Loganville-Springfield Elementary School · 2018. 5. 30. · Loganville-Springfield Elementary School MONDAY, JUNE 11, 2018 7:00 p.m. LOGANVILLE-SPRINGFIELD ELEMENTARY SCHOOL CAFETERIA

DALLASTOWN AREA SCHOOL DISTRICT

700 NEW SCHOOL LANE

DALLASTOWN, PA 17313

PUBLIC HEARING

IN COMPLIANCE WITH

ACT 34

For the Renovations and Additions

Of the

Loganville-Springfield Elementary School

MONDAY, JUNE 11, 2018

7:00 p.m.

LOGANVILLE-SPRINGFIELD ELEMENTARY SCHOOL

CAFETERIA

The material contained in this packet is provided for the express purpose of informing all citizens

of the District for the Loganville-Springfield Elementary School. These materials are designed

to explain the entire planning and review process undertaken by the Dallastown Area School

District Board of Directors in arriving at the proposed projects.

Dallastown Area School District

700 New School Lane

Dallastown, PA 17313

BOARD OF SCHOOL DIRECTORS Ronald J. Blevins, President

John E. Hartman, Vice-President Steven C. Bentzel Sue A. Heistand Michael Jones

William A. Lytle Michael D. Noll, Jr. Anthony J. Pantano

Hilary S. Trout

ADMINISTRATIVE STAFF Dr. Ronald E. Dyer, Ed.D., Superintendent

Dr. Joshua Doll, Ed.D., Assistant Superintendent Kurt Rohrbaugh, Director of Business Operations

Lisa M. Kirby, Executive & Board Secretary; Open Records Officer Kelly Kessler, Principal, Loganville-Springfield Elementary School

SOLICITOR Fox Rothschild LLP

Jeffrey T. Sultanik, Esquire Brian Subers, Esquire

David H. Comer, Esquire

BOND UNDERWRITER RBC Capital Markets Kenneth A. Phillips

Lauren E. Stadel

ARCHITECTURAL FIRM RLPS Architects, LLP

Christopher S. Linkey, AIA Andrew R. Blaydon, AIA

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TABLE OF CONTENTS AND AGENDA

Opening Remarks: Dr. Ronald E. Dyer, Ed.D., Superintendent of Schools Ronald J. Blevins, President, Board of School Directors

Page Section I Legal Documents

Resolution 7 Certificate 10 Exhibit “A” – Notice of Public Hearing in Accordance with ACT 34 11

Section II Introduction of Project Background Information 15 Options Considered 18

Section III Architectural Design Summary of District Buildings 21 Architectural Narrative 22 Proposed Renderings 23 Proposed Site Plan 24 Proposed Floor Plan 25 Project Accounting Based on Estimates 26

Section IV Analysis of Financing Alternatives Analysis of Financing Alternatives – Direct Cost Study 33 Indirect Project Costs 37

Questions and Comments from Public

Any and all interested persons attending the hearing will be given reasonable opportunity to be

heard. Sign-in sheets will be available in the cafeteria of the Loganville-Springfield Elementary

School at the time of the hearing. The Board of School Directors will call upon individuals

signing such sign-in sheets in the order in which they appear. Commentary will be limited to

three (3) minutes per interested person. No person shall be allowed to speak a second time until

all parties commenting the first time have been heard. The Board of School Directors will allow

public comment and/or questioning until the conclusion of the hearing. Residents and employees

of the School District were given the opportunity to submit written testimony regarding the

Project until 12:00 p.m. on Monday, June 11, 2018. Such written testimony was required to be

mailed via first-class U.S. Mail or hand-delivered (electronic mail did not constitute acceptable

delivery) to: Ronald E. Dyer, Ed.D., Superintendent, Dallastown Area School District, 700 New

School Lane, Dallastown, PA 17313. Following the hearing, written comments regarding the

Project will also be received by the Superintendent at the School District’s administrative offices

until 4:00 p.m., Wednesday, July 11, 2018. Such written comments should be mailed via first-

class U.S. mail or hand-delivered (electronic mail shall not be acceptable delivery) at the

address noted above.

