Waterford School District 2003 Bond Update
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1 Waterford School District 2003 Bond Update Presented by: Thomas W. Wiseman, C.P.A. Assistant Superintendent Business and Operations William Holbrook, C.P.A. Director of Business Services January 17, 2013
2 2003 Bond History June 9, 2003 Waterford School District voters approved a $100 million bond issue Proceeds are to be used for: Defraying all or part of the cost of erecting, completing, remodeling, or equipping or re-equipping school buildings, including classrooms, swimming pools, structures, athletic fields, or other facilities; furnishing or re-furnishing new or remodeled school buildings; preparing, developing, or improving sites, for school buildings, including classrooms, swimming pools, structures, athletic fields, or other facilities; acquiring school busses, and acquiring, installing, equipping or re-equipping school buildings for technology 2
3 2003 Bond History Bonds Issued To date: 2003 Series I issued Summer 2004 for $20,000, Series II issued for Summer 2005 for $25,000,000 Items purchased and projects completed: Pool and Fitness Centers High School Construction Science labs Computer labs General classrooms Instrumental and vocal music room additions Windows New main entrance Parking lot Hallway renovations Roof replacement 3
4 2003 Bond History Items purchased and projects completed (cont.): Middle School Construction New entrances Auxiliary support space Computer labs Hallway renovations Roof replacement Elementary Construction Classroom remodeling Restroom remodeling Kitchen and gymnasium additions Hallway renovation Roof replacement Technology Busses Furniture replacement 4
5 Remaining Bonds Available Original Authorization $100,000,000 Bonds Issued to Date $ 45,000,000 Available Bonds to Issue $ 55,000,000 5
6 Debt Retirement Debt Retirement Outstanding Debt $ 127,720,000 Principal Payments $ 6,260, $ 5,510, $ 5,795, $ 6,360, $ 7,635, $ 8,705, $ 9,470, $ 9,400,000 Less Principal Payments $ 59,135,000 Outstanding Bonded Debt June 30, 2013 $ 68,585,000 6
7 Property Value and Millage Rate History Property Values and Millage Rate State Equalized Taxable Millage Value Value Rate $ 3,348,085,343 $ 2,596,450, $ 3,468,729,511 $ 2,723,052, $ 3,574,914,529 $ 2,844,894, $ 3,632,496,780 $ 2,968,294, $ 3,465,849,090 $ 2,963,759, $ 3,188,229,830 $ 2,895,552, $ 2,582,471,960 $ 2,472,209, $ 2,268,486,160 $ 2,201,517, $ 2,192,246,990 $ 2,136,133,
8 Property Values and Millage Rate History Property Values Millage Rate 8
9 Millage Rates Regional Residential Millage Rates for Education State Local Sinking Debt Total Clarkston Huron Valley Pontiac Walled Lake Waterford West Bloomfield
10 Recommendation The Administration recommends the issuance of $20 million worth of bonds to address the capital needs of the District This will leave a balance of $35 million in bonds authorized, but not issued Increase the debt millage rate from the projected 6.00 (total school millage 12.00) to 7.00 mills (total school millage 13.00) 10
11 Average Cost to Homeowner Taxable Value: Average Assessed Value in Waterford / 2 = Taxable Value $97,706 / 2 = $48,853 Cost to Homeowner: Taxable Value x Millage = Cost to homeowner $48,853 x mills = $ Mill Rate Increase Comparison: Cost at 12 mills = $ Cost at 13 mills = $ Net Increase = $
12 Historical Average Cost to Homeowner Taxable Value : Average Assessed Value in Waterford / 2 = Taxable Value $159,780 / 2 = $79,890 Cost to Homeowner: Taxable Value x Millage = Cost to homeowner $79,890 x 9.67 mills = $ Historical Cost Comparison: Cost at 9.67 mills = $ Cost at mills = $ Net Decrease = $
13 Proposed Projects Increase Safety and Security Control entry points: Create a secure entry with student access into school at beginning of the day Secure the building throughout the day Allow access to the school through the main office only during school hours 13
14 Proposed Projects Increase Safety and Security (cont d) Access through main office: Provided by creating vestibule to office Once inside main office visitors must check in Remote buzzer will allow access from the main office interior door into main building Card access will be available to allow staff direct access to main building 14
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18 Proposed Projects Increase Safety and Security (cont d) Majority of buildings require minimal renovations: Cooley, Mason South, Pierce, and Houghton will require main office relocation to increase clear visibility to front entry, parking, and to meet control entry point requirement 18
