vsba conference november 17, 2011. roanoke county public schools roanoke, virginia mr. drew...
Post on 03-Jan-2016
213 Views
Preview:
TRANSCRIPT
VSBA ConferenceNovember 17, 2011
Roanoke County Public Schools Roanoke, Virginia
Mr. Drew Barrineau, CPA, School Board Memberdbarrineau@rcs.k12.va.us
Mrs. Penny Hodge, CPA, SFO, Assistant Superintendent of Finance
phodge@rcs.k12.va.us
2
14,400 students with growing enrollment 30 school buildings Average age of buildings -- 48 yrs old 17 elementary, 5 middle, 5 high, 3 specialty Completed $71M in school projects since
1997-2005 based on community study (8 schools)
3
22 schools remaining with capital needs Aging infrastructure with no financial plan County government capital needs growing Competing county capital needs - new
public safety facility, county garage, recreation center, and library in the works
Debt capacity was exhausted
4
Find a way to address future capital needs of both School System and County Government
Identify funding stream to sustain CIP No tax increase
5
New policies to protect plan from yearly fluctuations and ensure sustainability
Win-win solution to address school and county capital needs
Collaboration of both boards and finance staffs
Buy-in from boards and employees to commit to long-term investment in capital
6
Methodical means of funding CIP Allocating smaller dollar amounts every
year is small compared to the size of the capital needs and the results of ignoring those needs
Easier to give community dependable projections on when projects will begin
Design work can be scheduled just prior to building and not sit on shelf
7
Compatible and complimentary school and county financial policies
Permanent revenue stream Annual commitment of set amount of new
money Cooperative relationship between School
and County governing boards Use pay-as-you-go for smaller capital
expenditures including A&E and land
8
In budgeting ……. revenue sharing formula
In year end ……… year end surplus rollover agreement
9
1. Establish School Capital Reserve2. Use of School YE Balances3. Establish County Capital Reserve4. Use of County Unspent YE Expenditures5. Use of County Revenues in Excess of
Budget
10
Began with $2M annual contribution in 1996 (to build new high school)
Add new $600,000 from county & schools each year (beginning in 2005-06)
Plus debt drop-off over time Plus economic development incentive drop-
off over time Results in incrementally growing reserve Limit bonding to 20 years
12
FY05 $2,000,000
FY06 $2,600,000
FY07 $3,200,000
FY08 $4,200,000*
FY09 $4,800,000
FY10 $5,400,000
FY11 $6,000,000
FY12 $6,600,000
FY13 projected
$7,200,000
FY25
projected
$14,400,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
* Boards increased contribution this year during budget negotiations.
13
Use for projects on adopted CIP Land as it becomes available Fund with 2/3 of YE balance Pay cash for smaller projects Supplement borrowing for larger projects
14
Use for smaller capital projects (<$500,000) and one-time needs
Fund with 1/3 of YE balance Plus sale of land and buildings Can be used for A&E to get CIP projects
planned Can also be used for CIP projects
15
Set up like reserves for the County government
16
2011-12 $10M Schools
2012-13 $10M Schools
2013-14 $10M County
2014-15 $10M Schools
2015-16 $10M Schools
2016-17 $10M County
Future funding pattern of 2 years schools and 1 year county projects.
17
Properly timed bond issues Available cash accumulated in Major/Minor
reserves (from year end surpluses) No tax increases needed Funds $40M for schools and $20M for
county over next 6 years (at a minimum) Ensures funding for future School Boards Assists County Board in addressing needs of
entire county with constituents
18
Schools - $122 million$41M paid in cash
County - $107 million$20M paid in cash
Plus $10M added to Unappropriated Balance
19
2005 $5.3 million
2006 $6.2 million
2007 $6.8 million
2008 $5.0 million
2009 $4.5 million
2010 $6.7 million
2011 $9.9 million
Total to Date $44.4 million
20
21
Replace Cave Spring Middle Construction RFP released in Spring 2011
(still attractive bidding market) $28 million cost including all soft costs Paying $18 million in cash!
22
RCPS lost $17M (21%) in state funding from FY09-FY11
Committed to not reducing annual contribution even in bad years (treated like a debt payment)
Allowed for 20-25% cost savings over past 3 years when construction costs were reduced due to the economy (bid out 5 school building projects)
Benefits of policy reinforced by ongoing capital projects able to be funded
Bond rating agencies give high marks (AA+)
23
Plan for future capital needs in realistic timeframes
Communicate with citizens Eliminate annual competition for same
funds Relatively simple to manage Immediate payback for county and schools
in CIP projects underway
24
Roanoke County Public Schools
www.rcs.k12.va.us
25
top related