NOW WE'RE GOING TO CALL THE JUNE 24, 2025 GROWTH MANAGEMENT AND AFFORDABLE HOUSING WORKSHOP TO ORDER. SUPERINTENDENT. AYERS AYERSVan Ayers: THIS IS LIEUTENANT OF INFORMATION GATHERING FOR US. WE WILL HAVE DISCUSSION AND THERE WILL BE FUTURE WORKSHOPS AND DISCUSSIONS AROUND HERE. SO NO PRESSURE THAT YOU ARE COMING OUT OF HERE MAKING DECISIONS. THIS IS PART ONE OF FUTURE DISCUSSIONS WE'LL HAVE MOVING FORWARD. I'LL TURN IT OVER TO DEPUTY SUPERINTENDENT FARKAS. Christopher Farkas: THERE'S A LOT OF STUFF IN THIS NOTEBOOK AND I'M GLAD HE STARTED IT THIS WAY BECAUSE THERE'S A LOT OF MATERIAL HERE AND VARIABLES. THE WHOLE POINT OF TODAY'S CONVERSATION AND WORKSHOP IS TO LEVEL SET, MAKE SURE WE'RE ALL ON THE SAME PAGE AND HAVE THE SAME INFORMATION GOING FORWARD. WE ANTICIPATE QUESTIONS AND A FOLLOW-UP WORKSHOP BASED ON WHAT THE BOARD TALKS ABOUT TODAY. WE'LL TALK A LITTLE BIT ABOUT THE SHEET.
WE TRIED TO DEVELOP INTO THREE SECTIONS, GROWTH MANAGEMENT, IMPACT FEES, REAL ESTATE EVALUATION AND AFFORDABLE HOUSING AS WE GO FORWARD. WE HAVE JOHN FORD FROM FORD & ASSOCIATES WHO HAS BEEN WITH THE COUNCIL AND WORKED WITH THE DISTRICT FOR 30 YEARS AND AROUND -- ANDREW WRIGHT FROM FRANKLIN STREET. WE'LL MOVE TO GROWTH MANAGEMENT AND IMPACT FEES. GROWTH MANAGEMENT TALK ABOUT FISH -- FLORIDA HOUSE OF EDUCATIONAL PLANT SURVEY. A FIVE YEAR PLAN AND DEVELOPMENT TRACKING. STUDENT DEMOGRAPHICS, THE PRINCIPLES SAY IS THE SCHOOL FULL OR NOT. REAL ESTATE TRANSACTIONS, PURCHASING AGREEMENTS, LEASES WE HAVE WITH TECO AND OTHER PLACES. SCHOOL SIGHTING. THE SCHOOL ATTENDANCE BOUNDARIES, AND OUR GIS BASED I GROWTH MANAGEMENT AND PLANNING. SCHOOL DEVELOPMENT IS A BIG PART. WE TRACK DEVELOPMENT IN HILLSBOROUGH COUNTY. OUR 40th DAY ENROLLMENT IS OUR SNAPSHOT OF WHAT WE LOOK FOR AND THAT'S WHAT OCCURS ON THE 40th D YES, THERE ARE VARIABLES.
40 DAYS IS THE SNAPSHOT WE LOOK AT. FISH CAPACITY IS DETERMINED BY THE STATE. YOU WILL HEAR LEVEL OF SERVICE AND CONCURRENCY SEVENS. CON CURRENCY IS ONE THAT USED TO BE THE ROOM AT THE LOCAL SCHOOL OR THE CONTIGUOUS SCHOOLS. THE STATE CHANGED IT SO WRITTEN IN THE ENTIRE COUNTY. FIVE-YEAR FACILITIES PLAN, YOU SEE TWICE, END OF JULY AND OCTOBER. DEVELOPMENT REVIEWS, WHENEVER ANYBODY WANTS TO BUILD, IT COMES TO THE GROWTH MANAGEMENT AREA AND THEY TALK ABOUT IT AND MAKE SURE WE HAVE ROOM FOR IT. THEY COORDINATE THE PLANNING, LINE WITH LOCAL PLANS, DO DATA SHARING AND ESTABLISH A REVIEW PROCESS. I'M GOING TO BUILD 100 HOMES, WHAT DOES THAT LOOK LIKE, IS THERE ROOM IN THE LOCAL SCHOOLS. ONCE APPROVED, THEY MAY NOT BUILD IT FOR TEN OR 15 YEARS. THE ECONOMY TAKES A DOWNTURN, THEY DECIDE TO BUILD IT WHEN THEY NEED TO.
