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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.