Category Archives: SPLOST

DeKalb E-SPLOST Program Budget and GO Bonds

Posted on July 9, 2019 by | 27 comments

The DeKalb Schools administration presented 3 options to address E‐SPLOST budget issues. DeKalb Schools will be promoting a GO bond. Everybody gets a carrot except for Chamblee, they apparently get the stick.

I have 20+ articles I need to write. Most of them fall under this umbrella, so let’s start here.

SUPPORTING DOCUMENTS

Presentation – OPTIONS TO ADDRESS E‐SPLOST BUDGET ISSUES
Summary of 3‐Step Process
E‐SPLOST and GO Bond Options
Budget and Scope Adjustments

E‐SPLOST BUDGET ISSUES
E‐SPLOST V projects are projected to cost approximately $95 million more than the current budget

RECOMMENDATION TO ADDRESS E‐SPLOST BUDGET ISSUES

Step 1: Balance E‐SPLOST V Budget to $561 M (October 2019)

Step 2: Approve GO Bond for March 2020 Referendum to fund additional projects, including some of those projects removed in step 1 (November 2019)

Step 3: E‐SPLOST V Adjustments after GO Bond Passes to restore projects to E‐SPLOST V, if GO Bond referendum passes in March 2020 (April 2020)

Step 1: Balance E‐SPLOST V Budget to $561 M (October 2019)

Option 1
No – Arts School
No – Peachtree MS Addition
No – Lakeside HS Addition
Yes – Chamblee Charter HS Addition

Option2
No – Chamblee Charter HS Addition
No – Lakeside HS Addition
Yes – Arts School
Yes – Peachtree MS Addition

Step 2: Approve GO Bond
With the GO (General Obligation) Bond, we can have all the projects removed from option 1 and 2 above plus 5 new elementary schools.

GENERAL OBLIGATION BONDS

• General obligation (GO) bonds are bonds backed by a debt service property tax.
• GO Bonds require voter approval by referendum (March 2020)
• Bond would be sold Summer 2020 and paid back over 15 years
• The debt service property tax is separate from school operations property tax and is not factored in the 25 mill maximum rate for school operations

STEP 3: REBUILD ELEMENTARY SCHOOLS INSTEAD OF RENOVATING
• Henderson Mill ES
• Toney ES
• Stoneview ES

IMPACT OF NO GO BOND
• No turf installation at the high schools
• No arts school
• Cut many major projects
• Chamblee MS consolidates with Sequoyah MS

OPTION – No Chamblee Addition
• Move the Chamblee Charter HS magnet to new Cross Keys HS to avoid any building additions

Chamblee Middle School

Chamblee Middle School Splost Option

MOVE CHAMBLEE HS MAGNET ALTERNATIVE

Chamblee is being told they don’t have to have the building additions. They could avoid building additions by moving the high achievers magnet program to the new Cross Keys HS.

• Move High Achievers Magnet program (600 seats) from Chamblee Charter HS to New Cross Keys HS in Step 1
• Add 21 classrooms to New Cross Keys HS (98 IU → 119 IU)

Step 1 Adjustments

• Remove Chamblee Charter HS Addition
• Restore Fairington ES and Hawthorne ES
• Add $8 M ‐ $14.6 M to New Cross Keys HS for 21 additional classrooms
• Use any remaining savings ($0 ‐ $6.6 M) for other projects as decided
by the Board

RELATED POSTS

Options To Address E-SPLOST Budget Issues
May 13, 2019 – In earlier posts, I discussed E-SPLOST Budget Overruns and Projects on Hold. What’s the plan? Here are the options we are currently looking at.

27 Comments

Posted in Budget, SPLOST

Options To Address E-SPLOST Budget Issues

Posted on May 13, 2019 by | 19 comments

In earlier posts, I discussed E-SPLOST Budget Overruns and Projects on Hold. What’s the plan? Here are the options we are currently looking at.

BACKGROUND

The DeKalb County School District operates in over 130 instructional facilities
• 76 Elementary school facilities
• 19 Middle school facilities
• 21 High school facilities
• 7 Other school facilities
• 3 Instructional program facilities

E-SPLOST BUDGET ISSUES

Industry‐wide construction costs have increased by 15%‐20% in past few years. E‐SPLOST V projects are projected to cost approximately $87 million more than originally estimated. E‐SPLOST V state reimbursement revenues might be as much $31 million over estimated due to existing unused capacity

RECOMMENDATION TO ADDRESS E‐SPLOST BUDGET ISSUES

DeKalb Schools recommends the following two step process to address the budget issues:

1. Balancing Budgets for E‐SPLOST IV and E‐SPLOST V for approval by the Board in June/July 2019
2. General Obligation Bond to fund additional projects (including some of those projects removed in step 1), for approval by the Board

STEP 1: BALANCING E‐SPLOST BUDGETS (JUNE/JULY 2019)

E‐SPLOST V Adjustments
• Remove 10 projects (‐$66.8 M)*
• Reduce scope of 8 projects (+$13.8 M)*
• Increase budget of 14 projects (+$53.0 M)*

Recommended E‐SPLOST IV adjustments:
• Remove K‐12 Arts School from E‐SPLOST IV (‐$11.1 M*)
• Fund project with GO Bond

*Based on current budget.

