOWEST, AND ON THIS LIST, BETHEL IS THE WINNER OF THE AT THE CURRENT TIME.
AND THEY I THINK THEY WENT FIVE OR SIX TIMES FOR THEIR BOND AUTHORIZATION.
TOM SIEGEL I WORKED WITH TOM FOR QUITE A WHILE AND JUST KEPT GOING BACK AT IT AND, YOU KNOW, AND DIDN'T CHANGE THE AMOUNT AND JUST KEPT HAMMERING IT AND WORKED AND THEY GOT IT DONE, YOU KNOW? BUT YES, SO THEY DO HAVE A HIGH TAX RATE.
AND HE'S VERY PROUD OF THAT, THAT IT SHOWS A STRONG COMMUNITY SUPPORT.
AND THEN, AS YOU MENTIONED, THAT TAX RATE WILL DECLINE OVER TIME FROM WHAT WHAT VOTERS WERE TOLD TO EXPECT, IT'LL END UP BEING QUITE A BIT LESS ON A TAX RATE PERSPECTIVE, BUT WE'RE TRYING TO MANAGE THE OVERALL PIECE, THEIR ELECTION HISTORY FROM THE BOND PERSPECTIVE FOR YOUR SCHOOL DISTRICT GOING BACK TO THE EARLY NINETIES.
AGAIN, JUST DATA FOR YOUR REFERENCE, I'LL LET TREVOR HAVE THE BAT.
SO WE'VE WE'VE SEEN YES, WE'VE EXPERIENCED THE CHALLENGES TOGETHER.
SO I'LL JUMP BACK IN KIND OF JUST AS A TIMELINE.
MICHELLE HAS TO KIND OF PUT TOGETHER SOME THIS IS A ROUGH OUTLINE OF WHAT YOU'D BE DOING.
THE REAL MESSAGE TAKE AWAY FROM THIS GRAPHIC IS YOU DO HAVE TIME BETWEEN NOW TO GET SOMETHING ON NOVEMBER 23 BALLOT, BUT YOU HAVE TO BE DILIGENT WITH THAT TIME TO KEEP MAKING PROGRESS GOING FORWARD. YOU DON'T HAVE A TOO MUCH TIME TO DO IT.
IT TAKES IT TAKES A YEAR TO GO THROUGH THIS PROCESS OF HAVING KEVIN VET THIS LIST COME TO YOU SAY, WHAT'S WHAT DO WE THINK THE PRIORITIES ARE? THEN WE PUT SOME NUMBERS AGAINST THAT TOO.
THE FINANCING USUALLY GOES BACK TO KEVIN'S TO THE WELL.
WE THINK IT'S A PROCESS TO DO THAT.
[00:55:06]
SPRING OF NEXT YEAR, DRAFTING AN ELECTION RESOLUTION TO BE SPRING, BECAUSE YOU'LL NOTE THAT FOR NOVEMBER ELECTION, THE FILING DEADLINE IS AUGUST 1ST.SO YOU'RE GOING TO HAVE TO TAKE THAT UP IN JULY.
AND SO REALLY, YOU'VE GOT ANOTHER SIX MONTHS BEFORE THINGS START KIND OF HEATING UP QUITE A BIT.
I DON'T KNOW IF YOU'RE GOING TO COVER THIS, BUT IS THERE A BETTER TIME TO RUN, HISTORICALLY SPEAKING? IS THERE A BETTER IS THERE ONE OF THOSE DATES THERE? YOU KNOW, YOU HAVE YOUR FEBRUARY OR APRIL.
YOU'RE AUGUST AND YOU'RE IN NOVEMBER.
YEAH. TREVOR'S FIRM DOES A LOT OF RESEARCH ON THIS, AND WE DIDN'T INCLUDE IT IN HERE.
WE HAVE WE COULD SHARE IT WITH THE BOARD, WHICHEVER YOU WANT TO TAKE THAT ONE.
YEAH. GOING BACK TO THE EARLY NINETIES, HALF OF ANY BOND ON THE BALLOT HAS PASSED IN FEBRUARY, ABOUT A THIRD IN APRIL, AUGUST. THERE HAVE ONLY BEEN A HANDFUL OF TRIES.