Adjournment

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SECTION I

LEGAL DOCUMENTS

DALLASTOWN AREA SCHOOL DISTRICT York County, Pennsylvania

Renovations and Additions to Loganville-Springfield Elementary School

RESOLUTION NO. 2018-02

WHEREAS, the Board of School Directors of this School District (''Board of School

Directors") has determined that a renovated elementary school facility with additions to the

elementary school facility is required for the use of the pupils of this School District and has

authorized preliminary steps to be taken with regard to this school project, consisting of

planning, designing, constructing, and furnishing a renovated Loganville-Springfield Elementary

School and additions to the Loganville-Springfield Elementary School ("Elementary School

Project"); and

WHEREAS, the Pennsylvania Public School Code of 1949, as amended (the "School

Code"), including amendments made pursuant to Act 34 of the Session of 1973 of the General

Assembly (''Act 34"), requires, inter alia, that a public hearing be held prior to the construction,

the entering into a contract to construct, or the entering into a contract to lease a new school

building or a substantial addition to an existing school building; and

WHEREAS, in accordance with the requirements of Act 34 and the School Code, a

public hearing is required to be held in conjunction with the Elementary School Project; and

WHEREAS, the School Code requires that a notice of such public hearing under Act 34

be advertised at least twenty (20) days prior to such hearing and that certain information be made

available to persons in attendance at such hearing and that certain financial information be

available for inspection by interested citizens during the period of such advertisement; and

WHEREAS, the Board of School Directors desires to authorize its Solicitor,

Superintendent, Director of Business Operations, Architect, Financial Consultant, and others to

take certain actions with respect to the Elementary School Project; and

WHEREAS, the School District wishes to take certain action with respect to the

Elementary School Project and to comply with Act 34 and the School Code.

NOW, THEREFORE, BE IT RESOLVED, by the Board of School Directors of the

Dallastown Area School District, York County, Pennsylvania, as follows:

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I . The School District hereby authorizes a public hearing to be held in accordance

with and in compliance with the requirements of Act 34 and the School Code, in the cafeteria of

the Loganville-Springfield Elementary School, I 69 N. Main Street, York, PA 17403, on Monday,

June 11, 2018, beginning at 7:00 p.m., prevailing time.

2. The Secretary of the Board of School Directors is hereby authorized and directed

to advertise the Notice of Public Hearing set forth in Exhibit "A," which is attached hereto and

made a part hereof in accordance with the requirements hereof and of Act 34 and the School

Code.

3. This School District hereby authorizes the maximum project cost and maximum

building construction cost for the Elementary School Project as follows:

Maximum Project Cost

$24,9 l 0,021.00

Maximum Building Construction Cost

$8,395,851.00

4. The Board of School Directors hereby authorizes and directs that project

descriptions of the Elementary School Project be prepared and hereby directs the Superintendent

of the School District to make copies of such descriptions of the Elementary School Project

available to interested citizens requesting the same at the place and during the reasonable hours

stated in the Notice of Public Hearing, after approval thereof by the Solicitor of this School

District, and also to make such project descriptions available to the public media as required by

Act 34, the School Code, and the regulations of the Pennsylvania Department of Education.

5. This School District hereby authorizes Jeffrey T. Sultanik, Esquire, and the law

firm of Fox Rothschild LLP, Blue Bell, Pennsylvania, Solicitor for the School District, to

perform such acts on behalf of this School District as may be necessary in connection with the

Elementary School Project.

6. This School District hereby authorizes the architectural firm known as RLPS

Architects, Project Architects for the designated Elementary School Project, to perform such acts

on behalf of the School District as may be necessary in connection with the Elementary School

Project.

7. This School District hereby authorizes the firm of RBC Capital Markets, LLC as

financial consultant, to perform such acts on behalf of the School District as may be necessary in

conjunction with the Elementary School Project.

