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DeLeon Independent School District

Facility CommitteeOrganizational Meeting

July 20, 2006

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“Why are we here?”

• Facility needs have been identified by the administration

• Board requested information on current status of certain facilities

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“Why are we here?”

• A preliminary report was developed for the Board to review

DeLeon High School

A Facility Status Report

Dr. Randy Mohundro

Superintendent of Schools

Prepared For the Exclusive Use of the DeLeon ISD Board

of Trustees

June 12, 2006

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“Why are we here?”• Based on that information the

Board decided that it needed more information on what the needs and solutions to meet the educational facility needs of the community

• A committee was then formed with the Board members nominating individuals from all spectrums of the community to come together and begin working on the various issues that had been identified.

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“So, what are we going to do?”

• Examine state standards for school facilities

• Gain an understanding of how school facilities are financed

• Review current district facilities

• Identify needs that exist in the district

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“So, what are we going to do?”

• Explore various facility options to meet the needs that have been identified

• Identify cost for all options and various revenue options

• Develop a final report for the Board– Needs– Solutions– Options and Cost

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“State Standards?”• The standards set by the Texas

Education Agency for new construction came into effect as of January 1, 2004. Any building constructed after this date must now meet these standards. The standards that were used for this review focused on high school standards and include the following:

• Space, minimum square footage requirements: Classrooms are to be designed on the basis of possible maximum class size, and not the expected average class size.

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“State Standards?”• Secondary classrooms must have a

minimum of 700 square feet. For those districts with small class sizes a rule of 28 square feet per student must be used.

• Districts that use a combination science laboratory/classroom arrangement must have a minimum of 1,100. When the maximum student count will exceed 25 students in a class, then an additional 58 square feet per student must be provided.

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“State Standards?”• Science labs must include the

following:– Built-in fume hoods for chemistry

areas.– A built-in eye/face wash– A built-in safety shower– Exhaust fans

• Special education classroom must have a minimum of 400 square feet and a minimum of 40 square feet per student when the maximum student count exceeds 10 students in a classroom.

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“State Standards?”• Computer classrooms in which

instruction for the use of computers occurs must have 900 square feet, based on an allowance of 36 square feet per student.

• Any specialized classroom, which does not have a specified required amount of space, must have a minimum of 28 square feet per student.

• Libraries for a campus of 200 students with 25 computers located in the library must include 2100 square feet.

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“State Standards?”• Adequate technology, communication,

and electrical infrastructure are required for any new educational facility.

• School districts must also comply with the “Texas Accessibility Standards” and the “Americans with Disabilities Act of 1990”. The TAS are much more stringent that ADA standards. Schools are subject to inspection by the Texas Dept. of Licensing and Regulation to insure compliance. Failure to meet standards can result in fines being assessed.

• New indoor air-quality standards are now required for all educational facilities.

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“So how do we pay for this?”

• School districts are created by the state legislature.

• Local districts have historically been responsible in the State of Texas for their own facilities.

• Because they are locally responsible typically a local tax levy has been used – I&S (Interest & Sinking) Tax

• In 1997 things changed and the state began to get involved

State Role in School Facility Financing

IFA – Instructional Facility Allotment

EDA – Existing Debt Allotment

Two Different Programs

State Role in School Facility Financing

Application-based allotment for bonded debt and lease purchase agreements that finance construction of instructional facilities

Guaranteed yield approach to tax rate equalization

First allotments in 1997-98

312 recipients in 2000-01

370 recipients in 2001-02

Instructional Facilities Allotment

State Role in School Facility Financing

Cost controlled by appropriation

Eight year weighted average maturity for debt

Application deadline exist - It is not always available

Election before application

Biennial limit of $250 in debt service per ADA, or $100,000 for districts with less than 400 ADA

Instructional Facilities Allotment

State Role in School Facility Financing

Prioritization scheme

Wealth per ADA

Adjustment for student growth

Adjustment for lack of existing debt

Adjustment for denial of funding

Instructional Facilities Allotment

IFA Prioritization Issues

Wealth per ADA based on final Comptroller value and projected ADA (LPE)

Adjustment (reduction in wealth) for student growth over past 5 years:

5% for 10 – 14.99% growth

10% for 15 – 29.99% growth

15% for 30% and greater growth

10% adjustment for lack of existing debt

10% adjustment for denial of funding in a biennium

IFA Formula

Instructional Facilities Allotment State Aid Formula:

FYA = ($35 × ADA × BTR × 100) - (BTR × (DPV / 100))

Where:

BTR is the bond tax rate, calculated by dividing the districts tax collections for eligible debt by the property value divided by 100.

Beginning in 2001-02, tax collections could include taxes collected in 1999-2000 or more recent years that were not equalized by other formulas.

ADA is a minimum of 400

State Role in School Facility Financing

Allotment for bonded debt with payments in the previous biennium

To get money the district must float the debt

Pay on the debt in the previous biennium – Payment by August 31, 2007

Pay on the debt for one year

Get money in second year and then on

Existing Debt Allotment

State Role in School Facility Financing

Guaranteed yield approach to tax rate equalization

State pays based on the taxing effort of the local district

Doesn’t pay for all of it

Pays based on the ability of the district to generate monies through its local tax base

Existing Debt Allotment

State Role in School Facility Financing

Operates as an entitlement

No application or prioritization

No restriction to instructional facilities

Limited by tax rate of $0.29

Equivalent to $1,015 of debt service

Existing Debt Allotment

EDA Formula

Existing Debt Allotment

State Aid Formula

EDA = ($35 × ADA × EDTR × 100) - (EDTR × (DPV / 100))

Where:

EDTR is the existing debt tax rate, calculated by dividing the district’s tax collections for eligible debt by the property value divided by 100.

Beginning in 2001-02, tax collections could include taxes collected in 1999-2000 or more recent years that were not equalized by other formulas.

Facilities Funding Problems and Issues

Insufficient access to IFA Debt that doesn’t fit in

Ineligible for IFA

Above limits for EDA or IFA Small district facility replacement financing in

IFA Lease purchase impact on Tier 2 Limits in IFA based on payments in first

biennium/escalating debt problem

Facilities Funding Problems and Issues

Refunding transactions becoming ever more complicated

IFA refunding must not reduce term and must have net present value savings

Refunding of lease-purchase EDA biennial tax rate limit (TEC 46.034(b)) 400 student adjustment doesn’t impact

ranking and isn’t used for EDA Settle-up

State Role in School Facility Financing

Low Local Taxing Ability High

$0.01 = $12,487

DeLeon

State Role in School Facility Financing

Low Local Taxing Ability High

Sta

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ssis

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State Assistance

DeLeon Effort

State Role in School Facility Financing

Low Taxable Value (per ADA) High

$0.01 = $12,487

42%

58%State Assistance

DeLeon Effort

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“O.K., now what?”

• A comprehensive building tour/site review

• Identify needs• Look for solutions

– Look at what other districts have done

– Look at districts similar to DeLeon

• Develop a plan that provides and information and options for the Board to use to make a decision

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“What’s the next step?”

• Set a date to walk-thru facilities

• Debrief and gather information from the walk-thru

• May need two different dates

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