THAT'S A BIT OF A CHALLENGE. PART OF THE INTERLOCAL AGREEMENT, THE ILA, IS THE LONG RANGE PLANNING IN THE NEXT FIVE YEARS. YOU WILL SEE THE LONG RANGE PLANNING STUDY FINAL DRAFT IN AUGUST. ALSO PART OF THAT IS WE'LL TALK ABOUT IMPACT FEES. ARE THERE ENOUGH SEATS THEY DO A PROP SHEAR AGREEMENT WHICH IS A PRE-PAYMENT OF FEES. THE OTHER ONES, WAIT TILL THERE'S CAPACITY AND WE BUILD IT. THAT IS A REGULATED PROCESS, NOT A COUNTY PROCESS THAT WE COME UP WITH. ONE OF THE CHALLENGING THINGS ARE, YES, THERE ARE 100 HOMES, BUT HOW MANY KIDS WILL COME OUT OF THE 100 HOMES? THAT IS THE VARIABLE WE DON'T CONTROL. I USE MY NEIGHBORHOOD AS AN INSTANCE. THERE'S ABOUT 100 HOMES IN MY NEIGHBORHOOD. WHEN I DO MY NORMAL WALKS AROUND THE NEIGHBORHOOD, THIS YEARERS THERE WAS TEN SENIORS IN THE 100 HOMES THAT JUST GRADUATED.
THEY PUT THE YARD SIGNS OUT FRONT. STATISTICALLY THAT'S IMPOSSIBLE. NO WAY YOU WILL HAVE TEN SEATERS OUT OF THE HOMES. DEPENDS ON WHEN PEOPLE MOVE IN. GENERATION RATE IS DIFFERENT FOR THE GRADES. THERE'S A 100 HOME NEIGHBORHOOD. IN THEORY, WE SHOULD HAVE 20 ELEMENTARY KIDS, 9 MIDDLE 9 KIDS AND 14 HIGH SCHOOL KIDS. THAT IS A HUGE VARIABLE. WE DON'T CONTROL THAT. THE COUNTY REQUIRES THAT WE HAVE THAT DEVELOPMENT RATE. WHAT DOES THAT LOOK LIKE? WE DID AN EXAMINER OF THE NEIGHBORHOODS WE HAVE HERE. YOU SEE THE NEIGHBORHOODS, HOW MANY RESERVATIONS FOR THE NEIGHBORHOODS BASED ON THE GENERATION RATES AND WHAT THIS LOOKS LIKE FOR ONE GROWTH AREA. SO FAR, 504 STUDENT RESERVATIONS, THE AREAS ON I-4 AND HEADED NORTH, ALL THE DIFFERENT NEIGHBORHOODS NORTH OF PLANT CITY, WE TRACK THEM TO MAKE SURE WE KNOW WHAT'S COMING. WHAT'S AN EXAMPLE? LET'S TAKE A LOOK INTO THE CHART YOU SEE BELOW US.
NORTH PARK ISLAND, THERE'S A LOT OF ARTICLES ABOUT WHETHER WE SHOULD HAVE BOUGHT THIS PROPERTY. 2014, THAT'S WHAT NORTH PARK ISLE LOOKS LIKE NORTH OF PLANT CITY. NOW IT'S A TOTALLY DIFFERENT SITE. WE OWN THIS PROPERTY DOWN HERE. WE HAVE A HIGH SCHOOL THAT'S JUST NORTH OF STINGRAY CHEVROLET. IT'S IMPORTANT TO SEE IN TEN YEARS IT'S A TOTALLY DIFFERENT PICTURE OF WHAT WE'RE LOOKING FOR. ANOTHER IMPORTANT PART OF WHAT YOU WILL HEAR AND TALK ABOUT IS THE URBAN SERVICE AREA U.S.A. THE URBAN SERVICE AREA IS THE PART IN BLUE. A PROPOSED COMPREHENSIVE PLAT AMENDMENT. IS THERE COUNTY WATER AND SEWER, IS IT SOMETHING WE HAVE ACCESS TO. YOU SEE MORGAN HIGH SCHOOL IS RIGHT HERE. THAT'S IN THAT AREA. SO IT LOOKS LIKE A SMALL MAP. THEY'RE ESTIMATING THAT'S GOING TO BE 16,000 HOMES, WHICH IS GOING TO BE EQUIVALENT OF ABOUT 1,500 OR 2,000 KIDS COMING OUT OF THOSE DEPENDING ON GENERATION RATES.
