Developing a Flexible Capital Improvements Plan That Serves as a Long-Term Funding Stream VSBA Conference Williamsburg, Virginia November 16, 2006

Developing a Flexible Capital Improvements Plan That Serves as a

Long-Term Funding Stream

VSBA Conference Williamsburg, Virginia

November 16, 2006

INTRODUCTIONMrs. Marion Roark, School Board Member

Mr. Drew Barrineau, School Board Member Roanoke County Public Schools

DEVELOPING A FACILITIES IMPROVEMENT PLAN Mr. Richard Flora, Retired Director of Facilities

Roanoke County Public Schools

DEVELOPING A CAPITAL FINANCING PLANMrs. Penny Hodge, Assistant Superintendent of Finance


CLOSINGMr. Drew Barrineau, School Board Member


Introduction

Mr. Drew Barrineau, School Board MemberRoanoke County Public Schools

Who we are……….

• Enrollment approx. 15,000 students

• 30 schools

• Approximately 2,300 employees

• $127,000,000 annual budget

• Insufficient resources on both sides

• Need to renovate a school each year while addressing deferred maintenance issues

• County needs new public safety center and jail

Why did we develop plan?

•Permanent, self-funding source of revenue

•Deferred maintenance issues

•No tax increase

Plan must address….

• Consider BOS partners in K-12

• Win-win for both sides – not competing for same capital dollars

• Timetable allows both sides to make capital decisions

• Both boards can accomplish more together than apart

Relationship with BOS

Developing a Facilities Improvement Plan

Mr. Richard Flora, Retired Director of FacilitiesRoanoke County Public Schools

• Facility Study

• Evaluation of Needs

• Recommendations for Improvements

Components of a Facilities Improvement Plan

• Inventories school facilities for the following: - Capacity, enrollments and average class sizes - Program provisions and functional issues - Building sizes, ages and construction types - Site conditions, including circulation - Exterior and interior building components - Mechanical, plumbing and fire protection - Electrical and lighting systems

• Identifies deficiencies in each school

• Provides an estimate of the costs to remedy the deficiencies

• Makes recommendations to the School Board

Goals of a Facility Study

Factors in Determining Deficiencies

• Projected Enrollments

• Pupil/Teacher Ratio

• Site Circulation

• Safety and Security

• Heating, Ventilation, Air Conditioning & Electrical

• Pre-K & Special Ed. Programs

Projected EnrollmentsRationale for determining the projected enrollments:

•Elementary school enrollments were derived from utilizing the school’s current enrollment figures, historical enrollment data and the current growth pattern.

•Middle school enrollments were calculated by utilizing the current enrollment figures from each elementary school feeder for the 3rd, 4th, and 5th grades.

•High school enrollments were calculated by utilizing the current enrollment figures from each middle school feeder for the 6th, 7th, 8th, and 9th grades.

Determining Deficiencies

Pupil/Teacher Ratio•All facilities were sized to accommodate students with a

pupil/teacher ratio of 20/1 for grades K-5 and 16/1 for Pre-K.

•For Grades 6-12, a pupil/teacher ratio of 25/1 was calculated.

•A 20/1 ratio is currently being used through the second grade. This ratio will effect the operating capacity of

each school facility by approximately 20 percent.


Site Circulation•Separation of bus, car, and pedestrian traffic was reviewed

for both safety and convenience.

•Bus loading and unloading should occur in an area where cars are prohibited.

•The area should be large enough to accept all buses without interfering with car or pedestrian traffic.

•Identification and location of the school’s main entrance and proximity to parking areas was reviewed.

•Visitors and staff should not have to cross car or bus traffic to enter the building.


Safety and Security•Administrative offices should be able to closely monitor the

main entrance and control entry.

•All exterior doors should be able to be locked, utilizing an acceptable hardware, from the outside without the use of an interior restraining device.

•Acceptable lighting levels, spacial definition of areas, and surveillance systems should be included in any major renovation or addition.


HVAC and Electrical•Heating, Ventilation, Air Conditioning and Electrical systems

were evaluated by the school’s maintenance department.

•The criteria used to determine the HVAC and electrical components condition was based on the age of the particular component and compared to typical life cycle expectancies.

•Those components which have exceeded their functional life and are, therefore, prone to failure were identified..


Pre-K and Special Ed.•Pre-K and self-contained Special Ed. programs were included in

the prototypical space programs.•Pre-K classrooms were evaluated at every elementary school to

determine if classroom space will exist based on the projected enrollments.

•Pre-K classrooms are larger and have different amenities than a typical classroom.

•Each elementary school may require an addition or renovation in order to accommodate the additional Pre-K classrooms.

•The number and locations of existing or proposed self-contained special ed. programs was provided by the Special Ed.

Department.


• Facility Study




Prototype Space Programs

•Elementary School• Small• Medium• Large

•Middle School

•High School

MOUNTAIN VIEW ELEMENTARY NEEDS OVERVIEW:

• HVAC improvements or replacements

• Widen or replace existing narrow corridors

• Add corridors to classrooms where none currently exist

• Expand administrative area to include guidance and nurse

• Additional classrooms

• Upgrade of kitchen equipment

• Additional general storage

• Expand media center to include office and storage

• Address ADA concerns

• Re-key school and add video cameras for safety and security

• Improve general lighting

• Improve vehicular circulation.

