Facility and Financial Overview. Brandywine Heights Area School District

Transcription

1 Facility and Financial Overview Brandywine Heights Area School District

2 BHASD Mission: Our Mission is to enable students to strive for success in an ever-changing global society. Agenda 1. Overview of facilities 2. Addressing immediate concerns with facilities 3. Long range planning of facilities 4. Financial overview

3 1 2 3 STEP STEP Facility Analysis Process (March October) Crabtree, Rohrbaugh & Associates Architects - Evaluate current building conditions - Plan for future building use 4 5 STEP STEP STEP Define Goals Information Analyze Data Develop Options Recommendations Gathering Educational Visioning Financial Guiding principles Indicators of quality Establish benchmarks Building Capacity Analysis Enrollment Analysis Facility Assessments Utility cost history Current Use of Space Program & Preliminary Options Existing Documents Board Space analysis Energy modeling Benchmarking Educational adequacy Program Compliance Right sizing the box Infrastructure improvements Educational improvements Community Use Cost Estimating Operational Savings Phasing Prioritize Projects Board Short and Long Term Planning Final report Option Selection 3

4 Elementary School Intermediate & Middle School High School 400+ students 535+ students 465+ students Current Status of Buildings Built in addition 1990 addition/renovation portable classrooms/removed Roof replacement LED upgrades and HVAC added Built in addition 1995 addition/renovations - new auditorium seats, hallway flooring 2004 renovations Roof replacement, lighting and HVAC upgrades LED upgrades and HVAC added Built in LED and mechanical upgrades

5 Facility Analysis Overview Current Condition Building infrastructure has been well-maintained across the district Elementary entryway procedures are a targeted safety concern High School roof degrading; 1-2 years of life remaining Future Building Use Elementary Building 98% capacity usage (optimal operating capacity 85%) Middle School interior façade worn Auditorium built in 1956; last refurbished in 1995 with new seats Hallways updated in 1995 Facility utilization increased 650 hours last year for a total of hours utilized by community afterhours Athletic facilities stadium enhancements and field discussions

6 Project Timeline

7

8 Current Elementary Entrance BUILDING MAP IMAGE REMOVED

9 BRANDYWINE HEIGHTS ELEMENTARY SCHOOL OFFICE RECONFIGURATION Summer 2019 BUILDING MAP IMAGE REMOVED PRELIMINARY COST- $400,000 - $600,000

10 BRANDYWINE HEIGHTS ELEMENTARY SCHOOL OFFICE RECONFIGURATION Summer 2019

11 High School Roof Concern Summer 2019 Infrared Scan of Roof Pink = failure points measured by saturated areas

12 High School Roof Replacement EPDM roofing material upgrade to 90 mils thick 30 year warranty and flashing Wider coverage area = reduced joints/seams PRELIMINARY COST- $1.6-$1.7 Million

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14 PRELIMINARY COST- $6-$7.3 Million (excludes entryway cost) Elementary School Enhancements

15 PRELIMINARY COST- $3.0-$3.8 Million Intermediate & Middle School Interior Enhancements (First Floor)

16 PRELIMINARY COST- $3.0-$3.8 Million Intermediate & Middle School Interior Enhancements (Second Floor)

17 *Wide range of potential scope and discussion about both school sites BUILDING MAP IMAGE REMOVED Athletic Facilities Intermediate/Middle School 1. DOCK PARKING RECONFIGURATION 2. OUTDOOR LEARNING AMPITHEATRE 3. BLEACHERS & LIGHTING 4. ADA ACCESS, SIDEWALKS & FENCING 5. TURF FIELD ($1.2m) ($500,00 maintenance every 10 years) 6. ALL WEATHER TRACK ($1m) 7. RELOCATION OF BASEBALL FIELD 8. NEW PARKING LOT FOR STADIUM PRELIMINARY COST- $1.6-$4.6 Million

18 *Wide range of potential project options Athletic Facilities High School BUILDING MAP IMAGE REMOVED 1. NEW PARKING LOT & DROP-OFF FOR STADIUM 2. BLEACHERS & LIGHTING 3. RELOCATION OF SOFTBALL FIELD 4. REDUCTION OF FRONT PARKING LOT 5. TURF FIELD ($1.2m) ($500,00 maintenance every 10 years) 6. ALL WEATHER TRACK 7. POTENTIAL STADIUM ENTRY & PROGRAM EXPANSION PRELIMINARY COST- $1.1-$5.4 Million

19 Overall perception of schools Community Investments; stadium community for games, grandparents for events like race for education; auditorium; ADA accessibility Property value equates to school ranking A 2017 study by the National Association of Realtors (NAR) found 26 percent of home buyers considered the quality of schools when looking for a new home. National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, Using Market Valuation to Assess Public School Spending, found that for every dollar spent on public schools in a community, home values increased $20. WHY should we make these investments in our schools? Realator.com One out of five home buyers said they would pay six to 10 percent above their budget for the right school.

