Long-Term Facilities Maintenance (LTFM)

Transcription

1 Long-Term Facilities Maintenance (LTFM) Sarah Miller Division of School Finance May 10, 2018 FY 2020 LTFM Plan Submission Review Minnesota Statutes, section 123B.595 LTFM Required Document Submission Annually July 31 Mid-Year Revisions Health & Safety Website Update LTFM UFARS Dimensions FY 18 and New FY 19 FY 2017 LTFM Reconciliation Review Health & Safety Fund Balance Adjustments FY 17 FY 19 Lead in Water Testing 2017 Legislation - Update Today s Agenda 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. 1(c)(d) and subd. 2(c) 4 2

3 Allowable Uses for LTFM Revenue (Minn. Stat. 123B.595, subd. 1(c)(d) and subd. 2(c) 5 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 6 3

4 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. 7 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 8 4

5 MDE Website LTFM Guidance (MDE > Districts, Schools and Educators > School Finance > Facilities and Technology, select Long-Term Facilities Maintenance) 9 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. 10 5

6 LTFM Ten-Year Expenditure Spreadsheet (Upper Section) Complete this Section 11 LTFM Ten-Year Expenditure Spreadsheet (Bottom Section) Accessibility Deferred Maintenance 12 6

7 Additional Documentation LTFM Page 5 LTFM Guidance (Narratives may include PE or Architect Scope/Cost of Project) 13 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 14 7

8 LTFM Revenue Projection Spreadsheet Contact: 15 School Board Approval - LTFM Pages 8 and 9 LTFM Guidance 16 8

9 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 17 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) 18 9

10 MDE Website Address for Ten-Year LTFM Plan Submissions Submit by July 31. Where do we LTFM documentation for Levy Limitation 18 PAY 19 - FY 2020? Submit to: MDE.Facilities@state.mn.us 19 Mid-Year Ten-Year Plan Revisions - LTFM Page 10 LTFM Guidance 20 10

11 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 LTFM Revenue Review Asbestos Abatement Finance Code 358, Fire Alarm and Suppression Finance Code 363, Indoor Air Quality (IAQ) Finance Code 366 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 21 H&S Sections LTFM Ten-Year Expenditure Spreadsheet Hold Harmless and Recommend Other $100,000 or more (H&S website entries) Initial Revenue Hold Harmless & Other/H&S Website Additional Revenue All schools/h&s Website 22 11

12 Health & Safety Website Entries scenarios: FY Biennium Health & Safety Website Entries State Approval Project Description yeb or Bonded Project $100,000 - $499,999 okb Bonded Project $500,000 or more 23 Health & Safety Website Entries Health & Safety Website Entries - Review Do we still need to record entries on the Health & Safety Website? School Districts who have the following scenarios should enter Health & Safety (H&S) projects on the website: 1) Hold Harmless Districts school district will not receive less than they would have under old laws (Alternative Facilities FY 2010). Still need to enter H&S totals for the six Finance Code Dimensions 347, 349, 352, 358, 363, and ) Other Districts Recommended to still enter H&S totals for the six Finance Code Dimensions 347, 349, 352, 358, 363, and ) All School Districts enter Health & Safety Projects in the $100,000 and over category on LTFM Expenditure spreadsheet generates additional revenue

13 FY 18 LTFM Fund Dimensions UFARS Chapter 1 UFARS Funds Title 01 General Fund Revenue for Long-Term Facilities Maintenance must be recorded in the Restricted/Reserved Account for these purposes in the General Fund (GNL 467) To indicate that the expenditure is made from the Restricted/Reserved Account for Long-Term Facilities Maintenance, use these Finance Codes: 347, Physical Hazards; 349, Other Hazardous Materials; 352, Environmental Health & Safety Management; 358; Asbestos Removal; 363, Fire Safety; 379, Interior Surfaces; 380, Mechanical Systems; 381, Plumbing; 382, Professional Services and Salary; 383, Roofing Systems; or 384 Site Projects. 25 FY 18 LTFM Fund Dimensions UFARS Chapter 1 UFARS Funds Title 06 Building Construction Fund Building Construction Fund is used to record all operations of a district s building construction program that are funded by the sale of bonds, capital loans, or major capital projects costing $2,000,000 or more. Long-Term Facilities Maintenance (LTFM) Program (Minn. Stat. 123B.595) expenditures that are funded by bonds or major capital projects costing $2,000,000 or more must be recorded in the Building Construction Fund

