Preserving Our Past. Preparing For Our Future Bond Issue Financial Responsibility Report Card
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1 Preserving Our Past. Preparing For Our Future Bond Issue Financial Responsibility Report Card Scott Cole Deputy Superintendent, Kern High School District
2 Overview Measure N 2004 General Obligation Bond Leveraging Local Taxpayer Dollars Fruits of Labor Future Growth and District Needs Career Technical Education Facilities Funding Options
3 Measure N: $219 Million Bond To address student overcrowding in our local high schools and to repair and renovate many of the district s school sites, Measure N was placed on the ballot in November Measure N passed with 67% of the vote. Goal: To ensure school facilities made it possible for our local students to be well prepared for success in college or to begin their careers.
4 Measure N Funds Issued Responsibly The district issued authorized bonds only as needed: Series A: $50 million deposited in the Kern County Treasurer s office on May 12, 2005 Series B: $70 million deposited July 13, 2006 Series C: $50 million deposited July 13, 2007 Series D: $20 million deposited July 15, 2011 Series E: $28.5 million to be sold June 2016
5 Leveraging Funds GOB 2004 $190,151, State $119,551, Dev Fees $29,806, District Funds $18,387, NOTE: $28,549,000 of unissued bonds remain for future projects.
6 Fruits of Labor New Construction $198,534,000 Repair & Upgrades $133,111,000 Career Technical Education (CTE) Projects $9,382,000 Tierra Del Sol Mira Monte High Independence High Shafter Upgrades $11.8 M East Upgrades $12.8 M East Growth $12.8 M North Upgrades $29.9 M (in progress) Arvin Upgrades $24.0 M Shafter Growth $24.5 M South Upgrades $29.9 M North High CTE Ag Mira Monte CTE Arvin CTE Media & Design North High CTE Bldg Trad East CTE Arvin CTE Mach & Form Grand Total: $342,337,000
7 $190 million of GO Bond Funding produced $342 million of district projects
8 Mira Monte High School Administration
9 Mira Monte High Computer Lab
10 Shafter High - Cafeteria
11 Citizens Oversight Committee Per Proposition 39, Measure N was subject to annual audits and was overseen by a Citizens Oversight Committee. Each audit confirmed all funds were spent as promised.
12 Opening Opportunities with Students and the Community In Mind All classrooms are wirelessly connected. Integration of electronic devices to augment daily instruction is increasing. Programs like Apex, Kern Learn and Dual Enrollment are offering educational alternatives to meet our students personal demand for credit recovery, accelerated learning, and flexible scheduling.
13 Future Growth & District Needs Preserving Our Past Preparing For Our Future
14 KHSD - 10 Year Growth Projection 41,000 40,000 39,000 38,000 37,000 36,000 35,000 Enrollment Capacity
15 Projected New Construction Projects ( ) Start Year Cost Career Training Center (SW) 2016 $ 60,000,000 Career Training Center (NW) 2017 $ 63,000,000 Special Education Facility (NW) 2018 $ 9,200,000 Comprehensive School (South) 2019 $ 125,000,000 Comprehensive School (NW) 2021 $ 138,000,000 TOTAL: $ 395,200,000
16 A Leader in Career and Technical Education (CTE)
17 Career Technical Education Accomplishments State and National awards for competitions in Virtual Enterprise, Future Farmers of America (FFA), Health Occupation Student Association (HOSA), Distributive Education Clubs of America (DECA), Future Business Leaders of America (FBLA), and many other CTE programs Alignment of career pathways with local industry labor needs and local college certificate and degree programs
18 Career Technical Education Accomplishments (continued) Partnerships with over 300 local businesses and community organizations Recipient of a California Career Pathway Trust Grant of $4,837,000 to expand and improve career pathways Recipient of a Career and Technical Education Incentive Grant of $5,800,000 to develop new CTE programs or to enhance existing programs
19 Career Technical Education Accomplishments (continued) 13 California Partnership Academy (CPA) programs funded by the California Department of Education 8 Project Lead the Way (PLTW) programs focused on engineering or bio-medical careers The Regional Occupational Center (ROC) provides job-readiness and technical training for over 1,000 high school students annually
20 Career Technical Education Accomplishments (continued) Implementation of Dual Enrollment course for over a dozen CTE courses taught in high schools across the District Annual placement of nearly 400 students into internships with local businesses But, we need to do more!
