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Preserving Our Past. Preparing For Our Future.

Scott ColeDeputy Superintendent, Kern High School District

2004 Bond Issue Financial Responsibility Report Card

Overview

• Measure N – 2004 General Obligation Bond

• Leveraging Local Taxpayer Dollars

• Fruits of Labor

• Future Growth and District Needs

• Career Technical Education Facilities

• Funding Options

Measure N: $219 Million Bond

• To address student overcrowding in our local high schools and to repair and renovate many of the district’s school sites, Measure N was placed on the ballot in November 2004.

• Measure N passed with 67% of the vote.

• Goal: To ensure school facilities made it possible for our local students to be well prepared for success in college or to begin their careers.

Measure N Funds Issued Responsibly

The district issued authorized bonds only as needed:

• Series A: $50 million deposited in the Kern County Treasurer’s office on May 12, 2005

• Series B: $70 million deposited July 13, 2006

• Series C: $50 million deposited July 13, 2007

• Series D: $20 million deposited July 15, 2011

• Series E: $28.5 million to be sold June 2016

Leveraging Funds

$18,387,000.00

$29,806,000.00

$119,551,000.00

$190,151,000.00

District Funds

Dev Fees

State

GOB 2004

NOTE: $28,549,000 of unissued bonds remain for future projects.

Fruits of Labor

Grand Total: $342,337,000

New Construction

$198,534,000

• Tierra Del Sol

• Mira Monte High

• Independence High

Repair & Upgrades

$133,111,000

• Shafter Upgrades $11.8 M

• East Upgrades $12.8 M

• East Growth $12.8 M

• North Upgrades $29.9 M(in progress)

• Arvin Upgrades $24.0 M

• Shafter Growth $24.5 M

• South Upgrades $29.9 M

Career Technical Education (CTE)

Projects

$9,382,000

• North High CTE Ag

• Mira Monte CTE

• Arvin CTE Media & Design

• North High CTE Bldg Trad

• East CTE

• Arvin CTE Mach & Form

$190 million of GO Bond Funding produced $342 million

of district projects

Mira Monte High School – Administration

Mira Monte High – Computer Lab

Shafter High - Cafeteria

Citizens’ Oversight Committee

• Per Proposition 39, Measure N was subject to annual audits and was overseen by a Citizens’ Oversight Committee.

• Each audit confirmed all funds were spent as promised.

• All classrooms are wirelessly connected.

• Integration of electronic devices to augment daily instruction is increasing.

• Programs like Apex, Kern Learn and Dual Enrollment are offering educational alternatives to meet our students’ personal demand for credit recovery, accelerated learning, and flexible scheduling.

Opening Opportunities with Students and the Community In Mind

…Preserving Our Past

Preparing For Our Future…

Future Growth & District Needs

KHSD - 10 Year Growth Projection

35,000

36,000

37,000

38,000

39,000

40,000

41,000

Enrollment Capacity

Projected New Construction Projects (2016-2024)

Start Year Cost

Career Training Center (SW) 2016 $ 60,000,000

Career Training Center (NW) 2017 $ 63,000,000

Special Education Facility (NW) 2018 $ 9,200,000

Comprehensive School (South) 2019 $ 125,000,000

Comprehensive School (NW) 2021 $ 138,000,000

TOTAL: $ 395,200,000

A Leader in Career and Technical Education (CTE)

• State and National awards for competitions in Virtual Enterprise, Future Farmers of America (FFA), Health Occupation Student Association (HOSA), Distributive Education Clubs of America (DECA), Future Business Leaders of America (FBLA), and many other CTE programs

• Alignment of career pathways with local industry labor needs and local college certificate and degree programs

Career Technical Education Accomplishments

• Partnerships with over 300 local businesses and community organizations

• Recipient of a California Career Pathway Trust Grant of $4,837,000 to expand and improve career pathways

• Recipient of a Career and Technical Education Incentive Grant of $5,800,000 to develop new CTE programs or to enhance existing programs

Career Technical Education Accomplishments(continued)

• 13 California Partnership Academy (CPA) programs funded by the California Department of Education

• 8 Project Lead the Way (PLTW) programs focused on engineering or bio-medical careers

• The Regional Occupational Center (ROC) provides job-readiness and technical training for over 1,000 high school students annually

Career Technical Education Accomplishments(continued)

• Implementation of Dual Enrollment course for over a dozen CTE courses taught in high schools across the District

• Annual placement of nearly 400 students into internships with local businesses

Career Technical Education Accomplishments(continued)

But, we need to do more!

