Facility Options

June 20, 2019

Presented by:
Dr. Johnnie Thomas
Superintendent of Schools, Rich Township High School District 227

Alicia Evans, Ed.D.

Assistant Superintendent of Business and Operations
 Information Sharing Timeline

DEMOGRAPHIC FACILITY BUDGET THOUGHT OPTIONS DECISION ACTIONS

REPORT REPORT FORECAST EXCHANGE

Focused on Students and Student Success

 ENROLLMENT PROJECTIONS SHOW DECLINES
WHICH WILL LEAD TO REDUCED STATE AID
3,500

3,000
1,096

2,500 949
857
2,000 808 808 797
830 840 826 758
1,037 810
873
1,500
727 676 617 549 587 606 648 669 656
1,000
1,219 1,089
500 945 914 867 832 863 861 865 854 821

-
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28

Central East South

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Central 1,219 1,089 945 914 867 832 863 861 865 854 821
East 1,037 873 727 676 617 549 587 606 648 669 656
South 1,096 949 857 808 830 810 840 826 808 797 758
Total 3,352 2,911 2,529 2,398 2,314 2,191 2,290 2,293 2,321 2,320 2,235
Focused on Students and Student Success Source: May 2018 Kasarda Study
 Expenditure Forecast by Numbers

RICH CENTRAL SYSTEM EXPENDITURE 0-5 Years 6-10 Years 11-20 Years
System
FORECAST
Structure $ 16,400
Façade $ 42,500 $ 508,700
Roofing 2,364,800 282,800
Interiors 2,211,893 2,222,429 4,263,200
Elevators 12,800 210,800 215,600
Plumbing 138,700 242,000 107,700
Fire Suppression 1,119,100 220,100
HVAC 6,983,100 214,300 2,263,300
$20,444,393
Electrical 4,915,000 385,900 147,600
Fire Alarm & Comm 1,366,800 1,004,000 1,872,000
$13,136,600 Equipment/Special 199,600 478,800 311,300
Site Development 119,400 470,700 2,414,300
$6,123,929
Pavement 630,700 375,700 801,300
Site Lighting 231,600
0-5 YEARS 6-10 YEARS 11-20 YEARS Landscaping 330,000
Follow-Up Studies 10,000
Total $ 20,444,393 $ 6,123,929 $ 13,136,600

Replacement Cost = $40,220,000

When Forecasted Repairs = $39,704,922
 RICH EAST SYSTEM EXPENDITURE Expenditure Forecast By the Numbers

FORECAST 0-5 Years 6-10 Years 11-20 Years

System
Façade $ 25,000 $ 1,255,600
Roofing 1,855,900 3,052,800
Interiors 3,500,980 $ 564,200 1,608,500
Elevators 150,200 17,376 16,000
Plumbing 2,338,400 30,800 213,700
Fire Suppression 1,709,700 67,500
HVAC 2,825,800 357,600 5,412,800
$38,064,700
Electrical 4,793,700 20,850,000
Fire Alarm & Comm 1,298,400 534,600 2,863,700
Equipment/Special 227,500 156,300 1,488,600
$19,551,280 Site Development 564,100 284,700 894,700
Pavement 145,600 397,100 208,800
Site Lighting 98,300 132,000
$2,342,767
Follow-Up Studies 17,700
0-5 YEARS 6-10 YEARS 11-20 YEARS
Total $ 19,551,280 $ 2,342,676 $ 38,064,700

Replacement Cost = $42,710,000

When Projected Repair Cost = $59,958,656
 RICH SOUTH SYSTEM EXPENDITURE Expenditure Forecast By the Numbers
FORECAST
0-5 Years 6-10 Years 11-20 Years
$20,000,000 System
Structure $ 74,200 $ 10,400
$18,000,000
Façade 23,600 $ 128,100 985,000
$16,000,000 Roofing 1,580,700 401,500 614,900
$14,000,000 Interiors 1,114,491 3,425,362 1,500,100
Elevators 135,400
$12,000,000
Plumbing 137,700 37,500 58,600
$10,000,000 $18,230,400 Fire Suppression 50,100 17,500
$8,000,000 HVAC 2,423,200 623,300 5,337,200
Electrical 397,300 134,600 6,935,200
$6,000,000
Fire Alarm & Comm 1,264,000 904,000 1,737,600
$7,750,591 $6,644,162
$4,000,000 Equipment/Special 116,300 247,800 191,800
$2,000,000 Site Development 202,400 32,300 566,500
Pavement 223,700 611,700 206,600
$-
0-5 Years 6-10 Years 11-20 Years Site Lighting 80,500 86,500
Accessibility 7,500
Total $ 7,750,591 $ 6,644,162 $ 18,230,400
Replacement Cost = $42,595,000
When Projected Repair Cost = $32,625,153
Net Income/(Deficit) Forecast Shows Unbalanced
Budgets In Future Because Of Reduced Enrollment
$2,500,000 $2,208,382 $2,180,636

