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

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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)

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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

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Find a way to address future capital needs of both School System and County Government

Identify funding stream to sustain CIP No tax increase

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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

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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

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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

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In budgeting ……. revenue sharing formula

In year end ……… year end surplus rollover agreement

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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

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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

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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.

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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

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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

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Set up like reserves for the County government

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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.

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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

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Schools - $122 million$41M paid in cash

County - $107 million$20M paid in cash

Plus $10M added to Unappropriated Balance

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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

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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!

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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+)

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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

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Roanoke County Public Schools

www.rcs.k12.va.us

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