Beyond $175M

The Next Step in Financing the Capital Improvement

Plan

Objective

• Provide additional funding for CIP projects beyond the $175 M

• The Plan– Needs Assessment– Financial Feasibility– Financing Methods– Implementation Plan

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

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

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%

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

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

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

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

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

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

Other Funding Sources for Non-IFA

Transportation Center:And equipmentPlan: • $700,000 from fund balance • Land available –Quesada Property

Other Funding Sources for Non-IFA

Administrative Complex:

Plan: • $1,500,000 from fund balance • Need Land –possible old food

services

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

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

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