Career Technical Education Courses

Existing Courses:• Auto Technology

• Law Enforcement

• Certified Nursing Assistant

• Early Childhood Education

• Film and Video Production

• Graphic Arts

• Engineering Design

• Carpentry and Construction

• Computer Programming

• Biotechnology

(partial list)

Future Courses:• Pharmacy Technician

• Physical Therapy Technician and Sports Medicine

• Forensic Science

• Robotics Engineering

• X-Ray Technician

• Dental Assistant

• Veterinary Science

• Supply-Chain Logistics

• Culinary Arts

(partial list)

Future Culinary Arts

Future Dental Lab and Medical Facility

Future Auto Shop

Projected Repair & Upgrades Projects (2016-2024)

Start Year Cost

Foothill / 50 year 2016 $ 23,729,658

North High - Phase 2A 2016 $ 8,900,000

Arvin / 30 year 2017 $ 28,000,000

BHS (Warren Hall) 2017 $ 42,500,000

East / 30 year 2017 $ 35,000,000

North / 30 year 2018 $ 32,500,000

ROC and BAS / 30 year 2018 $ 28,400,000

Kern Valley / 30 year 2019 $ 20,400,000

Kern Valley / 50 year 2019 $ 16,755,000

Shafter / 50 year 2020 $ 18,200,000

TOTAL: $ 254,384,658 $650 million x .65 = $423 million

Proposed Projects (2016-2020)

Foothill / 50 year 2016 $ 23,729,658 North High - Phase 2A 2016 $ 8,900,000 Arvin / 30 year 2017 $ 28,000,000 BHS (Warren Hall) 2017 $ 42,500,000 ROC and BAS / 30 year 2018 $ 28,400,000

TOTAL: $ 388,729,658

Start Year Cost

Career Training Center (SW) 2016 $ 60,000,000

Career Training Center (NW) 2017 $ 63,000,000

Special Education Facility (NW) 2018 $ 9,200,000

Comprehensive School (South) 2019 $ 125,000,000

$389 million x .70 = $253 million

For Board Discussion Prior to June 27th – 1 Election - $440M or 2 Elections - $280/$160 M

New Election

3030

Alt #1: Conventional Bonds Require Taxpayer Payments for 30+ Years

Alternative A: Conventional

Year Principal Interest Total

Series A 2017 $133,500,000 $106,694,300 $240,194,300

Series B 2020 $221,140,000 $254,197,118 $475,337,118

Series C 2023 $86,610,000 $90,012,977 $176,622,977

Total $441,250,000 $450,904,395 $892,154,395

Kern High School District: Debt Review

Debt Service*

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

2017 2022 2027 2032 2037 2042 2047 2052

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* Assumes 2.5% annual increase in assessed value; 4.5% interest rate.

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Debt Service*

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Alternative B: G.O. Flex-Bonds ™

Year Principal Interest Total

Series A 2017 $89,600,000 $26,332,766 $115,932,766

Series B 2019 $96,740,000 $58,175,418 $154,915,418

Series C 2021 $168,300,000 $180,752,731 $349,052,731

Series D 2023 $86,610,000 $53,272,492 $139,882,492

Total $441,250,000 $318,533,407 $759,783,407

Alt #2: G.O. Flex-Bonds™ Reduce Interest Costs

Kern High School District: Debt Review

Tax Rates

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$20

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2017 2022 2027 2032 2037 2042 2047 2052

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Debt Service*

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2017 2022 2027 2032 2037 2042 2047 2052

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2016A 2016B 2016C 2020A 2020B

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Alt #3: Two Elections (2016/2020) with G.O. Flex-Bonds™ Reduce Interest

Costs

Kern High School District: Debt Review

Tax Rates

$0

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2017 2022 2027 2032 2037 2042 2047 2052

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Benefits of G.O. Flex-Bond™ Structure

Benefit Comment

Taxpayer Savings: Total interest costs reduced from 30% to 70%

Repayment Term: Reduced by six to 21 years

Prudent Use of Taxpayer Dollars: Taxes used to fund projects, not pay interest

Kern High School District: Debt Review

Preserving Our Past. Preparing For Our Future.

Scott ColeDeputy Superintendent, Kern High School District

2004 Bond Issue Financial Responsibility Report Card