Preserving Our Past. Preparing For Our Future.
Scott ColeDeputy Superintendent, Kern High School District
2004 Bond Issue Financial Responsibility Report Card
Overview
• Measure N – 2004 General Obligation Bond
• Leveraging Local Taxpayer Dollars
• Fruits of Labor
• Future Growth and District Needs
• Career Technical Education Facilities
• Funding Options
Measure N: $219 Million Bond
• To address student overcrowding in our local high schools and to repair and renovate many of the district’s school sites, Measure N was placed on the ballot in November 2004.
• Measure N passed with 67% of the vote.
• Goal: To ensure school facilities made it possible for our local students to be well prepared for success in college or to begin their careers.
Measure N Funds Issued Responsibly
The district issued authorized bonds only as needed:
• Series A: $50 million deposited in the Kern County Treasurer’s office on May 12, 2005
• Series B: $70 million deposited July 13, 2006
• Series C: $50 million deposited July 13, 2007
• Series D: $20 million deposited July 15, 2011
• Series E: $28.5 million to be sold June 2016
Leveraging Funds
$18,387,000.00
$29,806,000.00
$119,551,000.00
$190,151,000.00
District Funds
Dev Fees
State
GOB 2004
NOTE: $28,549,000 of unissued bonds remain for future projects.
Fruits of Labor
Grand Total: $342,337,000
New Construction
$198,534,000
• Tierra Del Sol
• Mira Monte High
• Independence High
Repair & Upgrades
$133,111,000
• Shafter Upgrades $11.8 M
• East Upgrades $12.8 M
• East Growth $12.8 M
• North Upgrades $29.9 M(in progress)
• Arvin Upgrades $24.0 M
• Shafter Growth $24.5 M
• South Upgrades $29.9 M
Career Technical Education (CTE)
Projects
$9,382,000
• North High CTE Ag
• Mira Monte CTE
• Arvin CTE Media & Design
• North High CTE Bldg Trad
• East CTE
• Arvin CTE Mach & Form
$190 million of GO Bond Funding produced $342 million
of district projects
Mira Monte High School – Administration
Mira Monte High – Computer Lab
Shafter High - Cafeteria
Citizens’ Oversight Committee
• Per Proposition 39, Measure N was subject to annual audits and was overseen by a Citizens’ Oversight Committee.
• Each audit confirmed all funds were spent as promised.
• All classrooms are wirelessly connected.
• Integration of electronic devices to augment daily instruction is increasing.
• Programs like Apex, Kern Learn and Dual Enrollment are offering educational alternatives to meet our students’ personal demand for credit recovery, accelerated learning, and flexible scheduling.
Opening Opportunities with Students and the Community In Mind
…Preserving Our Past
Preparing For Our Future…
Future Growth & District Needs
KHSD - 10 Year Growth Projection
35,000
36,000
37,000
38,000
39,000
40,000
41,000
Enrollment Capacity
Projected New Construction Projects (2016-2024)
Start Year Cost
Career Training Center (SW) 2016 $ 60,000,000
Career Training Center (NW) 2017 $ 63,000,000
Special Education Facility (NW) 2018 $ 9,200,000
Comprehensive School (South) 2019 $ 125,000,000
Comprehensive School (NW) 2021 $ 138,000,000
TOTAL: $ 395,200,000
A Leader in Career and Technical Education (CTE)
• State and National awards for competitions in Virtual Enterprise, Future Farmers of America (FFA), Health Occupation Student Association (HOSA), Distributive Education Clubs of America (DECA), Future Business Leaders of America (FBLA), and many other CTE programs
• Alignment of career pathways with local industry labor needs and local college certificate and degree programs
Career Technical Education Accomplishments
• Partnerships with over 300 local businesses and community organizations
• Recipient of a California Career Pathway Trust Grant of $4,837,000 to expand and improve career pathways
• Recipient of a Career and Technical Education Incentive Grant of $5,800,000 to develop new CTE programs or to enhance existing programs
Career Technical Education Accomplishments(continued)
• 13 California Partnership Academy (CPA) programs funded by the California Department of Education
• 8 Project Lead the Way (PLTW) programs focused on engineering or bio-medical careers
• The Regional Occupational Center (ROC) provides job-readiness and technical training for over 1,000 high school students annually
Career Technical Education Accomplishments(continued)
• Implementation of Dual Enrollment course for over a dozen CTE courses taught in high schools across the District
• Annual placement of nearly 400 students into internships with local businesses
Career Technical Education Accomplishments(continued)
But, we need to do more!
