Board-Meeting-11-05-18-Segment-4 [00:00:00] Right ask Oregon school boards. recommends much less than that. and. I believe it's. Randy I think it's between five and eight percent. No to me that that Oregon school boards. Me is a pretty significant source, and then the other thing that concerns me about this is. an excellent Reserve. is 100 is up to 100% So that means if we spend no money at all. That's excellent. So I do. I think I placed value in the Oregon school boards Association. I'm figure between five and eight percent and I think at that were already there. [00:01:00] Yes. Yes this graph. This speedometer Char it really focus on like, you know, anything about 20% is a salon but I would cost like no one really drove more than 30% We know that I mean, dr. Lovett and I were talking maybe I just great out and after thirty percent I get great our so we're not confusing everyone and said between 20 and 30 or 20 and 25 say asking them so I can fix that. It's easy. Well, I think we've shared with you in the past that gfo a ratings would say between five and fifteen percent which is what Oregon School Board Association quotes and we mentioned that to you the last couple of years as you've been looking at the ending fund balance. This is just attempted a visual. To just kind of put some things in perspective. There's very few districts. I think that would be in the green but this is [00:02:00] as is Hughes mentioned when these institutions think about excellent reserves it they're just trying to put a perspective on it where school districts are in Oregon and other places, of course, you know, we have to take that perspective as well. But you've got that percentage that we shared with this board for a while now. Front of always be a end actually gfo a which would be 5 to 15% I remember our last budget meeting. I think director hides you were taking a look at wondering about that as well about that. We were closer to the 5% then up to the 10 or 15. So. and from The Moody go ahead. I'm looking at the OSB a website ending fund balance. How much is enough? As a rule of thumb ospa recommend Ford's made Twain maintain Amendment minimum ending fund balance of five to eight percent of its general fund resources. [00:03:00] Right, but they do not recommend. I don't believe that it aligns with that gfo a higher figure. I mean what if you read what that says though? Just what you read. It says they recommend between five to eight percent as a minimum. So they're saying no less than 5 to 8% which does lend itself to those moderately higher percentages that are recommended by cafo and Moody's. We don't have to use this graph again. If it creates, you know concern that that's fine. There's just an attempt to sometimes put a visual with where things are in perspective and no I don't think the problem is the graph. I think we just want to know what the best recommendation is and that's hard because they're different organizations that recommend different. Now so here from the mood report is say last year. [00:04:00] I was wounded trait operation operating revenues is 7.2 percent is well below the median of districts National wine. When in the thank you for the information one of the things that's I useful for me probably above and beyond even thinking about the percentage of the operating budget is how much how much time would that cover us? So if I think about my own personal budget then I want to have a reserve a certain number of dollars to carry me through a month or three months or a year depending on my projections for my ability to provide for my household. And so I'm curious at 5% What would that carry us through a month three months what despite percent can get us? This is not let me go back so I can show you so I'll tone I was told one operational. Well, I was hoping but [00:05:00] Jesse's 175 million. So if we divide that by 12, then that will be a one-month about cost. We have about and reserves about enough money to operate for one month. I'm just continuing want to be mindful of the time. We have 30 minutes allotted for mr. Woodley to so let's. Okay, so I would have quit on a chemical bonds. So this is a capital pain when you hear about a capital bond for the spoon District you often hear is a government or Bond or more teachable Pond. And with that we have we have to understand their arms separate one Accord Revenue Bond and one is Geo bond with a general obligation Bond. We don't go with revenue bonds because we are not [00:06:00] revenue generated life for those who like to use the stadium or Bridge or toll fees that they collect money. So that's called Revenue Bond and that Bond doesn't. The public posture but our see General obligation bond is also called G or Bond and Jay Orbin are backed by the full faith and credit of the issuer which means we have the authority to go and raise the tax from the pair to cover our bond with that the people post. Hope a house to vote and we have to go through the vault in order to. To go out for the election. So here to his story and I only captured a lot 3. I'll send in current your bond that we have. So in 2003, we went our for of on 75 million [00:07:00] and in 2009, we could go out for another one with the 98 million and 2015. We have eighty four point five million Bond. This is to capture. So in here you see Theory 2003 a and Serie, 2003 be 51.5 and 23.4 up 75 million Floyd 2003 bond that we went that three and a piece is sometime it go they sell into different groups that why we have to Siri. With our 75 million Bond right now. We have the outstanding amount of twenty nine point four million. So we pay very much. This is our sending one that we have. 2004 [00:08:00] this is the refund we did not go out for newborn, but we refinance the bond in 2000 in 1997 with refinancing. So we only have twenty seven point eight million here by refinance born 1997. In 2009. We went out for a newborn 98 million we pay very much. This is either only 1.2 million left in this and this is the last year. We will pay off they find. In 2003 here we grieve financing the 2004 one for 15.1 million. We already