Agenda - 06-21-2016 - 5-a - Minutes

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4 1 2 Teacher Turnover District vs. Statewide - chart 3 4 State Teacher Pay Scenarios - chart 5 School Capital Budget - chart 6 0 FY16-17 Capital Budget Recommendations 7 • Capital funds distributed by ADM between districts 8 • FY2016-17 is first of three (3) installments for bond financing 9 • Next two draws recommended in FY2018-19 and FY2020-21 10 11 Bond Debt Service Payments 12 0 Debt service schedule based on $125 million issued in three installments 13 • FY 2016-17 $42,500,000 14 • FY 2018-19 $42,500,000 15 • FY 2020-21 $40,000,000 16 0 Impact fees may be used to reduce debt burden for projects that increase capacity. 17 (salmon colored hand out) 18 19 Commissioner Rich asked if impact fees are used for anything other than schools. 20 Paul Laughton said impact fees are only used for schools and must be used for 21 construction purposes, expansions for capacity, etc. 22 Commissioner Rich asked if impact fees are collected countywide and go into one pot. 23 Paul Laughton said the fees go into a special revenue fund, and are separated out by 24 school district based on from where the fees are gathered. 25 Commissioner Jacobs said a master park plan was required in order to do a payment in 26 lieu program. He said the fee then goes to the park located in the area served by the 27 development that has made the payment in lieu. 28 Commissioner Jacobs asked what will happen if one district has more than another to 29 put towards paying off the bond. 30 Paul Laughton said fees must be used for increased capacity expansion and this total 31 will vary from year to year. 32 Commissioner Jacobs asked if the capacity improvements being done via bond funds 33 could be paid for with impact fees. 34 Paul Laughton said yes as long as the improvements are for capacity. 35 Commissioner Jacobs referred to the bond debt service chart and reviewed the tax 36 increases in coming years. 37 Travis Myren said as the tax base grows, so will the tax yield. 38 Commissioner Jacobs said he would like to see a projection of the tax increases and 39 impact fees for the next five years, as well as a projection from the schools regarding how much 40 of the expansions costs could be covered by impact fees. 41 42 End of school slides. 43 44 Commissioner Dorosin referred to the teacher turnover rates, noted on page 9 of the 45 PowerPoint. He said there needs to be a discussion about realistic comparables. He said the 46 counties listed are comparable in population, but the schools districts in these listings vary 47 greatly in size. He said using Wake County as a comparable district may not be legitimate. He 48 said it is close in proximity, but very different in size and scope. 49 Chair McKee asked the Manager to develop another chart based on school population.