January 17, 2024 at 5:30 PM - Board of Education Regular Meeting

Rationale:  The board has been discussing making additions and renovations to the physical plant.  The purpose of this meeting is to discuss the proposed building improvements.  The purpose of this meeting is to discuss:

1)  The scope of the project and the priorities contained therein.
2)  Prioritize the phases of the project.
3)  Financing options for the various phases of the project
4)  Communication and community engagement regarding the project


A copy of the updated plans is attached.  The kiln room for the art room and the high school teacher's lounge/meeting room have been added to the plans since they were last reviewed in November.  A copy of some financing options based on the budget pricing is also attached for review and consideration by the board.

There are several finance options:
1) Bond
2) Lease Purchase using Special Building Fund and/or QCPUF
3) Special Building Fund - "Pay cash as you go"
4) General Fund - Cash available, but this is your cash reserve and expenditures will be limited by annual certified budget authority.




Information from Tobin regarding financing options:

Dr. Schroeder,
 
We are sending over some initial information for discussion purposes built around the information sent over by Jacob.  Due to the potential equity contribution and project size we did not run a small bond issue scenario.  If we still want to see what that would look like we can discuss what maturity length and bond amount it would make sense to review (possibly a 10 yr voted bond of $5million).
 
Initial thoughts are the district could either finance the entire project with a lease purchase or do a combination of a lease purchase and QCPUF bond issue.
 
If we are wanting to show the difference between financing vs. paying cash, then we should consider the total cost (total P&I) of doing the project now vs. the total amount of the project with inflation. According to Jacob’s email, that cost would be approximately $6,966,321 (less $1.75MM cash contribution = $5,216,321) compared to financing total P&I $4,597,250 for doing it all as a lease purchase.
 
We used 5% for the LP rate.
 

1. $3.8MM lease purchase

1. Use $1.75MM to pay down the project
2. Annual debt service: $656,750
3. Total P&I: $4,597,250
4. Building Fund levy impact: 8.86 cents

 
If the district decided to use a hybrid approach between a lease purchase and QCPUF bond then the information below is a summary of that approach.  It appears this approach would result in a preliminary levy total of 8.27 cents with 1.74 cents being outside the revenue and levy limitations of LB 243.  It would have a slightly higher total P&I of $4,675,750 due to the additional 3 years of debt service in the QCPUF. 
 

2. $2.8MM LP & $1MM QCPUF

2. Lease purchase

                                                    i.     Use $1.75MM to pay down the project
                                                   ii.     Annual payment: $483,860
                                                  iii.     Total P&I: $3,387,000
                                                  iv.     Building Fund levy impact: 6.53 cents
 

2. QCPUF

                                                    i.     Annual payment: $128,875
                                                   ii.     Total P&I: $1,288,750
                                                  iii.     QCPUF levy impact: 1.74 cents
 
We have attached the supporting preliminary quotes for the summary information.  Please review and let us know what additional or different information we can provide.
 
Thank,
 
Tobin