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8. This School District further authorizes the engagement of a court stenographer to

transcribe the Act 34 proceedings, consistent with the intent of this Resolution.

9. This School District further authorizes its Orficers, Administration, Solicitor.

Financial Consultant, and Project Architect to take any and all necessary actions in order to

effectuate the intent and purpose of this Resolution.

DULY ADOPTED, by the Board of School Directors of this School District. this 17th

day of May, 2018.

Attest � rn. � Lisa M. Kirby� Board Secretary

,

DALLASTOWN /\REA SCHOOL DISTRICT York County, Pennsylvania

By:

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CERTIF ICATE

I, undersigned, Secretary of the Board or School Directors of the Dallastown Area School District, York County, Pennsylvania (the ··School District"), hereby certify: that the foregoing is a true and con-ect copy of the Resolution, which was duly adopted by aflirmative vote or a majority or all members or the Board or School Directors of the School District duly convened and held according to law on May 17, 2018 at which meeting a quorum was present; that said Resolution has been duly recorded in the minutes of the Board of School Directors of the School District: and that said Resolution is in full force and effect. without amendment, alteration. or repeal as or the date of this Certificate.

I further certify that the Board of School Directors of the School District met the advance notice requirements of the Sunshine Act, /\ct No. 1998-93 of the General /\ssembly of the Commonwealth of Pennsylvania, approved October 15, 1998, by advertising said meeting and posting prominently a notice of said meeting at the principal office of the School District or at the public building in which said meeting was held. all in accordance with such Act.

IN WITNESS WHEREOF, I set my hand and affix the official seal of the School District. this 17h clay of May, 2018.

(SEAL)

Lisa.Kirby u Board Secretary

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EXHIBIT "A"

BOARD OF SCHOOL DIRECTORS OF THE


NOTICE OF PUBLIC HEARING IN ACCORDANCE WITH ACT 34

Renovations and Additions to Loganville-Springfield Elementary School

TO: ALL RESIDENTS OF THE DALLASTOWN AREA SCHOOL DISTRICT

Please take notice that a public hearing will be held in the cafeteria of the LoganvilleSpringfield Elementary School, 169 N. Main Street, York, PA 17403, on Monday, June 11, 2018, beginning at 7:00 p.m., prevailing time, relating to the planning, designing, acquiring, construction, and furnishing of a renovated Loganville-Springfield Elementary School, York County, Pennsylvania and additions to the Loganville-Springfield Elementary School (herein "Elementary School Project") in accordance with Act 34 of the Pennsylvania Legislature.

A description of the Elementary School Project, including the facts with respect to the educational, physical, administrative, budgetary, and fiscal matters relating to the Elementary School Project, and certain other information, will be presented and will be available for consideration at the public hearing on Monday, June 11, 2018, and from Monday, May 21, 2018 until the public hearing during regular business hours of the School District at the offices of the Superintendent located in the School District's administrative offices at 700 New School Lane, Dallastown, PA 17313. Regular business hours of the School District's administrative offices are from 7:30 a.m. to 4:30 p.m. Monday through Friday until and including June 8, 2018 and from 8:00 a.m. to 4:00 p.m. Monday through Thursday from Monday, June 11, 2018 to and including Wednesday, July 11, 2018 or by appointment made by calling the School District at 717-244-4021.

The Board of School Directors of the School District ("Board") by Resolution duly adopted has authorized the following:

Maximum Project Cost $24,910,021.00

Maximum Building Construction Cost $8,395,851.00

This public hearing is being held with respect to the Elementary School Project pursuant to the requirements of the Pennsylvania Public School Code of 1949, approved March I 0, 1949, as amended and supplemented, including amendments made pursuant to Act 34 of the Session of 1973 of the General Assembly.