$2,000,000
$1,406,603
$1,500,000
$789,401
$1,000,000

$500,000

$0
$(2,196)

-$500,000
$(754,794)
-$1,000,000
2018- 2019- 2020- 2021- 2022- 2023-
2019 2020 2021 2022 2023 2024
Sound Stewardship of District Finances
Information Sharing Timeline
• December 11 – January 11
• Student Discussion/Forums
• December 11, 2018
• Staff Discussion/Forums
• December 12, 2018
• Community/Parent Forums
• December 13, 2018
• December 19, 2018
• January 3, 2019
• January 10, 2019
• Parent Email
• January 12th and January 13th
A Summary of the Results
• Close one school
• Consolidate campuses
• Consider the enrollment trend data
• Board transparency in decision making
Options

1. Repairs to Facilities - No Upgrades

2. Upgrade All Facilities and Address Facility Needs
3. Upgrade and Consolidate to Two Schools in District
4. Build One New Facility (Full student body)
5. Build One New Facility / Partially Upgrade One
Existing Site
6. Purchase Facility and Partial Renovation of Existing
Site
Option Concepts
• Cost Estimates
• Timeline
• Financing
• Legislation
• Referendum
• Percentage Increase in Overall Property Tax Bill
• Percentage Increase in Property Tax Rich Portion
• Percentage Increase in Property Tax Rich Bond Amount
• All options retain the same bond payments for the first two years
 Option 1
Repairs to Facilities - No Upgrades
Cost Estimates/Financing
Timeline
 Costs For Repairs by School (Only)
School Costs Timeline

Central High School $ 39,704,800 Summer 2021-Summer 2026

East High School $ 59,470,100 Summer 2021-Summer 2027
South High School $ 31,749,400 Summer 2021-Summer 2026
Subtotal $ 130,924,300
*Other $ 38,753,593
Grand Total $ 169,677,893

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Option 1 – Financing
• Requires a change in legislation
• Requires referendum
• Percentage Increase in Overall Property Tax Bill = 3%
• Percentage Increase in Property Tax Rich Portion = 9%
• Percentage Increase in Property Tax Rich Bond Amount = 109%
 Option 2
Upgrade All Facilities and Address Facility
Needs
Cost Estimates/Financing
Timeline
Upgrade All Facilities and Address Facility Needs
Includes new Field House, Pool and Secure Entrance Additions

School Costs Timeline

Central High School $ 93,163,780 Summer 2021-Summer 2026

East High School $ 124,289,275 Summer 2021-Summer 2027
South High School $ 90,830,860 Summer 2021-Summer 2026
Subtotal $ 308,283,915
Other $ 91,252,039
Grand Total $ 399,535,954

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Option 2 – Financing
• Requires a change in legislation
• Requires referendum
• Percentage Increase in Overall Property Tax Bill = 15%
• Percentage Increase in Property Tax Rich Portion = 41%
• Percentage Increase in Property Tax Rich Bond Amount = 516%
 Option 3
Upgrade and Consolidate to Two Schools
in District
Cost Estimates/Financing
Timeline
Upgrade and Consolidate to Two Schools in District
Upgrade Rich Central and Rich East (Demolish Rich South)

School Costs Timeline

Central High School $ 93,163,780 Summer 2021-Summer 2026

East High School $ 124,289,275 Summer 2021-Summer 2027
South High School $ 2,500,000 Summer 2021-Summer 2026
Subtotal $ 219,953,055
*Other $ 65,106,104
Grand Total $ 285,059,159

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Upgrade and Consolidate to Two Schools in District
Upgrade Rich Central and Rich South (Demolish Rich East)

School Costs Timeline

Central High School $ 93,163,780 Summer 2021-Summer 2026

East High School $ 2,500,000 Summer 2021-Summer 2027
South High School $ 90,830,860 Summer 2021-Summer 2026
Subtotal $ 186,494,640
*Other $ 55,202,413
Grand Total $ 241,697,053

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Upgrade and Consolidate to Two Schools in District
Upgrade Rich East and Rich South (Demolish Rich Central)
School Costs Timeline

Central High School $ 2,500,000 Summer 2021-Summer 2026

East High School $ 124,289,275 Summer 2021-Summer 2027
South High School $ 90,830,860 Summer 2021-Summer 2026
Subtotal $ 217,620,135
*Other $ 64,415,560
Grand Total $ 282,035,695

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Option 3 – Financing
• Requires a change in legislation
• Requires referendum
• Percentage Increase in Overall Property Tax Bill = 7% - 9%
• Percentage Increase in Property Tax Rich Portion = 19% - 25%
• Percentage Increase in Property Tax Rich Bond Amount = 237%, 314%,
308%
 Option 4
Build One New Facility Using an Existing
Site (Full student body)
Cost Estimates/Financing
Timeline
Build One New Facility Using an Existing Site
To Accommodate the Entire Student Body