COMING OUT SO WOULD STILL BE CONSIDERED A REPLACEMENT.
YEAH, BECAUSE THAT VOTE'S ALWAYS AROUND RIGHT NOW.
THANKSGIVING, VALENTINE'S DAY ISH.
RIGHT, RIGHT, RIGHT, RIGHT IN THERE.
AND THEN TAXES USUALLY DON'T COME OUT UNTIL RIGHT AROUND THAT SAME TIME.
THE TAX RATES HAVE ALREADY DROPPED TO ZERO BECAUSE ALL YOUR BONDS ARE ALREADY OUTSTANDING.
SO FEBRUARY 23, YOU DON'T HAVE TIME TO DO THAT, RIGHT? WELL, LET'S TAKE OUR OH, LET'S NOT TAKE THAT ONE RIGHT OFF THE TABLE.
SO REALLY, THE THE NOVEMBER IS PROBABLY YOUR BEST SHOT TO KEEP THE TAX RATE UP THERE.
YOU KNOW, WE DON'T TALK ABOUT ELECTION STRATEGY TOO MUCH BECAUSE IT'S NOT MY AREA OF EXPERTISE.
AND THEY'VE GOT A PLAN A AND A PLAN B, YOU KNOW, IN THEIR HIP POCKET OR WHAT THEY'RE GOING TO DO.
AND THEY HAVE TO MAKE A DECISION PRETTY QUICKLY.
RIGHT. BASED ON WHAT THE VOTER RESULTS ARE GOING TO BE.
AND SO BUT, YES, YOU HAVE THE OPTION OF, SAY, NOVEMBER WASN'T WORKING.
YOU COULD GO IN FEBRUARY AND STILL DESCRIBE THAT AS HERE'S WHAT YOUR COST HAVE BEEN TO THIS POINT.
SORRY TO GO THROUGH EACH ONE OF THESE BARS, BUT YOU HAVE THAT IN YOUR INFORMATION.
BASED ON THAT, KEVIN TELLS YOU WHAT YOU THINK THE VOTERS WOULD WANT TO APPROVE.
AND IT'S A VERY TECHNICAL DOCUMENT, AS YOU CAN IMAGINE.
AND THERE'S THE EXPLANATORY STATEMENT THAT GOES ALONG WITH THAT BALLOT MEASURE.
AND YOU POINT TO PRO AND CON COMMITTEE.
SO THERE'S A LOT OF STEPS YOU HAVE TO DO TO PUT SOMETHING ON THE BALLOT, AND THAT'S WHAT YOUR LEGAL COUNSEL IS REALLY GOOD AT, KIND OF WORKING WITH MICHELLE AND DANNY TO OUTLINE ALL OF THOSE STEPS AND WHEN THEY HAVE TO HAPPEN AND WHAT WHAT PERIOD OF TIME.
THEY ALL HAVE TO HAPPEN KIND OF IN THE SUMMER TIME FRAME.
SO AUGUST ONE FILING DEADLINE, WE TALKED ABOUT THAT.
AND THEN REALLY THE THE BALLOTS WERE MAILED OUT IN OCTOBER FOR NOVEMBER ELECTION.
THERE'S A LITTLE BIT OF A TIMING ON A NOVEMBER ELECTION, SAY THIS IS A SUCCESSFUL ELECTION.
YOU AS A BOARD TYPICALLY CERTIFY YOUR COLLECTION AMOUNTS.
[01:00:05]
WELL, THE ELECTION RESULT IS NOVEMBER 28, SO THERE'S A QUICK TURNAROUND ON THAT AS WELL, DEPENDING ON WHAT HAPPENS WITH AN ELECTION.AND THAT'S WORKING WITH US IN THE LEGAL COUNCIL.
SO THOSE DISTRICTS THAT I MENTIONED ARE ON THIS NOVEMBER'S BALLOT.
I'M THINKING WHAT HE'S THINKING.
IT MIGHT BE LOOKING AT THE PROJECT COST.
