HomeMy WebLinkAboutWA Expansion 020612 BOT PresentationDiscussion of Past Policies and
Decisions Relative to WA Finances,
Facility Financing & Enrollment
February 6, 2012
How are We Doing? (BSC)
2
Strategic
Plan
Established
1.
Financial
Policies &
Decisions
2. 6. 3. 5. 4.
Enrollment &
Curriculum
Decisions
Facilities
Teaching
& Admin.
Structure
Learning &
Assessment
Vision
Values
Mission
Learner
Profile
Manifested
Student Centric Focus
and Learning Occurs
Financial Policies & Decisions
3
Operating Cost Related Policies & Decision
• Academy and Municipal Budget Policies – Recoup all Indirect Costs
($305,000 started in FY11/12)
• Moved all Academy direct operating costs in Municipal Budget to
Academy Budget ($245,000, started in FY10/11)
• Salaries: Policy to be within 3% of median of surrounding school
districts
• State Funding Cutbacks
6.5 % in FY 11/12 = an approximate decrease of $477.00 per student
9.0 % in FY 12/13 = an approximate decrease of $660.00 per student
2.
Financial Policies & Decisions, cont.
4
Operating Cost Related Policies & Decision
• Net effect of “full cost of service” for operating costs:
• Requires a certain enrollment to be “in the black” and
maintain TEA recommended fund balance
• Currently not able to do this; expenses exceed revenues
2.
Financial Policies & Decisions, cont.
5
Capital Cost Related Policies and Decisions
• Bonds issued for Academy facilities are tax pledged, BUT paid for
by sales tax.
• No decision to date by Council to issue additional bonds (debt)
for Academy facilities (since A&S building)
Net Effect:
Only known sources to address capital costs for facilities:
• Issue tax pledged debt paid by growing student enrollment
- OR -
• Issue debt supported by tax pledge, but paid for by sales tax
-OR –
• Combination of both approaches
2.
Enrollment & Curriculum Decisions
6
• Set class size at 20 students (June 18, 2010 - effective SY 10/11)
• Added a section to Secondary grades
(3 total per grade G7-11 – SY 11/12)
• Added courses for Secondary; required additional students and
teachers to populate these classes (SY 11/12)
• Installed 3 portables (SY 11/12)
Net Effect:
Increased costs, but additional enrollment helped offset State
funding reductions
But, no new dollars for Academy facility needs
Student on-boarding challenges
3.
Facilities
7
• Current facilities maximized – space wise
• No funding identified to replace 3 existing portable buildings
• Cannot use current enrollment to fund new facility construction
• No bond funding (or source to pay for them) authorized by Council
for Academy facilities
• Facility needs have been identified (Hayes Plan); gym most
stressed by high usage/scheduling
• Lead to proposing enrollment growth to fund facilities (Option 2A
or the Semi-OGO plans)
4.
Teaching & Admin. Structure
8
Strategic Plan Desired Outcome: Highly Effective Teachers
• “Raised the Bar” = Great Teacher Profile
• Increasing the Academy’s recruitment profile
• Add Assistant Secondary Principal
5.
Learning & Assessment
9
• Leavers Report
• Improving the On-boarding Process
• Mid-year Academic Success Plan
• Develop/Refine DP Level Pathways (future policy discussions)
6.
Policy Questions - Going Forward
10
Operating Costs
• Remain on “full cost of service”?
- If yes, where will required revenue come from?
~ Facilities are maxed out; student growth a problem
without additional portables; State funding has been reduced
- If no, is there a different approach?
Capital Costs
• Only fund new facilities by enrollment growth?
- If yes, Option 2A or “Semi-OGO” will work
- If no, is there a different approach?
Policy on DP Pathways
An Alternative Approach
11
Operating Costs
• Treat the Academy as a general Government facility
- Modify full cost of service policy for indirect costs
~ Relieve pressure to increase enrollment to cover these costs
~ Municipal General Fund to carry the costs
Capital Costs
• Use funding source for new facilities that is not dependent on
student growth
- OR -
• Use an approach for capital costs that combines some enrollment
growth over time with another funding source
What does this look like?
An Alternative Approach, (cont.)
12
Operating Costs
• Eliminate indirect costs – transfer to Municipal General Fund of
$ 305,000 (Municipal budget absorbs this cost)
• Retain enrollment at approximate present level
Capital Costs
• Cafetorium $ 2.0 million
Six (6) Classroom building $ 2.4 million
ESTIMATED COSTS $ 4.4 Million
• Utilize PTR/former 4A sales tax funds to pay this estimated annual
debt service cost of $ 305,000 (still would be tax pledged bonds to
obtain the lowest interest rate possible)
• Look at Performance Hall options
PHASE ONE
An Alternative Approach, (cont.)
13
We can decide at a later point to:
• Issue $10 million in bonds
• Build remaining building components
• Increase enrollment to 25 per class/section
• Move G6 into Secondary
PHASE TWO (OPTIONAL)
Recap
14
• Needed: A facility plan – had one developed (Hayes Plan)
• Looked at a variety of options to implement it based on current
Board financial policies & decisions
• If we use a different Board policy approach, it creates another
alternative with two (2) phases:
+ Phase One $4.4 million (builds Cafetorium & 6 classrooms)
+ Phase Two $10 million (remaining buildings)
• Phase I – capital cost is funded by tax pledged bonds paid by sales tax
- Also, Academy operating budget “in black” by Municipal
budget absorbing the indirect costs for operations; no change
in enrollment
• Phase II (Optional) – paid for by increasing Secondary enrollment to
25 w/ G6 moved into Secondary
15
Needed:
Board Direction in order
to plan next steps.