HomeMy WebLinkAbout2017_02_06 Board Minutes
IDAHO FALLS SCHOOL DISTRICT NO. 91
BOARD OF TRUSTEES -- WORK SESSION
DISTRICT OFFICE BOARD ROOM – 12:00 NOON
690 JOHN ADAMS PARKWAY
MONDAY, FEBRUARY 6, 2017
Present from the Board of Trustees: Present from the Administration:
Lisa Burtenshaw, Chair George Boland, Superintendent
Deidre Warden, Vice Chair Kelly Coughenour, Director of Elementary Education
Dave Lent Sarah Sanders, Director of Secondary Education
Larry Haws, Treasurer Carrie Smith, Director of HR & Finance
Larry Wilson, Clerk Jennifer Jackson, Director of Curriculum & PD
Gail Rochelle, Director of Student Achievement &
School Improvement
Dan Keck, Director of Student Services
Margaret Wimborne, Director of Communications &
Community Engagement
Debbie Wilkie, Recording Clerk
Chairman Burtenshaw called the meeting to order at 12:00 PM. The Pledge of Allegiance was led by Jennifer
Jackson.
ADOPT AGENDA
Trustee Warden made a motion to adopt the agenda as presented. Trustee Haws provided the second.
Motion carried 5 ayes, 0 nays.
Chairman Burtenshaw called for a motion to move in to Executive Session. Trustee Lent made a motion to
go in to Executive Session pursuant to Idaho Code, Section 74-206 (1) (b) Personnel and (c) Property. Trustee
Wilson provided the second. A roll call vote was taken:
Lisa Burtenshaw – yes
Deidre Warden – yes
Dave Lent – yes
Larry Haws – yes
Larry Wilson – yes
02/06/2017 D91 Board Minutes Page 1 of 2
EXECUTIVE SESSION
Superintendent Boland and the Board of Trustees met in Executive Session at 12:05 p.m. regarding
Employee 2015-2016– Probation, and a property matter.
I
Trustee Warden made a motion to return to Open Session at 12:28 PM. Trustee Wilson provided the
second. Motion carried 5 ayes, 0 nays.
ACTION ITEM
a.Employee 2015-2016 – Probation
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Trustee Warden made a motion to remove Employee 2015-2016 from probation after satisfying all
I
of the conditions. Trustee Lent provided the second. Motion carried 5 ayes, 0 nays.
WORK SESSION
a.High School ReDesign/ReBuild/RePurpose Discussion
Chairman Burtenshaw stated the discussion today is to review the Board’s current direction and
support for the High School ReDesign Project. Superintendent Boland provided a timeline, reviewed
the work to date and things to consider if moving forward with the project. Margaret Wimborne
shared information regarding ThoughtExchange, an online platform the district will be using to
gather input regarding the proposed project.
Superintendent Boland introduced Financial Consultant Eric Heringer who provided handouts and
information regarding the district’s current debt capacity, taxable value, bond rates, bond
equalization, levy planning goals and assumptions as well as tax levy and revenue projections. A
discussion was held.
Chairman Burtenshaw asked board members to verbally state whether or not they are in support of
moving forward with the project. Board members stated unanimously that they were in support of
moving forward with the project. Trustee Lent asked that as board members meet with the various
committees they would make sure to report back often so all board members could stay up to date
and move along in the process together.
The next regularly scheduled meeting will be held on Wednesday, February 8, 2017 at 7:00 PM.
Trustee Lent made the motion to adjourn. Trustee Haws provided the second. Motion carried 5 ayes, 0 nays.
Meeting adjourned at 1:32 PM.
02/06/2017 D91 Board Minutes Page 2 of 2
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Share, Star and Discover
Each Thoughtexchange process has 3 -steps: Share, Star and
Discover. Each process is hosted on Thoughtexchange servers
and facilitated by Thoughtexchange staff.
ONIn the Share step, participants are asked two
or three simple. open-ended questions, such
as "what do you appreciate?° and "what are
your concerns?" either generally or about a
particular issue or scenario. Open-ended
questions uncover Interests, not positions,
and keep the ultimate responsibility for the
decision In the hands of district leadership.
The identity of participants is kept confidential, and the
association of a particular thought to a participant is kept
private. This creates a safe forum where thoughts and opinions
can be voiced without fear of being shamed or other negative
repercussions.
The Thoughtex&ange difference
No logins/passinrords
buT:unique "email -based participation technology ensures
fair and inclusive participation and does not bias towards
those who are most comfortable with technology and
social networks.
Cvmienient participation
Unlike.6",;-ha11 meetings, our simple online process results
0,69- p r0j,M, d''e,hih, d, numbers of participants,and cap turesthe
"silent majority", by allowing participants to contribute ideas
anti priorities at a timet at is convenient forthem.
