1. 1 DeLeon Independent School District Facility Committee Organizational Meeting July 20, 2006

2. 2 “Why are we here?” Facility needs have been identified by the administration Board requested information on current status of certain facilities

3. 3 “Why are we here?” A preliminary report was developed for the Board to review

4. 4 “Why are we here?” Based on that information the Board decided that it needed more information on what the needs and solutions to meet the educational facility needs of the community A committee was then formed with the Board members nominating individuals from all spectrums of the community to come together and begin working on the various issues that had been identified.

5. 5 “So, what are we going to do?” Examine state standards for school facilities Gain an understanding of how school facilities are financed Review current district facilities Identify needs that exist in the district

6. 6 “So, what are we going to do?” Explore various facility options to meet the needs that have been identified Identify cost for all options and various revenue options Develop a final report for the Board –Needs –Solutions –Options and Cost

7. 7 “State Standards?” The standards set by the Texas Education Agency for new construction came into effect as of January 1, 2004. Any building constructed after this date must now meet these standards. The standards that were used for this review focused on high school standards and include the following: Space, minimum square footage requirements: Classrooms are to be designed on the basis of possible maximum class size, and not the expected average class size.

8. 8 “State Standards?” Secondary classrooms must have a minimum of 700 square feet. For those districts with small class sizes a rule of 28 square feet per student must be used. Districts that use a combination science laboratory/classroom arrangement must have a minimum of 1,100. When the maximum student count will exceed 25 students in a class, then an additional 58 square feet per student must be provided.

9. 9 “State Standards?” Science labs must include the following: –Built-in fume hoods for chemistry areas. –A built-in eye/face wash –A built-in safety shower –Exhaust fans Special education classroom must have a minimum of 400 square feet and a minimum of 40 square feet per student when the maximum student count exceeds 10 students in a classroom.

10. 10 “State Standards?” Computer classrooms in which instruction for the use of computers occurs must have 900 square feet, based on an allowance of 36 square feet per student. Any specialized classroom, which does not have a specified required amount of space, must have a minimum of 28 square feet per student. Libraries for a campus of 200 students with 25 computers located in the library must include 2100 square feet.

11. 11 “State Standards?” Adequate technology, communication, and electrical infrastructure are required for any new educational facility. School districts must also comply with the “Texas Accessibility Standards” and the “Americans with Disabilities Act of 1990”. The TAS are much more stringent that ADA standards. Schools are subject to inspection by the Texas Dept. of Licensing and Regulation to insure compliance. Failure to meet standards can result in fines being assessed. New indoor air-quality standards are now required for all educational facilities.

12. 12 “So how do we pay for this?” School districts are created by the state legislature. Local districts have historically been responsible in the State of Texas for their own facilities. Because they are locally responsible typically a local tax levy has been used – I&S (Interest & Sinking) Tax In 1997 things changed and the state began to get involved

13. State Role in School Facility Financing IFA – Instructional Facility Allotment EDA – Existing Debt Allotment Two Different Programs

14. State Role in School Facility Financing Application-based allotment for bonded debt and lease purchase agreements that finance construction of instructional facilities Guaranteed yield approach to tax rate equalization First allotments in 1997-98 312 recipients in 2000-01 370 recipients in 2001-02 Instructional Facilities Allotment

15. State Role in School Facility Financing Cost controlled by appropriation Eight year weighted average maturity for debt Application deadline exist - It is not always available Election before application Biennial limit of $250 in debt service per ADA, or $100,000 for districts with less than 400 ADA Instructional Facilities Allotment

16. State Role in School Facility Financing Prioritization scheme Wealth per ADA Adjustment for student growth Adjustment for lack of existing debt Adjustment for denial of funding Instructional Facilities Allotment

17. IFA Prioritization Issues Wealth per ADA based on final Comptroller value and projected ADA (LPE) Adjustment (reduction in wealth) for student growth over past 5 years: 5% for 10 – 14.99% growth 10% for 15 – 29.99% growth 15% for 30% and greater growth 10% adjustment for lack of existing debt 10% adjustment for denial of funding in a biennium

18. IFA Formula Instructional Facilities Allotment State Aid Formula: FYA = ($35 × ADA × BTR × 100) - (BTR × (DPV / 100)) Where: BTR is the bond tax rate, calculated by dividing the districts tax collections for eligible debt by the property value divided by 100. Beginning in 2001-02, tax collections could include taxes collected in 1999-2000 or more recent years that were not equalized by other formulas. ADA is a minimum of 400

19. State Role in School Facility Financing Allotment for bonded debt with payments in the previous biennium To get money the district must float the debt Pay on the debt in the previous biennium – Payment by August 31, 2007 Pay on the debt for one year Get money in second year and then on Existing Debt Allotment

20. State Role in School Facility Financing Guaranteed yield approach to tax rate equalization State pays based on the taxing effort of the local district Doesn’t pay for all of it Pays based on the ability of the district to generate monies through its local tax base Existing Debt Allotment

21. State Role in School Facility Financing Operates as an entitlement No application or prioritization No restriction to instructional facilities Limited by tax rate of $0.29 Equivalent to $1,015 of debt service Existing Debt Allotment

22. EDA Formula Existing Debt Allotment State Aid Formula EDA = ($35 × ADA × EDTR × 100) - (EDTR × (DPV / 100)) Where: EDTR is the existing debt tax rate, calculated by dividing the district’s tax collections for eligible debt by the property value divided by 100. Beginning in 2001-02, tax collections could include taxes collected in 1999-2000 or more recent years that were not equalized by other formulas.

23. Facilities Funding Problems and Issues Insufficient access to IFA Debt that doesn’t fit in Ineligible for IFA Above limits for EDA or IFA Small district facility replacement financing in IFA Lease purchase impact on Tier 2 Limits in IFA based on payments in first biennium/escalating debt problem

24. Facilities Funding Problems and Issues Refunding transactions becoming ever more complicated IFA refunding must not reduce term and must have net present value savings Refunding of lease-purchase EDA biennial tax rate limit (TEC 46.034(b)) 400 student adjustment doesn’t impact ranking and isn’t used for EDA Settle-up

25. State Role in School Facility Financing Low Local Taxing Ability High $0.01 = $12,487 DeLeon

26. State Role in School Facility Financing Low Local Taxing Ability High State Assistance State Assistance DeLeon Effort

27. State Role in School Facility Financing Low Taxable Value (per ADA) High $0.01 = $12,487 42% 58% State Assistance DeLeon Effort

28. 28 “O.K., now what?” A comprehensive building tour/site review Identify needs Look for solutions –Look at what other districts have done –Look at districts similar to DeLeon Develop a plan that provides and information and options for the Board to use to make a decision

29. 29 “What’s the next step?” Set a date to walk-thru facilities Debrief and gather information from the walk- thru May need two different dates

30. 30