pay it off. 2015 they show 150 1.3 [00:09:00] million, but only 84.5 is on the newborn. The rest is refinance on 2009 Bond. So we pay very much all of this except 2944 million for 2003 Bond. 1.2 million for 2009 Bond and 154 million for 2015 born so that whole tone outstanding Geo bond that we have is 184 for eight millionths. This is a complicated spreadsheet but only. Two column that I would like you to look at the first one is this one right here the average grow. So Piper jaffray Grundig report for [00:10:00] for us and they based on three percent Avid grow every year. They are some 3% but you can see here based on the history in the past. We have some deer grow up like the average growth rate 5% 6% 4% 5% and only two years three years at 2% So the grow in Grace a much higher than the. Projection that investment company apply it here. And then the second is our goal is to keep all of our actual Bond rates below $3. So here this column show you that. We have $2 and sits and $2 67 and 70 Asian and then down here if we continue to go out we have room to grow but we will stay below $3. This is a graph that is easier to see so [00:11:00] this dollar here on the vertical one with $1. $1. $2 $3. And then on the bottom horizontal, here's our the gears. So the freight one visitor actor bond rate that own daddy finish in the past. The blue bars is a 2000 bond rate that you know that you can see here that way below $2. And then we asked 2015 born honest. So even though we have 2003 Bond and 2015 Bond. We still keep our rice below $3. So this graph say mainly just focus on Our intention to get the boundaries below $3. So is the difference between the top of the bar? In. [00:12:00] 2019 and three Arbonne capacity. yes, so and here like in 2003 the capacity Bond rates right here in the blue bar is under $2, like $1 60 or so and then we have. My pension or 20 sent here for born 2009 and then from here all the way here does it? All right that we have 4 mm 2016 Barn. So you can see this kind of stair-step approach as we pay off parts of the bond that we have it opens up space. That we have available to us to go out and renew a bond. So your board will number four you're thinking about long range planning and financial [00:13:00] planning one of the options available to you as a board. If you're looking for additional capital for capital projects is another Bond and so you'd be asking yourselves. Do we have the capacity to go to out to the public? And issue another Bond and still stay below $3. If you want to do it as a renewal, which is a great appeal to this community that we won't increase above $3 per thousand. So then it's not a new bond is just a renewal of an existing bond that's already in everybody's taxes. So you can see as we pay off. There's margin there and its use will show you that Piper jaffray can do some samples for you. Some samples for us around our bonding capacity. That's what you have neck strength. This is a capacity that our spooned it can grow out. So the room Marcus as a fiscal year 2018. [00:14:00] We have ten point nine billion. And this one based on the Oregon State rough territory. It's an hour. With the rise of seven point nine five percent so that mean seven point nine five percent of 10.9 billions. So our capacity is 870 1.9 million, but since we have the outstanding death that we obligated to pay back specially 184 for 8 million. So we subtract that are sending from the capacity that we have. So the final capacity that we have as of now see. 687 million. So I mean if we can go the whole capacity that we have. We probably don't have that great of need. So this is one of the assemble that hypertrophy training for us. [00:15:00] Assume we go out for a hundred thirty million Bond over 20 years if we go out in. Snipe in 1920 19 then here is our room right here. So we have like 18 Cent. To pay to to to meet the right of $3, right the right here. So we have 18 sent here if we go out for born in 19. 2019 and 2020 and then if we go out for a bond in. 22 21 20 22, then we have more capacity here. We have like 36 Cents or so. If we go if we wait and we have more flavor to here. So this steps this first step is assume we go out to born every five or six years. That's it a past [00:16:00] practice that out it would help. So every six year we go for another Bond. So right here, let's say if we go out for born on 29th in here, then that 2019 is election and then we sell in 2020 and then five year after so after five year here, then we can go out for now the bone so this e we have like 99 Cents right here. The you could go out in 2019 get a bond approval. But when we sell those bonds is what we have you just have to think of the timing of those because we're pretty close to the top still in a couple years but likely not shovel-ready next year anyway for anything or the following year so you can still get approval for the bonds and then you're always thinking about when you sell those. When the projects would come ready, you know shovel ready and ready to [00:17:00] invest. So I want to go back to your financial report currently. Our debt service is at 16% Now would if we went out for bond with that increase our debt service percentage? Yes. And is there a rate at which our debt service is? Not feasible or not recommended or Works to the detriment of the district and I think that long at we say under the capacity that we have. There is no limit to no sender. Because there's organizational culture gives us the percentage with a 7.9 five percent. So at large we stay within that range. In here, if we go for 20 years, you can see that it will take place or the way to 2041 [00:18:00] and then our rage Iraq or the way to almost no one dollar and fifty cent down here. Let's see another example if we go for also 20-year, but a hundred and fifty million. Sad to say I'm but then that if one is over here, they say more than 150. That's all I have on Gio Bond if you if we drop that rate 4002 significantly. Then when you go back out for a bond, it's real it's harder to help folks understand this a renewal because it looks like an increase. So