“Investing in our Children--

Protecting our Investment”

Q&A• How did the District decide what needed to be done?

– Strategic Planning– Two-year facilities study– Assessment by architects and construction manager– Intensive study by Facilities Committee & Board

of Education• Did the public have much input into the process?

– Strategic Planning– Facilities Committee– Selection of architect and construction manager– 5 community input sessions

Karen Ball

Jan Benson

Libby Benton

Bill Briggs

Bill Carney

Steve Gelenger

Dan Haire

Michael Hartman

John Janssen

Fred Kline

Jeff Knaggs

Chris Lee

Leisa Mayette

Fred Meinberg

Janet Norling

Andy Phythian

Tracey Robinson

Bob Sterk

Rita Weaver

George Guzzio

Andy Linell

Tom Neville

Francis Renou

John Schwartz

Eileen Steadman

Karen Vecchi

Rita Walker

Bill White

Rick Wood

Tom Hickey*

Steve Smith*

Facilities Committee 2001-02

Community MembersSchool DistrictRepresentatives

• Total Cost of all Projects: $99.4 million• Average Yearly Cost to Taxpayer: 2.64 mils

– For $140,000 home: $185/year; .50/day• For Purposes of:

– Constructing, furnishing and equipping four new elementary school buildings;– Remodeling, equipping, furnishing, reequipping and refurnishing existing School

District buildings;– Constructing, furnishing and equipping additions to existing School District

buildings; – Acquiring and installing technology in and connecting School District buildings;– Acquiring school buses; and– Improving and developing sites, including playgrounds, playfields, and outdoor

athletic facilities and structures, in the School District

• May not be used for Salaries or Other Operational Expenses

Bond Proposal

New Elementary School Projects:• Grant, Northwood, Parker, Whittier

– 54,000-square-foot elementary school buildings (Grant, Northwood, Whittier), with adjoining 19,000 square foot early elementary wing at Grant (450 students each)

– 49,000-square-foot elementary school building with adjoining 19,000-square-foot early elementary wing (Parker) (350 students)

– Existing building demolition– Site work -

• Earthwork • Paving • Fencing• Utilities • Lighting • Playground, playfield

Elementary School Renovation Projects:• Oak Ridge, Twain, Upton

– Site work• Paving • Sidewalks •Lighting• Screen walls • Playground equipment• Fencing • Landscaping

– Exterior• New roof • Fascias • Gutters, down spouts • Copings • Entrance doors • Landscaping • Selected windows and associated masonry

– Interior• Replace corridor doors • Carpet• Terrazzo/ceramic tile and vinyl tile

Elementary School Renovation Projects:• Oak Ridge, Twain, Upton (continued)

– Life safety and barrier free improvements– Replacement of kitchen equipment– Mechanical

• Boiler • Fans• Plumbing, piping and fixtures • Pumps• Air conditioning installation

– Electrical• Power upgrade • Power & data raceways/outlets

• Emergency lighting • PA system• Fire alarm system• Selected lighting

Elementary School Renovation Projects:• Oak Ridge, Twain, Upton (continued)

– Four classroom addition with associated site work (Upton only)

– Multi-purpose rooms (Twain and Upton only)– Science labs

• Total Cost of Elementary/Early Childhood Projects: $54.3 million

Middle School Renovation Projects:• Addams and Keller (including Lockman wing)

– Cafeteria addition– Site work

• Paving • Storm water detention and screen wall

– Exterior• New roof • Soffits• Copings • Exterior doors• Threshold, sill and window replacement, and associated masonry

– Interior• Replacement of corridor doors • Ceilings• Carpet, terrazzo/ceramic and vinyl tile

Middle School Renovation Projects:• Addams and Keller (including Lockman wing) (continued)

– Life safety and barrier free improvements– Replacement equipment – kitchen equipment,

tackboard/chalkboard (Addams only) – Mechanical

• Replace boilers • Fans• Water service and plumbing piping • Water heater• Air conditioning installation

– Electrical• Power upgrade • Power panels• Power & data raceways/outlets • PA system• Replace emergency lighting • Fire alarm system

Middle School Renovation Projects:• Addams and Keller (including Lockman wing) (continued)

