001♪ >> the 04:00:02PM. We have exactly one item on the agenda and that a discussion somebody financial questions. Just as a look ahead for the to preserve the option of kind of having a vote in the near future. Before we part ways for the summer. I don't know if it will actually end up pursuing that want that out tomorrow a setting with no further ado, turn it over to Superintendent for us just thank all for a longer supports the project ration than a week last week we graduated, I think 1500 seniors into both college career in local workforce. super excited. As a point. We have over 62% of our students obligated to 2 in 4 year colleges. That is at least 10 points higher than we ever have before in the past. So I also
002want to thank publicly the board and the envelope for their support of the promise scholars. And this is usually our largest 11 promised being taken. don't know if you all noticed a lot of times kids. >> We're heading to be something as they come across the stage for some of the larger schools. That's what plan really 3 out of every 4 maybe not that I but 800 kids. I think it is. going to Pikes Peak next year yet, but not. All right. Yeah, that's very significant number of the 1500 or so. >> rising super excited for that. Thank you all for as Dr, alluded to was a process update. There are lots and lots of steps. >> There very tight rules on how it is that. >> Districts and text entities can their constituents. And
003so with house over to doctor comfort and our guests for our update here on with some of these finance structures can look like. >> Yeah, good evening I'm going to ask, Mr. Down all. And Anthony from RBC to join us, Ward and at least presented the underwriter for a number of our initiatives in the past, including the COPD that the board approved just a couple of years ago. So they're going to go through some options for the later tonight. They will be able to answer all of your technical questions that I am unable to answer. This is what they do professionally. >> Before that, just to go a little bit into some context. So where are we tonight? We are going to financial options. Our hope is that the board give us some guidance on
004which of the financial options you are most interested in is not a decision, but it will allow us then as we move forward finalizing project lists and then also ballot questions about language we would understand the financial parameters for any kind are up with one procedural thing. I just realized need to We have 6 or 7 board members in attendance structured or incentives excuse for cut costs. Back to you. Thank We will. If the board decides to, we will bring the ballot in front of the board twice for 2 readings, both non action and action just as a as a reminder on process. Okay. In terms bomb things you guys seen this many times before. >> There are a number of a kind, a high-level projects that we are recommending that in the current package.
005>> Obviously, one of those is the completion of honor phase. 2 of the master as the board is aware of. city council approved the vacation of Boulder yesterday. And if you were pass now that this would make all of that reality, we also have paying off of the existing COPD that as the words aware our plan is to repurpose that money. It would go into teacher compensation. The intent here is that we would by far the highest starting mid-career and ending career teacher salary in all of El Paso County. If we were able to free up existing funds bowl from the C O P some Additionally the we know Holmes Middle School. Why Holmes Middle the facility data tells us that that is a goal That is not I want to be careful how they
006say it not worth the reinvesting in fixing things that would be more expensive to fix the building that would be to rebuild the building. That is one of the data points that we looked at. We also looked at where do we have consistently strong enrollment? And as we looked across all the packages we look to making sure that was regional representation and some type of large transformational project. As we know you're doing significant work at Jenkins, Middle School. We're doing significant work at Palmer, High School we have been doing and will continue to be doing significant work Mitchell High School and so homes would be the primary from your project on the West side make sure that that is regionally. Representative. then we have a whole lot of check projects. We've talked about high schools
007totaling about 70 million dollars, but we're in on HVAC projects at a minimum of 90 million dollars to make sure that all of our have modern HVAC equipment. And you'll see there that minimum allocation of 1 1 million dollars to all of our That's not just million dollars. But we I think we wanted to make sure of is without with 2 decades since our last successful long-hitting that every school is able to see in the in bond package. And so right now publicly you can go and you can click The button on the website and it will give you a one pager for every single school. You can look and see at what the project list is for every single school. Both what school selected as well as what's the district has selected for projects.
