Fall 2012

Board Direction—“Run a bond” On Sept. 25, the Board directed staff to prepare for

February 12, 2013 bond election On November 27, the Board approved the official

resolution to place the issue before voters. Major projects—three elementary schools Minor projects—to be prioritized $46.8 million in local dollars Estimated $38.1 million in state match Estimated rate of 34 cents per thousand

Bond Construction Comparison April 2011 $59 million local/$50

million state match One 1250 middle school One 750 elementary One 600 ELC Other projects as listed

$.95/$1000*

February 2013 $46.8 million local/$38.1

million state match Two 750 elementary

schools One 725 Kinder Center Other projects as listed

$.34/$1000*

*Major differences are the elimination of the middle school and the estimated interest rate—2011 at 5%, 2012 at 3% per SNW Securities.

Effective Strategies to Reduce Costs K/1-6 configuration reduces costs Delays need for middle school until about 2024 Increases need for elementary schools immediately

Use the Pasco design Build large schools Build school for younger students Use property already purchased or adjacent to other usable

property (saves about $1.7 million in site design) Elementary #13 at 52 and Powerline, to open in 2014-15 Kindergarten Center (Elem #14) at 60 and Sandifur to

open in 2015-16 Elementary #15 at Whittier site to open in 2015-16

February 2013 Bond Designed to: Maximize use of state match dollars, thereby reducing

direct cost to Pasco taxpayers Construct enough space to delay need for Multi Track Year

Round (MTYR) or Double Shifting (DS) Minimize impact on Pasco taxpayers Pasco Facilities Task Force

developing long-term plan to accommodate growth and keep schools maintained and functional

Meanwhile, still planning for potential implementation of Multi Track Year Round or Double Shifting if needed.

Other Projects The following projects will be prioritized based on remaining dollars: New Horizons relocation Stevens site improvements District wide improvements

such as upgrades at older schools PHS entrance, offices, additional science labs Twain pick up and drop off Portables Design funds for future schools Land purchases Elementary, middle and high school sites

District Enrollment History October 1st Count Dates

PSD is up 361 more students in 2012. Since 2000, enrollment has increased by over 7,100 students—81%, or an average of about 600 new students a year—enough students to open a new school annually.

4.3% 5.7% 5.8% 6.5% 7.3% Increase 5.8% 4.5% 4.8% 5.1% 4.7% 3.2% 2.3%

October 2012 Enrollments by School Elementary Schools *Capacity

Oct 2012 Enrollment

Secondary Schools *Capacity

Oct 2012 Enrollment

Gray 550 542 McLoughlin 1000 1,620 Markham 325 345 Stevens 715 962 Emerson 550 535 Ochoa 770 973 Longfellow 500 562 Middle Total 2,485 3,555 Twain 450 758 Frost 550 557 PHS 1900 1,914 Livingston 500 880 CHS 2200 2,240 McGee 500 908 NHHS *200 199 Whittier 550 696 HS Total 4,300 4,353 Chess 575 590 Second Total 6,785 7,908 Angelou 725 887 Robinson 725 826 K-12 Total 13,285 15,994 Elem Total 6,500 8,086 * Excludes portable classrooms, except NHHS

Dealing with growth challenges Challenges and Obstacles

Low assessed value, near or at statutory debt capacity; creates inequity compared to other districts.

In 2011, PSD was 271 out of 295 districts in per pupil AV.

New Schools

6 new schools since 2000

Chiawana High School opened fall 2009 with 112 classrooms.

Portables

171 portable classrooms

24 more in August 2012

Still Not Enough Space…

CHS Science Lab

Longfellow Portable Installation

Growth Since Our Last K-8 School The last new elementary school, Robinson, opened in

2005. Since 2005, PSD has added 2,983 students in grades K-

8, without building another K-8 school to accommodate those new students.

Current facilities can no longer fit additional students. We have added 96 K-8 portable classrooms since 2005.

We are running out of room for additional portables. We have maximized our ability to accommodate

continued student growth. It must be either new schools, MTYR or Double Shifting.

Capacity Considerations

Three elementary schools will give our schools some breathing room right away, but not provide for much future growth, if it continues.

Four elementary schools would provide space for the future.

The added tax rate for the fourth would cost about 10 cents more per thousand.

After much consideration, the board stayed with 3 schools on the bond proposal: The 4th would increase the cost too much Growth may continue to slow. Building for students we have

now is more cost efficient.