20 Financial Overview

21 Current Financial Status Revenue: <1% Federal subsidy 31% State subsidy 68% Local (91% residential/9% commercial) Financial Health of the District

22 Assessed Value Where does local tax come from? Assessed value of land x millage rate = local real estate taxes Land Value Growth from: Commercial NEW construction Residential structural change Assessment appeal

23 Millage to Dollar Equivalency ( ) How much does 1 Mill equal compared to others in the county? = 2 nd lowest in county - Minimal growth, minimal additions

24 Millage Comparison 2 nd highest = assessed value worth Other Districts catching up

25 Tax Increase History Board has done an excellent job maintaining fiscal responsibility over past 5 years

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

27 Financial Health of the District

28 $100 million increase to Education Funding last year in State = $40,000 for BHASD > MINIMAL IMPACT Financial Health of the District

29 PSERS Expense and Budget Impact Year Rate Total Expense Total Budget % increase $ increase % of Budget % $1,033,806 $28,304,800 4% % $1,500,749 $28,622,600 45% $466,943 5% % $1,993,902 $29,791,204 33% $493,153 7% % $2,521,058 $29,993,609 26% $527,156 8% Financial Health of the District % $2,953,509 $30,495,190 17% $432,451 10% % $3,738,060 $32,392,811 27% $784,551 12% % $4,418,480 $33,175,040 18% $680,420 13%

30 Cyclic Budgeting Process for consistent spending 6 Year Curriculum Cycle Financial Health of the District

31 Cyclic Budgeting Process for consistent spending 4-year Staggered Technology Cycle K District Speciality Labs District Students Device: ipads (tablets) Students Device: HP x360 (laptops) Offices Device: HP All-in-One (desktops) Device: Unknown Device: Unknown Device: Unknown Teachers/Admins Device: HP Elitebook Device: Unknown PLTW - Laptops , ,000 PLTW - Desktops 0 25, , Graphic Arts 30, , Operations 520, , , , , , , ,000 Equipment 220, , , , , , , ,000 TOTAL 770, , , , , , , ,000 Financial Health of the District

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

33 How do we pay for any future projects? Elementary project = applied for an Act 44 Safe Schools Grant through the State; financed through savings Future projects = Borrow funds to pay for projects authorized and prioritized by the Board of School Directors Estimating between $12-$16 million for scope of projects

34 Current Debt Service

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

36 Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750,000 BHASD Net Debt Service Payments Assuming Scenario 1A ($12 Million New Money) 3,250,000 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 2,357, ,814 77,721 85,584 94,268 93,772 93,260 92,724 92,160 91,560 95, , , , ,434 92,201 92,094 1,780,210 Loan Potential 1,250,000 1,000, , , , ,652,281 2,425,065 2,426,015 2,425,015 2,422,065 2,135,122 1,978,902 2,034,152 1,960, , , , , , ,592 64,152 64, / / / / / / / / / / / / / /32 Scenario #1 = $12 million in new Debt/reduced annual debt payment by $750, DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.84MM NM Step 3: $2.47MM NM

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

38 Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750,000 BHASD Net Debt Service Payments Assuming Scenario 2A ($14 Million New Money) 3,250,000 3,000,000 2,750,000 2,500,000 2,250, ,095 81, , , , , , , , , , , , ,064 2,000,000 1,750,000 2,357,204 96,704 96,596 1,142,020 Loan Potential 1,500,000 1,250,000 1,000, , , , ,948 2,128,757 1,903,155 1,962,304 1,584,637 2,058,856 2,225,935 2,358,035 2,359,435 2,358,885 1,376,385 2,516,870 1,037,160 Scenario #2 = $14 million in new Debt/reduced annual debt payment by $750, , , ,592 62,304 62, , / / / / / / / / / / / / / / DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.85MM NM Step 3: $4.56MM NM

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

40 Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750,000 BHASD Net Debt Service Payments Assuming Scenario 3A ($16 Million New Money) 3,250,000 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 2,357, ,854 85, , , , , , , , , , , , , , , ,220 Loan Potential 1,500,000 1,250,000 1,000, , , , ,948 2,127,025 1,822,673 1,885,324 1,513,056 1,984,396 1,836,900 2,285,700 2,284,650 2,286,800 2,062,000 2,518,720 2,521,800 1,570,160 Scenario #3 = $16 million in new Debt/reduced annual debt payment by $750, , , , ,592 60,324 60, / / / / / / / / / / / / / / DelVal Note (1.52%) 2002 DelVal Note (3.86%) 2014 Notes 2016 Notes Step 1: Restructuring Step 2: $9.86MM NM Step 3: $6.66MM NM

41 $12 Million $14 million $16 million OPTION 1 OPTION 2 OPTION 1 OPTION 2 OPTION 1 OPTION 2 OPTION 3 ES Gym and 4 Classrooms ES Gym and 8 Classrooms IS/MS Refurbishment What does this buy us? High School Roof Intermediate/Middle School Fields Bleacher and Lights Bleacher, Lights, & Syn. Turf Bleacher, Lights, Track, & Syn. Turf High School Fields Parking and Softball Reconfig. Lighting, Bleachers, Parking Parking, Track, and Turf

42 Summary: No Plancon or State reimbursement for project Options to not exceed means Reasonable pay down period approx. 10 years Reduce debt payment from $3.2m to ~$2.5m/year Paying less per year for debt = savings in annual payment will help to offset rising operational costs Why not let debt drop off? Continue to save $3.5m/year for 4 years after current debt to pay for project = 2026 enough funds saved to start projects Act 1 limits 2.7% = $542,140 To take a new loan out it would take 7 years of max tax increases to raise enough money to cover a $3.5 million loan (without any other operational expense increases) Important for long term health of district to maintain debt as public agency Project will not raise taxes Dropping annual loan payment from $3.2 to $2.5 increasing overall operational expenses may necessitate tax increase Impact to Taxes

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

44 questions

45 Thank you Community Survey =