WE KNOW THE GENERATION RATES ARE AN ESTIMATE. THE REALITY IS IT COULD BE A LOT MORE. THE SUBURBIA GENERATES MORE KIDS THAN THE DOWNTOWN PLACES. YOU WILL SEE A SIMILAR AMENDMENT NORTH OF PLANT CITY TO MAKE SURE THERE'S CITY WATER NORTH OF PLANT CITY. THOSE ARE THE THREE SITES WE ALREADY OWN IN PLANT CITY. THERE ARE SITES HERE BELMONT RESERVE, WATER SET, SOUTH COUNTY CAREER CENTER. WEST LAKE DRIVE WHERE WE'LL OPEN UP IN AUGUST. MORGAN, AND THE MIDDLE SCHOOL THAT FOLLOWS THAT. BISHOP ROAD IS THE SITE WE BOUGHT TEN YEARS AGO AND THEY SAID IT WASN'T UP TO PAR SO WE COULDN'T BUILD ON THAT. MEANWHILE, THOUSANDS OF HOMES ARE BUILT AROUND THAT. WE ANTICIPATE THAT ROAD WILL BE UP TO PAR AND WE'LL BE ABLE TO BUILD THERE. THE COUNCIL GROVE IS ONE WE'RE IN THE PROCESS OF ACQUIRING. THESE ARE ALL SITES WE OWNS A DISTRICT THAT WE ARE PREPARED FOR THE GROWTH.
WEST LAKE, THIS IS THE HIGH SCHOOL, YOU CAN SEE THE STAGE OF WHAT IT WAS IN 14 VERSUS NOW. THERE'S LITERALLY HARDLY ANY SUBURBIA AND NOW IT'S COMPLETELY FILLED WITH WHERE WE ARE. PLANT CITY, 9,400 DWELLINGS, 13900 MIDDLE SCHOOL. SOUTH WHERE IT SAYS -- TWO TOTAL. WE BUILT FIVE, CONVERTED TWO SCHOOLS IN THE FIVE-YEAR PERIOD. WE'LL HAVE A NEW LONG RANGE PLAN. DATA WILL SAY WE'LL HAVE WHAT WE NEED. YES WE BUILT FIVE NEW SCHOOLS BUT BASED ON THE SIMPLE MATH, WE STILL NEED 13 MORE SCHOOLS THAT ARE COMING. AND I THINK IT MIGHT BE HIGHER THAN THAT BASED ON WHAT WE'RE LOOKING AT. IMPACT FEES. THIS BOARD, FOR ALL THE LARGE DISTRICTS AND YOU WILL HEAR IT FROM FORD & ASSOCIATES HAS AS LITTLE DEBT AS ANY IN THE STATE BECAUSE WE'VE USED IMPACT FEES TO DO THAT. IN 2020, THE IMPACT FEES WERE RAISED.
HERE'S A LIST OF WHERE WE ARE COMPARED TO OTHER DISTRICTS. ADOPTION PERCENTAGE WE'LL TALK ABOUT GOING FORWARD. THEY HAVE TO BE UPDATED ON A REGULAR BASIS. COST OF DESTRUCTION EVEN FROM 2020 HAS DRASTICALLY CHANGED. YOU WILL SEE, WE HAVE A LITTLE SNEAK PEEK OF THE LONG-RANGE PLANNING STUDY. THEY'RE GUESSING WE'LL GO FROM 8,000 ESTIMATE TO $1,708,412. STLS A FEDERAL STATUTE THAT SAYS YOU CAN'T GO UP MORE THAN 50 PER STATUTE. EVEN IF WE WERE ABLE TO GET IT ADOPTED IT WOULD BE $12,340 WOULD BE THE NEW IMPACT FEE. THAT'S THE BOARD OF COUNTY COMMISSIONERS, THEY ADOPT THE ORDINANCE AND SET THE IMPACT FEE. IT'S IMPORTANT FOR THIS BOARD AND THE PUBLIC TO UNDERSTAND YOU HAVE NO CONTROL OVER THAT AMOUNT AMOUNT. Christopher Farkas: THAT'S IMPORTANT FOR US TO UNDERSTAND. IF WE'RE USING IMPACT FEE ONLY, THIS IS WHERE WE ARE GOING TO BE JUST FUNDING ON IMPACT FEES.