• Add new energy efficient windows

Priority Criteria for Evaluation of Needs for Facilities Improvements

SCENARIO ONE

• Reflects a score based on a criteria applying a 20/1 pupil teacher ratio through all

grades.

• Uses the prototype school at the elementary, middle and high school levels.

• The needs were given weight based on the current value placed on each instructional area.

SCENARIO TWO

• Reflects a score based on the criteria applying a 20/1 pupil teacher ratio in elementary schools and a 25/1 pupil teacher ratio in middle and high schools.

• The prototype for all schools was also used in this scenario.



SCENARIO THREE

• Reflects a score based on the criteria applying a 20/1 pupil teacher ratio in elementary schools and a 25/1 pupil teacher ratio in middle and high schools.

• The prototype for all schools was not used in this scenario.



• Facility Study




Recommendations for Facilities Improvements

“SCENARIO-THREE” was used to determine the priority for facilities improvements.

This scenario best reflects the immediate needs using the most realistic criteria.

A pupil teacher ratio of 20/1 in elementary schools is already becoming a reality. It is expected that the progress made to date will be sustained in the future.

Because of current funding challenges, moving to a 20/1 pupil teacher ratio in the secondary schools will, most likely, not become a reality until some future date.

Although using prototype schools is desirable, it makes more sense to apply the prototype concept to the renovation process and not as a part of the evaluation process.

Conceptual designs and the cost estimates were provided with this study integrated the “prototypical school” as a factor in the elements of this report.

Developing a Capital Financing Plan

Mrs. Penny Hodge, Assistant Superintendent of Finance


Phase 1 - $48 million

(began in 1997)

New high school

New elem school

Renovate 3 schools

Phase 2 - $23 million

(began in 2002)

Renovate 3 schools

Stadium renovations

Phase 3 - $65 million Debt capacity exhausted

Background

• 30 schools in Roanoke County

• 8 built/renovated in Phase 1 or 2

• 22 schools remaining with capital needs

• 75% of schools > 30 years old

• County government needs growing

• $28M Public Safety Facility planned

What we were facing in 2005…..

Our concept hinges upon…..

•Annual commitment of set amount of new money •Use of year end balances•Complimentary school and county financial policies

Past practices that helped…

• In budgeting …….revenue sharing allocation

• In year end ………rollover of year end surplus

Board Commitment

SB will set aside $300,000 of new money each year for capital needs

BOS will set aside $300,000 of new money each year for capital needs

= $600,000 incremental new money every year for School and County capital needs

Policies Needed

• Establish School and County Capital Reserves

• Use of School and County Year End Balances

Reserves Created

Combined Debt Payment Reserve

School Major Capital Reserve

School Minor Capital Reserve

County Major Capital Reserve

County Minor Capital Reserve

Combined Debt Payment Reserve

• Began with $2M annual contribution in 1996 (to build new high school)

• Add new $600,000 from county & schools each year (beginning in 2005-06)

• Plus debt drop-off over time

• Plus economic development incentive drop-off over time

• Results in incrementally growing reserve

This is how it grows…….

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2004-05 2005-06 2006-07 2007-08

2004-05 $2,000,000

2005-06 $2,600,000

2006-07 $3,200,000

2007-08 projected

$3,800,000

School Major Capital Reserve

• Use for projects on annually adopted CIP

• Land as it becomes available

• Fund with 2/3 of YE balance

• Plus state construction grants

• Pay cash for smaller projects

• Supplement borrowing for larger projects

School Minor Capital Reserve

• Use for smaller capital projects (<$500,000) and one-time needs

• Fund with 1/3 of YE balance (up to $1M)

• Plus sale of land and equipment

• Can be used for A&E to get CIP projects planned

• Can also be used for CIP projects

County Major Capital Reserve

• Use for major projects on County CIP

• Fund with YE revenues in excess of budget after meeting Unappropriated Balance Policy limits

County Minor Capital Reserve

• Use for minor county capital projects

• Fund with YE expenditure savings

What can we fund now?

2006-07 $10M Schools $20M County

2007-08 $10M Schools $10M County

2008-09 $10M Schools

2009-10 $10M Schools

2010-11 $10M County

Future funding pattern of 2 years schools and 1 year county projects.

Success is based upon…

• Properly timed bond issues

• Available cash accumulated in Major/Minor reserves

• No tax increases needed

• Funds $40M for schools and $40M for county over next 5 years

• Ensures funding for future School Boards

Awards

VML 2006 Achievement Award

VGFOA 2006 Innovations in Finance Award

Taking the Next Step

Increase the new funds each year beyond $600,000 because:

• Rising construction costs• Reality hits• To keep on same or better CIP path

www.rcs.k12.va.us for copies of slides

http://www.rcs.k12.va.us/

Questions

Roanoke County Public Schoolswww.rcs.k12.va.us

Documents

Developing a Flexible Capital Improvements Plan That Serves as a Long-Term Funding Stream VSBA Conference Williamsburg, Virginia November 16, 2006