PEQUOT LAKES SCHOOLS

ISD #186

DISTRICT FACILITIES PLANNING

Strategic Planning ProcessCompleted May 2008

• Goal # 1– Adequate, quality, modern-day teaching and

learning environments (Facilities)• Strategy

– Prepare a comprehensive, 5-10 year Facility Assessment Plan, including support documentation, to ensure adequate, quality, modern-day teaching and learning environments to serve the needs of PreK-12/adult populations.

Strategic Planning ProcessPlan of Action Information

• Conduct condition assessments of buildings.

• Determine short and long-term space needs.

• Initiate investigation of potential school sites and costs.

• Determine cost estimations of preferred facility alternatives.

• Determine tax impact of preferred facility alternatives.

• Create a Facility Task Force to examine facility alternatives, cost estimations, and tax impact.

• Determine combined cost of preferred facility, site, and other capital needs.

• Communicate the Facility Assessment Plan to the School Board for consideration and action.

• Prepare and deliver a school bond referendum campaign.

Report Contents

• Facilities Committee Planning Process

• Options Developed for Consideration

• School Board Deliberation & Consensus

• Conceptual Plans

• Reasons Why

• Next Steps

Facilities Planning Process

• Facilities Planning Committee Meetings

• Research Phase

• Feasibility/Analysis Phase

• Options Phase

Research Phase

• Collect Data – Existing Facilities/Enrollment

• Define and List Needs – Buildings & Sites

• Deferred Maintenance Issues to be Completed

• Review Program Issues

• Identify Growing & Evolving Program Needs

Feasibility Phase

• Development of Options for Study

• Review of Concept Plans & Budget Costs

• Evaluation of Options for Consideration

• Establish Consensus Guidelines for Solutions

Consensus GuidelinesEagle View Elementary

• Early Childhood & Special Ed to be located with Elementary Grades

• Reclaim Intended Spaces – Locker rooms/Science CR/ Media Classroom

• Eagle View to Become PK-4 Facility• Address Site Issues & Accommodate Early

Childhood

Consensus GuidelinesMiddle School Program

• 5th Grade Becomes Part of Middle School

• Provide Appropriate Physical Education Space

• Media Center Available to Middle School

• Provide Computer Labs for Middle School

Consensus GuidelinesHigh School Program

• Provide Learning Labs for English/Social Studies/ World Languages

• High School Trend is Toward Online Learning

• Expand High School Science Program

• Improve High School PLTW, FACS & Business Classrooms

Consensus GuidelinesHS/MS Campus

• Expand Dining/Food Service Facilities for More Efficient Operation

• Organize Programs for Sharing Resources and Enhanced Learning

• Provide Better Community Access to Building – Gyms, Community Room, Dining, Parking

• Improve Security at HS/MS Entrances• Address Accessibility & ADA Issues• Address Site Issues – Parking/Fields/Track

Solutions Phase

• Refine Options Using Consensus Guidelines

• Refine Costs & Budgets for Evaluation

• Present Findings to School Board (July, 2009)

• Provide Ongoing Planning Input to Board

School Board Refinement of District-wide Solutions

• Eagle View E.S. Becomes PK-4 with Early Childhood Addition

• H.S./M.S. Becomes 5-12 Campus

• Relocation of Community Education & District Office

• Relocation of Bus Storage & Maintenance Facility

Project Scope Building Components

• Eagle View Elementary

- Early Childhood/KG Addition

- Repurpose Original Space for Science, Media CR, Locker rooms

- Remodel Available Space for Special Ed., Comm. Ed., Head Start

- Site Revisions, including EC Play & Parking, Existing Drainage, Outdoor Storage

Project Scope Building Components (cont.)

