HomeMy WebLinkAbout2017_07_25 Board Minutes
IDAHO FALLS SCHOOL DISTRICT NO. 91
BOARD OF TRUSTEES -- WORK SESSION
TUESDAY, JULY 25, 2017
7:00 P.M.
IDAHO FALLS HIGH SCHOOL – ROOM 121
601 SOUTH HOLMES AVE, IDAHO FALLS
Present from the Board: Present from the Administration:
Trustee Lisa Burtenshaw, Chair Superintendent George Boland
Trustee Dave Lent Sarah Sanders, Director of Secondary Education
Trustee Deidre Warden, Clerk Margaret Wimborne, Director of
Trustee Larry Haws, Vice Chair Communications and Community Engagement
Trustee Larry S. Wilson, Treasurer Debbie Wilkie, Board Secretary, Recording
Others Present:
Eric Heringer, Financial Advisor, Piper Jaffray
Mike Clements, CMGC, Bateman-Hall
Aaron Jarnagin, Principal, Skyline High School
Bob Devine, Principal, Idaho Falls High School
Chairman Burtenshaw called the meeting to order at 7:04 p.m. and requested a motion to amend the agenda. Trustee
Warden made a motion to amend the agenda to include Action Item c. Student Travel Request – Idaho Falls High School.
Trustee Haws provided the second. Motion carried 5 ayes, 0 nays. Trustee Warden made a motion to adopt the agenda as
amended. Trustee Wilson provided the second. Motion carried 5 ayes, 0 nays.
Chairman Burtenshaw then called for a motion to go into Executive Session. Trustee Warden made a motion to convene
in Executive Session pursuant to Idaho Code, Section 74-206 (1) (c) Property. Trustee Lent provided the second. A
roll call vote was taken:
Lisa Burtenshaw – yes
Dave Lent – yes
Deidre Warden – yes
Larry Haws – yes
Larry Wilson – yes
EXECUTIVE SESSION
Superintendent Boland and the Board of Trustees met in Executive Session regarding property acquisition.
Trustee Lent made a motion to return to Open Session at 7:12 PM. Trustee Haws provided the second. Motion carried 5
ayes, 0 nays.
07/25/2017 D91 Board Minutes Page 1 of 3
WORK SESSION
a. High School ReDesign Project and Bond Discussion
Superintendent Boland reviewed that the Board has spent the past 18 months working on the high school
redesign options and financial scenarios, landing on redesign of Skyline High School and a rebuild of Idaho Falls
High School. Supt. Boland stated that after reviewing the numbers it looks like the district would be able to bond
for $110 million needed to complete the projects without a tax rate increase. Superintendent Boland introduced
financial advisor Eric Heringer to review the final analysis. Eric stated the current interest rate for a triple A, 20-
year municipal bond is 2.6%, historically the average has been 3.4% so that is encouraging. Eric reviewed market
value history, compound growth rates over the past 20 years, bond sell options and repayment schedules. Based
on the growth the area is seeing, the assumption is the district would be able to bond $110 million without a tax
rate increase. A discussion was held regarding the commitment of no tax rate increase, the risks, available
options if the growth assumptions don’t come in as projected, contingencies, bonding capacity, bond redemption
fund and reserves on hand to help manage anything different. Superintendent Boland reviewed that the Board
had previously discussed specifics of the design and cost for the projects.
ACTION ITEMS
a. Bond Resolution
Superintendent Boland stated the bond resolution, prepared by Nick Miller at Hawley Troxell, contains the
required pieces; how much - $110 million, where – various polling places within the district and when –
November 7, 2017 election. It is the recommendation of the administration to approve the bond resolution as
presented. A discussion was held regarding the district’s total debt capacity, which is currently 210 million based
on market values from January 2016.
Trustee Warden made a motion to go forward with the bond resolution as presented. Trustee Wilson provided
the second. No further discussion. Motion carried 5 ayes, 0 nays.
b. Property Purchase Option Agreement
Superintendent Boland reviewed this agreement is for the option to purchase 58.15 acres, east of Holmes
th
Avenue off 49 South on the north side of the road. The agreement between GHG Investment Company and
Idaho Falls School District #91 gives the district the option to purchase the property for $1,453,750.00,
subsequent to the successful passage of the bond. Superintendent Boland stated should the district choose to
exercise the option this would be the site on which the new Idaho Falls High School would be built. The cost of
the purchase option agreement is $3000.00 which would go towards the purchase price if the November 7, 2017
bond election is successful.
