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• Kirk Vaughn Presents (Slides Provided with Minutes) <br /> o Three topics for discussion on CIP as it relates to school <br /> o First overview of the purpose of a CIP. 10 year plan, but board approves <br /> only year 1. The board approves a capital ordinance, so all funds are <br /> authorized forever without board action. So on July 1, schools have all <br /> unspent funds in prior years plus whatever was in the approved year 1. <br /> o However, it is a 10 year model. Utilizes years 2-10 as a planning model to <br /> determine capacity and ensure no surprises. <br /> o Second overview is the funding sources. County has limited legal funding <br /> vehicles for capital investments. Majority of county CIP is debt financing <br /> supported by taxes, referendum bonds supported by taxes, and pay-as-you- <br /> go or cash funding supported by taxes. There are also proprietary funds that <br /> support their own debt, and sometimes county projects are jointly funded <br /> by capital partners. <br /> o Debt has legal and policy restrictions. County is obligated to pay all debt <br /> service payments, county has a policy that restricts debt service payments <br /> to 15% of General Fund Revenues. Bond rating agencies also review that <br /> ratio, so exceeding that ratio significantly can lower county's bond rating, <br /> and thus increase interest rates. <br /> o Pay-go only is restricted by the county's ability to cash fund projects.Future <br /> pay-go is modeled in the county's long term operating model. <br /> o County models its current and future debt service.Planned referendum bond <br /> will increase debt service slightly over policy and require two tax rate <br /> increases over 10 year horizon. <br /> o Current plan for bond is$130 M voted on November 2024. County will then <br /> provide $5 M in planning funds in FY 26, then $40 M, $45 M and $40 M <br /> in three tranches in FY 27, 29 and 31. <br /> o Possible bond schedule included in powerpoint. <br /> o County asks voters to broadly approve funding for school district, not <br /> specific expenses. <br /> o Lastly, there is interest in joint planning between schools and county. <br /> Details process on how county can plan to do RFQs,and ask districts to add <br /> like projects. County also details its specific year one plans in CIP. <br /> • Rani—Will there be a bond committee? <br /> o Travis—County will coordinate through school collaboration. <br /> • Bonnie—When will the bond be? <br /> o Kirk—Votes in 24, funding in 26 through 31. <br /> • Bonnie—Joint Bidding. How does that work? <br /> o Steve — County will communicate with districts when there are <br /> opportunities. <br /> o Al — Will be opportunities, but there are significant challenges around <br /> design. Thinks there will be only limited times where this can be done, but <br /> is excited about the cost savings when those opportunities align. <br /> o Steve— Schools also need to focus on summer projects as well. <br />