Community Engagement Facilities Update Report EXECUTIVE SUMMARY
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- Veronica Sparks
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1 Community Engagement Facilities Update Report EXECUTIVE SUMMARY Purpose of Report: To recap the process to date and consider a possible bond referendum After 18 months of a community dialog that began in February 2017, with the approval of the District Strategic Plan and recently concluded with a community task force set of recommendations to deal with growing enrollment, the Board will consider a possible bond referendum. The task force recommended $190 million of projects to include solutions for growth, safety, ADA, and equity. The Board discussed those projects at their work session on June 27 th and prioritized the list. (see exhibit 1) The task force recommended moving forward with a bond referendum. The resulting bond levy should be partially offset with a reduction in the current capital outlay fund levy. The combined bond and capital outlay levy should not exceed $3.00. The current capital outlay levy is $2.87 per $1,000 of assessed. Moving to a combined $3.00 levy will be a net increase of $.13 per $1,000 of taxable value. The approximate annual tax increase on the median priced home in Sioux Falls ($185,000 taxable value) would be $24 per year or $2 per month. The District total levy is $8.27. The net $.13 increase would move the total levy to $8.40, representing a 1.6% increase. The $8.40 levy would rank 10 th of the 11 school districts that surround Sioux Falls. The District has been diligent at managing the tax burden to homeowners. Since 2002, Sioux Falls School District taxes have increased at an annual rate of only.6% which is less than inflation. As a benchmark, the City tax assessment has increased 2.5% and the County 3.8% over that same period. A good cross-section of the community responded to the 17-questions asked by The Donovan Group, a Wisconsin-based community engagement firm who orchestrated the survey and presented the results to school board members at their work session on Wednesday, June 27, More than 3,500 respondents took the survey. Results regarding overall support are shown below. I would support the recommendations as outlined by the task force, assuming a cost of $2 per month or $24 per year on the average home in Sioux Falls ($185,000 taxable valuation). Strongly agree 58.2% Agree 30.6% Disagree 6.7% Strongly disagree 4.4% The process to build new schools is lengthy and time is of the essence to accommodate the growing enrollment that currently resides in our elementary schools, and that will be moving through our middle and high schools. The annual school district levies are due to the County Auditor at the end of September of each year. In order to issue bonds to move forward with design and construction of facilities and submit to the county auditor by September 30 th, an election would be needed prior to that date. Setting an election date of September 18th, requires approval by the Board on July 23 rd. Approval of the attached resolution (exhibit 2) by the Board will set the election date as Tuesday, September 18 th. A timeline of the actions is attached (exhibit 3). Absentee voting must be available by August 31 st. It would be proposed that for the convenience of voters that the absentee ballots be available as soon as August 20 th. A sample ballot is attached. (exhibit 4). Administrative Recommendation to School Board: To approve the resolution to move forward with authorization to issue up to $190 million in general obligation bonds and set an election date of Tuesday, September 18, Report Prepared by: Research, Innovation and Accountability July 23, 2018 Presented by: Doug Morrison
2 Exhibit 1 Bond Prioritization List Sioux Falls School District Project List Cummulative Spend * New High School $ 82,384,000 $ 82,384,000 a Land $ 2,300,000 $ 84,684,000 * New Middle School $ 43,131,000 $ 127,815,000 * New Elementary School $ 17,568,000 $ 145,383,000 1 Whittier Middle School a Purchase property between existing school and existing track area. $ 4,730,000 $ 150,113,000 Security/ADA Projects 2 Robert Frost and Horace Mann Elementaries Construct new entrance/administration area to process visitors into office area prior to a entering school. $ 2,221,000 $ 152,334,000 2 Central services Construct training rooms and security entrance to prepare for Screening and Evaulation a expansion/renovation. $ 806,000 $ 153,140,000 2 IPC a Provide security enclose for receptionist and meeting room. $ 54,000 $ 153,194,000 2 WHS, LHS and RHS b Exterior Restrooms for security $ 840,000 $ 154,034,000 2 Laura Wilder Elementary a Expand center stairs and provide elevator for ADA accessibility $ 900,000 $ 154,934,000 Other Equity and Expansion Projects 3 Horace Mann $ 2,637,000 $ 157,571,000 a Provide 6 classroom addition and parking lot for program growth. 4 Cleveland Elementary Bring Cleveland to standards and O&M projects projected to 2024 ($7,522,700); PM a projects $1,869,700 $ 5,653,000 $ 163,224,000 5 Memorial Middle School Expand and renovate music area to accommodate building capacity. Provide space similar to a McGovern MS. $ 1,215,000 $ 164,439,000 6 John F. Kennedy Elementary Gymnasium addition to 4 section standards, convert existing gym to MP room, MP room to a Music classroom. $ 3,906,000 $ 168,345,000 7 Jane Addams Elementary a Construct vocal music and band classrooms on west end of building, $ 660,000 $ 169,005,000 8 Robert Frost Elementary Expand current gymnasium for additional teaching area. Provide curtain divider between a spaces. $ 784,000 $ 169,789,000 9 WHS, LHS and RHS PE Coaches area, Training Rooms, Weight Rooms, MP gym storage, main gym exiting at a RHS, WHS. $ 3,354,000 $ 173,143, Jane Addams Elementary Obtain property and construct relocate playground east of school, provide parking in current a playground