Trustee Lent made a motion to enter into this Purchase Option Agreement as stated, to authorize the payment
of $3000.00 as identified, and to authorize the superintendent to execute the purchase option agreement on
behalf of the Board of Trustees. Trustee Haws provided the second. No further discussion. Motion carried 5 ayes.
0 nays.
c. Student Travel Request – Idaho Falls High School
Superintendent Boland stated the IFHS Cross Country Team received an invitation to participate in the Nike
Portland Cross Country Championship after they had previously requested to participate in the Missoula Cross
Country Championship, they would like to attend in the Portland event instead. A discussion was held.
07/25/2017 D91 Board Minutes Page 2 of 3
Trustee Wilson made a motion to approve the travel request from the Idaho Falls High School Cross Country as
presented. Trustee Warden provided the second. Motion carried 5 ayes, 0 nays.
Chairman Burtenshaw stated the next regularly scheduled meeting will be held on Wednesday, August 16, 2017 at 7:00
p.m. in the District Office board room.
Trustee Warden made a motion to adjourn. Trustee Lent provided the second. The meeting adjourned at 7:52 PM.
07/25/2017 D91 Board Minutes Page 3 of 3
High5.55%
Low1.81%
Average3.40%
Current2.64%
1
The District’s most recent 20-year compound growth rate is 4.29%.
Fiscal YearNet 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
20133,020,675,054 -1.08%
20123,053,506,232 -0.63%
20113,072,885,829 -1.79%
20103,128,982,810 4.72%
20092,987,990,984 11.25%
20082,685,722,149 11.83%
20072,401,697,364 3.09%
20062,329,809,227
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
2
Goal of Analysis:
Review projected bond repayment costs of $110 million bond proposal for a
November 2017 election.
Structure bond sale to fit within District’s current total tax rate structure of $4.24
/$1,000, without a tax increase.
Planning Assumptions:
Existing Supplemental M&O Levy is continued at $6.8 million for the foreseeable
future.
$190K annually transferred to the bond fund from personal property tax
replacement funds provided by the state.
Existing Plant Levy is continued at $2.4 million for the foreseeable future.
$110 million bond authorization split into two bond sales:
$55 million sold in Spring 2018
$55 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 July 17, 2017 plus 0.50% cushion for 2018 sale and 0.75%
cushion for 2019 sale.
3
Levy Rate Modeling
Election Disclosure
(Includes Interest
Rate Cushion)(No Cushion)
Sale 1 (2018)$55,000,000 $55,000,000
Sale 2 (2019)$55,000,000 $55,000,000
Total$110,000,000 $110,000,000
Plus Interest Cost$59,724,125 $49,636,125
Total$169,724,125 $159,636,125
Less Proj. Levy Equalization (@
9.0% of P&I)($15,275,171)($14,367,257)
Net Total$154,448,954 $145,268,868
(1)
Combined TIC3.76% 3.27%
Projected Growth
20186.00%
2019-20205.00%
2021-20292.50%
2030 and after0.00%
Tax ImpactNo Increase
(1) Sale 1 interest rates plus 0.50% cushion, Sale 2 interest rates plus 0.75% cushion.
4
Tax Levy and Revenue Projections
$110M Bond Authorization (Split Sales)
30,000,000
PlantSupplementalExisting Debt(1)$55M Sale 1(2)$55M Sale 2(2)Tax Revenue
at 4.24/$1,000(3)
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
20172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039
(1)Includes District’s outstanding 2012A, 21012B, and 2012C Bonds net of expected levy equalization.
(2)Projected debt service for $110M bond proposal split into two sales (2018 & 2019).
(3)Projected tax revenue based on the District’s current tax rate of $4.24/$1,000 and future market value growth.