Residents and employees of the School District may submit written testimony regarding the Elementary School Project no later than 12:00 p.m. on Monday, June 11, 2018. Such written testimony should be mailed via first-class U.S. Mail or hand-delivered (electronic mail shall not constitute acceptable delivery) to:

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Ronald E. Dyer, Ed.D., Superintendent Dallastown Area School District 700 New School Lane Dallastown, PA 17313.

The written testimony shall include the name and address of the person submitting the request, idenli fication of the sender as a School District resident or employee, and a description of the support or objection to the Elementary School Project. To be of most benefit, a statement of objection should be followed by a viable alternative solution.

Any and all interested persons may further appear at and attend the public hearing and

will be given reasonable opportunity lo be heard at such public hearing. Sign-in sheets will be available in the cafeteria of the Loganville-Springfield Elementary School at the time of the

hearing. The Board will call upon individuals signing such sign-in sheets in the order in which they appear. Commentary will be limited to three (3) minutes per interested person. No person shall be allowed to speak a second time until all parties commenting the first time have been heard. The Board will allow public comment and/or questioning until the conclusion of the hearing.

Written comments regarding the Elementary School Project will also be received by the Superintendent at the School District·s administrative offices until 4:00 p.m .. Wednesday, July

11. 2018. Such wrinen comments should be mailed via first-class U.S. mail or hand-delivered(electronic mail shall not be acceptable delivery) at the address noted above.

BY THE ORDER OF THE BOARD OF SCHOOL DIRECTORS

DALLASTOWN ARE/\ SCHOOL DISTRICT York County, Pennsylvania

Lisa M. Kirby Secretary of the Board or School

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SECTION II

INTRODUCTION OF PROJECT

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BACKGROUND INFORMATON

Introduction

Beginning in the 2014-15 school year, the Board of School Directors, Superintendent, senior staff members and the District's Leadership Team discussed the condition and future needs for the Loganville-Springfield Elementary School. The discussions were part of the District's on-going examination and analysis of all buildings and grounds in the District. The Bond Funds, which are included in the current tax rate and annual debt service amounts, were discussed and considered for use in a potential project. The Board of School Directors evaluated two options, including upgrading (renovations/additions) or building new on the same site, that would meet the District's long-range educations and facilities goals.

Educational Specifications were developed and applied to both upgrade and new build approaches with a 100,000 square foot building program. The process included on-site visits, physical condition analysis, evaluation of the existing school and its program capacity. The District's educational delivery standards and other required components of Pennsylvania's Planning and Construction Workbook (PlanCon) A and B process were reviewed. The PlanCon requirements are necessary for possible reimbursement of a percentage of construction costs to the District.

Planning Processes

At its September 2015 Team of 10 Workshop, the Dallastown Board of School Directors authorized the formation of a Loganville-Springfield Elementary School Facility Study Committee. The Superintendent, Dr. Ronald Dyer, and Board Vice President, Ronald Blevins, led the committee of community representatives, teachers, administrators, the principal and Loganville-Springfield parents.

The Committee met eleven (11) times throughout the 2015-16 school year. During initial meetings, the Committee considered demographic data, current floor plans and site maps (which included an addition in the 1970's), programmatic usage, deficiencies, instructional and curricular trends, articles on creative methods and quality elements in new elementary school design and pre- and post-visitation perceptions. Members also toured the Intermediate School.

Establishment of Project Need

At its November 18, 2015 meeting, the Committee created a list of building 'deficiencies' and weighted those areas receiving scores of 10 or more which included:

• Proximity of motel (traffic and safety concerns)• Office area to include office, health suite and conference rooms• Open classroom design (need defined learning spaces)• Layout and floor plan• Classrooms (need to increase number)• No maker space classrooms• Inadequate classroom storage

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• Lack of grade level common areas• Front entrance (safety and flow)• Technology (need to increase infrastructure)• Playground too close to parking lot• Age of plumbing• Bathrooms (fixtures need upgraded)• Windows (need for more natural light, upgraded)• Roof leaks• Lack of a sprinkler system

During December, 2015 and January, 2016, site visitation committees were selected to tour recently built or renovated elementary schools in York County, Lancaster County and Harford County, MD. Those schools were: Wallace Elementary, Paradise Elementary, Hambright Elementary, Shrewsbury Elementary, Friendship Elementary, Clearview Elementary, Baresville Elementary, Yorkshire Elementary, Valley View Elementary and Ebb Valley Elementary. Features of these schools – both pro and con – were presented by each site visitation committee in February.

