2018 Capital Plan Update Economic Development Council July 19, 2018

Transcription

1 2018 Capital Plan Update Economic Development Council July 19, 2018

2 Board Adopted Governing Principles 2

3 Profile of a Graduate A Fort Bend ISD Graduate has a rigorous academic foundation, strong character, and is equipped with skills for life. a servant leader. an effective communicator. a critical thinker. a compassionate citizen. a collaborative team member. a life-long learner. 3

4 Focus of the work: Align the plan with the District s mission and vision to ensure we provide learning environments in accordance with the FBISD Profile of a Graduate Engage the community and other stakeholders in the planning process 4

5 CAPITAL PLAN SUMMARY Community Engagement 5

6 CAPITAL PLAN SUMMARY Capital Plan Summary Facilities Master Plan Safety and Security Master Plan Technology Master Plan 6

7 2014 CAPITAL PLAN 7

8 2018 CAPITAL PLAN SUMMARY Capital Element Total Construction Total $1,474,167,022 Safety and Security Total $27,786,500 Transportation Total $21,118,000 Technology Total $178,650,000 Energy Initiatives $10,000,000 Land $22,128,480 Other Items Total $17,338,500 Total Potential Need $1,751,188,502 8

9 2018 CAPITAL PLAN SUMMARY Construction Considerations Life Cycle Deficiencies Educational Specifications Estimates & Potential Cost Escalation Six-year Plan Complete System Replacement Building Code Requirements Project Prioritization 9

10 2018 CAPITAL PLAN SUMMARY Construction Summary Capital Element Total New Construction $539,300,000 Building Modernization Rebuild $65,000,000 Classroom Additions $14,400,000 Current Facility Deficiencies & Life Cycle $565,722,614 Educational Adequacy Deficiencies $289,744,408 Construction Total $1,474,167,022 10

11 Construction Detail New Construction, Rebuild, Additions & Other July 2018 to September 2024 Elementary School 51 $46,000,000 Elementary School 52 $45,000,000 Elementary School 53 $45,000,000 Elementary School 54 $47,000,000 Elementary School 55 $53,000,000 Middle School 16 $97,000,000 High School 12 $178,000,000 Rebuild LVE & ME $65,000,000 School Additions CVME & JNE $14,400,000 Natatorium $14,000,000 Bus Terminal $14,300,000 Subtotal: $618,700,000 11

12 PRELIMINARY TOTALS Priority 1 Priority 2 Current Deficiencies $240,384,060 $325,338,554 Educational Adequacy $134,988,888 $154,755,520 $375,372,948 $480,094,074 GRAND TOTAL: $855,467,022 12

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14 Facilities Age AGING FACILITIES 20 facilities 37+ yrs. old 40+ facilities 20+ yrs. old YEAR BUILT Roof Replacements & Repairs: 71 Facilities Exterior Window Replacements & Upgrades: 81 Facilities Mechanical Replacements & Upgrades: 82 Facilities Plumbing Upgrades: 66 Facilities Electrical Upgrades: 86 Facilities Site Upgrades: 82 Facilities 14

15 Construction Detail: Facilities Deficiencies & Life Cycle Discipline Priority 1 Priority 2 GRAND TOTAL Building Envelope $65,504,761 $48,599,096 $114,103,857 Athletics/Activities $14,169,362 $41,789,431 $55,958,793 Architecture $33,721,779 $172,075,510 $205,797,289 Technology $1,018,907 $1,981,545 $3,000,452 Civil $50,114,746 $9,220,133 $59,334,879 Food Service $16,706,501 $106,201 $16,812,702 Life Safety & Security $16,000,757 $14,798,251 $30,799,008 Plumbing $6,271,127 $8,372,018 $14,643,145 Mechanical $24,829,176 $22,750,335 $47,579,511 Electrical $12,046,944 $5,646,034 $17,692,978 TOTAL P1 + P2 $240,384,060 $325,338,554 $565,722,614 15

