Frequently Asked Questions Regarding the Master Facilities Plan
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1 Frequently Asked Questions Regarding the Master Facilities Plan Four public meetings were held on July 9 and 15 to share the Master Facilities Plan with interested Villagers. The presentation from the meetings can be found on the home page of the district s website at Questions regarding the plan can be directed to Superintendent Dr. Kevin Miller at or by ing kmiller@ohschools.org. Following are answers to frequently asked questions regarding the Master Facilities Plan and Issue 10 which that will appear on the November 3 ballot. Issue 10 is a combination bond issue/permanent improvement issue totaling mills, yet the net result to voters is 6.75 mills. Why? The bond issue that was passed in 1998 is being collected at 3.6 mills. This bond issue will be paid off in March of Approval of this new bond issue will continue collection of that 3.6 mills along with the collection of an additional 6.75 mills for a total of mills. In essence, voters are giving the district permission to continue collecting the 3.6 mills from 1998 along with an additional 6.75 mills. If the 1998 bond issue won t be paid off until March of 2017, won t there be an overlap of the 1998 bond issue and 2015 bond issue in 2016? No. The collection of taxes for the 1998 bond issue will end in That money is held in reserve until the final payments are due. The 1998 bond issue was a 20-year issue. How is it getting paid off by the end of this year three years early? In June of 2009, the Board of Education refinanced the bonds at a lower interest rate. The old rate of interest on the bonds was 4.75%. The refinanced rates ranged from 2.0% to 3.0%. At the time of the refinancing, Ottawa Hills Schools received a Moody s rating of Aa2 the smallest school district in the nation to receive such a rating. The refinancing of the bonds at lower interest rates saved district taxpayers $979, and made it possible for the bond issue to be paid off at an earlier time. Why is the ballot issue a combination bond issue and permanent improvement issue? The state of Ohio limits the amount of bond debt that a school district can have (basically, 9% of the district s total valuation). This limit allows the district to raise just over $13M by selling bonds. The remainder would be funded with loaned funds that would be paid back through Permanent Improvement funds. The two together would raise the $24.5M necessary to complete the Master Facilities Plan. Does this mean two different issues have to be passed? No. The millage for the bond issue and the millage for the permanent improvement issue will appear on the ballot as one issue, requiring one vote. How does this issue impact future operating levies? For quite some time, the district has been on a three-year cycle for operating levies. Budget reductions and prudent spending over the past five years have meant that for the last four years, revenues have exceeded expenses. This means the district will not be seeking an operating levy in 2016 as would be anticipated under the three-year cycle. It would be at least 2020 a span of seven years since the last levy before an operating levy was needed. 1
2 Why now? The end of the 1998 bond issue provides a natural time to reflect on where we are with our facilities and what we need to do to have energy efficient buildings that support the needs of a Twenty-first Century education. We know what current construction costs are. The longer we wait to address our facility needs, the higher the construction costs will be. In addition, as shown in the chart below, bond market interest rates are at historical lows, making this the most cost effective time to have a bond issue on the ballot. Why not use Permanent Improvement funds to address building needs? Our two Permanent Improvement (PI) levies annually bring in about $600,000 in revenue. PI funds are meant to address building repairs and upkeep. They are not meant to address capital improvements. The needs of our buildings surpass what we are able to address with PI funds, which are used for a myriad of projects. In the past few years, PI funds have been used to: Put a new roof on the high school gymnasium; Install new entry doors with a buzz-in system at both buildings; Replace the chair lift at the junior/senior high school for handicap accessibility; Upgrade the surveillance camera system and install additional cameras; Repair deteriorating masonry on the exterior of the auditorium; Install energy efficient lighting in both buildings; Repaint the high school gym and upgrade the lighting in the gym to more energy-efficient LED lights; Upgrade lighting in the auditorium; Replace the district phone system with a new VOIP phone system; Completely renovate the elementary parking lot and regularly seal parking lots at both buildings; Repair the cupolas at the elementary building; Upgrade Morrison, Zakeri, and Day Fields along with installation of new fencing on Morrison and Zakeri Fields. PI funds are set aside each year in anticipation of two large projects that will need to be addressed in about five to six years: the replacement of the stadium turf and the replacement of the running track. In addition, PI funds are used for technology and textbook purchases to support our curricular offerings. The needs for the use of PI funds are far reaching, but we only have so much money to spend each year. 2
3 What are the costs of the various elements connected to the renovations and additions? Replace HVAC Systems--$4.8M Reprogramming of current spaces: Replace Electrical Systems--$2.6M At the elementary--$517,500 Classroom Renovations--$2.4M At the JH/HS--$877,000 Technology/Security Upgrades--$1.0M Replace Plumbing Infrastructure--$966,000 Additions at the JH/HS: Handicap Accessibility--$680,000 Junior High Gymnasium--$1.7M Fire Suppression Systems--$623,000 New front entrance/offices--$605,000 Window Replacement--$612,000 Auditorium--$525,000 Weight room--$420,000 As can be seen, the additions are about 13% of the total project cost. How do I determine the valuation of my home? Doing a search for Lucas County AREIS will take you to AREIS Online ( which provides information regarding all real estate properties in Lucas County. You can search by address or owner name. Enter either and it will take you to the tax information for your home. After you ve searched and found your property, click on Data in the upper left-hand corner and it will show the summary page. Under Summary Taxes and Values you will see the 100% Value of your land and buildings. Note that the tax value of your home is not necessarily the market value of your home. The 6.75 additional millage will cost $ for each $100,000 of value of your home. If my Home Value is: Then my Additional Taxes will be: $ 100,000 $ , , ,000 * * 300, , , ,000 1, ,000 1, Average home valuation in Ottawa Hills according to the Lucas County Auditor s office. For assistance in determining the tax value of your home, contact district Treasurer Brad Browne at or by ing bbrowne@ohschools.org. 3