School Costs Timeline

New Building Facility (3,000 Students) $ 278,910,000 Summer 2021-Summer 2025

Demolish Two Buildings $ 5,000,000
Subtotal $ 283,910,000
*Other $ 84,037,360
Grand Total $ 367,947,360

Note: The building costs is based on $90,470 per student

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Option 4 – Financing
• Requires a change in legislation
• Requires referendum
• Percentage Increase in Overall Property Tax Bill = 14%
• Percentage Increase in Property Tax Rich Portion = 37%
• Percentage Increase in Property Tax Rich Bond Amount =458%
 Option 5
Build One New Facility / Partially Upgrade
One Existing Building
Cost Estimates/Financing
Timeline
Build One New Facility and Partially Upgrade One
Existing Building
School Costs Timeline
Building Cost (2,000 students) $ 180,940,000 Summer 2021-Summer 2025
Site Work $ 5,000,000
Demolition (Full and Partial) $ 7,500,000
Upgrade Facility $ 31,750,000
Subtotal $ 225,190,000
*Other $ 63,053,200
Grand Total $ 288,243,200

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Option 5 – Financing
• Requires a change in legislation
• Requires referendum
• Percentage Increase in Overall Property Tax Bill = 10%
• Percentage Increase in Property Tax Rich Portion = 25%
• Percentage Increase in Property Tax Rich Bond Amount = 318%
 Option 6
Purchase Facility and Partial Renovation of
an Existing Site
Cost Estimates/Financing
Timeline
Purchase Facility and Partial Renovation of an
Existing Site
School Timeline
Acquitision Costs $ 60,000,000 Summer 2019
Demolition $ 5,000,000
Upgrade One Facility $ 31,750,000 Summer 2021-Summer 2023
Subtotal $ 96,750,000
*Other $ 8,890,000
Grand Total $ 105,640,000

Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.
Financing Source
• Use of DSEB, Lease, Working Cash Funding
• Lease Purchase
• Funding Bond
• Working Cash
• Retain the same bond payments for the first two years
Option 6 – Financing
• Requires no change in legislation
• Requires no front door referendum
• Percentage Increase in Overall Property Tax Bill = 1%
• Percentage Increase in Property Tax Rich Portion = 3%
• Percentage Increase in Property Tax Rich Bond Amount = 32%
 % Property Tax Bill
Option/Costs Financing Options Referendum Timeline
Increase
Summary Information
Option 1 Legislation and Summer 2021-
3% Yes
$169,677,893 Referendum Needed Summer 2027

Option 2 Legislation and Summer 2021-

15% Yes
$399,535,954 Referendum Needed Summer 2027

Option 3A-3B-3C
$285,059,159 9% Legislation and Summer 2021-
Yes
$241,697,053 7% Referendum Needed Summer 2027
$282,035,695 9%

Option 4 Legislation and Summer 2021-

14% Yes
$367,947,360 Referendum Needed Summer 2025

Option 5 Legislation and Summer 2021-

10% Yes
$288,243,200 Referendum Needed Summer 2025

Summer 2021
Option 6 Working
1% No Partial Renovation
$105,640,000 Cash/DSEB/Lease
2023
Thought Exchange
Question:

Of the options presented, which do you find most

favorable and why? Please be sure to indicate the
number assigned to the option you are discussing.
Reminder
• Show curiosity! If there’s a thought that really made you pause and
consider, be sincere and open. Keep the conversation going, even
after the exchange!

• Come back into the exchange to do more starring

• Encourage other people to come back into the exchange to do more

starring
Thought Exchange Dates and Participation

• Exchange Dates: Thursday, June 20, 2019 – Thursday, July 11, 2019

• Enter the exchange using the following link:

• https://my.thoughtexchange.com/#584255789
 % Property Tax Bill
Option/Costs Financing Options Referendum Timeline
Increase
Summary Information
Option 1 Legislation and Summer 2021-
3% Yes
$169,677,893 Referendum Needed Summer 2027

Option 2 Legislation and Summer 2021-

15% Yes
$399,535,954 Referendum Needed Summer 2027

Option 3A-3B-3C
$285,059,159 9% Legislation and Summer 2021-
Yes
$241,697,053 7% Referendum Needed Summer 2027
$282,035,695 9%

Option 4 Legislation and Summer 2021-

14% Yes
$367,947,360 Referendum Needed Summer 2025

Option 5 Legislation and Summer 2021-

10% Yes
$288,243,200 Referendum Needed Summer 2025

Summer 2021
Option 6 Working
1% No Partial Renovation
$105,640,000 Cash/DSEB/Lease
2023