Also, in February 2016, after a selection process involving three firms, Site Design Concepts (SDC) were retained to perform a Site Feasibility Review to consider site features and limitations for three (3) options: renovation and expansion, demolition of a portion with re-construction and an expansion, and a new school. The consultants also considered a playground, playing fields and traffic/parking flow while examining zoning, utilities and stormwater management, and presented a report on March 30, 2016.

On March 16, 2016, concurrent with the work of SDC, committee groups worked through these two (2) activities:

Activity 1: "Major Requirements" to be added or eliminated based on enlightenment through various building visitations.

Activity 2: "Burning Questions" to build consensus on key issues surrounding upgrade (renovation/addition) or new building options.

On April 13, 2016, the Committee then considered the viability of all three options as stated above.

Concurrent with the aforementioned activity in April, the PA Legislature enacted legislation that created a Planning and Construction Workbook (PlanCon) Commission. The purpose of the Commission would be to study current legislation and PlanCon processes and, if applicable, to make a recommendation on streamlining the processes and funding parameters.

The legislation also included a 'moratorium' on any building projects submitted after May 15, 2016. Given that information, the L-S Facility Study Committee and Crabtree Rohrbaugh & Associates Architects collaborated with District administration to formulate a project recommendation at the May 11, 2016 committee meeting. It included the state's PlanCon Workbook Parts A and B requirements for Board consideration and possible action.

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On May 12, 2016, the Board did accept the non-binding recommendation for "Option 3" (new building). The project, along with PlanCon A and B components, was then submitted to the appropriate office at the Pennsylvania Department of Education on Friday, May 13th, ahead of the deadline. As required by the Board of School Directors and the state's PlanCon requirements, the design recommendations were developed in response to a detailed analysis of the current and projected educational programs, a comprehensive evaluation of the existing building conditions and a determination of facilities necessary to support future enrollment and programs.

2016-17 School Year

On September 16, 2016, Superintendent Dr. Ronald Dyer, Business Manager Donna Devlin, Executive/Board Secretary Lisa Kirby and CRA Architect/Director of Design Rick LeBlanc met with James Vogel, Architectural Consultant for PDE's Division of Budget and School Facilities to review the District's PlanCon A and B submission and future PlanCon requirements. There were two (2) key findings:

• The project is site specific (i.e., the building must remain on the site of the current schoolper the PlanCon A and B submission).

• Prior to July 1, 2019, the District must first have (a) PDE's written approval of PlanConPart F, Construction Documents and (b) subsequent signed construction contracts.

The Facility Study Committee also reconvened on September 28, 2016 for a preliminary view of District finances and possible limitations before revisiting all three building options. After review, the Committee re-affirmed that "Option 3" (new building) would be its strong recommendation. It then formed a sub-committee to complete a Report and Final Recommendation document which received full-committee deliberation and approval on October 26, 2016 and was presented at the November 10, 2016 meeting of the Board of School Directors.

During the winter of 2016-17, the Board of School Directors collaborated with its bond counsel, Rhoads & Sinon, and bond underwriter, RBC Capital Markets, in refinancing the current bonds and issuing the previously authorized remaining bonds. All of this was accomplished within our current tax rate and annual debt service amounts.

The Board also authorized the formation of the board-level Loganville-Springfield E.S. Steering Committee. Members included Chairman William A. Lytle, Vice President John E. Hartman, Kenneth A. Potter, Jr., and Steven C. Bentzel who initiated an RFP process for architectural services. After conducting three (3) rounds of interviews, it reached its recommendation for RLPS Architects.