4 What energy efficiencies will be included as part of the renovation? The Master Plan is really a big picture plan of the renovations and additions that would be addressed. Upon passage of the issue in November, a year would be spent in developing the design of the new building, including how to best replace systems in the most energy-efficient manner possible. Many energy saving ideas will be analyzed and implemented. Some of these include: The renovated facilities will be Designed to Earn the ENERGY STAR. This is an EPA program focused on energy efficiency and energy savings. Buildings that meet the Designed to Earn the ENERGY STAR designation perform at the 75 th percentile or higher relative to similar facilities in the region. The program also sets up the metrics for managing energy in the completed facilities to assure the meeting the energy operational targets set during the design. The existing buildings are heated by a variety of aging equipment that operate at a much lower efficiency than current technology. The new boiler plants will be comprised of high efficiency condensing boilers operating at 93% efficiency. Air systems will utilize heat recovery technology (heat wheels) that will exchange hot and cool air depending on the time of year. This reduces the overall boiler and chiller needs of the building and saves energy. New, electronic temperature control systems operate at a maximum efficiency and in real time to take advantage of a number of opportunities to save energy and improve the learning environment. Consider the following: Free cooling when outdoor temperatures can be used instead of the electric chiller; Occupancy control to assure systems are only operating when someone is in the room; Ventilation demand control that reduces energy to large spaces like the gymnasium when large crowds are not present; Specific control of each room to assure quality temperature control and energy efficiency. As the budget allows, LED lighting will be implemented. The use of LED lighting impacts energy AND maintenance costs on a long-term basis. Lighting is typically the largest electrical utility cost in any building. In the renovations, occupancy control for occupied rooms will assure that the lighting is operating only when people are present in the space. This results in very significant energy reduction. Windows will be replaced with new high performance windows with insulated glazing. Area Schools have benefitted from Ohio Schools Facilities Commission money. Is there OSFC money available to Ottawa Hills? The OSFC ranks school districts based upon their district valuation. The poorest districts in the state were funded first. The state s share for these construction projects was very high, while the local share was very low. As the OSFC moves down the list, the state share becomes less, and the local share becomes more. Out of over 600 school districts in the state of Ohio, Ottawa Hills is #523 on the list. This means that the OSFC would fund 14% of a project for Ottawa Hills, while 86% would have to be funded locally. The OSFC would probably not offer funding to Ottawa Hills for at least another 6 to 7 years. And even then, partnering with the OSFC might not be prudent. The OSFC has a project manual which must be followed in a construction project. The manual dictates all aspects of the construction, limits the district in many choices, and specifies the square footage that can be addressed. Because of various OSFC regulations, OSFC-funded projects typically run about 15% higher than locally-funded projects. Therefore, a 14% share that results in an additional 15% in costs would most likely not be prudent. 4
5 The district continues to stay in contact with the OSFC and work with local legislators to lobby for a less strings attached approach for higher wealth districts such as Ottawa Hills. Why not build new buildings? To match the current square footages in the elementary and high school, replacing both buildings would cost approximately $50M. Not only is it cost prohibitive, but we do not have area for totally new construction. In addition, the recommendation of the original Facilities Committee was to preserve the past, embrace the future. They felt that the bones of our structure were strong and should be preserved. Why build another gymnasium? Between school programs and community programs, our gymnasiums are in constant use. The multi-purpose room at the junior/senior high is currently used as one of our gym spaces. The room is not ideal for use as a gym. The flooring is sinking and must be replaced. The Master Facilities Plan calls for complete renovation of the multi-purpose room to create a space that is appropriate for lunch time use and community events. This will no longer be a gym space. A new gymnasium replaces this space, along with providing a space for junior high practices and performances. Doing so opens up additional space for use by community programs at the elementary school. What about the Scout House? The Scout House is in need of major repairs, and investing funds into an aging building with many problems is questionable use of taxpayer money. The renovation of the multi-purpose room at the junior/senior high school will provide space and storage for scouting activities. The enrollment projection shows decreasing enrollment over the next decade. Why are additions needed? In general, adding classroom square footage is not the focus of the Master Facilities Plan. The focus is on renovating spaces to better meet the needs of 21 st century learners. The Master Facilities Plan seeks to meet district needs for decades to come. We want to make sure that we have room for four classes per grade level at the elementary along with room for our all-day, everyday kindergarten program. Despite lower student numbers, it will be important to continue our curricular programming at the junior/senior high school along with redesigning curricular offerings as needed over the years to come. It is our large school offerings in a small school setting that makes Ottawa Hills an attractive school system. Additional square footage planned is to address building security issues and to meet district and community needs for programming in the arts and athletics. Why do this all at once? Why not phase in this project? The committee discussed what it might look like to do smaller projects over the next 10+ years, but in the end, followed the recommendation of the original facilities committee to prepare our buildings for the next generations. It would be better for our students, our teachers, and our community to get the project done and get it done right over the next 2-3 years instead of involving the district in several smaller construction projects over the next decade. To do so would mean that we would constantly be coming back to voters for additional millage. We know what current construction costs are, and we know that the bond market and interest rates are at historical lows, making this a good time to invest in the master facilities plan. How do I get more information? Questions about the Master Facilities Plan can be directed to Superintendent Kevin Miller at or by ing kmiller@ohschools.org Visit the Citizens for Ottawa Hills Schools website at VOTEOHSCHOOLS.ORG A final public presentation regarding the Bond Issue will be held at 7 p.m. in the high school library on Thursday, October 22. 5
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