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Jean: There is a lot of detail in these models. Models to be able to track over <br /> time and use for planning purposes. May always have more than one set of <br /> numbers but need to understand what is calculated in each set of numbers. <br /> Woolpert is a way to identify needs in general so we can identify resources <br /> needed knowing that there will be some changes over time. <br /> Rani: Concern that there may be multiple versions of the truth. Why would <br /> SAPFO not include the classroom spaces that we know are not sufficient for <br /> classrooms? <br /> Travis: The idea is to phase out SAPFO and use a different projection and <br /> capacity model SAPFO is the legacy model but will run in parallel this year. <br /> Once that happens, we will abandon the SAPFO model and replace with the <br /> Woolpert model and ORED projections. <br /> 3. County Staff Update: Presentation of Bond Scenarios <br /> Travis: Last night we went through detail discussion of school and county <br /> capital needs and how they might be financed in the future. Chose to <br /> consider the county and facility plans together to have the full picture of <br /> county wide capital needs and how they get addressed in the future. County <br /> Master Plan is 15 years. Modeled $130 million for the first 10 years. The <br /> county also has the option to spread the first 5 years over 10 years and added <br /> some inflation cost, totaling $75 million. <br /> Woolpert long range optimization plan has options ranging from $219 <br /> million to $1 billion. Woolpert was recommending option D - $1 billion. <br /> Walk through chart on page 4 of slides to compare the scenarios showing <br /> new county funding,new school funding,one-time tax rate impact,and debt <br /> service to revenue. Debt service to revenue metric shows how much of <br /> General Fund revenue on an annual basis is dedicated to debt service <br /> payments. Debt Service is our first legal obligation, so it is paid before <br /> anything else. Current policy is 15% debt service to rev ratio. We have <br /> modestly been over that in the past with no negative consequences. The <br /> rating agencies are more interested that we are tracking and managing that <br /> metric. The minimum 10-year payout ratio is the amount of principal that <br /> is paid out over 10 years. <br /> Paygo is generation of cash. It increases tax rate, gives more flexibility, <br /> allows for future bond capacity,debt service to revenue does not go as high. <br /> Woolpert's recommendation is D. There was a gap between scenarios A <br /> and C, so there was a middle option that was modeled as well. <br />