2016 Bond Steering Committee Meeting

Transcription

1 2016 Bond Steering Committee Meeting Meeting 1: June 23, 2016 Bond Blueprint

2 Meeting Agenda 1. Background and Overview 2. Capital Needs 3. Debt Position 4. Voter Survey 5. Wrap up and Questions

3 Background and Overview 3

4 Strategic Planning Process and Outcomes To develop our strategic plan, we reached out to our stakeholders and we listened. More than 1,000 stakeholders participated. Superintendent Watson held more than 100 group and one on one discussions with key stakeholders and conducted more than 125 campus visits. In addition, more than 200 strategic planning workgroup sessions hours were conducted, with more than 150 stakeholders participating in weekly, intensive three hour work sessions.

5 Strategic Planning Process and Outcomes JULY 2014 Superintendent Watson joins district Districtwide Community Forums Development of new vision and mission MAY 2015 Parent Meetings External Audit Strategic Planning Workgroup Sessions Listening Tour

6 Strategic Planning Process and Outcomes During the strategic planning process, we captured community wishes that would require funding outside of the district s available operating budget. We clearly outlined these community wishes in our strategic plan, EVERY CHILD P. 15 Evaluate New Technologies P. 23 Potential Need for New Schools P. 19 Improved Safety & Security Systems

7 Strategic Planning Process and Outcomes School Year THE TURN Year of EVERY CHILD 2020 Efforts in year 1 will focus on the establishment of improved processes and structures, particularly in areas of data management and data governance. To propel our plan forward, we need trustworthy data that provides a clear view of where our students and OUR schools are at so we can be sure they progress, see gains in achievement, and soar. June 2015 June 2016 New DAEP School Based New Counseling SmartStart Start Literacy Coaches Framework Program New Onboarding More Career Program Pathways Increased Professional Zero based Budget Development Opportunities Process Improved Data Management Processes Improved Academic Achievement New Website bi New Learning Center Re imagined Special Education Program New Early College Facility

8 Bond Evaluation Process Element Element A specific capital need that could be included in a bond referendum with a business case for the need and the related detailed cost explicitly explained to the community at large large.

9 Bond Evaluation Process Bucket Bucket A grouping of potential bond elements. For this Bond Evaluation Process, we have chosen Facilities, Technology, and Safety and Security as our buckets for discussion.

10 Bond Evaluation Process

11 Capital Needs 11

12 Facility Utilization 2015 Demographic Study While the Houston housing market has cooled slightly from the 2014 boom, it is still very active. The Spring ISD community, though, has not seen the same level of growth as some of our neighbors. As such, Spring ISD enrollment was flat in and is projected to remain flat for the near future. However, over the last decade, campus capacity issues have developed that must be addressed.

13 2015 Templeton Demographic Study Spring ISD School Capacity Forecasts Elementary Schools: Our elementary school campuses have capacity to support district growth for the next 5 years. Balancing the populations in our elementary schools, though, will be necessary to accommodate projected growth. Middle Schools: Majority of middle schools are over capacity with no room for additional growth. While balancing efforts could help with building utilization rates, they cannot adequately address current and forecasted capacity issues. High Schools: All three comprehensive high schools are over capacity with no room for additional growth. While balancing efforts could help with building utilization rates, they cannot adequately address current and forecasted capacity issues.

14 Parsons Facility Assessment ( ) Assessment Conclusions Facility Condition Assessment (2015) The majority of deficient items are categorized as Beyond Service Life. A significant increase in annual funding is needed over the next few years to maintain the district ss facilities at their current level of operation and overall condition. Educational Suitability Assessment (2013) Of the facilities assessed, 16% were rated Excellent, 49% were rated Good, 30% were Fair, 5% were Poor, and none were rated Unsatisfactory. Technology Readiness Assessment (2013) Of the facilities assessed for technology readiness, 69% were rated Excellent, 19% were rated Good, 6% were rated Fair, 6% were rated Poor, and none were rated Unsatisfactory.