2017-18 School Year

On September 7, 2017, the Board approved the Steering Committee's recommendation and subsequent contract for RLPS Architects. On December 14, 2017, it created the Building & Capital Projects Committee (of-the-whole) by consolidating the efforts of the Steering Committee and the Capital Improvements Committee. By April 12, 2018 the Board also approved a project management agreement with Abacus Construction Management, LLC.

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Work also commenced on re-evaluating the previously considered May 12, 2016 District Wide Feasibility Study Options for either a renovation/upgrade or new construction. After much consideration and deliberation, the Board decided to proceed with design documents for a renovation/upgrade elementary school. This decision redirected the building project from the May 12, 2016 District Wide Feasibility Study Option 3: New Construction to the May 12, 2016 District Wide Feasibility Study Option 2: Renovations & Additions. The project will encompass nearly 90,000 square feet, will reflect specific educational features related to District initiatives and future needs, expandability for future program growth, and newly built structures for music, gymnasium, cafeteria, kitchen, and administrative, nursing, and guidance functions. The project will maintain the Planned Enrollment Capacity for the building as identified in the May 12, 2016 District Wide Feasibility Study. The community and municipalities have been engaged during all stages of the project, including recent visits in mid-March and early April, and a Facility Study Committee update planned for late May.

Options Considered

The District considered the viability of three options by looking at major design features, possible sacrifices and construction challenges. Incorporating these into the District Wide Feasibility Study from May 16, 2016, the Options are listed as:

Option 1: Renovations & Additions – Some renovation to the existing facility with a minor addition

Option 2: Renovations & Additions – Extensive renovation and expansion

Option 3: New Construction – Build a new school The Dallastown Area School District Board has elected to proceed with Option 2: Renovations

& Additions.

Option 2: Renovations & Additions was chosen in the best interests of the Dallastown Area School District for the following reasons:

• It achieves the Facility Study Committee’s recommendation of providing a hybrid of renovations (upgrades) and new construction

• It provides the Administration recommended minimum educational program

• It meets the Board of School Directors’ budgetary goals

• It optimizes the building location on the existing Loganville-Springfield Elementary site

• It maximizes the existing Loganville-Springfield Elementary site for future expansion

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SECTION III

ARCHITECTURAL DESIGN

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SUMMARY OF DISTRICT BUILDINGS (From approved PlanCon Part A)

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ARCHITECTURAL NARRATIVE

The existing Loganville-Springfield Elementary School is a one-story building, totaling approximately 56,500 SF and located on an approximately 16.5-acre site. The existing building was originally constructed in 1952 with an addition in 1970 and received various system upgrades in 1985 and 2005. As part of this project, most of the existing building footprint will remain and will see comprehensive upgrades of all finishes, building systems and exterior envelope. Improvement of the building's technology infrastructure will be included in the upgrades and the completed project will support wireless internet access throughout and provide data access points for the latest classroom visualization and 21st Century learning needs. The project will also include interior alterations in order to provide classroom and support spaces for existing and expanded educational programs. The interior alterations of the existing building will include comprehensive accessibility upgrades and the project will be designed to be compliant with the accessibility requirements for new construction per ICC/ANSI A117.1 2009 as well as the 2015 International Building Code, Chapter 11. Loganville-Springfield Elementary will also receive a new addition as part of this project. The proposed building is anticipated to total approximately 90,700 SF of space to be used for educational functions as well as community activities. The addition to Loganville-Springfield Elementary will be located along the north side of the building and will be one story. The addition's exterior envelope is being designed to meet the International Energy Conservation Code parameters for commercial construction. This addition will include several enlarged and updated spaces which will enhance the day to day educational program of the building. Several of these spaces are also being designed with community activities in mind. This will reinforce the desire for the completed project to provide Dallastown Area School District and their residents with an anchor Elementary school for the community located within the southern portion of the District. Loganville-Springfield Elementary School will be designed to be more secure. Measures to provide enhanced security for students, staff and visitors include, but are not limited to, controlled building access points, a secure entrance vestibule adjacent to the new administration suite and cross-corridor doors separating community functions from the classroom areas of the building.

