Long Term Facilities Maintenance (LTFM)

Transcription

1 Long Term Facilities Maintenance (LTFM) Sarah Miller Division of School Finance March22, 2018 Today s Agenda FY 2019 LTFM Plan Submission ReCap Minnesota Statutes, section 123B.595 LTFM Required Document Submission Annually July 31 Frequently Asked Questions (FAQs) LTFM 10 Year Plan Expenditures Spreadsheet Categories Health & Safety Website Update Health & Safety FY18 FY19 Adjustments Lead in WaterTesting 2017 Legislation Update 2 1

2 Minnesota Statute LTFM Long Term Facilities Maintenance Revenue Minnesota Statutes, section 123B.595 (Minnesota Revisor of the Statutes) 3 Allowable Uses for LTFM Revenue (Minn. Stat. 123B.595, subd. 10) Subd. 10 Allowed uses for long term facilities maintenance revenue (a) A district may use revenue under this section for any of the following: 1) Deferred capital expenditures and maintenance projects necessary to prevent further erosion of facilities 2) Increasing accessibility of school facilities; 3) Health and safety capital projects under section 123B.57; or 4) By board resolution, to transfer money from the general fund reserve for long term facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when due, principal and interest on general obligation bonds issued under subdivision 5. (b) A charter school may use revenue under this section for any purpose related to the school 4 2

3 Restricted LTFM Revenue (Minn. Stat. 123B.595, subd. 11) Subd. 11. Restriction on long term facilities maintenance revenue. Notwithstanding subdivision 10, long term facilities maintenance may not be used for 1) For the construction of new facilities, remodeling of existing facilities, or the purchase of portable classrooms; 2) To finance a lease purchase agreement, installment purchase agreement, or other deferred payments agreement; 3) For energy efficiency projects under section 123B.65, for building or property or part of a building or property used for postsecondary instruction or administration, or for a purpose unrelated to elementary and secondary education; or 4) For violence prevention and facility security ergonomics, or emergency communication devices. 5 MDE Website LTFM Guidance What expenditures are allowable under LTFM What documentation is required to file with MDE education.state.mn.us/mde/dse/schfin/fac/ltfm/ MDE > Districts, Schools and Educators > School Finance > Facilities and Technology > select Long Term Facilities Maintenance 6 3

4 MDE Website LTFM Guidance (MDE > Districts, Schools and Educators > School Finance > Facilities and Technology, select Long Term Facilities Maintenance) 7 LTFM Guide Required Document Submission LTFM Required Document Submission annually by July 31: 1) Ten Year Expenditure live Excel spreadsheet. Additional documentation for issuance of bonds (requires Commissioner approval), certain health and safety projects costing $100,000 or more (Finance Code 358, 363 and 366), and Deferred Maintenance projects costing $2 million or more (requires a Narrative). 2) Ten year Revenue live Excel spreadsheet. 3) School Board Resolution adopting the LTFM ten year plans signed by the school board clerk. 4) Statement of Assurances (SOA) signed by the Superintendent. 8 4

5 MDE Website LTFM Guidance (MDE > Districts, Schools and Educators > School Finance > Facilities and Technology, select Health and Safety) H&S Revenue Application Memo see Attachment 7 for NARRATIVE Guidance 9 Frequently Asked Questions LTFM Frequently Asked Questions 1) Additional Documentation Narratives (page 5 LTFM Guidance) 2) School Board Minutes Approval (pages 8 and 9 LTFM Guidance) 3) Mid Year Revisions (page 10 LTFM Guidance) 4) In 1, 2 and 3, what do I submit and where do I submit this documentation? 5) Health & Safety Website Do I still need to enter projects? 10 5

6 Additional Documentation LTFM Page 5 LTFM Guidance 11 Additional Documentation Narratives ADDITIONAL DOCUMENTATION (Narrative) page 5 LTFM Guidance When is this required? 1) Health & Safety Projects $100,000 or over per site Asbestos Abatement Finance Code 358 Fire Safety Finance Code 363 Indoor Air Quality (IAQ) Finance Code 366 2) Deferred Maintenance Projects $2 million or over per site 12 6

7 Additional Documentation Health & Safety ADDITIONAL DOCUMENTATION (Narrative) Asbestos Abatement For asbestos abatement projects, give a description of: 1) Type of asbestos 2) Amount of asbestos 3) Scope of project 4) Cost of project 13 Additional Documentation Health & Safety ADDITIONAL DOCUMENTATION (Narratives) Fire Alarm and Suppression For Fire Alarm and Suppression projects include: 1) State Fire Marshal Orders, schools division 2) Description of project 3) Cost estimate from Project Engineer 14 7