15 2015 Parsons Facility Assessment Facility Condition Index (FCI): Rating FCI = Deferred Maintenance Cost / Current Replacement Value p Lower = Better

16 2015 Parsons Facility Assessment Facility Condition Index (FCI): Worst (Poor/Fair) Name Type Gross Area (S.F.) FCI Condition Rating Condition Score (50%) Suitability Score (40%) Technology Score (10%) School Score (C+S+T) Repair Cost Spring ISD Police Department Support Facilities 8, Poor $860, George Stadium Stadium 7, Poor $5,170,838 Leadership Center Leadership Center 70, Fi Fair $3,933,610 Dueitt Middle School 148, Fair $7,124,207 Spring High School 471, Fair $23,285,820 Link Elementary School 90, Fair $3,381,419 Westfield High School 598, Fair $24,688,468 All other facilities rated Good with <15% FCI

17 Potential Bond Elements

18 Deferred Maintenance Needs Parsons Recommended Range to Spend: $30 - $96M Administration s s Recommended Minimum Spend : $40M HVAC Plumbing Site Improvements Electrical Roofing Equipment Exterior Enclosures Interior Finishes i

19 Potential Facility Elements District Secondary Facility Needs: New Comprehensive High School OR Ninth Grade Academies?? Middle School District Pre-K Facility Needs: Early Childhood Center(s)? Other District Facility Needs: Stadium Police Command Center Leadership Center Improvements Other???

20 Potential Technology Elements District Technology Needs: Enhanced Personalized Personalized Projection Devices for Devices for Systems Instruction Students New Telephone System Enhanced Infrastructure? Improved Connectivity Other Classroom Technology?

21 Potential Safety and Security Elements Safety, Security and Transportation Needs: Improved Campus Bus Tracking and Replacement Surveillance Monitoring Backup Systems Systems Generators Improved Access and Alarm Systems Secure Entries & Perimeters Police In Car Video System? Radio System??? New Buses Expanded Bus Routes??

22 Debt Position 22

23 Contact: Terrell Palmer Senior Vice President 700 Milam Street, t Suite 500 Houston, Texas Terrell.Palmer@firstsw.com June 2016 Spring Independent School District Current and Future Debt Position

24 Spring ISD Tax Rate History Spring ISD Tax Rate History Historial Tax Rate ($/100) Year M&O I&S Rate Total % Change % % 265%

25 20 Year GO Rates Historical 20-Year GO Rates Bond Buyer GO Index 20 Year History Weekly Actual as of 5/19/2016 Bond Buyer GO Index Current: 3.26% This graph depicts historical interest rates and their respective relationships. Future interest rates are dependent upon many factors such as, but not limited to, interest rate trends, tax rates, the supply and demand of short term securities, changes in laws, rules and regulations, as well as changes in credit quality and rating agency considerations. The effect of changes in such factors individually or in any combination could materially affect the relationships and effective interest rates. These results should be viewed with these potential changes in mind as well as the understanding that there may be interruptions in the short term market or no market may exist at all.

26 Results of Recent of Debt Recent Service Refunding Debt Service Refunding Series 2015 Series 2016 Combined Refunded Bonds: Principal Amount $154,030,000 $86,050,000 $240,080,000 Average Interest Rate 4.90% 4.96% Refunding Bonds: Principal Amount $136,870,000 $80,120,000 $216,990,000 All-In True Interest Cost 2.77% 2.56% Savings Summary: Gross Dollars $26,943,888 $14,688,488 $41,632,375 Average Annual Savings $1,496,883 $816,027 $2,312,910 Present Value Dollars $21,294, $11,663,483 $32,957,859 9 PV Savings to Refunded Principal 13.82% 13.55% 13.73%

27 Outstanding Debt Debt $522,775,000 Unlimited Tax Bonds Financed the construction and equipping of school buildings. $47.4 million payment for Tax Year 2016 Average Coupon Rate is 4.60% Final maturity in 2034 FY 2015/16 debt service (I&S) tax rate of $0.430/100.

