Tumwater University School District Budget Myths Bond Project Update. February 2016 Mel Murray, Director of Capital Projects John Bash, Superintendent

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1 Tumwater University School District Budget Myths Bond Project Update February 2016 Mel Murray, Director of Capital Projects John Bash, Superintendent Construction Update $136,000,000 in bonds approved in 2014 by 68.5% of voters (Thank You!) Helps pay for $150,000,000 of capital projects over 8 years Other revenues include: $10,000,000 from State $ 4,000,000 from housing impact fees 1

2 PROJECT COSTS THROUGH DECEMBER 2015: Peter G. Schmidt Elementary Replacement $7,985,323 The new building is 50% complete. Gymnasium is being saved and the library building converted to preschool. Demolition of old buildings and construction of parking lot begins in June. Furniture is being ordered, and the school will be ready in September Littlerock Elementary Replacement $925,685 The project will go out for construction bids in March. Phased construction will begin in June with demolition of one classroom building and the office building. The other old classroom building and the library building will be demolished in June The new building will be ready for school in September PROJECT COSTS THROUGH DECEMBER 2015: Bush & Tumwater Middle Schools Additions & Renovations $144,866 The project schedules were accelerated to open in September 2017 instead of Construction will begin this summer in order to meet this schedule. Each school will have a new classroom building, auxiliary gym, new music room, expanded library and site renovations for the planned move of 6 th grade to the middle schools. Technology $2,616,363 2,809 Chromebooks were purchased for student and teacher use, new telephone and intercom systems installed at Michael T. Simmons & Black Lake Elementary schools, new network wiring installed at BHHS, District data center upgrades, two Technology TOSA s hired to support teachers using technology in the classroom, 10-gigabyte network backbone being installed, 240 new computers were purchased for eight high school CTE labs. Technology updates and expenses will be on-going through

3 PROJECT COSTS THROUGH DECEMBER 2015: Health, Safety & Security Projects $478,297 New security, access control and lock-down systems at Michael T. Simmons & Black Lake Elementary schools, new network-based security camera system at BHHS (including new server for District data center), new lighting in music rooms at East Olympia and Tumwater Hill elementary schools. Health, Safety & Security projects will be on-going through Join us for an update at the February 23 rd Community Roundtable. Buildings & Grounds Projects $343,333 Exterior painting of Black Lake Elementary, new furniture for added classes, new Z- track mower, new thermal imaging camera, new carpet extractor, other miscellaneous building and site improvements. Buildings & Grounds projects will be on-going through Non-Impact Portables $ 96,171 New exterior siding, interior wallboard and paint and replacement of wood ramps with metal ones at THS portables, added sink for art in MTS portable. PROJECT COSTS THROUGH DECEMBER 2015: Black Lake Elementary Connection to City Sewer $ 535,794 Connected building sewer to new line installed in Black Lake Belmore Road, decommissioned old on-site system, installed new side walk from north driveway to north property line. This will allow future expansion of the school and reduce maintenance time and costs. Black Hills HS Roof, Walls & Remediation $1,623,839 Removal and replacement of moisture and mold damaged wall, floor and ceiling finishes, duct cleaning, exterior of Building B re-sealed, studies done and consultant hired for next phase of envelope remediation this summer. Tumwater HS PE Facility $1,714,660 New weight room, removal of leaking clerestory structure on peak of small gym roof, re-finishing of both gym floors; new lighting, acoustic ceiling and flooring in locker room hallway, new stair treads to upper loft area, added doors between locker room hallway and main gym, added fire sprinkler riser to meet current fire code, replaced heating controls head-end system. The project moved fitness room from general classroom to old weight room, and was completed in November

4 PROJECT COSTS THROUGH DECEMBER 2015: Tumwater HS Science Remodel & Building B Renovations $160,320 Building B Art Room minor remodel and replacement of leaking underground heating pipes with new overhead pipes, planning for science wing remodel and more remodeling of Building B this summer. Black Hills HS Track Re-surfacing $ 72,365 Re-surfaced 18-year old running track All-day Kindergarten $121,219 New furniture for one classroom at Peter G., one at Black Lake and three at Michael T. New fencing and other minor work at Michael T. Simmons. Remodeling to move preschool from Michael T. to New Market done using other non-bond funds. Operations & Bond Costs $478,627 Capital Projects Department, legal and underwriting costs for bond sales. TOTAL through December 2015 $17,306,887 Upcoming Projects: East Olympia Elementary Modernization Renovations to building & site Tumwater Hill Elementary Modernization Renovations to building & site Secondary Options/Alternative Learning Environments 2020 New Building on New Market campus Tumwater HS Performing Art Center 2020 Renovations & Addition 4

5 Upcoming Projects: Black Hills HS Performing Art Center 2019 Renovations Black Hills HS Field 2017 Install artificial turf District Stadium 2017 Replace turf, re-furbish bleachers, add storage for jump pits, inspect light poles, re-surface running track Littlerock Elementary Replacement TCF Architecture 5