I DON'T KNOW ABOUT YOU, BUT I WOULD NOT WANT TO BE PROJECTING WHAT PROJECT COSTS ARE GOING TO BE ANY MORE THAN WANT TO BE PROJECTING WHAT INTEREST RATES ARE GOING TO BE IN THE FUTURE. SO HE'S GOT THE HEAVY LIFTING ON THAT AS WELL.
AND THEN LOOKING AT WHEN YOU NEED THE MONEY FOR THE CONSTRUCTION CASH FLOW, THAT'S KIND OF WOULD BE A LOT OF THE DETERMINING FACTOR BETWEEN THE CAPITAL PROJECTS VERSUS BONDS IN THAT ONE. AND THEN IF WE'RE DOING BONDS, KIND OF WHEN WE'D NEED TO SELL THE BONDS AND FACTOR THAT INTO THE FINANCING PLAN WE'VE ALREADY KIND OF LOOKED AT THIS NOVEMBER.
SO DETERMINE WHICH ELECTION DATE TO TARGET.
WE'RE KIND OF RIGHT NOW WORKING TOWARDS NOVEMBER 23 THREE, BUT THAT'S STILL YOUR DECISION.
IT TAKES A WHILE. THE BIG THING IS COMMUNITY OUTREACH.
AT SOME POINT YOU NEED TO GET PEOPLE UNDERSTANDING WHAT THIS IS.
AND WE'RE PART OF THE DISTRICT STAFF.
ESSENTIALLY, AS I MENTIONED, WE'RE HERE TO PROVIDE FACTUAL INFORMATION, NOT PROS AND CONS, BUT FACTUAL INFORMATION OF WHAT WE THINK THE COST WOULD BE IN THE PLAN TO BE GOING FORWARD AND THEN GET THE ELECTION RESOLUTION THAT REALLY THIS COMMUNITY OUTREACH IS FRANKLY THE HARD PART.
I THINK IT IS. AND WE UNDERSTAND BONDS AND WE THINK IT'S PRETTY EASY.
IF YOU CAN DO THE COMMUNITY OUTREACH AND GET THE PEOPLE BEHIND IT, WE CAN GET YOU THE MONEY.
THAT'S THAT'S KIND OF THE WAY I SEE KIND OF THE SHORT, SHORT VERSION OF IT.
SO WE CAN HANDLE THE PROCESSES OF IT.
IT'S REALLY YOU TO DETERMINE WHAT YOU THINK IS IN THE COMMUNITY'S BEST INTEREST.
AND THEN WE WORK WITH YOU IN THE STAFF AND TO DELIVER ON THAT, ON THAT PLAN ALL THE TIME.
SO AGAIN, WE KIND OF TALKED FAST AND COVERED A LOT OF DIFFERENT THINGS.
THANK YOU. I NOTICE THAT LEAST.
CAN YOU CAN YOU KEEP GOING FURTHER ON THE SLIDE? YEAH. I NOTICE YOU PROVIDED THE PROJECTED TAX RATE.
SO IS THIS RIGHT TO ASSUME I MEAN, I SEE THAT YOU ASSUMED THE 4% GROWTH RATE.
AND IF THE IF THAT IF THAT WENT UP, THEN THAT TAX RATE WOULD GO DOWN.
RIGHT? BECAUSE THESE ONCE THE BONDS ARE SOLD, AGAIN, THESE ARE ALL ASSUMPTIONS.
BUT IF THIS IS REAL LIFE, LET'S PRETEND THIS IS REAL LIFE.
IN 24 AND 25, THOSE PAYMENTS ARE LOCKED IN THEIR FIXED INTEREST RATE DEBT.
WE KNOW WHAT THE OBLIGATION IS GOING FORWARD.
THEN WE SEE A TRAIL DOWN IN THE TAX RATE.
AND I APPRECIATED THAT YOU PUT THE PROJECTED TAX RATES FOR 150, FOR 304 FOR 50.