right now we're really close to that three dollars that's been the strategy of the district for years is to go for smaller incremental bonds and stay close to $3 then maximize out for you know, you could maximize out but not be able to go to the [00:19:00] public. For 20 years or 15 years for something because you stayed too close or if you drop too low then the then you're talking to the public about trying to get it back up to three dollars, which will be an increase rather than a renewal. There are some districts that put quite a bit on a bond and they will be able to go to their public for another 20 years there Max. And that those lines are actually solid a lot further out than this stair step idea. But the philosophy of the district has been in about seven eight years in a growing District. You're about ready to think about technology again or building upgrades or maybe even another school or in addition or Remodel and do you have Bond capacity to be able to do that or have you maximized out? Those been very forward-thinking. Strategy on the part of boards over the years. [00:20:00] I had a question that goes back to the. financial report, but it also relates to bond capacity because one of the risk drivers for municipal Bond Frameworks is the tax base and it's that the Deport Department of Education page regarding warrants. Which was posted on October 24th shows that our war shows what our weren't were be for 2018. What our estimate is 4:20 1819 and it's based on the actual history and information from assessors and they show 35.8 35 million eight hundred thousand five hundred and property tax revenue. So I was wondering rather than estimating. Coming up with our own estimate, you know, basically guesswork. Why don't we use it the Department [00:21:00] of Education estimate, which is again, it's based on history. They pacify million. Is that based on the adopted budget? Based on the year today protection. See, it's the Department of Education estimate for property tax assessment for property tax revenue. So I was just wondering why we're coming up with our own estimate, which is 97 percent of the table for us when we already have we already know what department of Ed says it's going to be so, why do we. Well because based on the last three year history. So I see the actual Revenue that we receive from the local graph Anew on the property tax and between [00:22:00] 90 97 to 99 percent that we collect money from local Governor. So that says I find it more accurate for me to you the actual number that we have from our book than based on the audience. That's what they're going to me. That's what we're going to get from them. So, but thank you. Hey. Good evening. I'm going to that's loud. To do a real quick review of our third quarter report. This is from the end of early beginning of July through the end of September, of course were down that path just a little ways just in program summary. Our two new schools are in full closeout. Through four shows some money that's still left on them. [00:23:00] But what I can tell you is over the last couple of weeks. We've paid out entirely on both of those schools. 92% of the current funding has been committed 90% of current funding has been spent. So we're at the ending part of this Bond over six point two five million dollars was out this quarter. Of course, we had some of the larger projects that would have done that. We did some a lot of secure building in trees that were completed West Linn High School Bolton Beckman. Disregard emergency radio system was deployed. They were camera installations throughout the district all of the summer projects that we had moving. We're ready for school when we started. And the team is launching design and permits on a few other projects. I'll quickly cover those of the end. This is just a graph that [00:24:00] helps us really understand. It's a repeat of the graph. We use every quarter We Shrunk it towards the end just to make the large make it look larger. So you can see the ending Financial summary. It talks about the paid to date at eighty nine point six million. We have outstanding value of contracts at one point five four million. Of course our total funding have at this time in this been static. Ninety eight point nine million for this particular Bond because of the premium that was received which matches our estimate to completion and in particular and uncommitted amount at the moment of 7.7. I just want to remind the board that uncommitted. Doesn't mean it's unbudgeted we have it budgeted. Our definition [00:25:00] of commitment is a true contract in place. This is a lot of fine print. It's one that we do repeat though in our bond report because it has a seven components where on the bond on the ballot title itself. You can see original funding some changes to the funding. The utilize the premium to balance the whole program. There's your current commitments paid to date with an estimate of completion that matches the funding amount in every case. This is Meridian Creek Middle School. There was objection in the beginning which is I'm going to say it blue line. Yes, and then that's what how it actually did pay out over time currently 37.4 million. If you'll recall our bond said [00:26:00] we'd spend 40 million so we did well on that school. Since that Primary School similar were at completion of that school. It had 24 million. We spent twenty four point two, so we're pretty close in that one also. Here's the technology Curtis meters it out. Very carefully. It's a 7 million dollar budget and he's spent 5 .7 I expect some more rollouts that he has. He took typically does am like every other year or so and he's doing well on that one. your Safety and Security we had kind of a. Seed amount to start with we weren't learned a lot as we design schools and initiatives came forward. We increased it to 2 million and you can see we've spent one point seven so far. This required [00:27:00] improvements that category was increased also because of the premium that was received and we've been leveraging it. Projects like Boldman Beckman are included