16 Construction Detail Educational Adequacy Priority 1 Priority 2 Athletics (Courts, Equipment, Fields, Bleachers, etc) $13,478,138 $35,876,610 Fine Arts (Additions & Renovations) $52,915,293 $78,186,968 Furniture, Fixtures & Equipment $65,478,751 $0 Child Nutrition (Kitchen/Cafeteria Exp./Renovations) $0 $4,311,167 Technology (Renovation, Systems/Infrastructure) $285,155 $0 Building Additions (restrooms, weight rooms, misc.) $0 $20,497,568 Library Renovations $0 $15,719,487 New Site Paving $0 $163,720 Lighting Upgrades $973,310 $0 Miscellaneous $1,858,241 $0 TOTAL P1 + P2 $134,988,888 $154,755,520 16

17 2018 CAPITAL PLAN SUMMARY Security Summary Capital Element Total Special Education Security Cameras $2,500,000 Metal Detectors $6,484,000 Door Locks $1,187,500 Security Cameras Storage $5,250,000 Window Film $5,000,000 Student & Staff ID Badges $3,000,000 Fencing $2,500,000 Police Vehicles $1,865,000 Safety and Security Total $27,786,500 17

18 2018 CAPITAL PLAN SUMMARY Transportation Summary Capital Element Total Buses & Other Vehicles Replacement $17,675,000 District-Wide White Fleet Replacement $3,443,000 Transportation Total $21,118,000 18

19 2018 CAPITAL PLAN SUMMARY Technology Summary Capital Element Total Classroom Toolset $94,000,000 Systems $38,300,000 Infrastructure $24,300,000 Staff Computer Refresh $11,300,000 Telephone/Network $8,600,000 Campus Audio/Video $2,150,000 Technology Total $178,650,000 19

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21 What others are saying: Fort Bend ISD wins H-E-B Excellence in Education Awards 2018 Award Best Large School District 2017 Awards: Best School Board Julie Diaz, Travis HS, Best School Principal Secondary Richard Embrick, Crockett MS teacher, Rising Star Secondary 21

22 What others are saying: Cost-adjusted Spending per Pupil vs. Academic Progress 100 Very high academic progress: at or above 91% of all districts Low spending compared to fiscal peers: $7, costadjusted spending per pupil Smart Score «««««Academic Progress $11,500 $10,500 $9,500 $8,500 $7,500 $6,500 Cost-adjusted Spending per Pupil $5,500 Source: TXSmartSchools.org 22

23 GF Revenue Per Student Adjusted for Inflation Compound Annual Growth Rate.48% Over 12 Years (Adjusted for Inflation) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2, Operating Rev Per ADM * Adj for Inflation Rev Per ADM Source: Forecast 5/ AEIS / Consumer Price Index as of June All Urban Consumers All City Average All Items M&O Rate = 1.06% 23

24 CYPRESS- FAIRBANKS ISD FORT BEND ISD KATY ISD HOUSTON ISD NORTHSIDE ISD (BEXAR COUNTY) NORTH EAST ISD ALDINE ISD FORT WORTH ISD AUSTIN ISD DALLAS ISD Ranked By Students served per Central Administration FTE (All Funds) Source: FBISD Finance Department & Forecast 5 Analytics (functions 13, 21, 41, 53) # of Students Served per Administrative FTE Comparison of 10 Largest School Districts in Texas

25 USEFUL LIFE FINANCING THE PLAN 5 7 Safety & Security Devices New Facilities Retrofits Infrastructure ` 10 Turf Replacement Buses Furniture, Fixtures & Equipment (FF&E) Carpet Replacements Component Replacement: Security Upgrades Building Upgrades Light Pole Replacement Cafeteria Flooring Systems (Fire/Alarm) Chillers Lighting Retrofits Comprehensive Renovations Infrastructure Kitchen Renovations 40 New Facilities Additions Land BOND REPAYMENT - YEARS 25

26 FINANCING THE PLAN Bond 2014 Weighted Average Analysis Debt: Weighted Average Maturity Assets: Weighted Average Useful Life years years Per the Board Resolution adopted on 8/25/2014, the weighted average of maturity of the debt issued will not exceed the weighted average economic life of the assets by more than 120%. 26