008And you can see that our schools are choosing projects that show their age lack of investment. Lots of bathroom remodels. Lots of fixing broken gym floors. Lots replacing windows. And yes, we're going to be doing a lot boilers and Bruce and those types of things. That's what happens when you go a long time without a significant capital investment. And as I already increasing teacher compensation. What I would say there has been a question about there's been a review, a question about it that a total bond package were to decrease. What would that mean? It would need 2 things. One, we would not be able to pay off the C O P which would change our ability to increase teacher pay and we would not be able to to impact positively benefit every campus in the
009And so how we wicker that actually be for discussion. But those would be the 2, the 2 big parts of this bond package that would change. We presented the concept the district to go for a bond and then successfully pass a bond. And although committee, do you support the concept of taking the money right now that is going through these capital investments and said putting it teacher compensation and unanimously and overwhelmingly they support that. And so this was actually a of alert that they drafted and agreed in terms of, hey, we want you to put it in writing so that the community knows and trusts that. When we say we want to increase teacher compensation mean that. This was few of you are actually in the end meeting. We talked about this there was more
010support than I've seen other additions in the past. So we wanted to make sure and acknowledge that obviously, if the word for word to not go for a bond or if we were to go for a bond not to pass this with it. This would never But we did want he didn't want to be clear about the attention that they support. That concept of increasing teacher compensation. >> By freeing the money just capital projects. >> Okay. on the turn it over to who walked through some options and we'll be here for questions. >> Thank for having me this evening. So quickly. I just wanted to go through couple definitions before we get started on the actual structuring of the potential Just to kind of understand exactly what we're talking about. When we talk about past
011actions, specifically. >> This is often confusing subject. I want to make sure it's clear to everyone when we're looking at tax impact, we start with what the value Some folks call the market value. But it's important to know that this is what you get when you're cessar sent your notice evaluation on your home. It actually says the actual Tiger assessed value. It's not you can find Zillow or what you think you could sell your home your actual value. So when we talk about in terms of what the tax impact is her home, you just take that times their actual value to to reach a tax impact. I just wanted to make sure that that's clear first and foremost and then assessed value most by the actual about value by the assessment rate will talk about
012what the assessment breakings for residential and other entities as well. The current assessment rate for school districts and 7 point O 5%. That has changed up and down over the course of the last few years. Some extent for a long time. We had Gallagher which broke that down used to be a 60 40 that continue drive significantly. So you now have commercial the It was 29% to 2025%. as this year. And residential is 7.5% The local government assessment rate is slightly lower at So that's going into next year. So looking 775 million our election and the tax impact. And it's important for snow that we wouldn't be issuing all this at once. This would be staged out multiple So we would be looking issuance 350 million and then few years later. And again, this this
013isn't all 7 stone. So it certainly can adjusted 2.50, and main portion years after that. And that helps mitigate the tax act we issued 775 right away. The tax impact would be significantly greater. So that the debt service on that is about 46.8 million annually. And so just doing the math 46.8 million annually would require about 9.5 mill increase. So we're sitting at 0 right now in the bond fund. important to note. We're going from 0 to 9.5 and at times the assessed value, you can see it just to the 9.4, 699-0469, mills costs, residential taxpayers. >> About $66 annually or approximately 5 to $6 per month for 100,000 of actual volumes. You can see kind out. That's how it draws out. But if use, for instance, average home of 370,000 that tax impact. would
014be roughly 3.7 times above 447. Dollars annually. So $21 monthly on any questions on that before we go into the actual me of the structure. could be the most confusing slight. So we'll take some time now that this was in fact, that's got down from 29% turnout. 26 correct, correct. And that's because the counting votes to well, the Gallagher and also some legislation that we've seen over the course of the If your call. We had quite a significant run out residential values. you know, folks are feeling because of legislation try reduce that and also the commercial side producing that residential rate as well as the commercial break. School districts are slightly higher on the residential side, local governments, but certainly I'm a commercial side. It's always been. Since I don't know 20 years ago. I