KEV, DO YOU WANT TO DO YOU WANT TO PULL UP THAT OTHER STUFF AND SHOW WHAT IT LOOKS LIKE FROM A PRICE PERSPECTIVE, WHATEVER WE THINK WE WANT TO DO. HOW DO YOU WANT TO TALK ABOUT THIS? LET'S AT LEAST CAN YOU OPEN UP THE THE SHEET THAT TALKS ABOUT DO YOU WANT TO SEE? YEAH. THAT ONE FIRST.
YEAH. AND THANK YOU AGAIN FOR THE SERVICE THAT YOU GUYS PROVIDE.
GREAT. WE'RE LOOKING FORWARD TO THE PARTNERSHIP.
IF YOU THINK OF THE BEST QUESTION WHEN YOU'RE DRIVING HOME TOMORROW, MAKE SURE.
I WAS STILL JUGGLING THAT CAPITAL VERSUS BOND THING, BUT I THINK I GOT IT.
SO IS THAT THE TOP PLACE? WHAT? DO YOU STICK DOWN ON THE BOTTOM PAGE IN THE SUMMARY? NOBODY NEEDS TO CLICK ON THAT THING OR LEARN NOTES, BUT THERE YOU GO.
OH, YES. SO YOU CAN SEE THE 2018 BOND AMOUNTS.
[01:05:06]
IT WAS THESE SCHOOLS, THESE REPLACEMENTS, THESE EXACT SAME PROJECTS.THERE WERE SOME OTHER ITEMS AS WELL THAT WE PUT ON THERE.
BUT FOR THE MAIN PROJECTS, THE MAIN GUTS OF THE 2018 BOND, YOU CAN SEE WE'VE WE'VE GONE FROM 225 UP TO 2.96 FOR A LOCAL SHARE.
STATE MATCHES CAME UP A LITTLE BIT.
AND WHAT HE WAS REFERRING TO ON THE STATE MATCH NOT REALLY DOING A LOT.
YOU CAN YOU CAN SEE IT'S IT'S A FIFTH IT'S 20% OF THE OVERALL.
THAT'S BECAUSE WE HAVE NO ELIGIBILITY.
YOU CAN SEE THE STATE SHARE ON THE NEW K CAMPUS.
THAT WAS ALL DONE AT ZERO ELIGIBILITY AND WE ARE CURRENTLY ARE -24,000 OR OVER HOUSED CURRENTLY.
SO WE HAVE ZERO ELIGIBILITY RIGHT NOW TO BUILD ANY ANY NEW STRUCTURES WE CAN WE CAN BUILD WHAT'S CALLED NEW AND LOO WHICH THE FIRST ONES THE FIRST THREE GLEN WOODLAWN NEW AND LOO.
SO INSTEAD OF RENOVATING 1956 GLENWOOD, WE'D BUILD A NEW ONE.
TEAR IT DOWN. THERE IS STATE MATCH FOR THAT, BUT YOU CAN SEE SUBSTANTIALLY THE OUR LAST BOND.
REALLY IT WAS IT WAS 5050 STATE MONEY, LOCAL WAS 50.
WE'RE AT 5050 THE LAST TIME WE DID THIS.
AND NOW YOU CAN SEE WE'RE AT 20% OVERALL.
THE STATE DOESN'T MATCH A LOT OF THINGS.
AND THEIR AREA COST ALLOWANCE, I BELIEVE, IS $242 IN REAL WORLD IS BASED ON 550 TO 600.
SO THEY'RE NOWHERE NEAR ADEQUATELY FUNDING CURRENT CURRENT COSTS OF CONSTRUCTION.
SO THEY WERE MATCHING A LOT MORE PERCENTAGE WISE.
LIKE I SAY, WE DID A 100, 100 MILLION ENDED UP BEING 110.
I THINK ABOUT 55 MILLION WAS FROM THE STATE, 55 MILLION WAS FROM LOCAL TAXPAYERS.
YOU CAN SEE THAT SCENARIO CHANGES DRAMATICALLY, BUT ALSO WITH A HIGH WEIGHT OF NO ELIGIBILITY FOR THAT NEW K SO I WAS ASKED TO COMPARE 2018 TO 2023.
