Developing a Flexible Capital Improvements Plan That Serves as a Long-term Funding Stream

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Developing a Flexible Capital Improvements Plan
That Serves as a Long-term Funding Stream
NSBA Conference Chicago, Illinois April 10, 2006
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INTRODUCTION Mr. Drew Barrineau, School Board
Member Roanoke County Public Schools Roanoke,
Virginia Mr. Joe McNamara, Board of Supervisors
Member Roanoke County Roanoke,
Virginia DEVELOPING A FACILITIES IMPROVEMENT
PLAN Mr. Richard Flora, Retired Director of
Facilities Roanoke County Public Schools
Roanoke, Virginia DEVELOPING A CAPITAL
FINANCING PLAN Mrs. Penny Hodge, Assistant
Superintendent of Finance Roanoke County Public
Schools Roanoke, Virginia CLOSING Mr. Drew
Barrineau, School Board Member Roanoke County
Public Schools Roanoke, Virginia
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Introduction
Mr. Drew Barrineau, School Board MemberRoanoke
County Public Schools - Virginia Mr. Joe
McNamara, Board of Supervisors MemberRoanoke
County - Virginia
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Introduction

• Relationship between school boards and elected
  governmental bodies in Virginia
• History of the relationship between
• Roanoke County School Board vs. Roanoke County
  Board of Supervisors
• Value of a good working relationship

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Developing a Facilities Improvement Plan
Mr. Richard Flora, Retired Director of
FacilitiesRoanoke County Public Schools -
Virginia
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Components of a Facilities Improvement Plan

• Facility Study
• Evaluation of Needs
• Recommendations for Improvements

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Goals of a Facility Study

• Inventories school facilities for the
  following
• - Capacity, enrollments and average class
  sizes
• - Program provisions and functional issues
• - Building sizes, ages and construction
  types
• - Site conditions, including circulation
• - Exterior and interior building components
• - Mechanical, plumbing and fire protection
• - Electrical and lighting systems
• Identifies deficiencies in each school
• Provides an estimate of the costs to remedy
  the
  deficiencies
• Makes recommendations to the School Board

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• Factors in Determining Deficiencies
• Projected Enrollments
• Pupil/Teacher Ratio
• Site Circulation
• Safety and Security
• Heating, Ventilation, Air Conditioning
  Electrical
• Pre-K Special Ed. Programs

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Determining Deficiencies

• Projected Enrollments
• Rationale for determining the projected
  enrollments
• Elementary school enrollments were derived from
  utilizing the schools current enrollment
  figures, historical enrollment data and the
  current growth pattern.
• Middle school enrollments were calculated by
  utilizing the current enrollment figures from
  each elementary school feeder for the 3rd, 4th,
  and 5th grades.
• High school enrollments were calculated by
  utilizing the current enrollment figures from
  each middle school feeder for the 6th, 7th, 8th,
  and 9th grades.

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Determining Deficiencies

• Pupil/Teacher Ratio
• All facilities were sized to accommodate students
  with a pupil/teacher ratio of 20/1 for grades
  K-5 and 16/1 for
• Pre-K.
• For Grades 6-12, a pupil/teacher ratio of 25/1
  was
  calculated.
• A 20/1 ratio is currently being used through the
  second
  
  grade. This ratio will effect the
  operating capacity of
• each school facility by approximately 20 percent.
  

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Determining Deficiencies

• Site Circulation
• Separation of bus, car, and pedestrian traffic
  was reviewed for both safety and convenience.
• Bus loading and unloading should occur in an area
  where cars are prohibited.
• The area should be large enough to accept all
  buses without interfering with car or pedestrian
  traffic.
• Identification and location of the schools main
  entrance and proximity to parking areas was
  reviewed.
• Visitors and staff should not have to cross car
  or bus traffic to enter the building.

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Determining Deficiencies

• Safety and Security
• Administrative offices should be able to closely
  monitor the main entrance and control entry.
• All exterior doors should be able to be locked,
  utilizing an acceptable hardware, from the
  outside without the use of an interior
  restraining device.
• Acceptable lighting levels, spacial definition of
  areas, and surveillance systems should be
  included in any major renovation or addition.

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Determining Deficiencies

• HVAC and Electrical
• Heating, Ventilation, Air Conditioning and
  Electrical systems were evaluated by the
  schools maintenance department.
• The criteria used to determine the HVAC and
  electrical components condition was based on the
  age of the particular component and compared to
  typical life cycle expectancies.
• Those components which have exceeded their
  functional life and are, therefore, prone to
  failure were identified..

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Determining Deficiencies

• Pre-K and Special Ed.
• Pre-K and self-contained Special Ed. programs
  were included in the prototypical space
  programs.
• Pre-K classrooms were evaluated at every
  elementary school to determine if classroom
  space will exist based on the projected
  enrollments.
• Pre-K classrooms are larger and have different
  amenities than a typical classroom.
• Each elementary school may require an addition or
  renovation in order to accommodate the
  additional Pre-K classrooms.
• The number and locations of existing or proposed
  self-contained special ed. programs was provided
  by the Special Ed. Department.