Scenarios If bond passes:

The District would likely be able to avoid MTYR or DS with one new school opening in 2014 and the addition of portables, depending on the level of enrollment growth.

The District would make the K/1-6 conversion in 2015-16 when all new schools would be open.

These new schools would relieve the immediate overcrowding, but do not provide significant space for additional growth in order to reduce costs.

If the bond fails:

The District would likely move to MTYR or DS in 2014-15 in several schools.

The conversion to K/1-6 would phase in as elementary schools move to MTYR or Double Shifting.

Approximately 1350 6th graders will be absorbed in the elementary schools.

Fact: Frugal and Functional

Construction Costs for New Pasco Schools since 2002 Compared to Other New Washington Schools

Sources: OSPI website and PSD Fiscal Office Excludes cost of land State has prevailing wage law.

Pasco Schools Other WA Schools

2007-09 CHS $211.56/sf Other high schools $247.18/sf and $401.45/sf

2005 Robinson Elementary $140.11/sf

State average for similar sized elementary schools

in eastern WA $276/sf

2004 Angelou Elementary $127.84/sf

State average for similar sized elementary schools

in eastern WA $206.80/sf

2002 Ochoa Middle School $118.81/sf Middle School $167.41/sf

Above are construction costs for all Pasco Schools built since 2002 compared to similar schools built in the state during the same time periods. In every case, Pasco’s construction costs were not only lower but significantly so. This savings to taxpayers does not happen by accident, but as a result of careful and thoughtful planning and strategies. Katrina and the Tsunami impacted materials costs in 2004-06.

Age OSPI Score by

Age

2011 *BCE Score

2012 *BCE Score

Emerson 15 73 83 89.99 Frost 15 73 83 91.37 PHS 59 42 56 77.27 CHS 2 100 100

Pasco School District Asset Preservation Program

*BCE-Building Condition Evaluation score given by OSPI.

Fact: Well-maintained schools last longer, thereby saving taxpayer dollars.

Recent OSPI inspections found that Pasco schools are in better condition than would be expected for schools around the state of the same age.

The scores indicate that the condition of Pasco is well above what is expected for schools of the same age according to OSPI. Why? Because effective construction standards and responsible maintenance save Pasco taxpayers money in the long run. In 2011, OSPI provided a score for all the schools. In 2012 they scored only those schools which used state matching money for construction.

Survey Summary Fall 2011

6%

5%

14%

75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Not at all

2014

2013

ASAP

5. When would you recommend the board run another bond to request voter approval (requires 60%) to build new schools?

Total Responses ASAP: 1355 2013: 258 2014: 94 Not at all: 97

Total 1804 responses

In fall 2011 the District conducted a survey, both online and on paper, of parents and community members. The results of a question regarding a bond were:

Survey Results Fall 2012

3,910 people completed the survey. 928 in

Spanish 2,982 in

English 5.7%

73.8%

9.1%

8.6%

2.8%

Double shifting

Build the needed schools

A Multi Track Year Roundschedule

I don't know

Other (please specify)

1. Student enrollment continues to grow in the Pasco School District. In your opinion, what do you think is the

best way to address the issue?

70.5%

24.6%

5.0%

Yes

Undecided

No

2. The April 2011 bond election failed. Would you be willing to support a revised bond election that would cost

substantially less?

75.2%

24.8%

Yes

No

3. Would you support converting the elementary schools from K-5 to K-6 schools in order to reduce the cost of

building new schools?

Next Steps

Projected Bond Tax Rates Estimated rate: $.34/$1,000 or $34 for $100,000 property Estimated State Match: $38.1 million for Pasco’s large

number of “unhoused” students Debt Amount: $46,864,000 (two issues and includes fees) Interest Rate: Current + 1% = 3% Structure: Combined level tax rate Assessed Value (AV) Growth Estimate: 3%

Historical Annual AV Growth Average annual rate increase since 1987 7.35% Average growth over last 10 years 9.76% Average growth over last 5 years 7.64%

26.6%

15.9%

34.9%

3.2%

7.7%

7.7%

3.9%

District newsletters

District website

School newsletters

Radio

TV

Talking to district employees

Other (please specify)

4. How do you get most of your information about the district?

94.5%

1.7%

1.9%

1.9%

Yes

Not anymore

In the future

Never

5. Do you have children in Pasco schools?

26.7%

73.3%

Yes

No

6. Have you attended an information session on this topic?

79.9%

20.1%

Yes

No

7. Would you be willing to attend an information session on this topic this fall?