THAT'S WHAT IT IS. AND, AND THAT'S MINUS, MINUS THE PER PROJECT.
YEAH, I DID NOT, I DID NOT INCLUDE THE PRAIRIE MINUS THE AL CAMPUS.
YES. AND THAT'S MINUS ALL OF THE OTHER SUPPLEMENTARY.
THOSE ARE THE SUPPLEMENTARY ONES.
IT WOULD, YEAH. THIS WOULD DEFINITELY BE, THIS WOULD BE MUCH LARGER.
AND IF YOU JUST I'M JUST DOING THE MATH IN MY HEAD, IF YOU TAKE OUT THE NEW K CAMPUS AT 122 MILLION, YOU'RE LOOKING AT 170 MILLION ISH.
AND THAT'S JUST GLENWOOD, LAUREN AND PLEASANT VALLEY.
AND I GUESS THAT'S KNOW, THAT'S SOME OF THE CHALLENGE FOR US AS A BOARD.
YOU GUYS RECOGNIZE THAT THAT THOSE ARE PROBABLY OUR HIGHEST NEEDS ARE THOSE FOUR SCHOOLS AND CALL PLEASANT VALLEY IS ONE PROJECT BUT TWO SCHOOLS THOSE FOUR SCHOOLS ARE PROBABLY OUR HIGHEST NEEDS NOT PROBABLY THEY ARE OUR HIGHEST NEEDS.
YET THEY FROM A FROM A GEOGRAPHIC STANDPOINT, THEY REPRESENT THE SOUTHERN SIDE OF THE DISTRICT AND A VERY A RELATIVELY SMALL PORTION OF THE OF THE DISTRICT.
SO AGAIN, SOME OF OUR CHALLENGES ARE WHEN YOU'RE TRYING TO GET TO THAT 60%, YOU'RE TRYING TO ATTRACT VOTERS FROM THE ENTIRETY OF THE DISTRICT.
YOU KNOW, WHAT DO YOU DO IN TERMS OF ENTICEMENT OR FOR PEOPLE TO FEEL GOOD ABOUT VOTING FOR FOR THOSE PROJECTS WHEN THEIR PORTION OF THE COMMUNITY ISN'T GETTING ANYTHING? SO THAT'S ANOTHER CONSIDERATION FOR US AS A BOARD.
[01:10:02]
ONE IS MIDDLE SCHOOL SPORTS FACILITIES, WHICH WOULD POTENTIALLY INCLUDE TURF FIELDS IF WE'RE GOING TO CONTINUE TO EXPAND OUR MIDDLE SCHOOL SPORTS AND AND ACTIVITIES PROGRAM.THOSE ARE SOME OF THE THINGS THAT THAT WE WOULD NEED.
SO THAT'S THAT'S ANOTHER THAT'S ANOTHER PROJECT.
BUT THEN THE OTHER IDEA THAT KEVIN CAME UP WITH IS THIS IDEA OF A $50 MILLION CAPITAL LEVY, WHICH COULD BE PASSED AT 50% AND PAID BACK OVER SIX YEARS.
AND SO YOU CAN SEE HERE, THIS IS WHAT HE CAME UP.
CAN YOU DROP TO THIS? I JUST WANT TO GO TO THE SUMMARY FIRST.
JUST DROP DOWN THERE TO GIVE YOU AN OVERALL WHAT WE'RE SPENT, WHAT WE WOULD BE.
WE CAN GO BACK AND RELOOK AT WHAT ITEMS MAKE UP THESE NUMBERS.
BUT AS I AS I PONDERED THE MIDDLE SCHOOL SPORTS AND THE TURF FIELDS AND AND THINGS, THESE THIS IS THE SUMMARY OF WHAT KIND OF DOLLARS YOU'RE LOOKING AT FOR CAPITAL LEVY.
AND IF WE WERE TO DO A CAPITAL LEVY AT 50% INSTEAD OF TRYING TO DO THE BOND AND NOT REPLACE THESE SCHOOLS, AND THEY BROUGHT UP AN INTERESTING STRATEGY, IF YOU WILL, THAT POTENTIALLY YOU START WITH A CAPITAL LEVY, GET IT UNDERWAY AND GO WITH A BOND THAT ABSORBS THAT IF WE NEEDED TO WAIT FOR SOME ELIGIBILITY BECAUSE I'M SAYING WE HAVE NO ELIGIBILITY.