27 FINANCING THE PLAN 1,200,000,000 1,000,000,000 Outstanding Debt by Year Increase of $119M since 2014 election With debt issuance of $333.1M 800,000, ,000, ,000, ,000,000-12/1/ /1/ /1/ /1/

28 FBISD OUTSTANDING DEBT ( ) 12/31/2014 Balance 844,038,663 Principal Payments (145,005,112) Refundings (67,710,000) New Issuances 333,135,000 OST Commercial Paper (1,000,000) 6/30/2018 Balance 963,458,550 Source: FBISD Finance 28

29 FACILITY ASSESMENT HIGHLIGHTS Statewide Comparison Debt Levels FACILITY ASSESSMENT HIGHLIGHTS n Bond Principal Outstanding: Among the 875 Texas school districts with outstanding debt, Fort Bend ISD s Bond Principal Outstanding ranks 14 th. n Bond Principal Per Student: Among the 149 Texas school districts with at least $100 million of outstanding debt, Fort Bend ISD s Bond Principal Outstanding Per Student ranks 119 th. n Bond Principal as a Percentage of Taxable Value: Among the 149 Texas school districts with at least $100 million of outstanding debt, Fort Bend ISD s debt burden ranks 123 rd as a percentage of taxable values that secure repayment of the District s bonds. 29

30 Houston ISD Cypress-Fairbanks ISD Katy ISD Conroe ISD Klein ISD Clear Creek ISD Fort Bend ISD Lamar CISD Spring Branch ISD Spring ISD Ranked By Bond Principal Outstanding as of 5/31/2018 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $3,287 $2,604 $1,793 $1,304 $1,121 $973 $963 $792 $725 $670 Bond Principal Outstanding ($Millions) Comparison of Certain Texas School Districts Within the Greater Houston Area Source: The Municipal Advisory Council of Texas As of May 31, Includes Voted and M&O debt. Humble ISD $596 30

31 Comparison of Certain Texas School Districts Within the Greater Houston Area $26,000 Ranked By Bond Principal Outstanding Per Student as of 5/31/2018 $24,000 $24,627 Bond Principal Outstanding Per Student $22,000 $20,000 $18,000 $16,000 $14,000 $23,125 $23,076 $22,372 $21,183 $21,118 $20,712 $18,529 $15,346 $14,048 $12,000 $13,059 Lamar CISD Katy ISD Clear Creek ISD Cypress-Fairbanks ISD Conroe ISD Klein ISD Spring Branch ISD Spring ISD Houston ISD Humble ISD Fort Bend ISD Source: Texas Education Agency PEIMS and The Municipal Advisory Council of Texas As of May 31, Includes Voted and M&O debt. 31

32 Comparison of Certain Texas School Districts Within the Greater Houston Area Ranked By Bond Principal Outstanding as a Percentage of Taxable Value as of 5/31/ % Bond Principal Outstanding Per TAV 5.0% 4.0% 3.0% 2.0% 5.4% 5.3% 5.2% 5.1% 4.6% 4.3% 3.8% 3.7% 2.6% 2.2% 1.9% 1.0% Klein ISD Spring ISD Cypress-Fairbanks ISD Lamar CISD Katy ISD Clear Creek ISD Conroe ISD Humble ISD Fort Bend ISD Spring Branch ISD Houston ISD Source: Texas Comptroller of Public Accounts and The Municipal Advisory Council of Texas As of May 31, Includes Voted and M&O Debt. 32