in this and we did add to those projects so that we could be more and fully complete in those schools to respond to all the things that they needed. Here's the projects that were done. We renovated bold primary school. I think some of you have seen which one of you guys got to go to Bolton. You did. Yeah, I think I was review saying it's very successful renovation. Also the back from Creek similar we did synthetic baseball turf at Wilsonville High School in West Linn. Hi, that work is complete. So all of our baseball fields are new now. They were lighting Replacements district-wide which included a lot of gyms and as basketball season starts, you're going to see the benefit [00:28:00] of that of everywhere and then we read we put a new turf field that would middle school with lights. Just some upcoming projects and I think this is typical of what you're going to see now. They're just they're smaller but important work across the district acoustic attenuation. You might think that's not a big deal, but it kind of gets to be a big deal and it's all about the learning environment. Energy efficient lighting LED lighting at West Linn High School in the pack. That was the first performing arts center at building was built in Old 405 the new LED technology we have now is way better in those lights are getting more out anyway, and then it will end up Primary School to give them performance lights in there Jim. We're continuing with some interior finishes at backman Creek. I think that's obvious. When we finish those come kind of some obvious start and stop [00:29:00] points that we need to kind of pull together. We'll be doing that. We're going to replace the track at ends of wood. We're going to do a lot of tennis court resurfacing. There's some presentation AV Audio Visual in the main. Stages at both Marine Creek and sunset we need to replace the walk-in freezer Stafford AP Creek has some old movable walls in classrooms that have never moved and aren't successful for sound we're going to build real walls in those cases. We only have two schools left in the district without generators emergency electrical generators Stafford and Siro Park and we're going to put those in now. Rustling Matt replacement at Athey Creek and then there's various HP AC heating ventilation projects around the district and then Curtis will continue with technology equipment [00:30:00] infrastructure. And upgrades any questions on that. Sorry that was fast. I have a couple questions. I know that you haven't had much time to look at the board advisory committee recommendations. Okay, so I want to ask any questions on that. Why do we have money left over from the 2009 construction bond that we haven't spent? I think there's a little bit right? And we are we have used it a little bit and we'll do a little more on projects at West Linn High School that were eligible under that Bond. Okay? That's it. Good. [00:31:00] We go. Gravel conversation about building capacity. This has been one that's been going for quite some time. We spent a lot of time with our long range planning committee talking about various methodologies. That might be used. We've came back to our board. They will think we're leaning towards using a square footage methodology and I think our board agreed we have dull Olson weeks Architects helping us with this and an update to our long-range plan. And so we fully engage them on this one. I just wanted to use this slide. There [00:32:00] was a lot of talk about what you call this. And the long range planning committee kind of wanted to lean towards this term learningspace capacity. And this was a quote from the summary report. I believe that was in your board packet. It was I think pretty informative about the process they went through the. Criteria, they looked at I think it was a really good descriptor of the work that had been done. But this was the definition. That's that came to my mind the learning space Capacity Analysis is a planning tool that helps the district compare current enrollment to projected growth and the available capacity of its facilities. And in reaching that learning space capacity capacity only areas used for [00:33:00] teaching and learning were considered so we didn't. Consider administrative offices or Commons or size of a boiler room truly the learning space and teaching and learning spaces were used. It is based on a square feet per student ratio. At the primary level is based on homeroom. We all know how primary schools work have a homeroom if they go to music their homeroom sits empty. They come back out of every primary school. We held one room aside for preschool. And we have one room aside as a resource firm for our special students to provide Apple out space for activities. That might be helpful for their program. it does accommodate a [00:34:00] schedules and special use spaces of middle and high which is. Because of their schedules in the use of the classroom spaces that they have it recognizes different programs that are offered that would include different size spaces for the particular activity that they're using and then recognizes preferred class sizes. At the end of the day our primary schools calculate out at 37 point 5 square feet per student middle schools are 40.6 high schools 46.2. I think that intuitively makes sense as kids get bigger. Their activities are larger a good example is a science classroom and ours or pretty big. But they house enough space for both lab equipment and classroom instruction that sort of thing. [00:35:00] This is an interesting chart. I'm going to focus on the building capacity column. I think it tells you a lot of other stuff that we will be looking at in the very near future as we talked about the demographic data, but it does give you a little view into the Future these numbers do represent. You'll recall flow analytics came in. We had a work study session with them. They're using the 2017 September numbers. We just received the 2018 enrollment numbers this reflects those so if you went back to that one, they would quite match. There's a little difference. You can see