21 Career Technical Education Courses Existing Courses: Auto Technology Law Enforcement Certified Nursing Assistant Early Childhood Education Film and Video Production Graphic Arts Engineering Design Carpentry and Construction Computer Programming Biotechnology (partial list) Future Courses: Pharmacy Technician Physical Therapy Technician and Sports Medicine Forensic Science Robotics Engineering X-Ray Technician Dental Assistant Veterinary Science Supply-Chain Logistics Culinary Arts (partial list)
22
23
24 Future Culinary Arts
25 Future Dental Lab and Medical Facility
26 Future Auto Shop
27 Projected Repair & Upgrades Projects ( ) Start Year Cost Foothill / 50 year 2016 $ 23,729,658 North High - Phase 2A 2016 $ 8,900,000 Arvin / 30 year 2017 $ 28,000,000 BHS (Warren Hall) 2017 $ 42,500,000 East / 30 year 2017 $ 35,000,000 North / 30 year 2018 $ 32,500,000 ROC and BAS / 30 year 2018 $ 28,400,000 Kern Valley / 30 year 2019 $ 20,400,000 Kern Valley / 50 year 2019 $ 16,755,000 Shafter / 50 year 2020 $ 18,200,000 $650 million x.65 = $423 million TOTAL: $ 254,384,658
28 Proposed Projects ( ) Start Year Cost Career Training Center (SW) 2016 $ 60,000,000 Career Training Center (NW) 2017 $ 63,000,000 Special Education Facility (NW) 2018 $ 9,200,000 Comprehensive School (South) 2019 $ 125,000,000 Foothill / 50 year 2016 $ 23,729,658 North High - Phase 2A 2016 $ 8,900,000 Arvin / 30 year 2017 $ 28,000,000 BHS (Warren Hall) 2017 $ 42,500,000 ROC and BAS / 30 year 2018 $ 28,400,000 TOTAL: $ 388,729,658 $389 million x.70 = $253 million For Board Discussion Prior to June 27 th 1 Election - $440M or 2 Elections - $280/$160 M
29 New Election
30 millions per $100,000 of AV Kern High School District: Debt Review Alt #1: Conventional Bonds Require Taxpayer Payments for 30+ Years Debt Service* Tax Rates Value Title $50.0 $40.0 $30.0 $20.0 $10.0 Value Title $60 $50 $40 $30 $20 $10 $ $ Series A Series B Series C Alternative A: Conventional Year Principal Interest Total Series A 2017 $133,500,000 $106,694,300 $240,194,300 Series B 2020 $221,140,000 $254,197,118 $475,337,118 Series C 2023 $86,610,000 $90,012,977 $176,622,977 Total $441,250,000 $450,904,395 $892,154,395 * Assumes 2.5% annual increase in assessed value; 4.5% interest rate
31 millions per $100,000 of AV Kern High School District: Debt Review Alt #2: G.O. Flex-Bonds Reduce Interest Costs Debt Service* Tax Rates $50.0 $60 $50 Value Title $40.0 $30.0 $20.0 Value Title $40 $30 $20 $10 $ $10.0 $ Series A Series B Series C Series D Alternative B: G.O. Flex-Bonds Year Principal Interest Total Series A 2017 $89,600,000 $26,332,766 $115,932,766 Series B 2019 $96,740,000 $58,175,418 $154,915,418 Series C 2021 $168,300,000 $180,752,731 $349,052,731 Series D 2023 $86,610,000 $53,272,492 $139,882,492 Total $441,250,000 $318,533,407 $759,783,407 * Assumes 2.5% annual increase in assessed value; 4.0% interest rate 31 31
32 millions per $100,000 of AV Kern High School District: Debt Review Alt #3: Two Elections (2016/2020) with G.O. Flex-Bonds Reduce Interest Costs Debt Service* Tax Rates $50.0 $60 $50 Value Title $40.0 $30.0 $20.0 Value Title $40 $30 $20 $10 $ $10.0 $ A 2016B 2016C 2020A 2020B 32 32
33 Kern High School District: Debt Review Benefits of G.O. Flex-Bond Structure Benefit Comment Taxpayer Savings: Total interest costs reduced from 30% to 70% Repayment Term: Prudent Use of Taxpayer Dollars: Reduced by six to 21 years Taxes used to fund projects, not pay interest 33 33
34 Preserving Our Past. Preparing For Our Future Bond Issue Financial Responsibility Report Card Scott Cole Deputy Superintendent, Kern High School District
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