area. $ 1,461,000 $ 174,604, Central Services/IPC b Renovate and expand screening and evaluation into training space. $ 480,000 $ 175,084,000 c Construct storage area for vehicles and equipment, provides area for purchasing area. $ 1,295,000 $ 176,379, Hayward Elementary Construct new locker rooms/pe office and storage west of main gym. Renovate wisting into a table and MP room storage $ 570,000 $ 176,949,000 Project Inflation and Bond Issuance Costs $ 13,051,000 $ 190,000,000 Bond issuance costs $1.9 million, Inflation range $11-15 million (3% $11mm-5% $15mm) Additional equity and strategic projects to be considered if proceeds available 13 Central Services/IPC a Provide purchasing loading area and misc renovations. $ 225,000 $ 190,225,000 b IPC-Construct exterior storage area/convert existing into curriculum book room. $ 209,000 $ 190,434, Strategic Land Acquistion e.g. Lowell Elementary for eventual replacement, Sonia Sotomayor parking, possible elementary school site, etc. $ 3,750,000 $ 194,184,000 Report Prepared by: Research, Innovation and Accountability July 23, 2018 Presented by: Doug Morrison
3 Exhibit 2 A motion was made by and seconded by, ( ) votes yes on roll call, adopting a resolution, as follows: RESOLUTION DECLARING NECESSITY AND EXPEDIENCY FOR ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS, CALLING AN ELECTION THEREFORE AND HIRING PROFESSIONALS IN CONNECTION THEREWITH. BE IT RESOLVED by the School Board of Sioux Falls School District 49-5, Minnehaha and Lincoln Counties, South Dakota, as follows: 1. Declaration of Necessity. It is hereby found, determined and declared that it is necessary and expedient for this School District to borrow money by issuing its general obligation school bonds in an amount not exceeding $190,000,000 payable from 1 and not to exceed 30 years from date of issuance, bearing interest payable at such times and at such rate or rates as may be determined by the School Board, to fund a new high school, a new middle school, a new elementary school, additions and expansions to existing school facilities, land purchases, other school district improvements, furnishing and equipping same and financing costs of issuance, if so approved by the voters. 2. Election. The question of authorizing the issuance of such bonds shall be submitted to the qualified electors of the District at a bond election which is to be held on the 18 th day of September 2018, between the hours of 7:00 o'clock a.m. and 7:00 o'clock p.m. The question shall be in substantially the following form: SHALL THE SIOUX FALLS SCHOOL DISTRICT 49-5, MINNEHAHA AND LINCOLN COUNTIES, SOUTH DAKOTA, ISSUE ITS NEGOTIABLE GENERAL OBLIGATION SCHOOL BONDS IN A PRINCIPAL AMOUNT NOT EXCEEDING $190,000,000, ISSUED IN ONE OR MORE SERIES, BEARING INTEREST AT SUCH RATES AS MAY BE DETERMINED BY THE SCHOOL BOARD, PAYABLE AND MATURING FROM 1 AND NOT TO EXCEED 30 YEARS AFTER THE DATE OF ISSUANCE, FOR THE PURPOSE OF FINANCING A NEW HIGH SCHOOL, A NEW MIDDLE SCHOOL, A NEW ELEMENTARY SCHOOL, ADDITIONS AND EXPANSIONS TO EXISTING SCHOOL FACILITIES, LAND PURCHASES, OTHER SCHOOL DISTRICT IMPROVEMENTS, FURNISHING AND EQUIPPING SAME, AND COSTS FOR THE ISSUANCE OF THE BONDS? SHALL THE ABOVE PROPOSITION BE APPROVED AND THE BONDS ISSUED? 3. Polling places and Judges. Polling places and judges and clerks for said election shall be selected according to South Dakota Law. 4. Voter Registration Deadline. The Business Manager is hereby authorized and directed to give notice of voter registration and deadline therefore, as required by law. The deadline for voter registration shall not be less than fifteen (15) days prior to the election. The Business Manager shall give notice of the availability of registration officials and state when registration will be terminated and the effect of a failure to have registered. Such notice shall be published in official newspapers of the District at least once each week for (2) two consecutive weeks, the last publication to be not less than (10) ten nor more than (15) fifteen days before the deadline for registration.
4 5. Notice of Election. The Business Manager is hereby authorized and directed to give notice of school bond election, said notice to be published in the official newspaper for the District, once each week for two (2) successive weeks before said date of election. The second notice shall be published not less than four (4) days nor more than ten (10) days before the election. 6. Ballots. The Business Manager is authorized and directed to cause printed ballots to be prepared for use at said election in substantially the form on file with the Business Manager and to publish with the second notice of election. 7. Canvass. Said election shall be held and conducted and the votes cast thereat shall be counted, certified and canvassed according to law, and this Board shall meet at the regular meeting room in Sioux Falls, South Dakota, in the District for the purpose of canvassing the results within six (6) days of the election. 8. Hiring of Professionals. Meierhenry Sargent LLP of Sioux Falls, South Dakota is hereby designated as bond counsel for this issue. The President and Business Manager are authorized to execute such documents as are necessary to carry out the intent of this paragraph. 9. Authorization of Officers. The Superintendent, School Board President and Business Manager are authorized to sign any acknowledgement, certificates or documents required by Underwriter in connection with the Bonds.
5 Exhibit 3
6 Exhibit 4
RESOLUTION RELATING TO THE ISSUANCE OF SCHOOL BUILDING BONDS AND CALLING AN ELECTION THEREON. Member moved the adoption of the following Resolution:
RESOLUTION RELATING TO THE ISSUANCE OF SCHOOL BUILDING BONDS AND CALLING AN ELECTION THEREON Member moved the adoption of the following Resolution: BE IT RESOLVED by the School Board of Independent School
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