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PROPOSED RENDERINGS

Main Entrance

Classroom Exterior

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The proposed site plan has been omitted for security reasons.

A printed copy of the site plan will be available for public review during the ACT 34 Hearing and at

the Dallastown Area School District Offices during normal hours of operation.

PROPOSED SITE PLAN

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PROPOSED FLOOR PLAN

The proposed floor plan has been omitted for security reasons.

A printed copy of the floor plan will be available for public review during the ACT 34 Hearing and at

the Dallastown Area School District Offices during normal hours of operation.

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PROJECT ACCOUNTING BASED ON ESTIMATES

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SECTION IV

ANALYSIS OF

FINANCING ALTERNATIVES

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ANALYSIS OF FINANCING ALTERNATIVES – DIRECT COST STUDY

We have analyzed several alternative methods of financing the renovations and additions to the Loganville-Springfield Elementary School (the "Project"). We have also estimated the direct costs of financing, all as required by Department of Education regulations issued November 4, 1978. Analysis of Alternatives The alternatives of financing which we examined are: 1. Cash or a short-term loan 2. A local general obligation bond issue 3. A local authority issue 4. State Public School Building Authority (SPSBA) Analysis of the School District's recent financial statements and of the financing projections in connection with this Project indicated that a short-term bank loan was not feasible. We also analyzed the remaining alternatives which would require the School District to incur long-term debt. For each alternative we estimated a bond issue and average annual debt service. Financing costs for each were slightly different due to the nature of the issue structure and entity issuing the debt. These costs are presented on the attached Table I. Based on these estimates, at this time the least costly alternative for financing the capital projects is through the use of a General Obligation Note Issue. This alternative also offers the School District the advantage of increased flexibility and control over the construction of the project, structure of the Note Issue, lower interest rates through the general obligation issue, investment of Note Proceeds and more favorable refunding provisions. The School District anticipates funding the Project with funds available from the Series of 2017 General Obligation Note Issue, whose purpose was to fund new capital projects, provide capitalized interest and refund the 2016 District Bonds. The total size of the 2017 Note was $66,010,000 with approximately $30,000,000 allocated for several future capital projects.

STATE REIMBURSEMENT

The State reimburses a School District for a portion of the principal and interest which the School District pays each year on its bonds. The amount of the reimbursement is determined by two factors—the percentage of the Project determined by the Department of Education to be reimbursable and the School District's Market Value Aid or CARF ratio. Current estimates by the Architect indicate that the Project will have a net effective reimbursement of approximately 3.41% for the 2017 General Obligation Note after taking into consideration the School District's 2017/18 Market Value Aid Ratio of 51.40%. Therefore, for each dollar paid by the School District toward principal and interest, the state will reimburse the School District approximately 3.41 cents for the Project. There can be no assurances that the State will pay reimbursement to

the District. The financial analysis for this Act 34 Hearing assumes no reimbursement and

the debt is 100% local effort.

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TABLE I

Dallastown Area School District

Comparison of Various Methods of Financing

Loganville-Springfield Elementary School

General Local Costs Obligation Authority SPSBA Costs of Construction: Loganville-Springfield (1) $22,614,786 $22,614,786 $22,614,786 Financing Costs: (2) Bond Discount $190,925 $203,500 $202,750 Legal Fees 23,397 38,500 37,000 Capitalized Interest 2,066,000 2,100,000 2,100,000 Printing & Miscellaneous 3,074 6,500 6,250 Rating & CUSIP 10,106 15,200 15,200 Compliance/PDE Filing 1,240 3,500 3,500 Paying Agent 493 2,000 2,000 Total Requirements $24,910,021 $24,983,986 $24,981,486 Less: Interest Earned (3) $452,981 $452,981 $452,981 Original Issue Premium 2,637,040 2,636,005 2,638,505 Size of Bond Issue(s) $21,820,000 $21,895,000(4) $21,890,000(5) (1) Includes total Project Costs for Project appearing on PLANCON D-02, Line F;

Contingency Fund Allowances and funds for Project Management occurring on PLANCON D-03, Line G-9.