5
BOND ELECTION RESOLUTION
A RESOLUTION CALLING A SPECIAL ELECTION TO BE
HELD FOR THE PURPOSE OF SUBMITTING TO THE
QUALIFIED ELECTORS OF SCHOOL DISTRICT NO. 91,
BONNEVILLE COUNTY, STATE OF IDAHO, A
PROPOSITION RELATING TO THE ISSUANCE OF UP TO
$110,000,000 NEGOTIABLE BONDS OF SCHOOL DISTRICT
NO. 91, BONNEVILLE COUNTY, STATE OF IDAHO, AND IN
PROVIDING FOR THE ISSUANCE OF SUCH BONDS, THE
LEVY OF A TAX TO PAY SUCH BONDS.
WHEREAS, School District No. 91, Bonneville County, State of Idaho (the "District"), is
a school district created and operating under the laws of the State of Idaho; and
WHEREAS, the costs of acquiring, constructing, improving, renovating, equipping and
furnishing certain school facilities, as specifically described in the form of ballot question set
forth herein (such expenditures being herein referred to collectively as the "Project") are deemed
by the Board of Trustees of the District to be required for the welfare of the District; and
WHEREAS, the District does not have sufficient funds available to pay the cost of the
Project and has determined it advisable to finance such cost through the issuance of general
obligation bonds of the District pursuant to the provisions of chapter 11 of Title 33 of the Idaho
Code, and in order to do so desires to call a special election to be held pursuant to Chapter 14,
Title 34 of the Idaho Code.
NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the District as
follows:
Section 1. That a Special General Obligation Bond Election (the "Bond Election") is
hereby called to be held in the District on Tuesday, November 7, 2017, for the purpose of
submitting to the qualified electors of the District the propositions set forth in the form of ballot
question appearing in Section 5 hereof.
Section 2. That the District hereby determines that the outstanding amount of all bonded
indebtedness of the District, including the bonds proposed under this Resolution, will not exceed
five percent (5%) of the market value for assessment purposes of all taxable property within the
District on the tax rolls completed and available as of the date of the Bond Election.
Section 3. That pursuant to Section 34-1401, Idaho Code, the Clerk of Bonneville
County, Idaho (the "Bonneville Clerk") shall administer the Bond Election, including scheduling
RESOLUTION - 1
44177.0007.8926145.3
the polling times; preparing and printing the ballots; preparing and publishing notice of the Bond
Election and the sample ballot; and conducting the Bond Election.
Section 4. That in compliance with Section 34-1406, Idaho Code, the Clerk of the District
shall notify the Bonneville Clerk that the District has called the Bond Election by delivering to
the Bonneville Clerk a copy of this Resolution, including the forms of the ballot for the Bond
Election set forth in Section 5 hereof and the notice of the Bond Election set forth in Section 6.
Section 5. That the District hereby approves the following form of ballot question for
purposes of the Bond Election:
(Form of Ballot Question)
Shall the Board of Trustees of School District No. 91, Bonneville County, State of Idaho (the
"Board"), be authorized to issue general obligation school bonds of said District in the principal
amount not to exceed $110,000,000 for the purpose of financing the costs of (i) renovating,
repairing, equipping and furnishing Skyline High School; and (ii) constructing, furnishing and
equipping a new Idaho Falls High School, together with all related furnishings and equipment
necessary to operate said facilities (collectively, the "Project"), such bonds to become due in
such installments as may be fixed by the Board, the final installment of which to fall due not
later than twenty years (20) years from the date of issuance of such bonds, all as provided in the
Bond Election Resolution adopted by the Board on July 25, 2017?
The interest rate anticipated on the proposed bond issue, based upon current
market rates, is three and twenty-seven hundredths percent (3.27%) per annum.
The amount to be repaid over the life of the bonds, based on the anticipated
interest rate, is $145,268,868, consisting of $110,000,000 in principal and
$49,636,125 of interest, totaling $159,636,125, less $14,367,257 in estimated
bond levy equalization payments.
As of November 7, 2017, the total existing bonded indebtedness of the District,
including interest accrued, is $40,924,905.