SO THAT'S ANOTHER STRATEGY PER SE TO RUN A CAPITAL LEVY, MAYBE NOT A 50 OUT OF 51 MILLION, MAYBE IT'S SOME OTHER AMOUNT. SEEK MORE COMMUNITY INPUT ON REALLY HOW MUCH GLEN WOODLAWN THE DESIRE IS TO TEAR DOWN REPLACE ITS BEAUTIFUL, INCREDIBLE CAMPUS.
IN MY OPINION, PLEASANT AND THEIR DIFFICULT PLEASANT VALLEY IS A DIFFICULT SITE BECAUSE I DON'T HAVE VERY MUCH LAND TO GO BUILD TWO NEW SCHOOLS WHILE I KEEP TWO ACTIVE. THAT'S A CHALLENGE AT THAT SITE.
GLENWOOD AND LOREN IS NO PROBLEM.
SO LET'S DROP BACK UP AT LEAST LET'S GO TO THE FIRST AND JUST SEE WHAT $51 MILLION WOULD GET YOU.
SO GLEN GLENWOOD, I JUST LOOKED AT ALL THE PORTABLES AND TEN PLEX'S WHICH ARE GETTING ON IN AGES.
THOSE WERE SOME OF THE ORIGINALS.
THE DISTRICT WENT A LITTLE CHEAPER ON FINISHES THE DOORS AND THE TRIM WHEREAS NOW WE HAVE NICE METAL FRAMES AND NICE WOOD DOORS PAINTING SECURITY UPGRADES, METAL ROOFS.
THAT'S ONE WAY WE COULD REALLY IMPROVE THEIR COMPLEXES AS IS.
AND IF THE MAIN BUILDING YOU WANTED TO ENHANCE THEIR PLAYGROUND AREA, WE CUT THE ROOF EXISTING.
WHAT IF WE CONVERTED THOSE INTO OFFICE SPACES AND GIVE THE SCHOOL NEW HVAC AND NEW FLOORING, NEW LIGHTING, AND THEN WHAT IF WE WERE TO BUILD A GYM AND A CAFÉ THAT'S SIMILAR TO, SAY, DAYBREAK, THE COMMONS AREA WHERE A DOOR WOULD OPEN BETWEEN THE GYM AND THE CAFETERIA FOR ASSEMBLY AREAS? AGAIN, I JUST. I JUST THOUGHT I'D LOOK AT THINGS DIFFERENTLY.
DIFFERENT OPTIONS. LET'S LOOK AT LAWN PORTABLES.
THREE OF THOSE BUILDINGS ON SITE HAD NO NO OLDER THAN TEN YEAR ROOFS ON THEM.
WE COULD EASILY EXPAND THE PARKING LOT.
NEW LIGHTING, REPAINT IN AND OUT, AND THEN PUT IN THAT NEW TRACK AND FIELD FOR MIDDLE SCHOOL SPORTS.
SO THAT'S WHAT 12 MILLION WOULD GET YOU.
ROUGHLY. PLEASE DON'T HOLD ME TO ANY OF THESE TIGHTLY, BUT THINGS WILL CHANGE.
BUT FOR RIGHT NOW TERMS THESE THESE ARE ACCURATE DOLLARS.
DO YOU WANT TO DISCUSS THAT OR JUST KEEP GOING OVER THEM? KEEP GOING, KEEP GOING. PLEASANT VALLEY.
SO WE REPLACED THE ROOF ENTIRELY.
THERE'S NO RESTORING THAT ONE.
AND I JUST STARTED TO THINK, WELL, OKAY, WHAT IF I.
WHAT IF I. THEY USE THE SMALL GYM.
CONVERT THAT TO, LIKE, A CAFÉ.
[01:15:02]
YAKULT HAS A GYM.THEY USE IT FOR LUNCH AND THEY USE IT FOR GYM.
