Kaukauna High School Renovation Project. Funding Mechanism Update Administrative Recommendation

Transcription

1 Kaukauna High School Renovation Project Funding Mechanism Update Administrative Recommendation

2 Board of Education Directive At the April 27, 2015, meeting of the Kaukauna Area School District Board of Education the following took place regarding the Kaukauna High School Renovation Project: Phase I of the project was approved at a not-to-exceed amount of $4.9 million Included in the allocation is creation of a weight training facility plus equipment, a new auxiliary gymnasium and equipment, a revamped soccer field playing surface, an alternate bus drive, and a detention pond Board members informally sent Phase II and Phase III of the project back to the Buildings and Grounds Committee for review B&G to discuss possible funding mechanisms and feasibility of the project B&G to discuss what, if anything, should be returned to the full Board for a vote regarding Phase II, Phase III

3 Potential Phase I, Phase II Funding Sources As of May 11, 2015, the updated funding sources available to KASD for the Renovation Project include: operating budget $ 2,255, projected unspent funds $ 75, donations, activity account funds, etc $ 50, Keller paid-to-date $ 337, operating budget $ 2,151, tax levy carryover (mill rate equal) $ 550, per pupil aid allocation ($650,000) $ 500, unpaid time (estimate) $ 200,000 Bid switch contract to Omni Paint $ 50,000 Bid remove temporary bus drive (Phase II) $ 23,172 Total revenue sources/contract modifications $ 6,192,265

4 Phase I Contract Cost Phase II Projected Cost Phase I Athletic Training Facility, Auxiliary Gym Contract Cost Keller, Inc. signed contract $ 3,895,045 Bid for grading, pond creation, fill for Phase I $ 144,298 Owner supplied materials, Phase I $ 492,750 Total anticipated Phase I costs $ 4,532,093 Phase II Stadium, Soccer Field Upgrade, Baseball/Softball Stadium addition w/team rooms, bleachers $ 3,144,470 Vinyl covered fencing $ 18,157 Parking lot addition south lot $ 78,167 Soccer field grading, irrigation, seeding $ 100,713 Baseball/softball field upgrades $ 50,085 Owner supplied materials, Phase II $ 130,000 NEW: Stand alone restroom for stadium $ 200,000 NEW: Upgrade to northwest softball field $ 150,000 Total anticipated Phase II costs $ 3,871,592 Phase I, Phase II total anticipated costs $ 8,403,685

5 Funding Sources vs. Projected Costs Available Revenue Sources $6,192,265 Projected Costs Based on Presentation $8,403,685 Surplus/deficit ($2,211,958) The estimated final cost for Phase I and Phase II as presented is $2.211 million over the District s on-hand revenue sources Administration analyzed and recommends that Fund 38, nonreferendum debt service borrowing, be used to cover the shortfall between the revenue sources and expected costs for Phase II of the project Board action on this would have to take place and then a posting in the District s official newspaper regarding the borrowing would follow. This process would mirror the $2.0 million promissory note used to pay for the Honeywell project

6 Fund 38 Non-referendum Borrowing KASD has the option of borrowing any amount of money under the revenue limit as long as it meets the criteria of nonreferendum borrowing Non-referendum debt service payments come directly out of the District s operating budget and have NO impact on the overall mill rate set by KASD The current Fund 38 debt service payment structure for KASD is shown below:

7 Fund 38 Non-referendum Borrowing Should the District choose to fund Phase II of the project with non-referendum debt service borrowing the funding on a $2.5 million note is shown to the right The payment structure avoids principal payments up front and allows for a fairly steady Fund 38 debt payment for the next 10 years Total interest of $486,824 would be paid back over the 10 years at 2.48% KASD Administration feels comfortable with borrowing up to $2.5 million based on current debt structure $2.5 Million Promissory Notes September 1, First Payment 9/1/2016 Fiscal Year Principal Interest Total Payment $ - $ 62, $ 62, $ - $ 62, $ 62, $ - $ 62, $ 62, $ - $ 62, $ 62, $ 180, $ 62, $ 242, $ 425, $ 57, $ 482, $ 445, $ 46, $ 491, $ 475, $ 35, $ 510, $ 485, $ 24, $ 509, $ 490, $ 12, $ 502, % $ 2,500, $ 486, $ 2,986, Debt service under the revenue limit would sunset in rather than should KASD move forward in this manner

8 Financial Summary Phase I & Phase II Available in-house funding sources $ 6,192,265 Proposed maximum borrowing $ 2,500,000 Total revenues $ 8,692,265 Projected Phase I, Phase II cost $ 8,403,685 Surplus/deficit $ 288,580 Based on the proposed Phase I and Phase II facilities as proposed the District would have a surplus of $288,580 should it borrow $2.5 million utilizing non-referendum debt service and other funding sources as presented The current funding mechanism for Phase I and Phase II does not include $900,000 in capital projects funds, which was previously the case, nor does it utilize up to $150,000 in per pupil aid Given the above it is recommended to the Buildings and Grounds Committee that the stadium project, with the addition of the standalone restroom and softball field upgrade, be sent back to the full Board of Education for approval at the June 8, 2015, meeting

9 Phase III Indoor Educational Center and Practice Facility Phase III Projected Cost Bids $1,739,339 Owner Equipment $ 138,500 Total projected cost $1,877,839 Potential Phase III Revenue Tax levy carryover $ 300,000 Borrowing remainder $ 390, capital projects $ 900,000 Total revenue $1,590,000 Phase III surplus/deficit ($ 287,839) Other sources? Buildings and Grounds discussion on Phase III