Minutes 04-25-2017 - Laserfiche WebLink

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9 systematically reduce the backlog of deferred maintenance that has accumulated; and alter existing facilities to respond to changing educational requirements." Current Replacement Value x Gross Sq Ft x 4% Recommended annual amount to make sure buildings are "clean and in good working order", including grounds, cleaning, minor repairs, and utilities. Current Replacement Value x Gross Sq Ft x 3% National Institute of Building Sciences 2016 State of Our Schools: K-12 Facilities Funding to Properly Maintain School Facilities Recommended annual amount to "regularly upgrade existing facilities' systems, components, fixtures, equipment and finishes..." CRV ($192) x Gross Sq Ft (1.4M) x 4% = $10,718,408 for OCS CRV ($192) x Gross Sq Ft (2.1 M) x 4% = $16,379,112 for CHCCS Recommended annual amount to make sure buildings are "clean and in good working order.." CRV ($192) x Gross Sq Ft (1.4M) x 3% = $8,038,806 for OCS CRV ($192) x Gross Sq Ft (2.1M) x 3% = $12,284,334 for CHCCS Total Recommended Expenditure Amount: 7% - $47.2 million annually 6% - $40.3 million annually 5% - $33.6 million annually 2016-17 OCS & CHCCS Total Expenditures: 3.7% - $24.7 million annually Commissioner McKee referred to the unfunded plan on page 8, and asked if these projected cost estimates are outside of anything that the bond may cover. Todd LoFrese said yes. Commissioner McKee referred to page 9, and the SAPFO projections. He sais CHCCS are projecting such a low increase in the number of new students, that new schools will not be needed for 10 years, and this is opposite of what the BOCC was told in the transit plan. Todd LoFrese said CHCCS is operating at about 98% capacity, and the SAPFO numbers do not trigger until they hit certain levels. He said over the past few years there has been a flatness of student growth, but next year CHCCS is expected to grow by 222 students. Commissioner McKee said the schools' projections are probably more correct. Andrew Davidson said it is not just the slow enrollment growth, but the fact that there will be an increase in capacity through some of the construction done with bond funds. Commissioner McKee referred to the fund balance allocation on page 7, and asked if the schools are thinking about using excess fund balance on capital projects. Todd LoFrese said the existing joint policy states that the BOE shall develop a plan for the use of fund balance that is in excess of 5.5% target. He said as part of that policy, it recommends that fund balance should be used for one-time expenditures, not recurring budget needs. He said CHCCS has increasing constructions costs, and is concerned about the project budgets at Lincoln Center and Chapel Hill High School. He said there is a strong likelihood that some of the fund balance will need to be contributed to those projects. Commissioner McKee said these fund balances were accumulated through funding of operating expenses, and asked if this excess fund balance has been used before for capital expenses. Todd LoFrese said CHCCS have used fund balance before for capital expenses, including the entire Glenwood Elementary project, at $1.2 million. He said the fund balance increases in a variety of ways: a budget line is under-expended; close fiscal monitoring; and