Transcript Capital Financing Plan

VSBA Conference
November 17, 2011
Roanoke County Public Schools
Roanoke, Virginia
Mr. Drew Barrineau, CPA, School Board Member
[email protected]
Mrs. Penny Hodge, CPA, SFO, Assistant Superintendent of
Finance
[email protected]
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14,400 students with growing enrollment
30 school buildings
Average age of buildings -- 48 yrs old
17 elementary, 5 middle, 5 high, 3 specialty
Completed $71M in school projects since
1997-2005 based on community study (8
schools)
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22 schools remaining with capital needs
Aging infrastructure with no financial plan
County government capital needs growing
Competing county capital needs - new public
safety facility, county garage, recreation
center, and library in the works
Debt capacity was exhausted
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Find a way to address future capital needs of
both School System and County Government
Identify funding stream to sustain CIP
No tax increase
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New policies to protect plan from yearly
fluctuations and ensure sustainability
Win-win solution to address school and
county capital needs
Collaboration of both boards and finance
staffs
Buy-in from boards and employees to commit
to long-term investment in capital
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Methodical means of funding CIP
Allocating smaller dollar amounts every
year is small compared to the size of the
capital needs and the results of ignoring
those needs
Easier to give community dependable
projections on when projects will begin
Design work can be scheduled just prior to
building and not sit on shelf
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Compatible and complimentary school and
county financial policies
Permanent revenue stream
Annual commitment of set amount of new
money
Cooperative relationship between School and
County governing boards
Use pay-as-you-go for smaller capital
expenditures including A&E and land
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In budgeting ……. revenue sharing
formula
In year end ……… year end surplus
rollover agreement
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1.
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4.
5.
Establish School Capital Reserve
Use of School YE Balances
Establish County Capital Reserve
Use of County Unspent YE Expenditures
Use of County Revenues in Excess of Budget
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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 dropoff over time
Results in incrementally growing reserve
Limit bonding to 20 years
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8,000,000
7,000,000
6,000,000
5,000,000
FY05
$2,000,000
FY06
$2,600,000
FY07
$3,200,000
FY08
$4,200,000*
FY09
$4,800,000
FY10
$5,400,000
FY11
$6,000,000
FY12
$6,600,000
FY13
projected
$7,200,000
FY25
projected
$14,400,000
4,000,000
3,000,000
2,000,000
1,000,000
0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
* Boards increased contribution this year during
budget negotiations.
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Use for projects on adopted CIP
Land as it becomes available
Fund with 2/3 of YE balance
Pay cash for smaller projects
Supplement borrowing for larger projects
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Use for smaller capital projects (<$500,000)
and one-time needs
Fund with 1/3 of YE balance
Plus sale of land and buildings
Can be used for A&E to get CIP projects
planned
Can also be used for CIP projects
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Set up like reserves for the County
government
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2011-12
$10M Schools
2012-13
$10M Schools
2013-14
$10M County
2014-15
$10M Schools
2015-16
$10M Schools
2016-17
$10M County
Future funding pattern of 2 years schools and 1
year county projects.
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Properly timed bond issues
Available cash accumulated in Major/Minor
reserves (from year end surpluses)
No tax increases needed
Funds $40M for schools and $20M for county
over next 6 years (at a minimum)
Ensures funding for future School Boards
Assists County Board in addressing needs of
entire county with constituents
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Schools - $122 million
$41M paid in cash
County - $107 million
$20M paid in cash
Plus $10M added to Unappropriated Balance
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2005
$5.3 million
2006
$6.2 million
2007
$6.8 million
2008
$5.0 million
2009
$4.5 million
2010
$6.7 million
2011
$9.9 million
Total to Date
$44.4 million
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Replace Cave Spring Middle
Construction RFP released in Spring 2011
(still attractive bidding market)
$28 million cost including all soft costs
Paying $18 million in cash!
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RCPS lost $17M (21%) in state funding from FY09-FY11
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Committed to not reducing annual contribution even in
bad years (treated like a debt payment)
Allowed for 20-25% cost savings over past 3 years when
construction costs were reduced due to the economy
(bid out 5 school building projects)
Benefits of policy reinforced by ongoing capital projects
able to be funded
Bond rating agencies give high marks (AA+)
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Plan for future capital needs in realistic
timeframes
Communicate with citizens
Eliminate annual competition for same funds
Relatively simple to manage
Immediate payback for county and schools in
CIP projects underway
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Roanoke County Public Schools
www.rcs.k12.va.us
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