19 Proposed Projects Increase Safety and Security (cont d) Classroom door hardware replacement: Will have ability to lock classroom door from inside while meeting applicable codes for exiting classroom Goal: Complete all safety and security projects prior to the start of the school year 19
20 Proposed Projects Technology the District will begin to: Complete wireless infrastructure in 7 remaining buildings Re-wire, remodel and re-stock elementary labs to accommodate 30 PC s Raise the minimum technology standard of every classroom with Interactive Data Projectors Raise the technology standard of our secondary technology labs to include 3-D Printers, interactive projectors and state of the art technology tools Replace 30 year phone system and hand sets, and move towards a unified communications solution Create a centralized data storage system for students and staff 20
21 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools Replace tracks Replace bleachers Replace athletic fields Replace lights Replace scoreboard Replace tennis courts 21
22 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Tracks: Tracks at high schools do not meet 8 lane requirement to host meets Existing tracks are in disrepair, have not been able to host meets for last several years Bleachers: Existing home bleachers at both schools are in disrepair and not sustainable Creating 8 lane track requires new bleacher system 22
23 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Athletic Fields: Only 3 districts in the KLAA (Kensington Lake Activities Association) have natural grass, the rest have synthetic turf These 3 districts have separate soccer and lacrosse fields These 3 districts have fields maintained by professional turf managers 23
24 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Athletic Fields (cont d): Advantages and benefits of synthetic turf Consistent safe surface Weather will not affect usage Unlimited play Users include: Band, PE classes, athletic teams (football, soccer, lacrosse, etc.), and rental opportunities for community groups Reduced operational costs with less maintenance 24
25 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Lights: Lights are 20+ years old not energy efficient Wooden light supports are not sustainable Relocation required due to other improvements Scoreboards: Scoreboards are 20+ years old Potential sources of revenue 25
26 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Tennis Courts: Existing tennis courts are unusable for competition Neither school hosts contests except when they play each other Neither facility has the desired 8 courts Waterford Kettering High School courts will be located at the Pierce campus and will be equipped with lights for flexible scheduling, potential source of revenue and community use 26
27 Proposed Projects Site Development Athletic Complex at Waterford Mott and Waterford Kettering High Schools (cont d) Demolition and construction to begin in March of 2013 All projects are scheduled to be completed in time for the start of the school year 27
28 Proposed Projects 28
29 Proposed Projects Renovation/Remodeling at Various Buildings Window/finish replacement Exterior and interior doors Roof replacement Restrooms Classrooms Corridor remodel Parking lots Mechanical 29
30 Proposed Projects Equipment and Furnishing Bus replacement Classroom furniture Maintenance equipment Musical instruments 30
31 Timeline February 7, 2013 Board adopts resolution authorizing the increase in the debt millage rate to 7 mills for February 7, 2013 Board of Education considers bond authorizing resolution, and application for final qualification of bonds and considers resolution retaining bond counsel as required by Section 1352(c) of the School Code at regular meeting March 7, 2013 Board of Education adopts bond authorizing resolution, and application for final qualification of bonds and adopts resolution retaining bond counsel as required by Section 1352(c) of the School Code at regular meeting March 13, 2013 Application for final qualification of bonds is filed with the School Bond Loan Fund April 15, 2013 Receive final qualification of bonds from the School Bond Loan Fund April 16, 2013 Print and distribute Preliminary Official Statement and mail request for proposals April 30, 2013 Bond Sale Assistant Superintendent signs order awarding bonds to the lowest proposer May 7, 2013 Print and distribute Final Official Statement May 21, 2013 Closing - School District receives bond proceeds 31
32 Future Projects Remaining $35 Million Bond Authorization Potential Projects: Site Development Completion of athletic complex New Construction Elementary kitchen, cafeteria, and gymnasium expansion Mechanical Air conditioning Remodeling/Renovations All buildings Technology All buildings 32
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