28 Assumptions for the Tax Rate of Model Tax Rate Model Assumptions Taxable Assessed Value (2016) 11,502,000,000 Taxable Assessed Value (2016) with Exxon Success 11,052,000,000 Comptroller's Value (2015) 10,600,000,000 ADA 33,900 Growth Rate 0.50% Growth in Taxable Assessed Value Year % Year % Year % Year % Debt Structure ure Interest Only 2 Years Principal 25 Years Collection Rate % Estimate Interest Rate 4.00% Bonds Ratings Aaa/AAA PSF

29 Results of the Tax of Rate Tax Model Rate Model Tax Impact of Various Election Amounts Capacity Capacity I&S Tax Rate $ Billion $ Billion Cents $66,000,000 $108,000, Cents $111,000,000 $153,000, Cents $155,000,000 $197,000, Cents $200,000,000 $242,000, Cents $244,000,000 $286,000, Cents $288,000,000 $330,000,000

30 Tax Impact Elections Homeowner Tax Impact Elections Under State law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. Tax Increase Tax Rate Increase ($/100) $0.030 $0.050 $0.070 Residence with Taxable Value of: $100,000 Annual Increase in Taxes $22.50 $37.50 $52.50 Monthly Increase in Taxes $1.88 $3.13 $4.38 Residence with Taxable Value of: $200,000 Annual Increase in Taxes $52.50 $87.50 $ Monthly Increase in Taxes $4.38 $7.29 $10.21 Residence with Taxable Value of: $300,000 Annual Increase in Taxes $82.50 $ $ Monthly Increase in Taxes $6.88 $11.46 $16.04 Homestead Exemption $25,000

31 of Homestead Exemption Change Savings of Homestead Exemption Change Total Tax Rate $1.470 $1.520 $1.540 Residence with Taxable Value of: $100,000 Annual Total ISD Taxes ($15,000) $1, $1, $1, Annual Total ISD Taxes ($25,000) $1, $1, $1, Savings $ $ $ Savings (Tax Rate) $ $ $ Residence with Taxable Value of: $200,000 Annual Total ISD Taxes ($15,000) $2, $2, $2, Annual Total ISD Taxes ($25,000) $2, $2, $2, Savings $ $ $ Savings (Tax Rate) $ $ $ Residence with Taxable Value of: $300,000 Annual Total ISD Taxes ($15,000) $4, $4, $4, Annual Total ISD Taxes ($25,000) $4, $4, $4, Savings $ $ $ Savings (Tax Rate) $ $ $ Original Homestead Exemption $15,000 Amended Homestead Exemption $25,000

32 Voter Survey 32

33 SPRING ISD VOTER SURVEY May 19-22, 2016 N = 400 respondents margin of error: + 4.9% 33

34 OBJECTIVES 1 To assess general attitudes about Spring ISD. 2 To assess current levels of support and opposition o to a $300 million bond proposal. 3 To measure the correlation of informative statements on support / opposition to a bond proposal. Baselice & Associates, Inc. Project#

35 QUESTIONNAIRE FORMAT 1 Introduction and Screeners 2 General & Specific Issues 3 Initial Ballot (Q5) 4 Impact of Specific Information 5 Informed Ballot (Q21) Multiple regression is used to measure importance of specific information between initial and informed ballots 6 Demographics Baselice & Associates, Inc. Project#

36 DISTRIBUTION OF INTERVIEWS Northeast n=158 39% Southwest n=127 32% Central n=115 29% Baselice & Associates, Inc. Project#

37 COMPARISON of SAMPLE FILE to RESPONDENTS yrs yrs yrs 65+ yrs Registration 52% 19% 17% 13% November % 19% 28% 34% November % 21% 25% 25% November % 21% 21% 18% Survey N=400 38% 21% 21% 18% Baselice & Associates, Inc. Project#

38 DIRECTION OF SPRING ISD Q2. Do you think that Spring ISD is headed in the right direction or in the wrong direction? 50% 28% Somewhat 28% 22% Strongly Right direction Baselice & Associates, Inc. Project# % 9% Somewhat 19% Strongly No opinion / Wrong Unsure direction 38