– Replace selected lockers, toilet accessories and equipment (Keller only)

– Remove lockers from “Keller West”; add “locker pod” (Keller only)

• Total Cost of Middle School Projects: $14.7 million

High School Renovation Projects:• Dondero and Kimball

– Site work• Paving • Fencing• Lighting • Concrete walks/pads and benches• Concession stands/restrooms/running water• Exterior• New roof • Down spouts • Soffits• Copings • Fascias • Canopies, sills• Exterior doors • Greenhouse (Dondero) • Selective window replacement and associated masonry• Selected bleacher replacement (Kimball)

High School Renovation Projects:• Dondero and Kimball (continued)

– Interior• Replace carpet • Walls• Terrazzo/ceramic and vinyl tile • Casework• Ceiling • Selective auditorium

remodeling

– Life safety and barrier free improvements– Replace selected kitchen equipment, lockers,

toilet equipment

High School Renovation Projects:• Dondero and Kimball (continued)

– Mechanical • Replace pneumatic controls • Boilers and piping• Pumps • Water service• Fans • Fans• Plumbing fixtures • Water heater • Pool dehumidification (Kimball) • Air conditioning installation• Remediate water infiltration (Dondero)

– Electrical• Power upgrade • PA system• Power & data raceways/outlets • Fire alarm system• Replace emergency lighting

• Total Cost of High School Projects: $25.2 million

Other Projects and Total Cost:• Churchill $3,800,000• Maintenance/Transportation Center

Renovations $388,437• Asbestos Abatement $1,000,000

• Cost of Total Project: $99,440,989• Cost to Taxpayer: 2.64 mils

Technology Infrastructure• Install Fiber Optic WAN (Wide Area Network)• Replace phone systems• Replace building and district file servers• Replace obsolete TV monitors• Upgrade/replace LAN wiring• Upgrade/replace WAN & LAN electronics• Install video conferencing, broadcasting, and video-on-

demand capabilities• Technology Budget: $2.2 million (from investment interest)

Why this Elementary Plan?• Central location of schools south of 12 Mile• Replaces oldest (80 year old) buildings with smallest

classrooms• Maintains use of the newest elementary schools• Conforms to public input sessions

– A/C– Multipurpose rooms– Science labs

Why this Elementary Plan? (continued)• Responds to community concerns

– Schools south of 11 Mile Road– Schools west of Woodward

• Uses existing buildings with largest classrooms• Begins addressing long-term vision: Best meets both

present and future instructional needs

Q&A

How do elementary renovation costs compare with building new?

• Elementary school renovation, A/C, multipurpose rooms, science labs, comparable size and numbers of classrooms: $42,731,923

• Elementary schools new and renovated: $49,827,548 (without early childhood wings)

How much of 1990 Bond Issue would be “unused”?– By completion of all projects, only 2.2% of investment

will remain in buildings unused as schools.

Q&A• What instructional advantages will there be?

– Larger classrooms to accommodate cooperative learning groups, centers for reading, math, and technology

– Space in classrooms to accommodate support staff working with small groups of children

– Space for storage because there are many more materials used in instruction than in the past

– Science lab room for hands-on-science instruction– New wiring for efficient, effective technology

Q&A• What instructional advantages will there be?

– Reading Recovery space– Larger, dedicated Art and Performing Arts rooms– Additional multipurpose room for performances, rehearsals,

assemblies, open gym during lunch (inclement weather), etc.– Improved cooling and heating. With the school year getting longer and

summer school required by the State, air conditioning is very important for learning. Students are used to air conditioning and don’t learn as much when it is very warm. Also--more organized summer centers:

• Summer Childcare• K-12 Summer School• Summer Camps (Boys and Girls Club, YMCA_

Q&A• What instructional advantages will there be?

– Wider choice of teachers – Increased choices of school’s organization– Larger pool of friends for each child

Why this Middle School and High School Plan?• Addresses most serious infrastructure needs• Addresses small cafeterias at Keller and Addams• Removes lockers and replaces with locker pods to

widen hallways• Allows reassessment of middle and high schools in

2012, when current 3.6 debt mils drop off, and current enrollments will be known

Why spend money on Churchill?• Many students educated there (400 students per day)

– Opportunity Center– Operation Graduation– Adult ESL– Continuing Education

• Board Offices move there, thus saving money by closing current Board Office

Why Early Childhood Wings?• Designed specifically for small children• More accessible to families in all parts of district• Saves money by closing Lincoln• Specific appointments - height of drinking fountains and

toilets, lavatories in classrooms, gross motor room • Allows better integration of pre-school and elementary

instructional programs

How do we compare with surrounding districts?