Remove 10 E‐SPLOST V projects: (‐$66.8 M)
• Peachtree MS Addition (‐$14.1 M)†
• Lakeside HS Addition and turf (‐$26.9 M)†
• Turf installation at 14 Schools (‐$10.8 M)*
• Parking addition at 10 schools (‐$1.6 M) *
• Sprinkler installation at 18 schools (‐$3.9 M)
• Freedom MS Addition (‐$8.5 M)
• Lead‐In‐Water Set‐Aside (‐$0.9 M)
• Clarkston HS Addition – Reduce addition from 32 classrooms to 15 classrooms and remove artificial turf installation (‐$8.4 M)

Reduce scope and increase budget of 3 E‐SPLOST V projects: (+$22.1 M)
• Cross Keys MS Conversion – Reduce addition size from 21 classrooms to 8 classrooms (+$1.8)
• New Cross Keys HS – Reduce size of new school from 119 classrooms to 98 classrooms (+$17.2 M))
• Cedar Grove HS Auditorium Addition – Remove artificial turf installation (+$3.1 M)

Increase budget with no scope change in 11 E‐SPLOST V projects: (+$22.5 M)
• Fence installation at 36 schools (+$1.2 M)
• Security Vestibules at 20 schools (+$1.6 M)
• Chamblee HS Addition (+$4.9 M)*
• New John Lewis ES (+$0.2 M)
• New Cross Keys North ES (+$0.2 M)
• New Indian Creek ES (+$10.5 M)
• Druid Hills MS (+$0.6 M)
• Tech: ERP/Finance/HR System (+$3.3 M)

Increase budget of 3 other E‐SPLOST V projects: (+$30.6 M)
• Dunwoody HS Addition – Increase size of addition from +26 classrooms to +41 classrooms and remove artificial turf installation (p #215, +$9.5 M)†
• Program Contingency (p #602, +$16.1 M)
• Revenue Reserve Fund – Create a revenue reserve fund (+$5 M)

E‐SPLOST IV Recommendation
Remove K‐12 Arts School from E‐SPLOST IV* and place into GO Bond (‐$11.1 M)
OR Keep K‐12 Arts School in E‐SPLOST IV and find $3.9 M of other non‐SPLOST revenues

GENERAL OBLIGATION BONDS

• Option A: $210 million GO Bond
• Option B: $245 million GO Bond
• Option C: $180 million GO Bond

OPTION A ‐ $210 MILLION – GO BOND PROJECTS
• Peachtree MS Addition ($12 M; E‐SPLOST V)
• Lakeside HS Addition ($25 M; E‐SPLOST V)
• K‐12 Arts School ($15 M; E‐SPLOST IV)
• Four new elementary schools ($34 M each): ($136 M total)
• Toney ES (22% FCA; combine with Kelly Lake ES, 39% FCA)
• Stoneview ES (40% FCA; capacity needs)
• Hawthorne ES (37% FCA; combine with Henderson Mill ES, 27% FCA)
• New ES for Dunwoody/Chamblee clusters (capacity needs)
• GO Bond program contingency and escalation ($22 M)

OPTION B ‐ $245 MILLION GO BOND PROJECTS
• Peachtree MS Addition ($12 M; E‐SPLOST V)
• Lakeside HS Addition ($25 M; E‐SPLOST V)
• K‐12 Arts School ($15 M; E‐SPLOST IV)
• Five new elementary schools ($34 M each): ($170 M total)
• Toney ES (22% FCA; combine with Kelly Lake ES, 39% FCA)
• Stoneview ES (40% FCA; capacity needs)
• Hawthorne ES (37% FCA; combine with Henderson Mill ES, 27% FCA)
• New ES for Dunwoody/Chamblee clusters (capacity needs)
• Brockett ES (35% FCA) or Idlewood ES (65% FCA) or E.L. Miller ES (36% FCA)
• GO Bond program contingency and escalation ($23 M)

OPTION C ‐$180 MILLION GO BOND PROJECTS
• Peachtree MS Addition ($12 M; E‐SPLOST V)
• No Lakeside HS Addition ($0 M; E‐SPLOST V)
• K‐12 Arts School ($15 M; E‐SPLOST IV)
• Four new elementary schools ($34 M each): ($136 M total)
• Toney ES (22% FCA; combine with Kelly Lake ES, 39% FCA)
• Stoneview ES (40% FCA; capacity needs)
• Hawthorne ES (37% FCA; combine with Henderson Mill ES, 27% FCA)
• New ES for Dunwoody/Chamblee clusters (capacity needs)
• GO Bond program contingency and escalation ($14 M)

GO BOND OPTIONS
DeKalb Schools Go Bond Options

GO BOND OPTIONS PROPERTY TAX
Go Bond Options Property Taxes

19 Comments

Posted in SPLOST