December 6 th Ballot Proposition School Facilities Preservation

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1 December 6 th Ballt Prpsitin Schl Facilities Preservatin Summary There is currently n nging, dedicated mney t maintain and preserve the new, renvated r refurbished public schl buildings in Orleans Parish. The December 6 th prpsitin prvides an pprtunity t fund lng term public schl facility preservatin withut a tax rate increase. There are currently 4.97 mills f prperty tax (currently generating apprximately $15.5 millin per year) used t pay schl facility bnd debt. This debt will be fully paid ff in On Dec 6 th, a ballt prpsitin will ask vters t extend the 4.97 mills f prperty tax fr 10 years (2025) fr the prceeds t be used fr bnd debt repayment and facility preservatin. If the vters d nt apprve this prpsitin, the amunt cllected frm the prperty tax will begin decreasing, as assessed prperty values increase, and the entire tax will g away when the debt is paid ff in Schls will lse apprximately $15.5 millin annually that wuld help preserve public schl buildings. If vters apprve the millage prpsitin, New Orleans will, fr the first time, have the funding necessary t preserve public schl facilities fr current and future generatins f students. Beginning in 2016, mney will be available fr emergency repairs t public schl facilities, and in 2021, additinal mney will be available fr planned capital repairs as well. FAQs: Schl Facilities Preservatin Ballt Prpsitin Why are funds needed fr schl facilities preservatin? New Orleans has never had the apprpriate dedicated funding t maintain and preserve its public schl facilities. Pre-Hurricane Katrina, this resulted in children having t g t schl in crumbling and inadequate buildings, as mnies were nt available t replace aging rfs, bilers, electrical systems and ther cmpnents as they wre ut. Wrsening cnditins jepardized the health, safety and learning f ur children. Pst-Hurricane Katrina, New Orleans public schl facilities are being upgraded using ne time FEMA funding. The FEMA funds are being used t rebuild, renvate and refurbish New Orleans public schl facilities acrss the city. The 2011 Schl Facilities Master Plan calls fr a ttal f 35 new schls, 18 renvatins, and 27 refurbishments. Mney will be needed t maintain these new, renvated and refurbished schl buildings, as well as buildings that have nt received any imprvements thrugh the Schl Facility Master Plan. There will be needed emergency repairs as well as planned replacement f aging rfs, cling and heating systems, etc. Withut funding, the schl buildings will deterirate back int the state f disrepair that existed pre-katrina. 1

2 Will this prpsitin increase the prperty tax rate? N. If vters apprve the measure in December 2014, this will nt increase the tax rate. The prpsitin wuld simply extend a current tax f 4.97 mills being used by the schl bard t pay bnd debt fr past facility wrk. This prpsitin wuld allw the 4.97 mills t cntinue t be levied fr 10 years (thrugh 2025) t repay the bnd debt, and in additin, use remaining funds t be dedicated fr schl facility preservatin. Hw much revenue will the prpsitin generate fr public schl facilities preservatin? Currently, the existing 4.97 mills f prperty tax generates an estimated $15.5 millin annually. This amunt will increase/decrease ver time based upn assessed prperty values. What happens if vters dn t apprve this prpsitin? If the vters d nt apprve this prpsitin, the amunt f prperty tax cllected fr bnd debt repayment (currently 4.97 mills) will begin decreasing, as assessed prperty values increase, and the entire amunt cllected will g away when the debt is paid ff in This wuld be a lss f apprximately $15.5 millin in tax revenues each year that culd be dedicated t preserving schl facilities (based n current tax cllectins). What will the funds frm the 4.97 mills be used fr? In additin t cmpleting full repayment f the schl facility bnd debt, the purpse f these funds is t preserve all public schl buildings serving students in New Orleans. Specifically, these funds will be used fr emergency and planned capital repairs and replacements, and t fund the Orleans Parish Schl Bard (OPSB) and Recvery Schl District (RSD) facility ffices in administering the schl facility preservatin prgram. Emergency Capital Repairs and Replacements: The definitin f emergency capital repairs and replacements will be determined thrugh RSD/OPSB plicies, but generally speaking, an emergency capital repair/replacement is an unplanned, urgent capital repair r replacement that is necessary t sustain the health f safety f students. Examples f emergency capital repairs/replacements: biler and chiller repair r replacements ver $10,000; rf repairs r replacements ver $10,000; structural repairs ver $10,000; installatin f new r refurbished fire panels, sprinkler systems r security systems; repair f water main breaks; and installatin r repair f failed electrical breakers Planned Capital Replacements: Replacing majr building systems accrding t a planned schedule nce the systems have cme t the end f their expected useful lives, and befre they fail and disrupt the learning prcesses. Examples: scheduled rf replacement; scheduled HVAC equipment replacement; scheduled exterir envelpe replacement such as windws r exterir seal; and reinstallatin f flring Funds frm the prperty and sales tax fr schl facilities preservatin will be allcated t the RSD and OPSB based n their respective student enrllment cunts in schl bard wned facilities. 2