33 Successful Bond Elections ( ) Fort Bend ISD San Antonio ISD Plano ISD Conroe ISD Klein ISD Leander ISD Spring Branch ISD Frisco ISD Lewisville ISD Fort Worth ISD Austin ISD Cypress-Fairbanks ISD Katy ISD Northside ISD (2007) $428,000,000 (2010) $515,000,000 (2008) $490,000,000 (2008) $527,000,000 (2008) $646,900,000 (2006) $286,116,000 (2005) $199,505,000 (2006) $269,472,225 (2007) $597,150,000 (2006) $798,000,000 (2007) $593,600,000 (2008) $343,717,819 (2007) $807,000,000 (2007) $692,670,000 (2007) $559,000,000 (2008) $697,670,000 (2013) $489,860,000 (2013) $489,731,000 (2010) $459,795,000 (2014) $484,000,000 (2016) $450,000,000 (2016) $481,000,000 (2015) $487,000,000 (2015) $498,100,000 (2017) $454,405,000 (2017) $898,400,000 (2014) $775,000,000 (2017) $737,550,000 (2010) $535,142,000 (2014) $748,120,000 (2017) $749,735,000 (2017) $1,050,984,000 (2014) $1,209,280,000 (2014) $648,340,000 (2017) $609,200,000 (2018) $848,910,000 $0.00B $0.50B $1.00B $1.50B $2.00B $2.50B $3.00B 33

34 Crosby Deer Park Galena Park Needville Katy Humble Spring Pasadena Sheldon Cy-Fair Klein Goose Creek Channelview Clear Creek Huffman Lamar Spring Branch LaPorte Aldine Tomball Alief Fort Bend Conroe Stafford Houston $1.80 Local Tax Rate Comparison ( ) $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Source: FBISD Finance $

35 FINANCING THE PLAN Tax Rate Scenario Assumptions 30 Year Deferred Debt Service Schedule Five year interest only (no capitalized interest) Takes advantage of current debt structure Maintains long term flexibility for future bonds while keeping need for tax rate increases to a minimum New money issuances through 2026 Interest rate range from 4.5% to 6% Projected Weighted Average Useful Life of 21 Yrs. FBISD disclosed potential tax rate increase of $0.11 for Bond No pennies were used for Bond

36 FINANCING THE PLAN 14.00% Change in Certified Net Taxable Value 12.00% 10.00% 10.1% 12.9% 12.4% 12.0% 9.3% 10.9% 8.4% 9.7% 9.4% 10.2% 11.7% 10.3% 10.8%11.3% 8.00% 6.4% 7.0% 6.8% 6.00% 4.4% 4.3% 4.00% 2.6% 3.0% 2.00% 0.4% 0.00% % -4.00% -2.5% Source: Fort Bend CAD and FBISD Finance 36

37 TAX RATE SCENARIOS Values growth of 5% Bond Amt $800M $ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 0.27 $ 0.27 $ 0.27 $ 0.28 $ 0.27 $ 0.27 $1B $ 0.26 $ 0.26 $ 0.26 $ 0.27 $ 0.27 $ 0.27 $ 0.28 $ 0.28 $ 0.30 $ 0.29 $ 0.29 $1.25B $ 0.26 $ 0.26 $ 0.27 $ 0.27 $ 0.28 $ 0.29 $ 0.30 $ 0.30 $ 0.32 $ 0.31 $ 0.31 $1.5B $ 0.26 $ 0.26 $ 0.27 $ 0.28 $ 0.28 $ 0.29 $ 0.31 $ 0.31 $ 0.34 $ 0.34 $ 0.33 $1.8B $ 0.26 $ 0.26 $ 0.28 $ 0.29 $ 0.31 $ 0.32 $ 0.33 $ 0.34 $ 0.37 $ 0.37 $ 0.36 * Future bond refunds, debt restructuring, and possible application of Fund Balance may be necessary in some years 37

38 $0.500 $0.450 $0.400 $0.350 $0.300 $1B Bond $0.250 Remaining Authorization Existing Debt $0.200 $0.150 $0.100 $0.050 $ Tax Rate CAPITAL PLAN SUMMARY Tax Rate Scenarios by Bond Package 5% Property Value Growth - 10 years Deferred Principal $0.34 $1.5B Bond $1.35B Bond $1.25B Bond Existing Debt

39 TAX RATE Strategies to Manage Debt Service Tax Rate Continue debt management strategy: Commercial paper program Refunding of bonds (2009 series & beyond) Continue variable rate debt program Variable Rate is 18% as of 5/31/2018 Limit is 25% Flexibility with structure of future debt issues Utilize debt service fund balance if needed Adjust plans based on market conditions 39

40 Questions 40