015feel like it's it's always anywhere from 3 to 4 times more on commercial side, President Trump's. Any other questions I can answer on that >> What's our ability be predictive on that business impact. So there is math error that the average homeowner's now calculating and being clear on the difference between assessed value in value. we can do and that that messaging campaign and the and the buildup to this. But what's our ability for the bakery as compared to the trucking company understand what does that really mean? Is there lone man and a high threshold of You districts kind of I won't say advertised, but the public about sure. You talking in terms of the commercial and what how it relates to the residential impact. I mean, I think that. Commercial is such a wide spread
016valuation or it could have the local bakery. But then you also have a huge office building. And so it's very hard to say, OK, here's what the average commercial would be. >> I think it's best to put it in terms of per $100,000 value. And then recognizing that, you know, that difference from the assessment rate of 25% versus 7.5% And they're paying about 3.6 times more per on a commercial side of things. But I think using per 100,000 still makes the easiest I don't I don't what the average commercial value would be necessary. >> It's just that just this is this came up with the CS Utilities when there was an annexation part that there was some questions. This was not a deal. 11 decision. But when there was an annexation question come up, there
017were some pieces of Is that about what it costs of business for this annexation and then that have become the concerns and the businesses? You know, that's always struggle on us to this. It's recognizing that they do pay significantly more. The commercial side of things. So they have to recognize, you know, the value of good schools, obviously and how that proves that businesses as well. >> But they do pay significant. But when it comes acts of business, that it does 20 impacts that that's where the because of song, some of those chances, a Even if you're going to be you don't have to but that this is a state you can ready talk to I think it's important to remember. so this that we're starting the same level playing And so remember, our business community
018is already paying less taxes than surrounding communities. >> And that's that's pros and cons of being the only district with the lowest tax impact and the city. And with no about that. >> Yeah. And functionally, you know, like I said, going from 0, which no other metro school district is going from from there. Bob Levy to trying to make up some substantial ground over the course of the last 20 years. That's that's why you see this tax and pick you had that were going off, which many districts do in a time. It with the debt rolling off that either mitigate or eliminates the because we're starting from 0, can't do That's what happened in the critical van we just trying to roll off or not going to be a tax increase, much more low on
019second out of board. but unfortunately >> Either way, it was a great yes. That's exactly what we're And paid off the that. >> Okay. We're ready to go to the next slide. Thank OK. So we looked at a few different amortization schedules, but this is primarily trying to mitigate the tax impact. again, you see 7.75 that this will staged Overholt multiple charges. So it's not 7.75 right out the gate. >> I think that the way that are covering as build out construction schedule of his star can schedule. We find that up with the way trying sell. So looking at 2025 30 year amortization. I think what we want to be mindful of to some extent, and I know that there has been questions on this is, you know what with the ballot question looks like
020in the because oftentimes that can be that, you know, some concerns. So you have to about fresh. You asked for the 7.75 But you also asked for was the max and your payment question also what's total repayment? So those are the 3 women factors in a ballot question. That's what first 3 lines you see ballot questions. Recognizing that knowing that, you know, if you're looking at 7.75, your Mac's annual that service. 54 1.98 They can call 20 years. 1.3 on a 20 year amortization. And then if you go to 25, you can see those go down. certainly going all the way up to 30. And we do have school districts throughout the state that to 30 year amortization. the typical amortization is usually about 25 Can business repairing and building new schools has become much
021more expensive states that to go. >> recognizing those numbers, you know, that's something to consider as well. And you're looking at questions might look like. You know, the military is roughly. doesn't seem like it. difference. Certainly you can that the impact is is lower as you and over a longer period of time. >> But when you're looking at it the relative terms, you know, want to weigh those options of, OK, what does this look like instead of a ballot question or says how it's going affect overall tax You can see the residential annual cost. If we did 20 years, it's $6.40 exceeding annual cost. 70's $77 a month later at $6 and 40 and that is for 100,000. So you have to do 370,000 our as goes down as you go further out. So it
