BLAINE SCHOOL DISTRICT CAPITAL LEVY DETAIL REVIEW. April 24, 2018 Special Election

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1 BLAINE SCHOOL DISTRICT CAPITAL LEVY DETAIL REVIEW April 24, 2018 Special Election

2 Urgent Needs and Related Program Implications The Facility Needs Review Committee was charged with considering projects through two separate and succinct lenses Projects committed to in the 2015 Capital Projects Bond, or by Board resolution, but later suspended as a result of actual bid levels Projects that are poised for attention over a period of approximately five (5) years, and will likely be impacted by a consistent level of construction cost inflation It is the intent of the Blaine School District to assure that every effort is made to complete projects to which there has been a prior level of commitment The Blaine School District is committed to assuring that short term projects (projects of approximately five or fewer years), are not allowed to stock pile (accumulate) and then create an even greater level of fiscal challenge in the future

3 Capital Levy Description Excess Levies to Pay For School Construction/Remodeling/Technology Capital Levies of 2-6 Years Duration May Be Approved in a Single Election Maximum Collection Period of Six Years (Our Proposal) Proceeds Can Support Projects and Principle Repayment/Not Interest A Capital Levy Measure Provides a Set Amount of Revenue Each Year ($2M in Our Proposal) Non-Voted Debt Can Be Utilized to Accelerate the Project Timeline and May Be Re-Payed Through Capital Levy Proceeds Simple Majority (50%) Approval Threshold on Capital Levies

4 Commitments First In the Fall of 2014, the Board of Directors passed a resolution committing to the acquisition of property in the Birch Bay area ($1.0M), with the qualifier that a funding source would need to be identified. This commitment needs to be addressed. In the Spring of 2015, the voters of the Blaine School District approved a Bond measure that included expectations for the construction of a new Grandstand Facility ($2.7M), including seating, a new concession stand and new restrooms.excessive project bid levels prevented the District from moving forward with this portion of the overall BHS project. This commitment needs to be addressed. The issue of Field Turf installation ($1.0M) has continued to be part of informal discussion over a period of years. This need has now been amplified by the overall loss of P.E. field space, resulting from the construction of an additional building on the Blaine High School Campus. The voter information summary document, published in advance of the 2015 presentation of a Capital Projects (Bond) Measure to voters, indicated that an option for field turf would need to be considered by the Board at a later date.

5 (Overall) Five-Year Priorities Surfaced Grandstand (2015 Bond Commitment to Voters) Property Purchase (2014 Board Resolution) Additional Stadium Improvements (Field Turf) Main Gym Complex PAC Middle School Primary School Campus-Wide Needs Vocational Building Pipeline Fields Student Data Facility (Small House)

6 Grandstand: incl. Restrooms and Concessions Upfront Commitment in 2015 Bond Antiquated Undersized Accessibility Crowd Management Present Day Code Concerns

7 Property Acquisition Commitment to Future Need Has been Awaiting Funding Source Future Growth Potential Increasingly Limited Level of Availability Increasing Values/Costs Board Resolution 2014

8 Additional Field Improvements Earlier Anticipated to be a Consideration for State Match Funding/Daily Lack of Outdoor P.E. Space Now Key Issue to Resolve Field Turf Installation Expands P.E. Program Related Space (High School and Middle School Physical Education) Expanded options for additional athletic use Year Long (12 Month) Access

9 Main Gym Complex Built in 1994, This Complex Also Approaching 25 Year Longevity Point Roof Surface Replacement Exterior and Interior Painting Foyer Floor Surface Heating System Upgrades

10 Performing Arts Center Highest Level of Community-Wide Demand and High Level of Resulting Wear and Tear (Original Construction 1994) Exterior Paint Roof Work Stage Flooring Lighting Upgrades Sound Improvements Minor Upgrades to Restrooms

11 Middle School Majority of Issues are Related to Longevity and Overall Level of Demand and Subsequent Use Cafeteria Floor (Original moisture Level Variables) Heating Upgrades Old Gym Roof Old Gym Exterior Patch and Paint

12 Primary School Existing Units are at the 25 Year Threshold and in Need of Replacement Roof Top Heating Unit Replacement (Oldest Section)

13 District-Wide Needs Overall Upgrades and Safety Related Concerns are Pressing Parking Lots Drains Exterior Lighting Pt. Roberts Heating (incl. Enclosed Play Area) Sidewalk Upgrades Cameras Electronic Locks Cosmetic Improvements to Existing Track Storage Building and Transportation Facility

14 Pipeline Fields Receive a High Level of Use by School and Community Programs Irrigation Systems Field Renovations Softball Dugouts Pole Building Improvements Equipment Storage