THEY DO HAVE TWO HALVES, SO THEY CAN ALWAYS HAVE A GO ON.
BUT ON THE ALTERNATIVE SIDE, DURING THOSE PERIODS THEY COULDN'T USE IT.
AND THAT'S WHAT 9.8 MILLION WOULD ROUGHLY GET YOU PRETTY HIGH.
THANK GOODNESS. REVISE OUR BUS LANE ROUTE.
THE KIDS COULD ALL ALL GET UNDER COVERED WHILE THEY'RE THERE.
WE WOULDN'T BE INTERMIXING WITH TRAFFIC.
PROBLEM IS, I'VE GOT TWO LARGE TRANSFORMERS TO MOVE.
IT'S ABOUT A $900,000 HIT THERE.
IF WE PUT IN, WE NEED TO DISCUSS THE COVERED THE COVERED BLEACHERS AT PRAIRIE.
I'VE GOT AN ESTIMATE OF THAT AS 350.
BUT THAT WOULD SIT RIGHT WITH THE NEW FIELDHOUSE IS WE'D HAVE TO UPDATE THEIR FIELDHOUSE AND AND FOR STORAGE AGAIN, STORAGE IS A BIG ISSUE NEXT YEAR PAINT AND AND DOING ONE TURF BASEBALL INFIELD SO THEN WE WOULD HAVE BOTH A SOFTBALL AND A BASEBALL TURF FIELD BATTLE GROUND HIGH SO THAT'S WHAT 6.6 MILLION GET YOU BATTLE GROUND HI AGAIN.
I'VE DISCUSSED THAT WE GOT WE DO NEED TO REPLACE THIS ONE AND THIS WOULD ALLOW TO BE ONE OF OUR SOFTBALL TURF FIELDS.
THAT'S WHAT 3 MILLION WOULD DO.
TUKES VALLEY AGAIN, A TRACK THERE, MIDDLE SCHOOL DAY BRACKET, NEW TRACK THERE AND TURF INFIELD YAKULT. I LOOK AT REPLACING THEIR SIX OLD PORTABLES THAT I'D LIKE TO REPLACE THAT WITH ONE NEW TEN PLEX PARDON THE A ON PLEX AND THEN AMBOY IN THE PREVIOUS BOND WAS TO RENOVATE THAT 300 BUILDING AND EXPAND STEM AND AND BOND AND SO I PLUGGED IN A NUMBER THERE AS WELL AND THAT REALLY COVERS THE WHOLE DISTRICT JUST AS A DIFFERENT PHILOSOPHY OF MAYBE NOT GOING OUT FOR A FULL TIME, FULL SIZED BOND.
IT JUST GIVES YOU SOME OPTIONS.
RIGHT. AND THAT WAS THE INTENT, RIGHT, OF THIS PRESENTATION WAS TO GIVE YOU SOME BACKGROUND INFORMATION ON BONDS, TO GIVE YOU TO PAINT YOUR PICTURE OF WHAT OUR NEEDS ARE.
SO YOU GET A LITTLE FEEL FOR WHAT POTENTIALLY COSTS ARE.
COULD WE COULD WE RUN A BOND AT A REPLACEMENT AT $150 MILLION? CERTAINLY 150 MILLION IS GOING TO GET US A LOT.
HOW MUCH WOULD IT COST TO ACTUALLY BUILD A NEW PLEASANT VALLEY? A NEW. YEAH. I THINK IF YOU LOOK AT THOSE NUMBERS, LIKE I SAID, IF YOU JUST REPLACED THE FOUR SCHOOLS, THE TWO PLEASANT VALLEYS AND THE AND THE LOREN AND GLENWOOD, YOU'RE LOOKING AT $170 MILLION, $170 MILLION.
SO AND SOME OF THAT REASON IS THAT WE WOULD BE USING A NEW PROTOTYPE WE'D BE BUILDING.
WE, WE DO NOT WANT TO BUILD A THREE BUILDING PROTOTYPE AGAIN.
SO THEY'RE GOING TO BE LARGER.