02225 year amortization is just under $6 and a 30 year amortization is $5 and $0.60 per month per 100,000. >> can you explain for the board that these are kind of worst case scenarios because they don't assume the >> Sure. And so what we like to do be relatively conservative. And we're looking at assessed value growth, recognizing that the district has had significant as most districts have had significant assessed value growth over time. So when you have that assessed value growth, that Mill Levy that's required to pay the debt service, that debt service stays the same the 2025 30 years. But that ability has assessed value grows because that's what that's what you're numerator is that nobody's going to go down because it's it's needs to be lower. It has to be lowered in order
023to generate that lower debt now. So over the course of time, should you see assessed value growth let's say 5, 7.10%, as we have seen over the course of the last 5 years, then tax impact would go down. There's a county out there because if you are fully residential or if you have a lot of residential in your home value, it's growing concert with that. You know, certainly it would stay consistent. But if you have new growth or commercial or whatever, it may be, then that's you know, it's it's how your residential grows and relative to the other assessed That makes sense. >> Supposed to be reassessed in 2027, I guess so. How will that every assessment here? So it's that every other year is one of assessed and what we've seen over the reassessment
024valleys over the course of the last several cycles has been pretty significant increases. And so what we would imagine is, you know, they go back into arrears, right? So they assess 2 years 2, they're looking at everything that has a year and a half to 2 years prior. We saw significant growth. There's actually what what many folks believe us? We're not going to nearly much growth over the next assessment cycle. It's hard because the housing market is kind of stabilized exact over last 18 to 24 stabilize and summer is gone down. Doubling sort living in a desirable right? >> Thank you. Can go onto the next slide. >> Brandon alluded to this a second ago. I just it's a very a difficult, but it's it's position where you're at you're looking at basically if you
025go all the way of the far-right, that's 11, that's your total 11. So we're looking at your school dance act your your ammo and other, which is like abatements very, very small. But if you look at in comparison to some of your peers. You have a aurora topping out at 73 Mills that's across all of those abilities. 73 you can see that whether this is almost half terms of total bills and a large part. You know, that's that certainly to to the bond. You can bond call it going down from Aurora. it's not just or looking at everybody here, every district set for its looks like, Falcon. But there's a caveat out there does not have any bonds outstanding. Now, does have does have won standings? Falcon does not. Because what they do is they
026Shu because it's and that was a beloved rights they're typically used for general fund. as you've done ongoing capital maintenance in their case, they have difficulty passing a bond so they'll actually pass ability over it fund C o P's with the revenues that are generated from time. So it's well, they don't have a bond. They have. You can see is is much higher as well. So that's kind of how they think the dress their capital needs, because they've had difficulty passing. >> And can you explain again I want to say the risk, but the difference in borrowing against bunnies as compared to just having access to money's the cost to taxpayer. The district overall. Sure. I mean, think the CO you're borrowing against your general so that's that's can be somewhat risky because those funds
027could be used general fund. >> so the credit is slightly lower when you do a bond and it's obviously riskier the repayment when you do a bond that is is housed in your van time. Those property taxes can only go in your bond fund. They can only be used fans of said Bonds. And so, you know, essentially you're asking 20 years of those property tax receipts as opposed subsidizing with your child And so, you know, I think the traditional way doing that certainly Mister Vaughan's. I pins approach was just because they had difficulty passing a bond issue. But again, you're far right? Are the lowest of any of your peers. And even if this was approved, I think it goes up to 48 night tend so 47 mills. So you're still going to middle of
028the as far as total of 8. What's the out the column just giving a debate Very varies from year to Questions on piece. >> We just remind again a decision a couple years ago to take down the open bond and what that means and differences of language of this is a tax increase. And just so the board understands that had that Det been kept open, that you could incur not the amount we're asking for, but a certain amount that done without up culture and summarize that and talked first already addressed this a little bit. But you know what? We looked at 21. 21. >> As we had 2 because I was here when you guys put that out. 21 spend the bond. right? Right. And then to or 23. That's all open on. can bond