(2) Financing Costs are estimates based upon recent averages and fees realized from bond

issues sold in the municipal market. (3) Interest earnings on construction funds being available from investments based upon

approximate payout schedule and possible use for millage phase-in. (4) A local authority would have annual administrative expenses, which have not been

included in these calculations and also higher rates due to revenue bond issue. (5) SPSBA average annual payment is calculated assuming higher interest rates for a general

obligation bond issue as compared to rates for a revenue bond issue.

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Debt Service and Millage Impact

Table IIA and IIB is a summary of the debt service and approximate millage impact anticipated by the completion of the Project. The School District is funding the Project with a portion of the funds available from the Series of 2017 General Obligation Note issue. It is anticipated that the required funds for the School District's share of debt service requirements will be derived from using capitalized interest and School District reserves in the early years of the Project and, in later years, using existing debt related mills currently in the budget which become available as previous bond issues are retired. Based on careful budgeting

and preparation, the District anticipates ZERO new mills required for the funding of future

capital projects from proceeds of the Series 2017 Note.

Based upon an estimated current value of 1 collected mill being $2,830,212 and remaining constant, a summary millage impact and debt service analysis is shown below on Table IIA. The supporting bond amortization schedule for the Project funded from a portion of the proceeds from the 2017 Note is also shown as an attachment on Table IIB.

Table IIA

Net Debt Service Total Mills Average Annual After State Mills Required Required for Direct Debt Service (1) Reimbursement (2) for Direct Debt and Indirect Costs $1,914,865 $1,914,865 0.677 Mills 0.701 Mills 0.677 Mills (3) 0.701 Mills (3)(4)

1. Table IIB illustrates the Project portion of debt from the Series 2017 Note. (The Project will require 33.06% of the total $66,010,000 Series of 2017 Note issue).

2. Assumes a zero project reimbursement for the Note.

3. Amount of mills already in the District budget for the Project.

4. The breakdown of Indirect Costs follows the discussion on the Direct Costs.

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INDIRECT COSTS FOR THE

LOGANVILLE-SPRINGFIELD ELEMENTARY SCHOOL

The costs below reflect the anticipated increases related to the proposed addition of the Loganville-Springfield Elementary School. The personnel that currently resides in the building will continue to be housed in the upgraded school. All costs are based on utilization of the facility beginning approximately January 2021.

Personnel

The following is a list of the proposed new staff that would be required: Personnel Additions Projected Category Required Cost Custodial staff 1 Total Estimated Salary Cost $25,056 Estimated Cost of Fringe Benefits $27,825

ESTIMATED COST OF SALARY & BENEFITS: $52,881

Purchase of Materials and Supplies

The need for textbooks, materials and supplies is related to the number of students. As the student population grows, the School District's needs in this area will also increase.

Cost of Fuel and Utilities

The estimated additional cost includes fuel, oil, electricity, water and sewage usage because of the addition to the existing building.

ESTIMATED ADDITIONAL COSTS: $14,000

Building Operation and Maintenance The need for general building maintenance is related to the number of students and staff and the age of the building. As the student population grows, the School District's needs in this area will also increase.

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Transportation

It is estimated that no additional buses will be needed to transport students to and from school each day based on the student capacity that the building will have.

Insurance

Additional property and equipment protection insurance will be required for the new building. Liability coverage is based primarily on number of student population, so as the number of students increases, the liability insurance cost will also increase.

ESTIMATED ADDITIONAL COSTS: $2,000

Summary of Indirect Costs

Estimated Cost Increases $68,881 Estimated Value of One Mill (2018-19) $2,830,212

TOTAL INDIRECT COST IN MILL EQUIVALENTS .024 MILLS