• High School/Middle School Campus - Additions for: 5th Grade CR’s, Media Center (Infill),

HS Science, Physical Education, District Office relocation

- Remodeling for MS & HS Program Needs - Remodel for Improved Shared Commons/Food

Service - Improve Building Security, Entrances and

Accessibility - Site Revisions, including Parking Expansion, Track Replacement, Fields Expansion and Site Drainage Improvements

Other Project Scope Components

• Appropriate Furnishings & Equipment Needs

• HS/MS Deferred Maintenance Issues

• HS/MS Roof & Exterior Envelope Repairs

• Technology Infrastructure Upgrades

Conceptual Plans

• Eagle View Elementary School

Eagle View Elementary

Eagle View Elementary

Conceptual Plans

• High School/Middle School Campus

Middle/High School Campus

Middle/High School Campus

Middle/High School Campus

Educational Enhancements

• Early childhood addition located with K-4 provides sharing of staff and resources.

• Enhances the transition for our youngest students in the district from Pre-K to Primary Elementary grade levels.

• Repurpose Eagle View to the original PK-4 building as originally designed.

Educational Enhancements• Dedicated 5th grade classroom addition

provides for appropriate integration into Middle School.

• Middle School enhances educational programs through collaboration of teaching and learning.

• Library/Media Center that meets the needs of our Middle School and High School students.

• Middle School physical education classes are more appropriately scheduled to allow core curricular classes a least restrictive academic schedule.

Educational Enhancements• High School Science classrooms/labs provide a

more conducive space for enhanced science curriculum, resource sharing by students and teachers, along with collaborative interactions by high school science teachers.

• Proximity of additional computer labs will accommodate all core curricular areas.

• Department organization/compartmentalization to allow for enhanced teacher/resource collaboration.

• Appropriate Physical Education/Health Education space to accommodate high school and middle school scheduling.

Facilities and Operational Sustainability

• Completion of High School/Middle School deferred maintenance and facility improvements extends building life and usefulness.

• Secured entrances provide safer teaching and learning environment.

• Improve/increase indoor air quality throughout high school and middle school.

• Allows flexibility for future enrollment and program enhancements.

• Ability to be proactive in the development of new educational philosophies and programs.

Community Benefits

• Enhanced Community Education Programs

• Greater community access to Gymnasium• Increased opportunity for fitness and wellness

community wide.• Community access to indoor walking track.

• Availability of a designated community room.

• Improved parking and site access.

Why Now????

• Construction marketplace is extremely favorable at this time.

• Operational cost efficiencies will result from upgraded systems.

• Cost efficiency of reinvesting in existing facilities vs. building new. (Middle School)

• This comprehensive Facilities Plan completes our district’s facility needs for the future.

• Phased construction to reduce disruption of school operations.

Next Steps

• Board Resolution to Submit Project for Department of Education Review & Comment

• Communicating the Needs & Solutions

• Public Approval Process – Voter Referendum

• Project Design & Input

• Timeline for Implementation & Completion

Comparison of Operating Costs

Expenditures Per Pupil For Area Districts

This is a comparison of the operating costs for the Pequot Lakes District in comparison to other school districts in the area. Our cost per pupil unit was $7654. This was the lowest in the area and in the lowest 10th percentile in the entire State. The average for the state was $9312, or $1658 per pupil more than we spend in Pequot Lakes. We have tried to be as frugal and efficient as possible while still providing an excellent education for our children.

Comparison of Operating CostsEXPENDITURES PER PUPIL FOR AREA DISTRICTS

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

SCHOOL DISTRICT

EXPENSES

Tax Capacity

Tax Capacity Of Similarly Sized Schools

The Tax Capacity chart is an indicator of the total property valuation in the Pequot Lakes District compared to districts of similar size throughout the state. The number in our district ($2,671,156,818) is a calculation done by the county auditor. It considers the assessed value of a property multiplied times that property tax rate. For example, if a home has an assessed value of $100,000 and the tax rate on the property is 1%, that home has a tax capacity of $1000. This does not mean the tax could be, or should be $1000, it is simply a number used by the auditor for tax calculation purposes.