029fund balance over time. You 11 and then as assessed value grows, you know, it's makes sense to keep on fund balance. Money's on hand should assessed value. You know, go up or down significantly over the course of time. So in 2021, we have enough bond fund balance that we could pay off that bond. And then also just to react, he really just asking for an extension of that existing And so we would have extended that existing levee. There wouldn't have been a tax increase or at least the middle of the increase. Again, you have assessed go up or down. And at that time, I think it was about to 50 to that we could have levy increase. That failed by. I remember 4 votes, party members, 9 votes. It very scary. It hurt a was
030tough. And so after that point in time. We still have the Bond fund balance they could pay off the bonds and just and essentially go down to 0 in terms of the Well, that's great. But again, worst now are starting from 0 as opposed to maybe if start from 6 meals and then instead of a 9 million crease or whatever the number is, I told you we can to out within 6 miles so that Delta is essentially what that I just bring it up as part of the public not speaking for previous board. I'll ask other board members that were there. >> my recollection was aboard believe strongly. And the idea of not asking for taxation until actually needed. And so by the color coding, we are one of our ICU are the only district
031without a blue band, which means only district that carries 0 bond obligation that we've asked for 0 property tax dollars as part of the long-term solution to the district and that particular over time now says that even people who choose to live completely debt free every once in a while have to get a mortgage or a loan to get a car because the size of that year and greater than what the ox rules as if a not in accumulation 20 plus years of not doing that has built So you're going from 0. >> asking for, you know, trying to catch And so that's the section that also that and the amount that we have been shopping for. We would still be asking for taxation because that open amount of previous bond balance was not enough
032to cover what we're asking for. just people start to conflate histories, it isn't that if the board didn't close that and this would be a completely tax free duty and then the difference between Mills can be certainly interpreted by individual opinion, certainly would have been mitigated some, but it would not have increase. The ask is eventually coming. Or you will be closing schools due to their practice for parents. Schools are very expensive to maintain and to build. And it's very hard to You're just take ask you, because if I said that all spoiling the pot, but districts normally have the general fund to lines themselves. And what the main mechanism is the only the only district is again going back and a levee over it. And they just as you see. Okay. So it's almost
033way around doing this But at the same time. >> They're and Milos potentially higher and well, a sign total tax weathers lower on that doesn't matter to nobody. And a little goes on it's going purple her never pay off. We have a low. You ask for that taxation for ever on where the van you're asking Very specific set of preapproved projects of which there is oversight committee that ensures that you need to planning and detail has always >> actually has a a levee. So they've been able to benefit the group there the last 10 years fix. No levee produces more and more. It's value doubled or even tripled. The amount of revenue that comes off that and I the fact that tripled same so when you buy a house and Falcon, you don't get the
034choice to opt out of part of that is why dollars as That that's policy that comes when you sign on the house. >> That it's not a new decision. You're making that decision to be a landowner within confines of What do you think do help ease. That opportunity for new gold. >> As opposed to if I'm not just trying to pry as opposed to just a second where find a lot to Sarah Lee, you're gonna value is. Doubled since 2017 from local from new growth or just president Existing-home president when he kind of saying is that fixed mill means that doesn't go down. So as assessed value grows, they get more member were fixed. Dollar got many. 26 million never changes. We had inflation on the 2017, but it does not grow at the same
035rate as assessed value. so that's why I mean, I don't smoke for That's a that's a growing revenue source that there then able to recapitalize their district. >> Without ever having to get the blue violence on has has those guardrails where you have those limitations as far as you cannot go above this number. So you have to lower your ability if assessed values, doubling or tripling, you have to lower them love because you cannot generate that state of Going back to superintendent called us and doing to decisions made by Thai police of one of the members of I owe that to the community is watching. >> At that of the bond believe was responsible. Stewardship taxpayer dollars backing a taxpayer, some hostile manner up the middle of the suspect down. The hope was on question