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Components of a Facilities Improvement Plan

• Facility Study
• Evaluation of Needs
• Recommendations for Improvements

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Prototype Space Programs

• Elementary School
• Small
• Medium
• Large
• Middle School
• High School

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• MOUNTAIN VIEW ELEMENTARY NEEDS OVERVIEW
• HVAC improvements or replacements
• Widen or replace existing narrow corridors
• Add corridors to classrooms where none
  currently exist
• Expand administrative area to include
  guidance and nurse
• Additional classrooms
• Upgrade of kitchen equipment
• Additional general storage
• Expand media center to include office and
  storage
• Address ADA concerns

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Priority Criteria for Evaluation of Needs for
Facilities Improvements

• SCENARIO ONE
• Reflects a score based on a criteria applying
  a 20/1 pupil teacher ratio through all grades.
• Uses the prototype school at the elementary,
  middle and high school levels.
• The needs were given weight based on the
  current value placed on each instructional
  area.

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Priority Criteria for Evaluation of Needs for
Facilities Improvements

• SCENARIO TWO
• Reflects a score based on the criteria
  applying a 20/1 pupil teacher ratio in
  elementary schools and a 25/1 pupil teacher
  ratio in middle and high schools.
• The prototype for all schools was also used
  in this scenario.
• The needs were given weight based on the
  current value placed on each instructional
  area.

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Priority Criteria for Evaluation of Needs for
Facilities Improvements

• SCENARIO THREE
• Reflects a score based on the criteria
  applying a 20/1 pupil teacher ratio in
  elementary schools and a 25/1 pupil teacher
  ratio in middle and high schools.
• The prototype for all schools was not used in
  this scenario.
• The needs were given weight based on the
  current value placed on each instructional
  area.

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Components of a Facilities Improvement Plan

• Facility Study
• Evaluation of Needs
• Recommendations for Improvements

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Recommendations for Facilities Improvements
SCENARIO-THREE was used to determine the
priority for facilities improvements. This
scenario best reflects the immediate needs using
the most realistic criteria. A pupil teacher
ratio of 20/1 in elementary schools is already
becoming a reality. It is expected that the
progress made to date will be sustained in the
future. Because of current funding challenges,
moving to a 20/1 pupil teacher ratio in the
secondary schools will, most likely, not become a
reality until some future date. Although using
prototype schools is desirable, it makes more
sense to apply the prototype concept to the
renovation process and not as a part of the
evaluation process. Conceptual designs and the
cost estimates were provided with this study
integrated the prototypical school as a factor
in the elements of this report.
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Developing a Capital Financing Plan
Mrs. Penny Hodge, Assistant Superintendent of
FinanceRoanoke County Public Schools - Virginia
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Background
Phase 1 - 48 million (began in 1997) New high school New elem school Renovate 3 schools
Phase 2 - 23 million (began in 2002) Renovate 3 schools Stadium renovations
Phase 3 - 65 million Debt capacity exhausted
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What we were facing in 2005..

• 30 schools in Roanoke County
• 8 built/renovated in Phase 1 or 2
• 22 schools remaining with capital needs
• Vast majority of schools gt 30 years old (Approx.
  75)
• County government needs growing
• 28M Public Safety Facility planned

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Our concept hinges upon..

• Complimentary school and county financial
  policies
• Use of year end balances
• Annual commitment of set amount of
• new money

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Past practices that helped

• In budgeting .revenue sharing
  allocation
• In year end rollover of year end
  surplus

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Policies Needed

• Establish School Capital Reserves
• Use of School YE Balances
• Establish County Capital Reserves
• Use of County Unspent YE Expenditures
• Use of County Revenues in Excess of Budget

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Reserves Created

• Combined Debt Payment Reserve
• School Major Capital Reserve
• School Minor Capital Reserve
• County Major Capital Reserve
• County Minor Capital Reserve

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Combined Debt Payment Reserve

• Began with 2M annual contribution in 1996 (to
  build new high school)
• Add new 600,000 from county schools each year
  (beginning in 2005-06)
• Plus debt drop-off over time
• Plus economic development incentive drop-off over
  time
• Results in incrementally growing reserve

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This is how it grows.
2004-05 2,000,000
2005-06 2,600,000
2006-07 projected 3,200,000
2007-08 projected 3,800,000
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School Major Capital Reserve

• Use for projects on annually adopted CIP
• Land as it becomes available
• Fund with 2/3 of YE balance
• Plus state construction grants
• Pay cash for smaller projects
• Supplement borrowing for larger projects

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School Minor Capital Reserve

• Use for smaller capital projects (lt500,000) and
  one-time needs
• Fund with 1/3 of YE balance (up to 1M)
• Plus sale of land and equipment
• Can be used for AE to get CIP projects planned
• Can also be used for CIP projects

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County Major Capital Reserve

• Use for major projects on County CIP
• Fund with YE revenues in excess of budget after
  meeting Unappropriated Balance Policy limits

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County Minor Capital Reserve

• Use for minor county capital projects
• Fund with YE expenditure savings

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What can we fund now?
2006-07 10M Schools 20M County
2007-08 10M Schools 10M County
2008-09 10M Schools
2009-10 10M Schools
2010-11 10M County
Future funding pattern of 2 years schools and 1 year county projects. Future funding pattern of 2 years schools and 1 year county projects. Future funding pattern of 2 years schools and 1 year county projects.
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Debt Projection Plan

• F\NSBA handout 2.xls

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Success is based upon

• Properly timed bond issues
• Available cash accumulated in
• Major/Minor reserves
• No tax increases needed
• Funds 40M for schools and 40M for
• county over next 5 years
• Ensures funding for future School Boards

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Closing
Mr. Drew Barrineau, School Board MemberRoanoke
County Public Schoolswww.rcs.k12.va.us