39 HOW SPRING ISD MANAGES MONEY Q3. Which of the following best describes your opinion of how Spring ISD manages the money it has to operate the school district? 46% 22% 15% 17% Wisely and effectively Baselice & Associates, Inc. Project# As well as can be expected Wastefully and ineffectively Unsure / refused 39

40 SAFETY AND SECURITY OF SCHOOLS Q4. Thinking about the safety and security of Spring ISD students, do you think Spring ISD schools are... 55% 41% Somewhat 6% 40% 28% Somewhat 13% Very 12% Very Safe Baselice & Associates, Inc. Project# Depends / Unsure Unsafe 40

41 INITIAL BALLOT Q5. Spring ISD is considering calling a bond election for this coming November. If an election were held today would you vote for or against the issuance of $300 million in bonds for constructing, renovating and (Version X: equipping schools / Version Y: safety and security equipment) with the levying of a property tax thereof? X: 51% 50% Y: 52% 26% Somewhat 25% Strongly X: 15% 16% Y: 14% X 11% 34% Somewhat 23% Strongly X: 34% Y: 35% Baselice & Associates, Inc. Project# For Depends / Unsure Against 41

42 INITIAL BALLOT Base For / Strongly Against / Strongly TOTAL FOR TOTAL AGAINST DEP / UNSURE NET FOR Total % 23% 51% 34% 15% 16% SCPARENT - Parent of an SISD Student Parent % 21% 56% 30% 14% 26% Non-Parent % 24% 48% 37% 15% 10% RAGE55 - Age % 15% 60% 27% 14% 33% % 26% 54% 35% 11% 18% % 29% 39% 40% 21% -1% 65 or older 74 21% 27% 42% 42% 16% 1% RR Age / Gender Male / % 20% 55% 35% 10% 21% Male / % 31% 37% 41% 22% -4% Female / % 14% 62% 24% 14% 38% Female / % 26% 46% 39% 15% 7% Baselice & Associates, Inc. Project#

43 WHY AGAINST / HESITANT Q6. And in your own words, please tell me why you (would vote against / might be hesitant to support) a bond proposal. (n=197) 29% 27% 23% 18% Need more information / details Wasteful spending Taxes Quality of schools 43 Baselice & Associates, Inc. Project# 16330

44 Q7 Q8 BOND ELEMENTS The state of Texas only gives school districts funding for daily operations, meaning that local school districts must pay for building renovations and new schools through voter-approved bonds. Spring ISD has not called for a bond in nearly a decade. A potential bond would allow the district to address Favor Oppose Depends / Unsure long-awaited needs. 76% 19% 4% +57% All three comprehensive high schools are over capacity. A potential bond could allow for the addition of ninth grade campuses to alleviate capacity issues at the high school level. 77% 21% 1% +56% Ninth grade is a pivotal year in school. Ninth grade campuses, as part of a potential bond, could improve education outcomes by smoothing the transition into high school and giving students the Q9 attention they need during this critical time. 75% 22% 3% +53% Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Currently, there is no middle school in the North part of the district. A potential bond could allow for the construction of a new middle school in this area. 75% 19% 6% +56% Over half of the district s elementary schools are at or over capacity, making it difficult to offer full-day Pre-K programs across the district. A potential bond would allow for the creation of centralized Pre-K centers that would enable the district to offer full-day Pre-K. 72% 25% 3% +48% A potential bond could enhance safety and security of students with new digital camera systems, new access control systems, new alarm and radio systems and bus safety upgrades. 85% 14% 2% +71% A potential bond would allow for improvements to classroom technology and instructional equipment that expand 21st century learning opportunities. 80% 18% 2% +62% Currently the district only has enough busses to provide transportation to kids living 1 and a half miles away or more from their school, leaving other students to walk up to 1 and a half miles to and from school, oftentimes down streets with no sidewalks. A potential bond would allow the district to purchase more busses which would make our kids more safe. 82% 16% 2% +66% The current stadium is nearly 50 years old and needs major renovations. A potential bond could allow for construction of a new stadium that would be used for all high schools. 61% 34% 5% +28% If passed, a bond would increase property taxes by approximately $6 per month for every $100,000 of taxable property value. 57% 42% 2% +15% Over the last two years the district has reduced the tax rate by ten cents, which saved the average household $187 over the past two years. Hearing this, do you favor or oppose a potential bond proposal? 71% 23% 6% +48% Existing state law freezes the tax rate of homeowners 65 years of age or older. Senior citizens who file their exemption would not see a tax increase from a potential bond. 84% 12% 4% +72% Last May, after ten months of studying and prioritizing the district's long-term needs, Spring ISD launched its five-year plan called, EVERYCHILD TWENTY-TWENTY. A potential bond would help accelerate the district's plans to improve its schools and better serve the Spring community. 76% 19% 5% +57% More opportunities and choices like expanded career pathways, expanded dual credit classes and new dual language programs are needed. A potential bond would help the district bring these things to the Spring community. 77% 20% 3% +57% 44 Baselice & Associates, Inc. Project# Net Favor