036that he had would have been approved so we can we got was some portion of talk district, also why some our community so but that this time is a need capitalize subdistrict. And that's why to pull the second conversations. That in terms of discussion on the and tax impacts. That's essentially what we're here to talk about tonight. I I did want to I often get the question of, hey, how's the market what is it like an? >> answer is typically, well, you asked me, you know, we couldn't find tonight. But, you know, expectations for interest rates. Generally speaking we've seen the last 6 months has been very volatile than the bond market. But, you know, I think the expectation is for rates to from a higher for longer. And so when you're looking looking at
037ballot question where we're needing to structure over multiple series on issues over the course of 6 years. We need to maintain and make sure that we can stay underneath those parameters. And so we actually, you in in those tax cuts and looking at that, we're looking at a conservative way looking at, you know, slightly. Significantly higher interest rates, but letting for that growth over time. If they reduce interest rates rise, we want to make sure that we issue a full 7.75 So if you certify in September and then 5 years down the road, interest rates or a 10%, not 5%. Those limitations still exist about questions. So we need to be cognizant developing about question. Despite the challenging markets. You know, I think a lot of districts, but I do get I question is on
038premium and what can we generate over and above we're asking for? And that's just a function of the demand pastors and what that delivers a near project funded. So I gave we did 27 J on May 5th. And that was 5 and a half percent coupons, which generally what we've seen as as of the last 2 or 3 Certainly we've seen some even at the turn of the year. >> And that's generated 15% premium. so when you're budgeting, you know, I I always caution don't budget for certainly over the course of 6 years. But when you're looking at, OK, what are possibilities? As far as total Project Fund? And we're looking at, you know, 700 million or 7.75 You know, those are significant dollars that could come in premium well. On top of that. But
039we need to we need to be careful budgeting for that. Over the course 6 was 27 Great Britain. >> We back to the 3 options. >> almost like to slide. Do you want to do that now? Argument except sounds like now? >> he And I think you yeah, where we have that we have the questions. So if you have any other questions answer answer. Did you want to have further discussion on those on the tax impact of the structures I think this is where obviously want certain questions that I think that's we're looking for. Guidance because as you can see just how we write the ballot language in terms of numbers and things like that. >> So can you before I about to run for question. So can you just sum a high-level? What are
040pending decisions that still would need to meeting set of decisions? I should say, pending inputs that you would need for about language development isn't exclusively 20 versus 25% 30 years. Are there other things that the board needs to give some kind of guidance on for this point in time? This is the financial structure we know have a. >> Some additional. >> Feedback on the overall. I want to make sure that it really doesn't. warning signs, this is our this is our first step in making sure that accurate or questions from board. So do before we start with bond language. Can somebody tell me why we went from 7.50 to 7.75? >> We believe that last work session received request from members of the board to make sure that all students in District 11 were supported
041with this pond. And so we add to that amounts to make sure that we covered all existing 11 schools and that nobody was left off the list. I will also say we did poll at the 7.75 members of the more most recent poll that we shared with the poll that that number and so that community, at least that part of the community has has seen that. >> A question charter schools and 22 there bonner's restrictions how charters could use and looking at the dashboard. I don't see any language that says that are there any restrictions are charter schools. >> They would have the same restrictions what bond funds can be used for so they can be used for capital efforts they can use for purchasing a property. And so those same limitations apply. They charters
042are finally their project list as we speak. I believe they're due to me on the 29th. And shortly thereafter, you will see their display on that on those the district website as with everything else feels different. Monday, 20 is there is concern that you be using funds that were already coming from a general fund, HVAC or carpets or something. >> So there's a lot of speculation as make a deal >> not making point. You say what we can. Stu. >> One of the things yeah, we can't If they're renting the facility, we can't invest in those facilities. I so it is pretty specific charter and their reality with their with their ongoing. So there are couple of those limitations. We have sure those school leaders and also our Council Crawford has been working with charters.