14 FY 18 LTFM Program Dimensions UFARS Chapter 3 UFARS Program Code Dimensions Title 865 Long-Term Facilities Maintenance (LTFM) Excluding Costs in Program Codes 866 and 867 (Fund 01 and/or Fund 06) includes projects < $100,000 in all LTFM Finance Codes. 866 Long-Term Facilities Maintenance (LTFM) - $100,000 - $1,999,999,99 per Site for Finance Codes 358, 363 and 366 (Fund 01 and/or 06) 867 Long-Term Facilities Maintenance (LTFM) Projects that are $2,000,000 or More per Site (Fund 06) 27 LTFM FY 2019 Program Dimensions UFARS Chapter 3 FY 19 UFARS Program Updated 867 Title and Description Long-Term Facilities Maintenance (LTFM) Projects that are $2,000,000 or more per site and bond financed (Fund 6) Record the expenditures related to the project that are bond financed. FY 19 UFARS Program NEW Title and Description Long-Term Facilities Maintenance (LTFM) Projects that are $2,000,000 or more per site and financed on a pay-as-you go basis (Fund 6) Record the expenditures related to the project that are financed on a pay-asyou go basis

15 LTFM FY 2019 Program Dimensions Chapter 3 Program Codes 867 and 868 These program codes should be used when LTFM projects are financed by bonds or on a pay-asyou-go basis when the entire project is $2,000,000 of more per site. A project that is $2,000,000 or more per site must be coded to Program 867 or 868 depending upon the funding source. Funding Source Examples Example 1: If a project at Building A is $3,000,000 and $2,000,000 is funded by bonds and $1,000,000 is funded by pay-as-you-go the bond expenditures should be coded to Program Code 867, while the remaining pay-as-you-go expenditures should be coded to Program Code 868. Example 2: If a project at Building B is $2,000,000 and $1,500,000 is funded by bonds and $500,000 is funded by pay-as-you-go the bond expenditures should be coded to Program Code 867, while the remaining pay-as-you-go expenditures should be coded to Program Code /3/2018 Leading for educational excellence and equity, every day for every one. education.mn.gov 29 UFARS Finance LTFM Finance Dimensions UFARS Chapter 4 Title UFARS Finance 347 Physical Hazards (Fund 01 and/or 06) 369 Building Hardware and Equipment (01 and/or 06) 349 Other Hazardous Materials (Fund 01 and/or 06) 370 Electrical (Fund 01 and/or 06) 352 Environmental Health and Safety Management (Fund 01 and/or 06) FY Biennium Cap see MDE LTFM Webpage for individual schools. Title 379 Interior Surfaces (Fund 01 and/or 06) 355 Voluntary Pre-kindergarten Remodeling (Fund 01 and/or 06) 380 Mechanical Systems (Fund 01 and/or 06) 358 Asbestos Removal and Encapsulation (Fund 01 and/or 06) 381 Plumbing (Fund 01 and/or 06) 363 Fire Safety (Fund 01 and/or 06) 382 Professional Services and Salary (01 and/or 06) 366 Indoor Air Quality (Fund 01 and/or 06) 383 Roofing Systems (Fund 01 and/or 06) 367 Accessibility (Fund 01 and/or 06) 384 Site Projects (Fund 01 and/or 06) 368 Building Envelope (excluding roof) (Fund 01 and/or 06) 30 15

16 LTFM FY 2018 Balance Sheet Account UFARS Chapter 8 UFARS Balance Sheet Account Title and Description 467 Restricted/Reserved for Long-Term Facilities Maintenance (LTFM) (Funds 01 and/or 06) Represents available resources to be used for LTFM projects in accordance with the 10 Year Plan (Minn. Stat. 123B.595, subd. 12). This restricted/reserved account may go into deficit to the extent of future revenue authority. 31 LTFM UFARS Code Review Flow Through to Co-ops and Intermediates LTFM Flow Through Revenue from School Districts to Co-ops or Intermediates 1. The District should code the revenue to Source Code 001, NO Finance Code. 2. The Co-op or Intermediate should invoice the District for the portion owed the Co-op. 3. The District should code the Co-op or Intermediate invoice to Object Code 390, NO Finance Code 4. The Co-op or Intermediate should code the revenue to Source Code 021 with an LTFM Finance Code and then code their expenditures to the appropriate LTFM Finance Codes