45 COMPARISON OF INITIAL & INFORMED BALLOTS Initial ballot (Q5) 25% strong 23% strong 51% 15% 34% For Unsure Against Informed ballot (Q21) 46% strong 16% strong 68% 6% 25% For Unsure Against Solidifiers & Switchers 48% 20% 6% 22% 3% Stayed For Switched For Depends / Unsure Switched Against Stayed Against 45 Baselice & Associates, Inc. Project# 16330

46 REGRESSION (CORRELATION) ANALYSIS Q12. A potential bond could enhance safety and security of students with new digital camera systems, new access control systems, new alarm and radio systems and bus safety upgrades. Strongly Favor Somewhat Favor Depends / Unsure Somewhat Oppose Strongly Oppose 62% 22% 2% 5% 9% Net Favor +71% Solidifiers and Switchers 48% 20% 6% 3% Stayed For Switched For Depends / Unsure Switched Against 22% Stayed Against Q13. A potential bond would allow for improvements to classroom technology and instructional equipment that expand 21st century learning opportunities. Strongly Favor Somewhat Favor Depends / Unsure Somewhat Oppose Strongly Oppose 56% 24% 2% 5% 13% +62% Solidifiers and Switchers 48% 20% 6% 3% Stayed For Switched For Depends / Unsure Switched Against 22% Stayed Against Baselice & Associates, Inc. Project#

47 CALCULATING CORRELATION SCORES Q12. A potential bond could enhance safety and security of students with new digital camera systems, new access control systems, new alarm and radio systems and bus safety upgrades. Strongly Favor Solidifier Correlation Factor Somewhat Favor Depends / Unsure Somewhat Oppose Strongly Oppose 62% 22% 2% 5% 9% Switcher Correlation Factor X Net Favor +71% Net Favor +71% Average Correlation = Score th highest score out of 14 statements Q13. A potential bond would allow for improvements to classroom technology and instructional equipment that expand 21st century learning opportunities. Strongly Favor Somewhat Favor Depends / Unsure Somewhat Oppose Strongly Oppose 56% 24% 2% 5% 13% +62% Solidifier Switcher Correlation Correlation Factor Factor X Net Favor +62% = Average Correlation Score rd highest score out of 14 statements Baselice & Associates, Inc. Project#

