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Home My WebLink AboutWA Finances facilty financing enrollmentFebruary r, 2012 ► ►_ ;r _ ;, How are We Doing? (BSC) Strategic r y Discussion of Past Policies and Decisions Relative to WA Finances, Learning & Facility Financing & Enrollment Policies& How are We Doing? (BSC) Strategic Financial Enrollment & Teaching Learning & Plan Policies& Curriculum Facilities &Admin. Assessment Established Decisions Decisions Structure Vision Learner Values Student Centric Focus Profile Mission and Learning Occurs Manifested 2/6/2012 2. Financial Policies & Decisions 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 Q Financial Policies & Decisions, cont. 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 1 Financial Policies & Decisions, cont. 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 -0R- • Combination of both approaches Enrollment & Curriculum Decision • 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 2/6/2012 4. Facilities • 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) 22 Teaching & Admin. Structure Strategic Plan Desired Outcome: Highly Effective Teachers • "Raised the Bar" = Great Teacher Profile • Increasing the Academy's recruitment profile • Add Assistant Secondary Principal 0 7 Learning & Assessment 6 • Leavers Report • Improving the On- boarding Process • Mid -year Academic Success Plan • Develop /Refine DP Level Pathways (future policy discussions) a Policy Questions - Going Forward 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 l 2/6/2012 �— An Alternative Approach 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? PHASE ONE An Alternative Approach, (cont.) 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 5 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 G) 3 An Alternative Approach, (cont.) PHASE TWO (OPTIONAL) 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 Recap • 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 Q. „ Needed: Board Direction in order to plan next steps. 2/6/2012 4