3 Schl Facilities Preservatin Prgram Act 543 f the 2014 Regular Legislative Sessin established a Schl Facilities Preservatin Prgram fr Orleans Parish. This legislatin gverns hw the sales and prperty tax will be used t preserve schl facilities in Orleans Parish. Wh will administer the Schl Facilities Preservatin Prgram? The Orleans Parish Schl Bard and the Recvery Schl District will administer the Schl Facilities Preservatin Prgram. OPSB and RSD currently have respective facility ffices that prvide and versee maintenance and repair f schl buildings. These ffices will expand their rles t administer the Schl Facility Preservatin Prgram in the cming years befre the bnd debt is fully paid ff. Since 2005, state law has made clear that the Orleans Parish Schl Bard has respnsibility fr maintaining and repairing OPSB-cntrlled schl buildings, and the RSD the respnsibility fr maintaining and repairing RSD-cntrlled schl buildings. RSD and OPSB have prvided r verseen the maintenance and repair f schls buildings in Orleans Parish in this way since Under Act 543 and pre-existing law, when an RSD schl returns t the Orleans Parish Schl Bard, the respnsibility fr maintaining and repairing that schl building, alng with funds fr that schl, are transferred t the Orleans Parish Schl Bard. Will the Schl Facility Preservatin Prgram have different rules fr OPSB and RSD schls? N. The OPSB and RSD Superintendents have cmmitted in writing t wrk tgether t develp unifrm plicies and prcedures s the same rules will apply t all public schl facilities under the Schl Facility Preservatin Prgram. Hw will this mney be used t make emergency and planned capital repairs and replacements? The Schl Facilities Preservatin Prgram has tw phases: Phase 1: 2015 until the bnd debt is paid ff (2021) After the bnd debt payment is made each year, the remaining mney will be used fr: Emergency building repairs (perfrmed by RSD and OPSB facility ffices); and Supprting RSD and OPSB facility ffices in administering the schl facility preservatin prgram (the ffices will be funded at a maximum level f $15/student, fr a ttal f apprximately $600,000 per year fr bth ffices cmbined). Phase 2: 2021 nward: Once the bnd debt is fully repaid, there will be mre revenue available fr schl facilities preservatin. In additin t emergency repairs, schls will be able t start making planned capital repairs t ensure that utdated and weak infrastructure is replaced prir t needing an emergency repair. During this phase, the schl facility preservatin prgram funds will be: Used t cntinue t supprt the RSD and OPSB facility ffices in administering the schl facility preservatin prgram; Depsited int individual schl facilities accunts t be used fr needed and apprved repairs fr each facility. There will be specific requirements and accuntability measures fr the use f these funds by schls. Older schl buildings needing mre extensive repairs and replacements will receive mre funds than newer buildings that need fewer repairs: 3