48 Summary of Correlation Scores The top three scores are highlighted in light blue. Correlation Scores are relative measures that should be compared within a subgroup, not compared between different subgroups. Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 The state of Texas only gives school districts funding for daily operations, meaning that local school districts must pay for building renovations and new schools through voter-approved bonds. Spring ISD has not called for a bond in Total Sample (N=400) Parent (n=154) Non- Parent (n=246) Correlation Correlation Correlation Score Score Score nearly a decade. A potential bond would allow the district to address long-awaited needs All three comprehensive high schools are over capacity. A potential bond could allow for the addition of ninth grade campuses to alleviate capacity issues at the high school level Ninth grade is a pivotal year in school. Ninth grade campuses, as part of a potential bond, could improve education outcomes by smoothing the transition into high school and giving students the attention they need during this critical time Currently, there is no middle school in the North part of the district. A potential bond could allow for the construction of a new middle school in this area Over half of the district s elementary schools are at or over capacity, making it difficult to offer full-day Pre-K programs across the district. A potential bond would allow for the creation of centralized Pre-K centers that would enable the district to offer full-day Pre-K A potential bond could enhance safety and security of students with new digital camera systems, new access control systems, new alarm and radio systems and bus safety upgrades A potential bond would allow for improvements to classroom technology and instructional equipment that expand 21st century learning opportunities Currently the district only has enough busses to provide transportation to kids living 1 and a half miles away or more from their school, leaving other students to walk up to 1 and a half miles to and from school, oftentimes down streets with no sidewalks. A potential bond would allow the district to purchase more busses which would make our kids more safe The current stadium is nearly 50 years old and needs major renovations. A potential bond could allow for construction of a new stadium that would be used for all high schools If passed, a bond would increase property taxes by approximately $6 per month for every $100,000 of taxable Q16 property value Q17 Q18 Q19 Q20 Over the last two years the district has reduced the tax rate by ten cents, which saved the average household $187 over the past two years. Hearing this, do you favor or oppose a potential bond proposal? Existing state law freezes the tax rate of homeowners 65 years of age or older. Senior citizens who file their exemption would not see a tax increase from a potential bond Last May, after ten months of studying and prioritizing the district's long-term needs, Spring ISD launched its five-year plan called, EVERY CHILD TWENTY-TWENTY. A potential ti bond would help accelerate the district's i t' plans to improve its schools and better serve the Spring community More opportunities and choices like expanded career pathways, expanded dual credit classes and new dual language programs are needed. A potential bond would help the district bring these things to the Spring community Baselice & Associates, Inc. Project# 16330

49 ELEMENT MATRIX Currently, there is no middle school in the North part of the district. A potential bond could allow for the construction of a new middle school in this area (Q10). A potential bond would allow for improvements to classroom technology and instructional equipment that expand 21 st century learning opportunities (Q13). Total Sample The state of Texas only gives school districts funding for daily operations, meaning that local school districts must pay for building renovations and new schools through h voterapproved bonds. Spring ISD has not called for a bond in nearly a decade. A potential bond would allow the district to address long-awaited needs (Q7). Parent More opportunities and choices like expanded career pathways, expanded dual credit classes and new dual language programs are needed. A potential ti bond would help the district bring these things to the Spring community (Q20). Non-Parent The state of Texas only gives school districts funding for daily operations, meaning that local school districts must pay for building renovations and new schools through h voterapproved bonds. Spring ISD has not called for a bond in nearly a decade. A potential bond would allow the district to address long-awaited needs (Q7). Baselice & Associates, Inc. Project#

50 Wrap-up p and Questions 50

51 Wrap-up Spring ISD has not called for a bond in nearly a decade. A demographic study, facility assessment and technology audit were conducted to assess overall district needs. Each revealed specific capital needs that would require a bond referendum. Spring ISD s strategic planning process also revealed community wishes that would require funding outside of the district ss available operating budget. As a result of this work a voter survey was conducted in May to test As a result of this work, a voter survey was conducted in May to test community support for specific bond elements and related messaging. In general, the results were very positive.

52 Wrap-up (Continued) This Bond Steering Committee has been established to further evaluate the potential of a bond referendum to meet the district s capital needs prioritizing needs and deciding on how best to address them. The upcoming November election appears to be an optimal time for our community to participate in this important process. As such, a bond blueprint needs to be presented to the Spring ISD Board of Trustees and approved before August 24, If the decision is made to move forward, $330M is the highest amount If the decision is made to move forward, $330M is the highest amount for which the district can seek approval.

53 Wrap-up (Continued)

54 Bond Steering Committee Schedule

55 Bond Steering Committee Schedule (Continued)

56 Questions? 56