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Beyond $175M
The Next Step in Financing the Capital Improvement
Plan
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Objective
• Provide additional funding for CIP projects beyond the $175 M
• The Plan– Needs Assessment– Financial Feasibility– Financing Methods– Implementation Plan
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Facility Requirements
• Needs of $20+ million have been identified by LISD to complete the five year CIP Plan beyond the $175 Million Program. (See list of projects)
StudentFacility Needs
FinancingMethods
Feasibility
Finance Plan
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Meeting the Needs
• The Needs Assessment:– Architect must
provide a certification of the budget needed to complete the CIP assigned to him/her.
– (Cost, Square footage and description)
Preliminary Design
Design Development
Construction Documents
Bidding
Construction
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Financial Analysis and Feasibility
• M&O Election $1.32 Status • Fund Balance Status $11M• Outstanding Debt $144 M• FIRST Rating - Superior Achievement
• Property Values $62,000/pupil
• and collections 94%
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Our Strengths
A RatingA Rating
Moody’sMoody’s
S&
PS
&P
FITCHFITCH
AA
FIRST FIRST RatingRating
19 /2
219
/22
SuperiorSuperior
Exe
mp
lary
Exe
mp
lary
AuditAudit
TEA
TEA
Fund BalanceFund Balance
$11 Million
$11 Million
Gro
wth
AD
AG
row
th A
DA
B- Budget
B- Budget
Low DebtLow Debt
$144 M$144 M
Low Tax RateLow Tax Rate
$1.3
2$1
.32
Value/pupilValue/pupil
62,00062,000
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Financing Methods –Beyond $175M
• A Combination of strategies– 1) Fund Balance Draw down– 2) Lease Revenue Financing –IFA & EDA– 3) Reduction in expenses– 4) Additional Interest earnings– 5) Bond Issue –IFA & EDA– 6) Grants and joint ventures with other
entities– 7) Land swap and sale
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Next Steps –Beyond $175M
• Instruct the Superintendent to develop a plan of action to implement a combination of the seven identified methods of financing.
• Approximate timeline:– Beyond $175M Workshop June 2002– Call Election (M&O) Nov 2002– Architects Estimates Nov 2002– Develop Plan Dec 2002– Prepare application for June 2003– Fund projects from Fund balance and pass a
resolution to reimburse after bond passage. October 2002 to August 2003
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Non IFA Eligible Needs
• Food Services Complex $6,000,000• Food Services Equipment $6,000,000• Transportation Center $700,000• Technology Center $1,500,000• Admin Complex $1,500,000
• Fine Arts and Sports Complex $5,000,000
• Total $20,700,000
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Other Funding Sources for Non-IFA
Technology Center:
Plan: • $500,000 in Dell rebates over the
next five years• Public Facility Corporation and
issue bonds • Need Land and federal matching
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Other Funding Sources for Non-IFA
Food Services Complex:And equipmentPlan: • $700,000 in admin charges to food
services fund• Public Facility Corporation and
issue bonds • Need Land
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Other Funding Sources for Non-IFA
Transportation Center:And equipmentPlan: • $700,000 from fund balance • Land available –Quesada Property
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Other Funding Sources for Non-IFA
Administrative Complex:
Plan: • $1,500,000 from fund balance • Need Land –possible old food
services
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Other Funding Sources for Non-IFA
Fine Arts and Sports Complex :
Plan: • $3,5000,000 – other sources• $1,500,000 Coca Cola contract• Need Land
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Next Steps –Non –IFA Eligible
• Instruct the Superintendent to develop a plan of action to implement a combination of the seven identified methods of financing.
• Approximate timeline:– Non-IFA Projects Workshop June 2002– Resolution and Create PFC Jul 2002– 60 Day Notice – Develop Plan July 2002– Sell PFC Bonds October 2002– Proceeds of projects November 2002
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Summary
• Developing tentative plan by:– Superintendent-Board– CFO– Construction Manager– Tech Director, Food Services Director– Athletic Director, Accounting Director– IT Director, other staff– Financial Advisor– Bond Counsel– LISD Attorney– Kitchen Consultant – Architects