6 Littlerock Elementary Replacement TCF Architecture 6

7 GW Bush Middle School 7

8 Tumwater Middle School 8

9 Bond Expenditures by Fiscal Year & Cumulative Expenditures $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- $2,280,000 $8,720,000 $44,700,000 $53,600,000 $18,200,000 $14,500,000 $5,000,000 $3,000, Challenges Managing cash flow, bond sales and expectations Unforeseen project expenses (and projects!) Construction costs escalation 9

10 Thank You Tumwater! 2016 REPLACEMENT LEVY February 9, % YES votes Provides for approximately 19% of our revenue Pays for programs and services NOT fully funded by the state Provides stability for planning - 4 Years: What does the levy pay for? Teachers Smaller Class Sizes Paraeducators Special Education Advanced Placement/Highly Capable Athletics Band, Orchestra, Choir The Arts Career and Technical Ed Instructional Materials Staff Development Transportation Building Maintenance & Utilities Equipment Repairs 10

11 Levy? Bond? What s the difference? Levies are for Learning Bonds are for Building 2014 Bond: District-wide facility upgrades, safety/security, technology, alternative learning center, other improvements. $136 million approved by voters 60% Supermajority Required (Approved by 68.49% of the voters). Passage generated $10.4 million in state construction assistance funding Levy: 4 Year Educational Programs, Maintenance and Operations New levy is replacement for this. Didn t schools just receive more $ from the state? Yes and No New funding was restricted to specific areas NOT fully funded K-3 Class Size Reduction All-Day Kindergarten Cost of Living Increases for State-Funded Staff ONLY New costs also imposed by the state: Example: Increased pension payments for all employees 11

12 WA State Funding = Broken System New State Revenue Increases District Costs New State Revenue New Expenditures Difference All Day Kindergarten $ 313, $ 522, $ (209,334.50) Class Size Reduction 1-3 $ 203, $ 319, $ (115,894.25) MSOC $ 1,999, $ 911, $ 1,088, COLA $ 965, $ 1,178, $ (213,140.88) Pension Rate Increase $ 3,266, $ 4,334, $ (1,068,133.25) Total $ 6,748, $ 7,266, $ (518,157.54) Budgeted Levy Increase = $361,642 More Unfunded Mandates? Teacher Shortage Current Bill: Raise new base teacher salaries to $40,000/yr. and increase other teachers by 1% or 2% (TBD). Problem: The state would only provide monies for the teachers funded by the state (85% of Tumwater s teachers). Tumwater would have to fund the rest. Estimated budget hit to Tumwater = $125,000 every year. 12

13 The McCleary Decision 2012 Supreme Court: Legislature NOT fulfilling constitutional duty to fully fund education. Legislature sanctioned with $100,000 per day fine for failing to comply Task forces, committees and legislation have all outlined what full funding requires. Two Major Issues: 1. Ongoing political dispute regarding how to fully fund education 2. How to reduce reliance on local levies? Nobody likes to pay taxes! 13

14 Revenue Collections are at Historically Low Levels When Compared to Overall Economy General Fund-State revenue as percentage of Washington personal income Projected In 1990, GF-S revenue equaled about 7% of total personal income. If the same were true today, we would have about $15 billion in additional revenue for current biennium. Washington State Economic and Revenue Forecast Council, September 2013 Tax Rate History Tumwater Schools $5.94 per $1,000 Limit $7.00 Total $ per $1,000 $6.00 $5.00 $4.00 $5.00 $4.48 $4.16 $4.07 $4.52 $4.85 $5.45 $5.94 $5.84 $5.76 $3.00 $2.00 $1.00 $

15 Replacement Levy 4 Yr. Levy Amount $ 15,298,000 $ 15,910,000 $ 16,547,00 $ 17,209,000 Est. Levy Rate Per $1,000 (L+B) Annual Increase Percent Increase $ 3.35 $ 3.38 $ 3.41 $ 3.45 $ 588,000 $ 612,000 $ 637,000 $ 662,000 4 % 4 % 4 % 4 % Rationale: 4 years is a more stable fiscal model for planning; Amounts reflect historic levy trend approved by TSD voters in the past and help address inflation/minimal new costs; Replaces current levy in a proportionate fashion; Honors the $5.94 aggregate rate Current Year Tax Rates Neighboring Districts $6.00 $5.00 $4.00 $3.00 $2.00 $1.98 $3.43 $0.60 $1.56 $3.07 $2.46 $3.30 $1.69 $4.08 CPF Bond M&O $1.00 $- North Thurston Olympia Tumwater Yelm District M&O Bond CPF Total North Thurston $ 3.43 $ 1.98 $ 5.41 Olympia $ 3.07 $ 1.56 $ 0.60 $ 5.23 Tumwater $ 3.30 $ 2.46 $ 5.76 Yelm $ 4.08 $ 1.69 $

16 QUESTIONS? 16