DCSD Board of Education Presentation

June 5th, 2012

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History

• August 2006 – opened North Star Academy

• Board desire to replicate grew

• Strong parent interest in second school

• Summer 2008 - second school application approved

• Winter 2009 – DCSD approved COP’s to purchase SkyView facility

History, con’t.

• 2008 - Apex Classical High School start-up group formed with intent to apply to DCSD for a stand alone charter high school opening for the 2011-12 school year

• August 2010 - Apex Classical group merged with SkyView Academy when the DCSD BOE approved the addition of high school to the SVA program

• It was understood as part of that approval we would renovate the remaining half of the SVA facility to house our entire PK-12 program

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History, con’t.

• Hoped for another partnership with DCSD for COP’s

• November 2011 - requested COP’s for renovation

• March 2012 – DCSD staff asks SkyView to pursue other methods of financing so DCSD could use limited COP funds for expansion into growth areas of District

• April 2012 – CECFA approves bond financing for renovation without further investment by DCSD

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Construction Financing

• D. A. Davidson – experienced in Charter finance

• Financing program designed for schools like SkyView

• Payments are intercepted at state level

• Refinance in 2-5 years when SkyView has a bond rating

• Shared collateral position with DCSD

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Construction Financing, con’t.

• Other successful schools using this program•Jefferson Academy•Union Colony•Liberty Common

• Capitalizing some interest so Middle School and High School programs can pay for additional construction

• Investors consider SVA a very strong school with limited risk

• $10.5 million construction costs for 800 additional student capacity6

First Floor

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Truths About Closure Risk

• Never has a Charter school over 700 students closed in Colorado; we will exceed 700 next year reaching 1,400 students by 2016

• Never has a John Irwin Award winning Charter school in Colorado closed

• SkyView has built reserves during lean years when many Charter schools & Districts used up reserves

• SkyView High School enrollment will more than double next year

• 1,500+ on waitlist9

“We know SVA is great, but what if…?”• What happens in the highly unlikely scenario that

our High School enrollment projections don’t materialize?

1. Staffing needs will be re-adjusted

2. Additional students can be added at the Middle School level which will roll up to High School

3. Salary reductions can take place since we are not bound by collective bargaining agreements

4. Other program costs can be controlled with the budget autonomy we possess as a Charter school

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Worst Case Scenario

• What if high school enrollment never grows or trickles away?

• Trigger for change – 2 consecutive years of operating expenses exceeding revenues which result in expenditures of $250K or more from reserves

• SkyView Board would consider elimination of the High school program and convert to PK-8

• Resulting school would have 150 students per grade, with an enrollment of over 1,400 students, PK-8 to fill entire facility

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SkyView Academy – A Great Investment

• Strong, experienced leadership in our Board of Directors – SkyView is the second successful school we’ve started

• Strong, experienced leadership in our Administrative team – over 40 years of Charter experience with connections to two of the top K-12 schools in the state

• Strong passionate parent base is very involved

• Waitlist of over 1,500 students

• Tremendous student body anxious to enjoy the completion of this summer’s renovation

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In Summary

• SVA adds unique value to the community

• Our program is strong and successful in every way

• We are asking for your approval of the financing agreement tonight so we can get started on the completion of our renovation and serve our students who deserve the best

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