THE SALES TAX ALLOWS US FLEXIBILITY TO PAY UP FRONT, BUT IT'S ONLY IMPACT FEE FUNDED AT THE END OF THE DAY. THAT'S WHAT WE LOOK LIKE. THE HIGH SCHOOL IN PLANT CITY WOULD BE 29, 39 AND 40, WHEN WE WILL BE ABLE TO AFFORD THAT. AN IDEAL TIMELINE OF WHAT THIS LOOKS LIKE AND EVEN THIS HAS A HIGH SCHOOL IN '33, THE REALITIES IS IT WILL PROBABLY BE BEFORE THEN AS WELL. YOU WILL SEE A $275 MILLION, $300 MILLION GAP BETWEEN WHAT WE DO IDEALLY THAN CURRENTLY WITH IMPACT FEES. WE CAN LOBBY TO HAVE IMPACT FEES INCREASED, BUT STILL IT'S A COUNTY COMMISSION DECISION. OR WE GO AND TALK ABOUT WHAT FINANCING LOOKS LIKE AND WHAT ARE OUR CHOICES FOR THOUSAND TO FUND THESE. WE CAN TAKE IT FROM THE GENERAL FUND, BUT JUST TO GET A REFERENCE POINT THE CURRENT GENERAL FUND WOULD BE ABLE TO BUILD TWO HIGH SCHOOLS AND BE COMPLETELY DEPLETED.
IT'S NOT REALISTIC FOR US TO DO THAT FOR NON-REOCCURRING MONEY. > WHAT ARE OUR CHOICES FROM A BOARD STANDPOINT? WE KNOW WE HAVE MORE NEEDS THAN WHAT WE CURRENTLY HAVE THE FUNDING FOR, SO LET'S TALK TO THE PEOPLE WHO ARE EXPERTS AND HAVE BEEN AROUND THE DISTRICT FOR A WHILE AND CAN GIVE US WHAT THAT LOOKS LIKE. WE'LL TURN IT OVER TO JOHN FORD. JOHN FORD: WE ATTEMPTED TO DO A COUPLE OF THINGS IN PUTTING TOGETHER THE ANALYSIS. THE FIRST WAS TO PUT TOGETHER A LONG-TERM PROJECTION FOR THE MAIN SOURCES OF REVENUE NOR THE DISTRICTS CAPITAL PROGRAM. THERE ARE A NUMBER OF SOURCES. THE LARGEST THE LOCAL CAPITAL IMPROVEMENT MILLAGE, ESTIMATED TO BRING IN $263 MILLION. IN 2005. WE ASSUME THAT TAX RATE IS CONSISTENT GOES FORWARD AND GROWS ABOUT 4% PER YEAR. THE HALF-PENNY SALES TAX RUNS THROUGH DECEMBER 31, 2028, AND OVER THE LAST 12 MONTHS BROUGHT IN $206 MILLION BASED ON ACTUAL RECEIPTS THROUGH THE DEPARTMENT OF REVENUE SO IT WON'T MATCH CLEANLY WITH ANY OF THE LAST FINANCIAL STATEMENTS.
THE COMMUNITY INVESTMENT TAX WAS SLATED TO EXPIRE AT THE END OF 2026 AND UNTIL THEN THE DISTRICT RECEIVES 25% OF THOSE REVENUES. THE TAX WAS EXTENDED, BUT THE SHARE DROPS TO 5%. THE DISTRICT HAS A COUPLE OF SERIES SALES TAX REVENUE BONDS OUTSTANDING AND MATURE NEXT YEAR OCTOBER 1. THAT TAX IS RIGHT ABOUT A QUARTER OF THE SCHOOL HALF PENNY. THEY'RE ALMOST IDENTICAL FROM A COLLECTION STANDPOINT SO THE REVENUE HAS BEEN ABOUT $51 MILLION AS OPPOSED TO THE OVER 200. IMPACT FEES TEND TO BE THE MOST VOLATILE SOURCE OF REVENUE. THEY ARE ALSO ONE OF THE MOST IMPORTANT FOR BUILDING NEW SPACE AND NEW FACILITIES. CHRIS WAS KIND ENOUGH TO PROVIDE US WITH ESTIMATES OF $40 MILLION IN 2025 AND $30 MILLION A YEAR ON OUT. I THE FIGURES COME FROM THE COUNTY. THE COUNTY HELPS US PROJECT THE $30 MILLION AND $40 MILLION IMPACT FEE BASED ON THE GROWTH AND HOMES THEY SEE PURCHASING.