FerndaleHazel ParkClawsonMadisonRoyal Oak Proposed

Oak ParkBerkleyRoyal Oak Existing

Lamphere

200220022002200220022002200220022002

7.0003.0006.9896.6003.6005.3004.3703.6003.400

—4.00——

2.640————

7.0007.0006.9896.6006.240*5.3004.3703.6003.400

District Year Levy

RecentlyVoter

Approvedor Proposed

Total DebtMillage Rate

Existing Debt Retirement Millage Rate

*Proposed millage rate with successful bond issue election is projected to be 6.25 mills.

NEW DEBT ANNUAL Net of Federal Tax DeductCASH TAXABLE MILLAGE COST TO (For Itemizers)

VALUE VALUE RATE TAXPAYER * @15% @27%80,000$ 40,000$ 2.64 105.60$ 89.76$ 77.09$

100,000 50,000 2.64 132.00 112.20$ 96.36$ 120,000 60,000 2.64 158.40 134.64$ 115.63$ 140,000 70,000 2.64 184.80 157.08$ 134.90$ 160,000 80,000 2.64 211.20 179.52$ 154.18$ 180,000 90,000 2.64 237.60 201.96$ 173.45$ 200,000 100,000 2.64 264.00 224.40$ 192.72$ 220,000 110,000 2.64 290.40 246.84$ 211.99$ 240,000 120,000 2.64 316.80 269.28$ 231.26$ 260,000 130,000 2.64 343.20 291.72$ 250.54$ 280,000 140,000 2.64 369.60 314.16$ 269.81$ 300,000 150,000 2.64 396.00 336.60$ 289.08$

* Net cost to taxpayer may be reduced further through the Michigan Homestead Property Tax Credit, if eligible.

HOME VALUATION

What will this cost me?

MICHIGAN HOMESTEAD PROPERTY TAX CREDIT April 29, 2002

NET COST OF BOND ISSUE AFTER CREDITSENIOR CITIZEN

HOUSEHOLDINCOME 40,000$ 50,000$ 60,000$ 70,000$ 80,000$ 90,000$ 100,000$

20,000$ 0 0 158 185 211 238 264

30,000$ 0 0 13 185 211 238 264

40,000$ 0 0 0 40 211 238 264

50,000$ 106 0 0 0 67 238 264

60,000$ 106 132 0 0 0 95 264

70,000$ 106 132 158 0 0 0 122

TAXABLE VALUATION

MICHIGAN HOMESTEAD PROPERTY TAX CREDIT April 29, 2002

NET COST OF BOND ISSUE AFTER CREDITNON SENIOR CITIZEN

HOUSEHOLDINCOME 40,000$ 50,000$ 60,000$ 70,000$ 80,000$ 90,000$ 100,000$

20,000$ 42 53 63 74 211 238 264

30,000$ 42 53 63 74 84 238 264

40,000$ 42 53 63 74 84 95 264

50,000$ 106 53 63 74 84 95 119

60,000$ 106 132 63 74 84 95 106

70,000$ 106 132 158 74 84 95 106

TAXABLE VALUATION

MICHIGAN HOMESTEAD PROPERTY TAX CREDITESTIMATED ANNUAL NET COST OF BOND ISSUE AFTER CREDITSENIOR CITIZEN - RENTER

HOUSEHOLDINCOME 300$ 350$ 400$ 450$ 500$

10,000$ 0 0 0 0 0

20,000$ 0 0 0 0 0

30,000$ 54 63 72 0 0

40,000$ 54 63 72 81 90

50,000$ 54 63 72 81 90

BOND ISSUE TAX WITHOUT CREDIT 54$ 63$ 72$ 81$ 90$

MONTHLY RENT

Construction Schedule

June 2002 - May 2003• Design new building• Create bid specifications

May 2003 - July 2004• Build Grant• Build Northwood• Renovate Oak Ridge, Twain, Upton• Begin middle school and high school renovations• Renovate Churchill and Maintenance/Transportation Center