IN FAVOR of issuing bonds in the principal amount not to ❑
exceed $110,000,000
AGAINST issuing bonds in the principal amount not to exceed El$110,000,000
(End Form of Ballot Question)
Section 6. The Notice of Special Bond Election shall be in substantially the following
form:
RESOLUTION - 2
44177.0007.8926145.3
[Form of Notice of Special General Obligation Bond Election]
NOTICE OF SPECIAL GENERAL OBLIGATION BOND ELECTION
Pursuant to the laws of the State of Idaho and the Bond Election Resolution of the Board of
Trustees of School District No. 91,Bonneville County,State of Idaho(the"District"),adopted
on July 25,2017,notice is hereby given that a Special General Obligation Bond Election will be
held in the District on Tuesday,November 7, 2017, beginning at the hour of 8:00 A.M. and
closing at the hour of 8:00 P.M.on said date,on the question of whether the District shall be
empowered to issue general obligation school bonds of said District in the principal amount not
to exceed $110,000,000,to be repaid not later than twenty(20)years from the date of issuance
thereof.
Said election shall be held at the regular polling places for elections in Bonneville County,Idaho,
[or by mail],as indicated below:
[County Clerk to insert Polling Places
and Absentee Votine Material)
The following information is required by Section 34-439,Idaho Code:
The projects to be financed by the sale of the proposed bonds are the costs of(i)
renovating, repairing, equipping and furnishing Skyline High School; and (ii)
constructing,furnishing and equipping a new Idaho Falls High School,together
with all related furnishings and equipment necessary to operate said facilities.
The date of the District's special general obligation bond election is November 7,
2017. The principal amount of the proposed bonds to be issued is not to exceed
$110,000,000 to be repaid not later than twenty (20) years from the date of
issuance thereof.
The interest rate anticipated on the proposed bond issue, based upon current
market rates, is three and twenty-seven hundredths percent(3.27%)per annum.
The amount to be repaid over the life of the bonds, based on the anticipated
interest rate, is $145,268,868, consisting of $110,000,000 in principal and
$49,636,125 of interest, totaling $159,636,125, less $14,367,257 in estimated
bond levy equalization payments.
As of November 7,2017,the total existing bonded indebtedness of the District,
including interest accrued,is$40,924,905.
[End Form of Notice of Special General Obligation Bond Election]
Section 7.That if at the Bond Election two-thirds(2/3)of the qualified registered electors
of the District,eighteen(18)years of age or older who have resided in the District for thirty(30)
days,voting thereat assent to the issuance of the bonds,as certified by the Bonneville Clerk,the
negotiable bonds of the District shall be issued and mature not later than twenty(20)years from
the date of issuance thereof,in accordance with the provisions of the Idaho Municipal Bond Act.
RESOLUTION-3
44177.0007.8926145.3
Such issue will create a new debt to finance the Project, as approved, in accordance with the
provisions of Section 33-1107, Idaho Code, payable from the proceeds of ad valorem taxes.
Section 8. That said negotiable bonds shall be issued if carried as aforesaid and payment
shall be made through the levy of taxes on all taxable property in the District, beginning in the
year principal and interest payments are due and continuing until principal and interest shall have
been fully paid in such amounts and at such rates as are necessary to assure the prompt payment
of such interest, and also to establish and to constitute a sinking fund sufficient for the payment
of the principal thereof as required by law, and it is hereby ordered that such payments shall be
certified and such taxes shall be levied annually at the time and in the manner as general taxes
for said District are levied in each such year; provided, however, that the aforementioned taxes
shall never be diminished prior to payment of all bonds excepting in any year to the extent that
other available funds shall have been applied to or set aside in a special fund to be irrevocably
held for the payment of principal or interest or both, payable from said taxes for such year. The
proper officer or officers of said District are hereby authorized and directed to do all things
requisite and necessary to carry out the provisions of this section and to apply the proceeds of the
taxes so collected to the payment of such principal and interest.
ADOPTED AND APPROVED this 25`h day of July, 2017.
BOARD OF TRUSTEES OF
SCHOOL DISTRICT NO. 915
BONNEV_ILLE COUNTY, STATE OF IDAHO
By: kQ I �(�' A�aW
Chair
(SEAL)
AT:- /(
By:
Clerk
RESOLUTION - 4
44177.0007.8926145.3