8 Additional Documentation Health & Safety ADDITIONAL DOCUMENTATION (Narrative) Indoor Air Quality (IAQ) For indoor air quality projects, describe which American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) IAQ standards are not being met and indicate how the project will result in meeting ASHRAE standards and, Include costs from the project engineer (PE) 15 Additional Documentation Deferred Maintenance ADDITIONAL DOCUMENTATION (Narrative) Deferred Maintenance For districts with Deferred Maintenance costing $2 million or more per site: Project description Discuss Deferred Capital and Maintenance criteria eligible for LTFM to prevent further erosion of facilities Scope of project in detail (improvement of facility condition and useful life) Costs of project Architect/Consultant cost estimate of work category details and other associated costs/fees 16 8

9 School Board Approval LTFM Pages 8 and 9 LTFM Guidance 17 School Board Approval LTFM Three School Board Approval Options signed by the Clerk 1) Formal Resolution (available at meeting of adoption) signed by the Clerk 2) Adopted minutes of a motion, second and vote (second meeting to adopt minutes prior to July 31, 2017) signed by the Clerk 3) Notarized extract of minutes of a motion, second and vote signed by the Clerk 18 9

10 Mid Year Ten Year Plan Revisions LTFM Page 10 LTFM Guidance 19 LTFM Plan Revisions Mid Year Ten Year Plan Revisions LTFM School s priorities change after the initial plan is approved 1) Plan changes only impact LTFM expenditures Eligible projects may be rearranged or substituted in the LTFM expenditure plan Allowed with school board approval Submit revised school board approved expenditure plan to MDE Submit board minutes approving the new expenditure plan to MDE signed by the Clerk 20 10

11 Mid Year Ten Year Plan Revisions LTFM LTFM Plan Revisions 2) Plan changes impact LTFM revenues Reasons to submit a new LTFM 10 year plan: Issuance of bonds Addition of a H&S project $100,000 or more for: Asbestos Fire Safety IAQ Single project per site $2 million or more (Deferred Maintenance) Major plan changes district to ensure plan can be approved before risking the expenditures 21 Mid Year Ten Year Plan Revisions LTFM LTFM Plan Revisions 2) Plan changes impact LTFM revenues (continued) District may submit new ten year plan documentation to MDE School board approved board minutes (signed by the Clerk) Statement of Assurances (signed by the Superintendent) Live revised LTFM ten year revenue projections Excel spreadsheet Live revised LTFM ten year expenditure Excel spreadsheet DO NOT SEND Hard copies of the 10 year LTFM plan to MDE 22 11

12 MDE Website Address for Ten Year LTFM Plan Submissions Where do we LTFM documentation? Submit to: 23 Frequently Asked Questions LTFM 24 12

13 LTFM Revenue LTFM Revenue Includes: Initial Revenue based on per pupil funding: $380 in FY 19 (and $380 beyond unless Legislative authority changes) Average age of district buildings is factored in Ratio of average district building age to 35 years <= 1 Additional revenue for H&S projects $100,000 or over) Asbestos Abatement, Fire Alarm and Suppression, Indoor Air Quality (IAQ) Voluntary Pre Kindergarten remodeling Greater of revenue under old laws or new LTFM. Hold harmless provisions so a school district will not receive less than they would have under old laws 25 LTFM Hold Harmless Hold Harmless: Specifies that a district qualifying for Alternative Facilities revenue for FY 2010 continues to be eligible for the hold harmless calculation in the LTFM formula that applies to Alternative Facilities districts if the district s square footage falls below the threshold for Alternative Facilities revenue

14 LTFM Ten Year Expenditure Spreadsheet Complete this Section 27 H&S Sections LTFM Ten Year Expenditure Spreadsheet LTFM Hold Harmless/H&S $100,000 or more (H&S website entries) 28 14

15 Health & Safety Website Entries Health & Safety Website Entries Do we still need to record entries on the Health & Safety Website? School Districts who have the following two scenarios should enter Health & Safety projects on the website: Hold Harmless Districts school district will not receive less than they would have under old laws (Alternative Facilities FY 2010 ) Health & Safety Projects in the $100,000 and over category on LTFM Expenditure spreadsheet generates additional revenue 29 Health & Safety Website Entries two scenarios: FY Biennium Health & Safety Website Entries 30 15

16 LTFM Statement of Assurances (SOA) Statement of Assurances (page 8) Signed by the Superintendent who attests: Expenditures allowed by law No expenditures prohibited by law A description of each project is maintained Compliance and maintenance of a H&S program District maintains records sufficient to permit an auditor to review project eligibility and verify project costs (Minn. Stat. 127A.41, Subd. 3) 31 Health & Safety Closeout H&S fund balance should go to zero when the final revenue adjustment (FY 2019) is recorded in UFARS. If the balance is not zero, the amount must be transferred to the General Fund 01 Unassigned Balance Sheet Account 422 (Minn. Stat. 123B.79, Subd. 9) Note: Negative balances indicate that there were H&S expenditures that did not generate revenue. A positive final balance is an inaccuracy. A positive balance is not available for additional Health and Safety expenditures