17 FY17 LTFM Approved vs. UFARS Cost Reconciliation Report Section A Asbestos/Fire/IAQ Pay-Go (ye1 and ok1 H&S approvals) Section B Initial Revenue (yes H&S approvals not per project/site/year) 33 FY17 Interim LTFM Aid Entitlement Spreadsheet 34 17

18 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 35 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

19 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 38 19

20 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

21 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 Permanent Fund Transfers) 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 Legislative Review Minnesota Statutes, section 121A.335 Leading for educational excellence and equity, every day for every one. education.state.mn.us 42 21

22 2017 Legislative Review Lead in School Drinking Water Model Plan New legislation required both the Minnesota Department of Health (MDH) and the Minnesota Department of Education (MDE) to work together to: Develop a model plan for school districts, charter schools (public schools). Develop a model plan to accurately and efficiently test for the presence of lead in water. Develop a model plan for public school buildings serving students in prekindergarten through grade 12. Follow plan standards developed by the United States Environmental Protective Agency (EPA). Leading for educational excellence and equity, every day for every one. education.state.mn.us 43 Lead in School Drinking Water School Plans 2017 Legislative Review By July 1, 2018, school boards (school districts and charter schools public schools) must adopt: The Commissioner s model plan, or Develop and adopt alternative plan. Plan must accurately and efficiently test for the presence of lead in water. Plan must be for public school buildings serving prekindergarten and kindergarten through grade 12 students. Note: For timely adoption, schools will have to bring this plan to the school board for approval in a May or June 2018 board meeting. Leading for educational excellence and equity, every day for every one. education.state.mn.us 44 22

23 Lead in School Drinking Water Frequency of Testing 2017 Legislative Review Plan must include a testing schedule for every building (prekindergarten through grade 12). Schedule must require testing at least once every five years. Schools must begin testing school buildings by July 1, Testing must be completed in all school buildings that serve students within five years. Leading for educational excellence and equity, every day for every one. education.state.mn.us 45 Lead in Water Testing Resources FY 2017 Legislation Leading for educational excellence and equity, every day for every one. education.state.mn.us 46 23

24 Lead in School Drinking Water LTFM Ten-Year Plans 2017 Legislative Review School Districts may include lead testing and remediation as a part of its LTFM tenyear plan (Minn. Stat. 123B.595). Charter Schools are not required to submit a ten-year facilities plan; however, Charter Schools do receive LTFM revenue. Charter Schools LTFM revenue may be used for any school purpose (Minn. Stat. 123B.595, subd. 10(b); therefore available for testing lead in water and remediation. Lead testing mandatory, but remediation is not mandatory. Schools choosing to replace lead, tainted fixtures, etc. may use LTFM resources for this purpose. Leading for educational excellence and equity, every day for every one. education.state.mn.us 47 GOAL State agencies, school districts, charter schools, parents, students and communities all work together to ensure that available resources are best targeted to minimize or prevent exposure to lead in drinking water. Leading for educational excellence and equity, every day for every one. education.state.mn.us 24

25 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 NPR Lead Pipe Test Leading for educational excellence and equity, every day for every one. education.state.mn.us 49 Minnesota Department of Health (MDH) Anna Jeanne Schliep

26 Radon Contact Information Minnesota Statutes, section 123B.571 Dan Tranter Indoor Air Unit Supervisor Minnesota Department of Health Or Radon Testing Plan information at MDH Radon Testing is not mandatory. School Districts (not Charter Schools) may include radon testing as a part of its ten-year plan under Minnesota Statute, section 123B.595. If included in an approved LTFM plan, the district shall conduct the testing according to the radon testing plan developed by the commissioners of health and education. See Health and Safety Environmental Management Program Guidance on the MDE LTFM webpage dated 06/16/ Thank you! Sarah Miller sarah.c.miller@state.mn.us (651) /3/