THEY SEE IT GOING DOWN $10 MILLION NEXT YEAR BASED ON WHAT THE COUNTY TOLD US WHICH IS INTERESTING BECAUSE THERE'S A HUGE URBAN SERVICE AREA. WE'LL STILL GET THE MONEY. WE'LL TRACK THAT CLOSELY, MICHELLE ORTON AND TEAM MANAGEMENT DO A GREAT JOB TRACKING THAT. WE'LL GET MONTHLY STATEMENTS. THAT'S WHAT THEY PREDICTED COMING IN. IT WAS EFFECTIVE IN 2020. WAS $4,000 AND WENT TO $8,000 IN 2020. EVERY SINGLE ASSUMPTION IS GOING TO END UP BEING WRONG IN ANY PARTICULAR YEAR. THE HOPE IS, OVER THE COURSE OF 30 YEARS, WE END UP WITH A RELATIVELY GOOD LONG-TERM TREND LINE BUT HAVE TO CONTINUOUSLY REEVALUATE OUR POSITION AT ANY GIVEN TIME TO ASSESS THE SITUATION. IT CHANGES MORE QUICKLY THAN LONG-TERM PROJECTIONS. AS THE WORLD IS PROVING NOW, THERE ARE A LOT OF THINGS YOU DON'T SEE COMING OUT OF LEFT FIELD. THERE ARE CHARTS IN HERE. THIS IS THE LOCAL CAPITAL IMPROVEMENT MILLAGE.
DEPICTS THE 4% GROWTH RATE AND TAXABLE ASSESSED VALUATION AND MAINTENANCE OF THE 1.5-MIL LEVY. THE STATUTORY REQUIREMENT REMAINS CONSISTENT. WITHIN THIS, WE SHOW THE TRANSFERS TO CHARTER SCHOOLS BASED ON SUSMS OF GROWTH IN DISTRICT OUTLAYS. THE RED IN THE BAR, EXISTING CERTIFICATE OF PARTICIPATION DEBT SERVICE, LEASE PURCHASE AGREEMENTS YOU HAVE OUTSTANDING FOR SEVERAL DOZEN SCHOOLS THAT MATURE BETWEEN NOW AND FISCAL 2031. SCHOOL CAPITAL OUTLAY, THE HALF CENT CAPITAL AT LEA SURTAX UNDER STATUTE RUNS THROUGH THE MIDDLE OF FISCAL '29, END OF CALENDAR YEAR 2028, 3.5% PER YEAR GROWTH, AGAIN NO CHANGES TO THE EXISTING STATUTORY FRAMEWORK. SAME GOES FOR THE CIT. DEPICTS HIGHER REVENUES THROUGH 2027, WHEN OUR SHARE DROPS TO 5%. THE RED AGAIN SHOWS EXISTING SALES TAX DEBT SERVICE. AND THEN, WHEN YOU STACK THEM ALL TOGETHER AND ADD IN THE IMPACT FEES WE TALKED ABOUT AND THREW IN THE CONDS MONEY, THESE ARE THE REVENUES THAT WE REASONABLY ANTICIPATE HAVING TORE THE DISTRICT'S CAPITAL PROGRAM NOW.
