Preparing for Successful Bond Elections – Twin Rivers Unified Case Study

Kim BarnettExecutive Director, General ServicesTwin Rivers Unified School District

Today’s Agenda

Preparing for a Successful Bond

Consultants

• Financial Advisor• Bond Underwriter• Bond Counsel• Enrollment Projection Specialist• Facilities Master Plan

Consultant/Architect• Facilities Funding Consultant• Political Strategist (prior to calling for

Election)• Voter Opinion/Polling Strategist• Architect and Engineers • Construction/Project Managers

A successful

Bond Election requires

the services of

many experts:

Some Key Steps for Bond Success

We established a timeline for our RFP

implementation for each needed consultant

The Steps We Have Taken

Created an Financial Team

Financial

Advisor

Some of the Services our Financial Advisor’s Provide

Helped with Structuring our District Financings

Worked with our District to improve our Credit Ratings

Ensured that we achieved Fair Market interest rates

Ensured that were received competitive financing fees

Worked on both our Short Term and Long Term Financing Plans

The Steps We Have Taken

Bond Underwrit

er

Bond Counsel

Some of the Services we receive from our Bond Underwriter

They are a Integral Member of the District Financing Team

Analyzed tax base, interest rates, and financing issues

Provided input on bond election process and credit rating presentation, worked on our Pre-Marketing, Marketing and Sale of Bonds

Purchased our Bonds and sold them to investors at a lowest interest rate

Set the rates for financings and they assumed the risks for our unsold bonds

Provided Bond Market context relative to supply and demand, economic conditions and interest rates

Some of the Services we receive from our Bond Counsel

They are an Integral Member of the District Financing Team

Serve as outside counsel, providing us with an opinion on the tax-exempt status and validity of the bond issuance

Their opinion determines whether we are in compliance with federal tax laws

Their opinion assures that the bonds are legal, valid and binding obligations

The Steps We Have Taken

Enrollment

Projections

Some Services our Enrollment Projection Specialist Provided

Our grade level configuration(s) and enrollment capacity was determined

Student enrollment projections completed (10 year)

Our existing school facility needs were identified

New facility needs were determined to accommodate projected student enrollment

Determined our Districts support facility needs

The Steps We Have Taken

Facilities Master PlanA comprehensive

plan

District/Citizens’ Facilities Master Plan Taskforce

Held 6 Summits and inform them every step of the way

Facilities Master Plan Consultant/Architect

Our Facilities Master Plan

Will be used to establish the need for funding

Will be used to establish cost of projects

Is being used to identify the priorities of projects to be funded

Used to communicate with stakeholders

Used to establish standards for future projects with other Architects and Engineers

Used to Identify educational standards for new and existing schools

Facilities Master Plan

Our Facilities Master Plan included Financial Planning

Developer Fees – Level 1 and Level 2

Modernization Funding

New Construction Funding

Financial Hardship Funding

QZABS, CREBS, Prop 39, Etc.

Supplemental Funding Sources

The Steps We Have Taken

Political Strategist

Voter Opinion/Polling Consultant

Our Political Strategist

Will assist with developing Voter Opinion Survey questions.

Will assist in developing Bond Resolution and Bond Measure Ballot Language (The 75 words)

Develop a factual information/communication to be distributed prior to the measure being placed on the ballot.

They will transition to campaign consultants after the election is called

Our Polling Strategist

Will assist in drafting questions related to proposed projects, tax rates, total election amount.

They will conduct our voter opinion survey

Will assist in analyzing potential success of an Election and possible Bond projects

Will assist in providing information to the Board to make a decision on putting measure on the ballot

Our Next Steps

Architect/Engineers and

Construction/Project Managers

Thru an RFP process

Our Architect and Engineers

Will update estimates from master plan for the priority projects

Start developing plans and specifications for non DSA projects—if bond passes projects can be underway immediately.

Work with campaign committee to answer questions regarding project cost

Consider having work done with understanding fees to be paid only if bond measure passes

Our Construction/Project Managers

Will work with district staff and architect to develop plan for implementation of projects if bond measure passes

Assist in determining project priorities and in updating construction costs

Provide value engineering input throughout the entire development of plans and specs—before, not after submittal to DSA

Work with district staff and financial advisor in development of cash flow based on bond issuance schedule

1st Financial Team (FA, Underwriter, Counsel)

2nd Enrollment Projection Specialist

3rd Facilities Master Plan Consultant/Architect and Facilities Funding

Consultant4th Political Strategist and Polling Strategist

5th Architect/Engineers and Construction/Project Managers

Bond Program Success / Key Components

6th Trustees pass Resolution to put Bond Election on the Ballot

7th Establish an Election Committee

8th Campaign on your own time

9th Campaign on your own time

10th Election Day

Bond Program Success / Key Components

Questions?