Construction Schedule

June 2004 - May 2005• Rebuild Whittier

– Whittier students move to Longfellow or Oakland for one year

– Longfellow students south of 11 Mile join Oakland and Franklin south of 11 Mile at Grant

• Rebuild Parker

– Starr students begin at new schools

– Parker students attend Starr for one year

– Complete middle school renovation

– Continue high school renovation

Construction Schedule

June 2005 - May 2006• Complete high school renovation• New Parker opens• New Whittier opens

Q&A• What happens to school consolidation plan?

– Rescinded if election is successful.

• What happens if election is unsuccessful? – School consolidation plan will be implemented Fall 2003– School building renovation costs go unaddressed– Major infrastructure failures (boilers, roofs, HVAC) require expenditures that will threaten the

instructional budget– 21st Century instruction must “fit” into early 20th Century buildings: When do we begin

planning for our children’s futures?

Q&A• Will this affect property values?

– Many realtors believe that new schools will draw families to live in Royal Oak

– “New schools for the new millenium” may help houses sell faster

• Why build new schools instead of renovating?– Classrooms are too small in oldest schools to meet the needs

of current and future instruction– To remedy that problem, plus complete needed repairs, A/C,

multipurpose rooms, science lab - cost nearly equals new– Over time oldest schools would still need further

renovations

Home Loan Cost vs. Bond Issue Cost• Loan Term: 25 years, 9 months• Interest Rate Assumption

– Bond Issue 5.5%– Home Mortgage 7.0%

• Amounts Borrowed Assumption– Bond Issue $99,400,000– Home $140,000

• Comparative Results– Interest as a percent of amount borrowed

• Bond Issue 95.2%• Home 116%

– Total Cost--Interest and Principal• Bond Issue $194,000,000• Home $302,400

Q&A

Will we need all of these schools in the future?

• School Current 2006-07 Students/Building 2011-12 Students/Building

• Elementary

S of 12 Mile 848 596 298 516 258

• Elementary

N of 12 Mile 1740 1751 350 1701 340

• Elementary

Total 2588 2347 335 2217 317

• Middle School

Total 1455 1280 640 1159 580

• High School

Total 2216 2233 1117 1946 973

• Why not end “Schools of Choice,” close more schools, and reduce the cost of the bond issue?– Non-resident students help fund our instructional program. The cost savings realized by closing

schools cannot keep up with the revenue decrease caused by declining enrollment.

– An “elementary” example:

• Close 1 more school = about 300 non-resident students who cannot attend here

• 300 students = $2,225,000

• School closing savings = $304,000

• Teacher reductions (300 students /

25 students per class = 12 teachers @

$50,000 per teacher) = $600,000

• Deficit Remaining: $1,321,000The revenue from non-resident students allows us to maintain a superior educational program for all Royal

Oak students.

Q & A

How has “Schools of Choice” revenue helped Royal Oak kids?– Elementary class sizes decreased (six (6) students below contractual limits)

– Expanded elementary foreign language program

– Guided reading books to support elementary reading

instruction

– Added:

• High school graphic arts program

• High school technology classes (ITA, Cisco)

– Maintained all elements of our instructional services and programs

• Nearly 30% of “choice” students are former Royal Oak residents whose families moved to a neighboring community, but chose to keep the children in school here!

Q & A

INITIAL RESEARCH--HOW ARE NON-RESIDENT STUDENTS DOING?

• Discipline (as percent of total

enrollment):– Elementary (Parker)

• fewer non-resident students referred, and fewer are repeat offenders

– High School and Middle School • fewer non-resident students

referred, and fewer repeat offenders• however, of repeat offenders, a

greater percentage are non-residents

• Academic Performance– Middle School

• Non-resident students’ GPA is .12 lower than residents’

– High School• Non-resident students’ GPA is

.19 lower than residents’

Vote June 10, 2002

7:00 a.m. - 8:00 p.m.

Invest in our Children--Protect our InvestmentRevised 4/29/02