THE BIGGEST CHALLENGE THAT I THINK THAT WE HAVE IS THE SCHOOL HALF-PENNY SALES TAX THAT MATURES AT THE END OF 2028. IF WE DO NOT ATTEMPT OR SUCCEED TO RENEW THAT OUR CAPITAL FUNDING WILL DROP AND WE WILL NOT ACHIEVE THOSE LEVELS AGAIN BASED ON THESE MYRIAD OF ASSUMPTIONS UNTIL THE EARLY 2040s. SO IT IS QUITE A BIG HOLE IN THE ACTIVITIES THAT THE DISTRICT CAN UNDERTAKE. SO NOW WE SORT OF HAVE AN IDEA OF THE REVENUES THAT WE'RE WORKING WITH. REASONABLE EXPECTATION OF CAPITAL EXPENDITURES NOT INCLUDING MAJOR PROJECTS. SO THESE EXPENDITURES, CONSTRUCTION, MAINTSD AND RENOVATION, THE DEPARTMENT MENTAL BUDGETS, TRANSFERS TO THE GENERAL FUND IS IMPORTANT, BUSES AND VEHICLES IS VERY IMPORTANT, OTHER CAPITAL NEEDS, THESE THINGS ARE ALL, AGAIN, FLAT-LINE ASSUMPTIONS, ASSUME ABOUT 3% GROWTH EVERY SINGLE YEAR BUT DOESN'T INCLUDE THE NEW HIGH SCHOOLS, ELEMENTARY SCHOOLS, WHATEVER CHRIS WAS ALLUDING TO. SO NOW WE'VE GOT PROJECTED EXPENDITURES TO COMPARE AGAINST OUR REVENUES, AND WE'VE DONE THAT ON THIS CHART, WHICH IS NOT VERY PRETTY, AND I APOLOGIZE.
BUT THE GREEN ARE THE REVENUES THAT WE HAVE TO WORK WITH. THE RED ARE THE PROJECTED EXPENDITURES, AND THEN THE YELLOW BARS DEPICT HOW MUCH MONEY WE HAVE REMAINING. WHAT'S AVAILABLE FOR NEW CONSTRUCTION DURING THAT TIME. THE GOOD NEWS IS BASED ON THESE ASSUMPTIONS THE YELLOW BARS STAY ABOVE THE ZERO HEIN. WE HAVE MONEY TO WORK WITH IN EVERY YEAR IN VARYING AMOUNTS. THE BADS BAD NEWS IS BASED ON SUFFERINGS, WE'LL HAVE LESS OR MORE, AND WE'RE GOING TO HOPE FOR MORE. CHRIS HAS ALREADY TALKED ABOUT THE MAJOR CAPITAL PROJECTS. I'LL SKIP OVER THAT. COULD YOU PLEASE GO THROUGH THAT AND LET US KNOW (INDISCERNIBLE). WE CERTAINLY WILL. ALL THESE ARE BOARD APPROVED. ALL WILL COME TO YOU AS PART OF THAT CONVERSATION. THE MEDIA CENTER, THE DW STANDS FOR DISTRICT-WIDE, SO THOSE ARE OUT THERE, TOO. AND THIS IS MULTIPLE FUNDING SOURCES OUT THERE, TOO.
IF THE BOARD APPROVES THE STUART REBUILD, THE MIDDLE SCHOOL BUILD, THE CAFETERIA REDESIGN, THE WATERSHED TWO SITE, THE ALONZO AND STEINBRENNER ADDITIONS, THE PLANT CITY, THE BISHOP ROAD ELEMENTARY SCHOOL -- I GUARANTEE THERE ARE PROJECTS GOING TO BE NEEDED THAT ARE NOT ON THIS LIST AND ALL THE ONES ON THE LIST HAVE TO BE APPROVED ANYWAY. WHEN WE WERE THROWING A DART AT A DART ADD A DAFORT BOARD THIS IS WHAT WE CAME UP WITH. WHEN WE PAY FOR PROJECTS ON A PAY AS YOU GO BASIS, WE ARE TAKING MONEY OUT OF RESERVE OR CURRENT-YEAR REVENUES AND PAYING FOR A PROJECT IMMEDIATELY, WE'RE NOT INCURRING ANY COST TO ISSUE THE DEBT, ALSO NOT PAYING ANY INTEREST OVER THE YEARS IN WHICH WE AMORTIZE THE PROJECTS. THOSE ARE BOTH REALLY, REALLY GOOD THINGS. IT ALSO MEANS WE'RE NOT EARNING ANY INTEREST ON THOSE RESERVES. IF WE HAD PUT THOSE IN THE BANK, MAYBE WE WOULD HAVE EARNED LESS OR MORE THAN CURRENTLY PAYING ON OUR BONDS.