Actionable information
Tho.iikhtexchange produces qualitative data organized and
prioritized hymany participants. Each process results In a
platform for learning; decision-making, positioning and
project implementation. Appropriate results are shared
m
with the entire comunity and in-depth analysis is provided
to dec6lo-Meaders.
Thoughtexchange specialists review every one of the thoughts
Full service
that are shared and remove those that are rude or hurtful. This
Thougltezchangeblencts powerful software with a full
protects both district leadership and participants, by ensuring
that the discourse does not devolve into positional rhetoric,
service approach that includes project management.
name calling, or worse. Through confidentiality and moderation
,communications support; facilitation, moderation, graphic
Thoughtexchange is able to keep Interactions civil and on point.
design, websi#e creation, analysis, meefJngfacilitation,
engagement consulting and more.
The Share step takes a participant about 10-15 minutes. With
Thoughtexchange, a few questions will generate thousands of
thoughts and dozens of themes.
In the Starstep, participants are shown their
Ir-own thoughts, surrounded by the thoughts
of other participants, and are asked to assign
stars to show which thoughts they value, and
how much value they place on those thoughts.
Each participant sees his or her thought as well as a selection
of thoughts from other members of the community. Every
thought is seen the same number of times, and every thought
can be starred by others in the community who feel the thought
is valuable. By considering the perspectives of a diverse group.
participants learn from each other and have the opportunityto
shift their own priorities.
This process also takes about 10-15 minutes. The Star step
al lows the most valuable thoughts, and not the most common
thoughts, to surface.
Discover is the final step. In this step
Thoughtexchange specialists group thoughts,
both positives and concerns, Into common
themes and subthemes. This allows the
district to learn which themes are getting
Capacitydevelopment
This process and powerful software will allow your leaders
to earn buy4h and inform decisions on a more regular basis.
This will enhance the overall performance of your district
and increase trust in your community.
the most traction, and the community's concerns and hopes
regarding the issues they've raised within those themes.
The Discover step builds trust through the transparent sharing
of appropriate results.
This learning is provided both to the district. and back to the
community, via an interactive web report that is part of the
custom website we build for each district. Each report allows
every participant to drill down from district -wide themes, to the
individual thought level, and discover which thoughts were most
valued by the community as a whole.
Discover offers powerful learning opportunities for the district
In addition to the interactive reports, we consolidate the results
from participants, organize and analyze findings, and present
custom reports to district leadership at the district and
individual school levels. This data can be re -purposed and built
into a variety of reports to inform planning and decision-making.
� Ev��na.�ye I ire
Eric Heringer
Michael Keith
Managing Director
Vice President
208-344-8561
208-344-8564
eric.a.heringer@pjc.com
michael.l.keith@pjc.com
MINNEAPOLIS | | CHICAGO | LONDON | LOS ANGELES | NEW YORK | | SAN FRANCISCO | | ZURICH
Overview of the Districts Bonds
The District has three series of bonds, with a total principal amount outstanding of $40,675,000. Details of the
bonds are shown below.
Outstanding Debt
CUSIP NO. 098437
Amount
Bond Issue Credit Enhancement Outstanding Coupon Final Payment Call Feature
Series 2012A ISBG/EFIB 14,320,000 5.00% September 15, 2031 September 15, 2022
Series 2012B ISBG 23,420,000 3.00-4.00 September 15, 2028 September 15, 2022
Series 2012C ISBG/EFIB 2,935,000 3.75% September 15, 2032 September 15, 2022
Total Debt Outstanding (2/1/2017) 40,675,000
The annual debt service requirements are illustrated below (calendar year).
Idaho Falls SD No. 91 Outstanding Debt
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
2017201820192020202120222023202420252026202720282029203020312032
Series 2012CSeries 2012ASeries 2012B
1
Overview of the Districts Bonds Debt Capacity
Section 33-1103, Idaho Code, limits bonded indebtedness for Idaho School Districts to 5% of the Full
Market Value. Based on data from the Idaho Tax Commission and the District, the mathematical
calculation of legal debt capacity for the Idaho Falls School District is as follows:
Debt Capacity Calculation
September Full Value 2016 (FY 2017) $ 4,189,607,923
x 5%
Total Debt Capacity @ 5% 209,480,396
Less: Principal Outstanding (40,675,000)
Plus: Adjustments - Principal Due 2017 1,875,000
Remaining Debt Capacity 170,680,396
2
Net Taxable Values
The District’s most recent 20-year compound growth rate is 4.29%.