4 A schl in a renvated r new building will receive +/- $500 per student A schl in a refurbished building r a building built befre 2005 that has nt been renvated will receive: +/- $650 per student Used t fund an OPSB revlving facility lan fund and an RSD revlving lan fund. Schls can apply fr interest-free lans t help finance expensive emergency r capital repairs and replacements when they d nt have adequate funds in their schl facilities accunts t d s. State law lays ut requirements fr the amunt f mney put int the lan fund, hw it can be used, hw it must be paid back, and hw use f the lan funds must be publicly reprted. What will the RSD and OPSB facility ffices d? Bth the RSD and OPSB will need t inspect the buildings under their cntrl, administer a revlving lan fund, help schls with emergency repairs and lng-term capital planning, and mnitr schls t make sure they are meeting lease requirements in rutine maintenance and inspectin. The facility ffices will als be respnsible fr emergency repairs until 2021, when this respnsibility will transfer t the individual schls. Will the Schl Facility Preservatin Prgram affect Disadvantaged Business Enterprises (DBEs)? All prjects under the Schl Facility Preservatin Prgram will be required t fllw RSD and OPSB DBE plicies. This means that all schls thrughut the city perfrming any emergency r planned capital repairs t public schl facilities will need t d s accrding t RSD and OPSB DBE gals, plicies, and prcesses. The schl facility accunts will be audited annually fr cmpliance with law and plicy, including adherence t DBE requirements. Hw will rutine building maintenance and repair be funded? Just as they d nw, schls will cntinue t perfrm general and preventative maintenance themselves and pay fr this maintenance ut f general peratinal funding. Examples f rutine repair/maintenance: annual rf and termite inspectins; maintaining the grass and schl grunds, manufacturer prvided preventative maintenance schedules fr all equipment and systems; individual repairs that d nt sustain r transfrm a building system such as brken drs, brken/cracked windws, brken mtrs r fans, flring repairs, wall repairs, repair f individual fixtures r furnishings (light fixtures, basebards, trim, gutters, dr hardware, railings, etc.), plumbing repairs, electrical repairs, minr rf repairs, replacing A/C filers, etc. Hw will RSD, OPSB, and charter schls be held accuntable fr these funds? Act 543 prvides numerus accuntability measures fr schl buildings that wuld be receiving funds frm the millage prpsitin fr preservatin f the schl building, including: RSD/OPSB Facility Offices The ffices will inspect and mnitr all public schl facilities t ensure that they are being maintained prperly and are in cmpliance with inspectin requirements The ffices will evaluate schl building lng-term capital plans t ensure they meet minimum requirements 4

5 The ffices will mnitr and review annual audits f all schl facilities accunts The ffices may suspend r terminate schl facilities accunts fr accunt plicy vilatins, r if a building is nt being maintained and inspected prperly Schl Facility Accunts Accunt must be segregated, and may nt be cmmingled with ther schl funds Lng-term capital plans must be develped fr each campus t detail necessary planned capital repairs/replacements Lng-term capital plan must meet requirements established by RSD/OPSB plicy Accunts must be audited annually RSD/OPSB may suspend r terminate schl facilities accunts fr nncmpliance with accunt plicies Accunt funds remain with the campus even if the charter rganizatin leaves that campus Accunt funds may nly be used fr emergency r planned capital repairs/replacements at the particular campus the accunt is designated fr Nn-emergency expenditures must reflect lng-term capital plan and be apprved by charter bard and RSD/OPSB Emergency expenditures must be made accrding t RSD/OPSB plicy Revlving Lan Funds Charter bard apprval required fr a charter schl t apply fr lan RSD/OPSB must annually reprt t the public n the revlving lan funds and all lans made t schls What abut future new cnstructin? New cnstructin (renvatins, additins, etc.) that is nt being paid fr thrugh Schl Facility Master Plan funds will need t be funded thrugh new tax r bnd initiatives apprved by Orleans Parish vters, r public/private philanthrpy r financing. Des Act 543 make the Recvery Schl District permanent? N, Act 543 des nt make the RSD permanent. The Recvery Schl District was given the respnsibility f maintaining and repairing RSD-cntrlled schl buildings by Act 35 in Nvember 2005 (cdified in La. R.S. 17:1990 B(4)(b)(i)). Act 543 f 2014 des nt change this. Act 543 affirms preexisting law that gives the Orleans Parish Schl Bard the respnsibility fr maintaining and repairing OPSB-cntrlled schl buildings, and gives the RSD the respnsibility fr maintaining and repairing RSD-cntrlled schl buildings. RSD and OPSB have prvided r verseen the maintenance and repair f schls buildings in Orleans Parish in this way since Under preexisting law and Act 543, when an RSD schl returns t the Orleans Parish Schl Bard, the respnsibility fr maintaining and repairing that schl building, alng with funds fr that schl, are transferred t the Orleans Parish Schl Bard. 5