horizon council presentationhorizon council presentation april 22, 2015april 22, 2015
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CAPITAL FUNDING NEEDS
Horizon Council PresentationApril 22, 2015
District Funding Structure
Operating Funds-for day to day operations of the school district
Federal grants-for specific purposes or specific populations as defined in the grant
Capital dollars-for purchase of new buildings, land, technology, and maintenance of capital assets
THE CHALLENGE
Current capital plan is balanced in five year window Capital plans over last several years have been built
based on what we can afford Many items that are now desperately needed are not
reflected in the plan (unfunded capital needs)
THE CHALLENGE
UNFUNDED CAPITAL NEEDS District Technology
initiativesNecessary
infrastructureStudent devicesReplace/refresh plan
for new devices
THE CHALLENGE
UNFUNDED CAPITAL NEEDS Maintenance/Renovation Initiatives
Necessary maintenance on older buildings
Safety upgradesBuilding upgrades
THE CHALLENGE
UNFUNDED CAPITAL NEEDS Classroom Availability/Need for Seats
No new schools in the current plan in the five year window
Growth continues at 1.5-2.3% per yearMany schools at or very close to capacity
Shortfall: $45 million per year
The Challenge
Tax roll loss between 2009 and 2013: $400 mil Impact fees down from a high of $57 to $1.4 mil Capital dollars from state from $21 to $1.5 mil Total annual revenue from $264 mil in 2008 to
$103 mil in 2015FIVE YEAR IMPACT
$656 MILLION
Meetingthe
Challenge
Need viable options to generate capital revenue Determine ways revenue needs can be
met How much revenue could be raised Pros and Cons of our available options
OPTIONS
Option 1: Additional property tax capability Ask the legislature to give us the capability of increasing
property tax back to 2.0 (or at least higher than the current max of 1.50)
Each .25 mill generates approximately $15.5 million based on current tax roll
Must depend on the legislature to give us this capability Additional tax is paid entirely by local property tax
owners
OPTIONS
Option 2: General Obligation Bonds--The sale of bonds, the debt service of which will be paid back through revenue generated from an additional property tax levy Revenue potential is substantial, dependent on the
size of the bond Must be agreed to by voters in a referendum This is an additional property tax, so again, the local
taxpayers bear the brunt of the expense
OPTIONS
Option 3: COPs Currently, the District has over $505 million in
borrowing capacity (based on using 1 mill for debt service)
Board has expressed interest to stay away from more borrowing
Currently use 46% of property tax revenue for debt; more debt would increase this amount
Limitations on how that money could be used
OPTIONS
Option 4: Restoration/increase of impact fee Revenue before reduction was $4 million Authority is outside of board control Other options could raise more funds Limitations on how funds could be used
OPTIONS
Option 5: Sales Tax Potential of raising $50 million per year based on
current sales tax collections Revenue is raised by a broader population (23%
of sales tax collections come from tourism) Additional money is not acquiring new debt Must be approved by voter referendum
OPTIONS
56 out of 67 counties have some sort of sales surtax benefitting various county/district/government operations
15 counties have a school district sales tax 18 counties have a local government
infrastructure tax that could be shared with school districts by agreement
23 counties have other sales surtaxes
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