15 Vocational Building Options For Alternative Program Students Experiencing Increasing Demand Interior and Exterior Painting Ceiling Tile Carpeting Minor Restroom Upgrades Archive-Tech Relocation

16 Student Data Facility Rapidly Expanding Need For Program Space Specific to Student Data Analysis and Related Staff Training Raise and Replace Existing Facility Consideration Given to Two-Unit Modular Building Special Programs and Expanded Office Space Needs

17 Projected Initiative Time Frame Board Resolution Considered January 22, 2018 Ballot Measure in April (24th) Non-Voted Debt ($3M) Provides For Earlier Initiation of Projects (To Be Considered in 2018) Capital Levy Collection Years of (6 Years) Project Expenditure Years of (6 Years) Inflationary Variables Calculated at 10% Annual Compounding with 2017 Estimates Serving as Baseline Year

18 Non-Voted Debt Capital levies may be used to pay principle on non-voted debt utilized for capital projects Interest costs on non-voted debt are paid by General Fund dollars Non-voted debt or other debt instruments can provide working capital when it is needed rather than waiting for annual levy collections School Districts can expect historically low interest rates, estimated between 2-3% in the near term These rates are favorable compared to inflationary factors affecting construction costs

19 Washington State Education Tax (HB2242) Implications In July of 2017, the Washington State Legislature took action on a McCleary Plan. As currently articulated, the McCleary Plan will result in an overall anticipated (net) increase of $0.81/1000 for school funding, beginning in the 2018 calendar year. The funds generated as a result of this increase will be deposited in support of the State of Washington General Fund and will be utilized, through a statewide distribution formula, to bring a higher level of funding equity to school districts across the State. While the Blaine School District will see some level of increased revenue from the State of Washington, it remains uncertain, with a subsequent scaling down of our levy collection level in Blaine, whether our overall revenue stream for day-to-day operational costs will be net negative, net neutral, or (ideally) net positive. Regardless of the revenue outcome, we know that our taxpayers in the Blaine School District will ultimately experience a higher level of net tax obligation (even before Capital Levy Action) to support the funding of public schools.

20 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- Washington State Education Tax (HB2242) Implications Capital Levy M&O State McCleary Bond In 2019, an increase in the tax rate attributable to the passage of a Capital Levy Measure would essentially be offset by a concurrent reduction in the tax rate associated with the local Maintenance and Operations Levy Projected (estimated) tax rates per thousand of assessed property valuation

21 Draft Summary of Work and Projected Project Costs Blaine School District: Capital Levy Considerations (5-6 Year Window) November 2017 Project Cost Estimates: (10% Annual Inflation Factor to be Applied Once Calendared) Grandstands $2,700,000 Property Acquisition $1,000,000 Field Turf $1,000,000 Main Gym Complex Roofing $285,000 Paint $88,000 Foyer Flooring $65,800 Heating Upgrades $4,000 Performing Arts Center Roofing/Gutters $191,000 Paint $40,000 Stage Flooring $5,000 Light/Sound/Curtain $30,000 Rest Rooms Upgrade $22,000 Middle School Cafeteria Flooring $140,000 Gym Exterior Patch/Paint $35,000 Gym Upstairs Roof/Gutter $40,000 Heating Upgrade $10,000

22 Draft Summary of Work and Projected Project Costs Primary School Roof Top Heating Units $100,000 Campus Wide (Three Phases Proposed) Seal Coat Parking Lots $63,000 Catch Basin and Drainage $12,000 Exterior Lighting $15,000 Sidewalk Upgrades $12,000 Security Camera Upgrades $50,000 Exterior Electronic Locks $90,000 Track Storage & Transportation Facility $300,000 Vocational Building Interior and Exterior Painting Ceiling Tile/Carpeting Restroom Upgrades Archive-Tech Relocation $500,000 Pipeline Complex Irrigation System Field Renovations Softball Dugouts Pole Building Improvements Equip. Storage $500,000 Student Data Program $100/sq. ft. Modular Style $200,000

23 Technology and CTE Equipment (Peripheral Board Considerations) Non-related to the task of the Facility Needs Review Committee, yet relevant to the subsequent consideration of the Board of Directors will be the surfacing of options for addressing the ongoing technology needs of students and staff, as well as the overall need for CTE Program related technology and resulting equipment. The Board will be asked to consider the allocation of $300,000 per year in five of the six years of the overall expenditure window. Approximately 50% of this funding will be used to support the acquisition of student and staff hardware (computers), as well as the training necessary to assure for the effective use of this equipment. The additional 50% of funding will be dedicated to larger scale equipment needs in support of an evolving CTE curriculum that will focus more directly on STEM (Science, Technology, Engineering and Math) related course offerings.