The higher the tax capacity in a district, the more property value in that district, and therefore the LOWER a property tax will be on any one home or business, because there is more property wealth to spread the tax on.

In Pequot Lakes, our tax capacity is one of the highest in the State per student enrolled. We are 55% better off than the next closest district in the chart and 300% better off than the average of these schools.

Tax Capacity

SCHOOL TAX PER $100,000 OF HOME VALUATION

• This chart compares the actual School Property tax level in similar sized districts across the state. Our current school property tax is $116 for each $100,000 of value in a homestead residence. The lowest in the similar sized schools is Eveleth with $111 per $100,000. As you can see from the chart, the highest is nearly $500 per each $100,000 of property value and the average in the State of Minnesota last year was $329 for each $100,000 of value.

SCHOOL TAX PER $100,000 OF HOME VALUATION

SCHOOL TAX PER 100K OF HOME VALUE BEFORE REFERENDUM

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100

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600

EVELETH-G

ILBERT

PEQUOT LA

KES

EAST GRAND F

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HERMANTO

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CROSBY-IR

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STATE AVERAG

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WARROAD P

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SCHOOL DISTRICT

$ O

F T

AX

SCHOOL TAX PER $100,000 OF HOME VALUATION

• This chart shows where we will be in the Pequot Lakes district AFTER a successful referendum for the construction project. The property tax on $100,000 of value now would go to $141. Even after this addition, we are still the third lowest of schools our size, behind only East Grand Forks and Eveleth, and neither of those school districts are experiencing any population growth.

Pequot Lakes After Successful Referendum

SCHOOL TAX PER 100k OF HOME VALUE AFTER REFERENDUM

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100

200

300

400

500

600

EVELETH-G

ILBERT

EAST GRAND F

ORKS

PEQUOT L

AKES

HERMANTOW

N PUBLIC

WADENA-D

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CROSBY-IRONTON

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ILVER L

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BROOKLYN C

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WARROAD P

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SCHOOL DISTRICT

$ O

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District Buildings Square Footage

BUILDING SQ FEET

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

DISTRICT

SQ

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BOND REFERENDUM….HOW IT WORKS….COSTS EXPLAINED

1. The Building Bond Referendum vs. Operating Referendum– For a Building Bond referendum, all district property, including seasonal recreational property is part

of the tax base. In an operating referendum, only the homestead property is used as the base. By including the seasonal recreational property, we are able to reduce the tax to the local homestead homeowner by 57%. This is an advantage we enjoy to a degree that very, very few other districts in the state have.

– Chart #1 shows the difference in values.

2. Interest Rate now vs. Interest Rate for Eagle View– Our calculations for this Bond referendum assume an interest rate on the bonds of 4.35%. We know

from other recent issues, that if we went to market today, we would most likely see a rate even lower than that, possibly under 4%. This is a substantial saving over the life of the bond issue. Our existing bonds at Eagle View would have been 5% today, but 3 years ago we sought an opportunity to refinance those bonds at 4%. It is highly unlikely that interest rates will go down any further, and much more likely that they will rise. If we wait and rates do go up to 5% again, the additional interest cost over the life of the bonds would be almost 5 million dollars.

3. Capital Project Work completed in the Past 3 years– Over the past three years we have done many projects using our health and safety, and operating

capital funds. We have done extensive energy improvements to both buildings, upgraded all student areas to meet current clean and fresh air standards and made improvement to aging roofs. All of these projects would have been included in a bond issue, increasing the overall cost.

4. Labor cost now vs. Later

– This is a somewhat subjective calculation, but we know for certain that the construction labor market is very competitive at the present time and we fully expect to receive more building for our money today that we will if we wait until the market becomes stronger.

Tax Impact

Total Property Value vs. Homestead Value

TOTAL VALUE VS. HOMESTEAD VALUE

$3,471,196,600

$1,497,600,750

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

Total Market value of School District Homestead Market value of Sch. Dist.

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