17 H&S Fund Balance Adjustments for FY 17 FY Restricted/Reserved for Health and Safety The June 30, 2016 ending fund balance in Balance Sheet Account 406 will continue to have levy adjustments applied through June 30, A positive or negative balance at June 30, 2019 must be transferred to the General Fund 01 Unassigned Balance Sheet Account 422 (Minn. Stat. 123B.79, Subd. 9 Permanent Fund Transfers) Capital Health and Safety Aid Entitlement Report run (MDE > Data Center > Data Reports and Analytics, the select Minnesota Funding Reports see next slide). Levy Certifications review for other prior year adjustments 33 MFR Capital Health and Safety Aid Entitlement Report H&S Adjustments for FY 2017 through FY 2019 Minnesota Funding Reports (MFR) Capital Health and Safety Aid Entitlement Report Year

18 MFR Capital Health and Safety Aid Entitlement Report H&S Adjustments for FY 2017 through FY 2019 Minnesota Funding Reports (MFR) Capital Health and Safety Aid Entitlement Report H&S Adjustments FY 17 Line 13 FY 18 Line 15 FY 19 Adjustment Due Line Revenue Projection Model H&S Levy Adjustments FY 2017 MDE > Data Center > Data Report and Analytics Revenue Projection Model Revenue Summary Tab 36 18

19 LEVY 15PAY16 H&S Levy Adjustments FY 2017 Net = $543, Revenue Projection Model H&S Levy Adjustments FY 2017 MDE > Data Center > Data Report and Analytics Revenue Projection Model Revenue Summary Tab for FY

20 Future LTFM Adjustments FY 17 FY 19 Future LTFM Levy Adjustments (in 1.5 years): Projects > $100,000 that receive additional revenue will have levy adjustments based upon actual expenditures (Finance Codes 358 Asbestos Removal and Encapsulation; 363 Fire Safety; 366 Indoor Air Quality). Projects > $2,000,000 funded as Pay as You Go MDE will collect additional documentation to determine levy adjustments. For Hold Harmless calculations, MDE will update districts with future guidance. 39 Resources MDH links to resources and MDH School Guidance Document MDH Lead Unit AWWA Lead Service Line Communications Guide EPA 3Ts For Reducing Lead Soon to be revised 09/documents/toolkit_leadschools_guide_3ts_leadschools.pdf NPR Lead Pipe Test lead pipes in your home/en/#intro 40 20

21 Minnesota Department of Health (MDH) Anna Jeanne Schliep Continue to Obtain SFM Plan Review Contractors can send plans of the building layout showing the scope of work to: State Fire Marshal Division Attn: John Swanson th Street W Lakeville, MN Contact John if there are any questions: john.swanson@state.mn.us or (651)

22 Regulatory Guidance Lead in Drinking Water Information MDH Radon Test Result Reporting Crumb Rubber Fact Sheet Model IAQ Plan Pesticide Guidance OSHA Hazard Communication Standard 43 Lead in Drinking Water The technical manual provides guidance to Minnesota s school and child care facilities on the sources and health effects of lead in drinking water. Reducing Lead in Drinking Water: A Manual for Minnesota Schools (updates pending) A guidance document appropriate for parents, school administrators, and child care providers: Reducing Children s Exposure to Lead in Drinking Water

23 Lead in Drinking Water Contact Information Leslie Winter Environmental Health Division Minnesota Department of Health Radon Testing in Schools Voluntary plan recommended every 5 years Minnesota Statutes, section 123B.571 If a school district receives LTFM revenue for radon testing, they shall: 1) Conduct testing according to the state radon testing plan 2) Report the results of radon testing to the Department of Health; and 3) Report the results of testing at a school board meeting 46 23

24 Radon Contact Information Dan Tranter Indoor Air Unit Supervisor Minnesota Department of Health Or Radon Testing Plan information at MDH 47 Crumb Rubber MDH developed a fact sheet about crumb rubber Posted on the MDH website at: Environments & Your Health / Schools / Crumb Rubber Fields PDF version

25 Model IAQ Plan Posted on the MDH website at: Environments & Your Health/Schools/Indoor Air Quality/Model IAQ Plan in Schools 49 Pesticide Guidance Posted on the Minnesota Department of Health (MDH) website at: Environments & Your Health/Schools/Pests 50 25

26 Minnesota OSHA Workplace Safety Consultation Contact Information extension Thank you! Sarah Miller sarah.c.miller@state.mn.us (651) /7/