Fiscal Year Net Taxable Value % Growth
2017
3,256,273,797 3.94%
2016
3,132,735,306 1.25%
3,094,028,405 1.41%
2015
3,050,873,506 1.00%
2014
Historical
2013 3,020,675,054 -1.08%
2012 3,053,506,232 -0.63%
2011 3,072,885,829 -1.79%
2010 3,128,982,810 4.72%
2009 2,987,990,984 11.25%
2008 2,685,722,149 11.83%
2007 2,401,697,364 3.09%
2006 2,329,809,227
Idaho Falls School District No. 91 Net Taxable Value
3,500,000,000
3,000,000,000
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
200620072008200920102011201220132014201520162017
3
Historical Municipal Bond Interest Rates
High 5.55%
6.00%
Low 1.81%
Average 3.46%
Current 2.99%
5.00%
4.00%
Interest Rates
3.00%
2.00%
1.00%
20-Year AAA MMD
0.00%
Jan-07Jan-09Jan-11Jan-13Jan-15Jan-17
4
Bond Levy Equalization Program
Idaho’s bond Levy Equalization Program is a State paid subsidy.
•
Applies to Bonds approved after 9/15/2002.
•
The amount of subsidy is based on a 3-part formula that produces an Index Factor.
•
The Index Factor is intended to determine (or “equalize”) a particular community’s
•
economic conditions and funding adequacy compared to other school districts in
the State.
Idaho Falls School District
Levy Equalization History
Fiscal Year Index Factor % of P&I
Index Factor Components
2017 0.9000 10.00%
Market value per support unit (50%
2016 0.9010 9.90%
•
2015 0.9226 7.74%
of formula)
2014 0.9363 6.37%
2013 0.9411 5.89%
Unemployment rate in the County
•
2012 0.9519 4.81%
(25% of formula)
2011 0.9327 6.73%
2010 0.9151 8.49%
Per capita income in the County
•
2009 0.8840 11.60%
(25% of formula)
2008 0.8470 15.30%
2007 0.9338 6.62%
2006 0.9542 4.58%
5
Levy Planning Goals and Planning Assumptions
Goal of Analysis:
Review projected bond repayment costs of $100 million bond proposal for
an August 2017 election.
Evaluate impact of $100 million bond on the District’s total property tax
rate under different market value growth assumptions.
Planning Assumptions:
Existing Supplemental M&O Levy is continued at $6.8 million for the
foreseeable future.
Existing Plant Levy is continued at $2.4 million for the foreseeable future.
$100 million bond authorization split into two bond sales:
$50 million sold in 2017
$50 million sold in 2019
Existing and proposed bonds qualify for bond levy equalization subsidy at
9% of average annual bond payment.
Interest rates are as of January 26, 2017 plus 0.50% cushion for 2017 sale
and plus 0.75% cushion for 2019 sale.
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Summary of Bond Analysis
Summary of Analysis 1/30/2017
(1)
Bond Proceeds $100,000,000
Interest Cost $60,601,438
Total Cost $160,601,438
($14,454,129)
Projected Levy Equalization (@ 9% of P&I)
Net Total Bond Cost $146,147,309
Blended TIC (Includes 2017 & 2019 Sales) 4.10%
(1) Bond cost analysis is based on a bond structure scenario that assumes market value growth of 2% annually FY2019 - FY2028
Projected Property Tax Impact
All Scenarios assume 3% growth in FY 2018
Annual Growth (FY 2019 - FY 2028)1.00%2.00%3.00%3.15%
Projected Tax Rate Increase$0.73 per $1,000$0.37 per $1,000$0.06 per $1,000$0.00 per $1,000
Increase on $100k taxable value (annually)$73.00$37.00$6.00$0.00
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Summary of Bond Analysis
Tax Levy and Revenue Projections
2% Market Value Growth (FY19-FY28)
25,000,000
PlantSupplementalExisting Debt(1)Proposed Debt(2)Tax RevenueTax Revenue
at 4.24/$1,000(3)at 4.61/$1,000(4)
20,000,000
15,000,000
10,000,000
5,000,000
0
20172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039
Includes District’s outstanding 2012A, 21012B, and 2012C Bonds net of expected levy equalization.
(1)
Projected debt service for $100M bond proposal split into two sales (2017 & 2019).
(2)
Projected tax revenue based on the District’s current tax rate of $4.24/$1,000 and future market value growth of 2% annually FY2018-
(3)
FY2028.
Projected tax revenue based on the District’s a tax rate increase of $0.37 to $4.61/$1,000 and future market value growth of 2%
(4)
annually FY2018-FY2028.
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Comparative Tax Rates
Surrounding School District Total Tax Rates (FY2017)
6.95
7.00000
6.57
5.80
6.00000
5.00000
4.58
Rate per $1,000
4.50
4.27
4.24
4.05
3.99
4.00000
3.24
3.06
3.00000
2.40
2.00000
1.00000
0.00000
BondPlantSuppl. M&OAll Other Levies
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