SO THERE'S GOING TO BE MORE SQUARE FEET THAT'S INELIGIBLE FOR NEW AND AND LOU, YOU KNOW WHAT I MEAN? IF GLEN WANTS 35,000 OR WHATEVER IT IS, 45,000 AND I SHOULD POINT OUT THE 170 MILLION IS JUST OUR SHARE, THE LOCAL SHARE.
THE TOTAL COST OF THE PACKAGE WOULD BE A LITTLE MORE THAN THAT.
BUT THE STATE FUNDING WOULD COVER SOME OF THAT BECAUSE THAT'S ELIGIBLE.
RIGHT. BUT THAT'S 100 AND THAT'S 170 MILLION.
SO AS YOU KNOW, AS AS MARK AND TREVOR POINTED OUT, 150 MILLION IS PROBABLY $0.50, YOU KNOW, SO 170 MILLION, 55, YOU KNOW, SOMEWHERE IN THERE, $0.60 SOMEWHERE RIGHT IN THERE.
BUT AGAIN, THAT ONLY GETS YOU THE SOUTHERN SCHOOLS.
YEAH. AND IT DOESN'T INCREASE CAPACITY.
THEY PASSED THE BOND SEVEN YEARS AGO AND BUILT NEW SCHOOLS AND DID SOME EXTRA THINGS.
[01:20:03]
AND WHAT THE VOTERS SAID WAS, HEY, WE JUST PASSED THE BOND RECENTLY.WE DON'T WANT TO PASS ANOTHER BOND AGAIN ON TOP OF THAT.
AND SO YOU'VE SEEN THEM FAIL THEIR BOND EFFORTS THERE.
SO I THINK ONE OF THE THINGS THAT WE NEED TO BE CAREFUL ABOUT IS NOT ONLY DO WE NEED TO THINK ABOUT WHAT OUR CURRENT NEEDS ARE, THERE IS SOME ANTICIPATION FOR WHAT OUR FUTURE NEEDS WILL BE, BECAUSE I REALLY FEEL LIKE, YOU KNOW, TO SOME DEGREE FOR US IN THIS COMMUNITY, WE NEED TO WE NEED TO PASS A BOND.
WE CAN'T BE COMING BACK TO OUR VOTERS IN FIVE OR SIX YEARS ASKING FOR ANOTHER BOND.
SO FOR THE INDIVIDUAL TAXPAYER, IT'S NOT NECESSARILY LESS ON THEIR ON THEIR TAXES.
BUT, YOU KNOW, THE OTHER THING THAT WE HAVE TO THINK ABOUT IS THE CLIMATE RIGHT NOW WITH INFLATION THE WAY IT IS AND WITH, YOU KNOW, INCOMES BEING BEING PULLED IN ALL KINDS OF DIRECTIONS, THE QUESTION OF HOW MUCH OUR COMMUNITY WILL SUPPORT IS A SIGNIFICANT QUESTION, AND I DON'T HAVE THE ANSWER TO IT. SO HOPEFULLY THAT PROVIDES YOU WITH A WHOLE BUNCH OF THOUGHT.
ANOTHER THING I SHOULD SAY, AMANDA AND I HAVE ALREADY BEEN TALKING.
WE ARE GOING TO INITIATE A STAFF.
SO WE'RE GOING TO GET STAFF INPUT.
ONCE WE GET A STAFF INPUT AND WE GET A FEEL FOR WHERE WE ARE POTENTIALLY GOING.
AND I THINK WITH THAT INFORMATION, THAT'LL GET US CLOSER TO MAKING A FINAL DECISION.
THANK YOU BOTH FOR YOUR TIME TODAY.
THANK YOU, GUYS. AGAIN. THANK YOU.
THANKS. BYE. DO I CLOSE? DO I CLOSE THIS ONE? WE CAN CLOSE IT AND WE'LL SHUT IT DOWN FOR 8 MINUTES.
YEAH, WE GOT A QUICK BREAK, AND WE WILL START REAL CLOSE TO 6:00.
* This transcript was compiled from uncorrected Closed Captioning.