that third column over is the building capacity for each of the buildings. This chart recognizes primary at the top. I don't know what color that is. But there's [00:36:00] Wilsonville is segregated from West Linn. It's useful to look at it. That way middle schools are the same the West Linn schools are separate from the Wilsonville and then the high schools are of course all together. You can see the current role moment from the 2018 September counts and then you can see how they're compared and what available capacity there is in that fourth column over. I asked them to project and use the 2022 number and the reason was because that's maybe not. Totally accurate but close to when we could actually produce permanent classrooms into the future and you'd want to see kind of where you were when a new permanent classroom might be built depending on board decisions. And then [00:37:00] of course the projected 10-year is on the chart with the results of pluses and minus out that far too. I can tell you that all the primary schools and all the middle schools went up a little bit in capacity high schools were moderately down and you can't really compare these two. The capacity Counts from before because almost all the schools change some we've added classrooms. We've remodeled in various places both high schools got extra space yet. It's a different space maker space that sort of thing that might be different than gen Ed classrooms. We had a classrooms of you know, Lowry and Trillium Bolton backman. And then how the buildings used them? [00:38:00] I can tell you that our capacity did benefit because of how special that is carried out in a full integrated programs throughout the district for we don't have lots of set aside classrooms for that and just the efficiency and use of each of the buildings. I think it turned out. In a positive way for us. It is a square foot model. You can maybe look online and find different models, but they're different for all kinds of different reasons. There is no National Standard, but for us, this is the one that that we've got and I have confidence in what we're seeing here. any questions. So the model that we approved last May was a growth square foot per student [00:39:00] and that included let's see this total square footage of the student based on this is from your report includes all struck tional and and non-instructional space divided by the number of students. So it sounds like. Maybe some of the assumptions were changed. I mean you went back through rather than instructional and non-instructional you went back through and maybe terminations right? We do you want I just. Yeah, go ahead. Yeah, we stayed with learning spaces all of our schools of course have most core facilities. And what we find is that they're different they're different and sometimes a very different is based on whatever the design model was at the time for any particular school has to do with the layout of the school. The needs of the school at the time for various [00:40:00] things gyms, or we count the gyms but like cafeteria some of our schools don't have cafeterias how to deal with that some of our primary schools. And this was kind of a big one some of our primary schools have. Porches other schools don't which would have skewed the numbers to the point that they wouldn't have been nearly as useful as they are. Now when we only consider learning spaces or teaching stations, it's something that was consistent across the entire district for work kids learn and we know that the core facilities in each of our buildings currently does support this level of population for each of our schools. Question, you said that the long range planning committee considered preferred class size academic programs and school they scheduled to arrive at capacity numbers. So I just [00:41:00] wondered what the basis for those for the preferred class size programs and. I'm instructional hours is I mean was did the long range planning committee make those determinations know those are numbers that we have generally kind of targeted for many many years and actually have been published. I think primaries and the 25 range and secondaries in the 28 range. And we backed into them to make sure that it worked for each of our classrooms and our experience in our district with all of our buildings is that at those class sizes? All of our classrooms are very adequate for that number of kids, even though they will fluctuate over time as more they don't all come in one grade level or the right grade level. Sometimes you might have more you might have less. What is an average as a kind of a learning space [00:42:00] capacity that you consider kind of district-wide? It does work out well for the comment around schedules. It's impossible to create a high school schedule where every space is a hundred percent used a hundred percent of the day. So there are multipliers that were used that are fairly common. I think for the industry based on how many. Right class periods per day. If you have seven six out of seven is like 83 percent or something like that. And that's pretty standard Norm. So we did we had to consider those things as we're talking especially about the secondary level. Good is when I thank you for this report. And for the detail, it was very informative for me a little scary, but you've called me a bit and your presentation tonight. So I think it was really helpful [00:43:00] for thank you. It's one step in many that the board will be thinking and considering over the next month. Thank you in closing. I forgot to say this earlier to the board regarding the school visits and when I encourage each of the board members to take what you've learned from your experience and share it with our community members who inquire about the quality of our schools and you could provide specific examples of what you witnessed. Um, I also failed to allow dr. Ludwig to provide a response to miss Kiker regarding classroom behavior and concerns, but we'll just address that later. It's um, that was just my over say apologize for that. We're ending our [00:44:00] meeting.