WE GET TO BORROW ON A TAX EXEMPT BASIS. CREDIT MATTERS THERE. TAX EXAMPLES RELATED TO FUNDS YOU HAVE ON HAND OR FUNDS IN THE AFFORDABLE FUTURE. YOU MAY GO THROUGH A REVENUE ACQUISITION PERIOD WHERE THE FUNDS BUILD, AND DURING THAT TIME YOU ARE AT RISK FOR PRICE COST INFLATION IN CONSTRUCTION. THAT CAN WORK FOR OR AGAINST YOU. OVER THE LAST SEVERAL YEARS, CONSTRUCTION PRICES HAVE ONLY RISEN. RECENT HISTORY, ONLY WORKED AGAINST US. DEBT FINANCING IS THE OPPOSITE ON EVERY TACET HERE. THIS WILL ALLOW US TO SPREAD THE COST OF CONSTRUCTING NEW SCHOOLS OVER TIME. NOW, THE GOOD NEWS WITH THAT IS IT ALLOWS PEOPLE WHO WILL MOVE TO THE COUNTY SAY THREE YEARS FROM NOW AND SEND KIDS TO SCHOOLS TO SHARE IN THE COST OF PAYING FOR THOSE SCHOOLS. SO THERE'S A PUBLIC POLICY ASPECT THERE. IT ALLOWS US TO CONSTRUCT OR ACQUIRE SCHOOLS OR PROPERTY WHEN WE NEED IT AS OPPOSED TO WAITING FOR FUNDS TO ACCRUE BECAUSE WE CAN REASONABLY ANTICIPATE REVENUES INTO THE FUTURE.
IT'S GOING TO ENHANCE OUR CONSTRUCTION AND ACQUISITION CAPACITY. WE MAY OR MAY NOT BENEFIT FROM A TIME VALUE ASPECT THERE. IF CONSTRUCTION COST INFLATION EXCEEDS THE INTEREST RATE, WE ARE BETTER OFF FOR HAVING PAID AND FINANCED IN THE BEGINNING. IF CONSTRUCTION COSTS GO DOWN, WE WOULD HAVE BEEN BETTER OFF WAITING. I DON'T HAVE THAT CRYSTAL BALL SO I WOULD DEFER TO THE BOARD. WE INCUR INTEREST AND TRANSACTION COSTS WHEN WE FINANCE, DEPENDING ON PREDEVELOPMENT PREDOMINANTLY THE LEVEL OF MARKET RATES, BUT ALSO THE CREDIT RATING THAT'S GOING TO DEPEND ON THE SPECIFIC FINANCING STRUCTURE, WHETHER TALKING ABOUT GENERAL OBLIGATION BONDS, SALES TAX REVENUE BONDS, CERTIFICATES OF PARTS PAYS OR A STAND-ALONE LEASE/PURCHASE AGREEMENT, THOSE WILL FACTOR, AND TRANSACTION COST AS WELL. FINANCING MAY ALLOW FOR MAINTENANCE AND GROWTH IN RESERVES IN THE CAPITAL FUNDING AREA. IF WE'RE ERPG INTEREST ON THE RESERVES THAT'S COMPARABLE TO OR GREATER THAN WE'RE BORROWING IT, THAT'S A BENEFIT.
OVER THE LAST NUMBER OF YEARS, EIGHT TO TEN YEARS, WE HAVE BEEN ON THE GREEN SIDE OF THIS, JUST SO EVERYBODY -- 100%. LAST TIME WE BORROWED MONEY WAS THE '90s. WAS A 30-YEAR THAT EXPIRES IN '30, '31. WE HAVE REFINANCED EARLIER. BUT NOT USED IN I MONEY TO BORROW OR USE GENERAL FUND TO DO CONSTRUCTION. ROBINSON HIGH SCHOOL, WE USED THE HALF-PENNY BECAUSE IT WAS TOO EXPENSIVE TO DO THE AC AND NOT WORTH IT, WE ENDED UP HAVING TO PAY FOR THAT. BUT OTHER FUNDING HAS BEEN ON THE CASH FUNDING AND INCURRED NO DEBT. GOES INTO LINE WITH THE STATEMENT EARLIER OF US HAVING THE LEAST AMOUNT OF DEBT THAN THE OTHER LARGE SCHOOL DISTRICTS. YOU ARE CORRECT. YOU GET A SHIELDS MIDDLE SCHOOL OR SUMNER WHICH ARE OVERCROWDED. SO IT'S A CHOICE WE MAKE FROM A FINANCIAL STANDPOINT. THANK YOU. IT WAS THE 2000s, NOT THE '90s, JOHN REMINED REMINDED THE CHART DEPICTS THE CASH FLOW IMPACT OF PEGO WHICH IS THE GREEN BAR.