Career Technical Education Courses
Existing Courses:• Auto Technology
• Law Enforcement
• Certified Nursing Assistant
• Early Childhood Education
• Film and Video Production
• Graphic Arts
• Engineering Design
• Carpentry and Construction
• Computer Programming
• Biotechnology
(partial list)
Future Courses:• Pharmacy Technician
• Physical Therapy Technician and Sports Medicine
• Forensic Science
• Robotics Engineering
• X-Ray Technician
• Dental Assistant
• Veterinary Science
• Supply-Chain Logistics
• Culinary Arts
(partial list)
Future Culinary Arts
Future Dental Lab and Medical Facility
Future Auto Shop
Projected Repair & Upgrades Projects (2016-2024)
Start Year Cost
Foothill / 50 year 2016 $ 23,729,658
North High - Phase 2A 2016 $ 8,900,000
Arvin / 30 year 2017 $ 28,000,000
BHS (Warren Hall) 2017 $ 42,500,000
East / 30 year 2017 $ 35,000,000
North / 30 year 2018 $ 32,500,000
ROC and BAS / 30 year 2018 $ 28,400,000
Kern Valley / 30 year 2019 $ 20,400,000
Kern Valley / 50 year 2019 $ 16,755,000
Shafter / 50 year 2020 $ 18,200,000
TOTAL: $ 254,384,658 $650 million x .65 = $423 million
Proposed Projects (2016-2020)
Foothill / 50 year 2016 $ 23,729,658 North High - Phase 2A 2016 $ 8,900,000 Arvin / 30 year 2017 $ 28,000,000 BHS (Warren Hall) 2017 $ 42,500,000 ROC and BAS / 30 year 2018 $ 28,400,000
TOTAL: $ 388,729,658
Start Year Cost
Career Training Center (SW) 2016 $ 60,000,000
Career Training Center (NW) 2017 $ 63,000,000
Special Education Facility (NW) 2018 $ 9,200,000
Comprehensive School (South) 2019 $ 125,000,000
$389 million x .70 = $253 million
For Board Discussion Prior to June 27th – 1 Election - $440M or 2 Elections - $280/$160 M
New Election
3030
Alt #1: Conventional Bonds Require Taxpayer Payments for 30+ Years
Alternative A: Conventional
Year Principal Interest Total
Series A 2017 $133,500,000 $106,694,300 $240,194,300
Series B 2020 $221,140,000 $254,197,118 $475,337,118
Series C 2023 $86,610,000 $90,012,977 $176,622,977
Total $441,250,000 $450,904,395 $892,154,395
Kern High School District: Debt Review
Debt Service*
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2017 2022 2027 2032 2037 2042 2047 2052
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Tax Rates
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* Assumes 2.5% annual increase in assessed value; 4.5% interest rate.
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Debt Service*
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$10.0
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Series A Series B Series C Series D
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Alternative B: G.O. Flex-Bonds ™
Year Principal Interest Total
Series A 2017 $89,600,000 $26,332,766 $115,932,766
Series B 2019 $96,740,000 $58,175,418 $154,915,418
Series C 2021 $168,300,000 $180,752,731 $349,052,731
Series D 2023 $86,610,000 $53,272,492 $139,882,492
Total $441,250,000 $318,533,407 $759,783,407
Alt #2: G.O. Flex-Bonds™ Reduce Interest Costs
Kern High School District: Debt Review
Tax Rates
$0
$10
$20
$30
$40
$50
$60
2017 2022 2027 2032 2037 2042 2047 2052
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* Assumes 2.5% annual increase in assessed value; 4.0% interest rate
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Debt Service*
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2017 2022 2027 2032 2037 2042 2047 2052
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2016A 2016B 2016C 2020A 2020B
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Alt #3: Two Elections (2016/2020) with G.O. Flex-Bonds™ Reduce Interest
Costs
Kern High School District: Debt Review
Tax Rates
$0
$10
$20
$30
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$60
2017 2022 2027 2032 2037 2042 2047 2052
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Benefits of G.O. Flex-Bond™ Structure
Benefit Comment
Taxpayer Savings: Total interest costs reduced from 30% to 70%
Repayment Term: Reduced by six to 21 years
Prudent Use of Taxpayer Dollars: Taxes used to fund projects, not pay interest
Kern High School District: Debt Review
Preserving Our Past. Preparing For Our Future.
Scott ColeDeputy Superintendent, Kern High School District
2004 Bond Issue Financial Responsibility Report Card