043If they have specific questions about can we select 1, 1, question was if we do work this summer, can bond money end up paying for it? And it's like depends if it's within 60 days a lot. So they're in direct contact with Bond Council to make sure that the program the same limitations on bonds of for buildings, correct. Those few guests for say cannot they cannot give that, you know, CEO $100,000 pay increase. >> You'll read those types of accusations. The law does not allow for. >> Because the and the and the district is still be he the box. And so those limitations apply even after giving the >> that and understand correctly that that 25 million dollar increase to take it to 7.75 Was that incorporating? Additional charges for It was making sure we
044represent all schools, which was partially the inclusion to make sure we cover every existing charter schools that we can. Again, there are some charter schools that. >> Do not own their bowling. Those types of things that are not receiving bond funds. And so it was to make sure we covered that story. Other questions from the board. >> So I'm just trying to Kate. Talk a school like art. that's what we need to take place or it's not going to be getting any of spots. I think when to be getting a portion of the pontiff the only in a in a district or building. So they are receiving an allegation as is trailblazer we've got take from the trail relegation to seeing a portion of the money. I thought. What do you say? Plus, a school
045like? >> The which isn't whole big will get the ocean. school 11 going. So they're gonna make improvements to 11 building a where we can't is if they're renting, you know, some charters went to church and so bond funds cannot go to significant capital investment for things like that. But if they are they on their own, do they are? They are resigning in District 11 building. >> They're going to be able to make improvements because the district continues to benefit from those improvements regardless that school stays in in that space think you for And that was the to >> Any other questions. So is this this this added 25 Million. Is is that? So that's all reflected on the website, correct? Yes, and was told that was the last time out. That was Every schools
046allocation. You can probably see every schools project list except for the charters which will be available in the next 5 days. >> You can absolutely see right now. Any other questions. I don't have a question, but I can share my thoughts on the options there is want just point in time looking at the options, especially for me. I want to be honest, possible steward of taxpayer dollars. plenty options which the only impact on the taxpayer to some more. But in long con we end up paying almost. It's a 30 million 300 million dollars, 300 million slicer interest. thinking that get 100 million dollars lesser over 10 years so it's a you are asking for one import company, I would say, I mean, what's the point? options being off the bond only it's a impact of
047taxpayer. That's about and dollar small. Yeah. $500,000 it's paid off in 20 years as opposed taxpayer paying it for that's this is very similar to, you know, might hear mortgage 15 year mortgage and there pros and cons for because it's individual that there's a sweet spot that doesn't have to be 2025 that we can We can help pick middle number. If we like we just wanted to get 3 round numbers to start and all the bonds will have 10 called 8 that. They can I mean, >> you're not going to have all that money in the pocket, bounce it off, but you refinance 10 certainly paid out on bond for about as you do You want catch you. Thank you. All. Just be a second for saying it looks to my head. >> Going towards
048the side of smaller total repayment. Make sense to me. >> The difference an annual card or a park. The difference annual cost is not that large in it. Asking taxpayers for 304 billion over the course of additional 10 years. That doesn't see responsible salt. All agree that. A comment that everybody's like hold onto 7.75 But that hurricane, number is usually the recession. We're talking this. >> Bonsai, the bomb packages. Usually woods here, Anderson, is 1.3 billion having already It's the wheels turning their heads. But that is required ball language that and 1.3 of 1.6 billion. the second line. And I think that's to point because gets 300 million that essentially, you know, get to make that comparison admit to over, save money and the repayment to does the language usually make it clear what that
049number It says it says a of just will be the 3rd. >> Number table very clear how transfer. You have to be, which of costs yearly cost total cost for option is going to say 1.3 billion. >> That option is to say 1.6 Any other thoughts or questions from the board. But you need something that guidance from board and to stop Right. But buy you present Kerry? What I'm hearing is. left is better. That's to affect the A 3, most always get nervous. When I asked Professor Sayshe the way you asking if leaning toward 7.70? >> Note that the ask is on chart. Do you more towards paying off more quickly or paying it off more slowly with the tradeoff being that total repayments cost for, the monthly or annual cost. >> I think you
050can consider leaning left if there's any kind of sweet spot in the trade-off, feel free to try to find I think. Okay. puts least The capital planning tool used to be able to see it. And now it says it's just password protected for principles and values. that open again will be able to see the actual projects you can if you if click there's call project. >> Project my computer. I apologize. But that's where you can see that they're PDF one pictures instead of actually getting into the tools. There's a its project, something and it's project that actually printed into first base second page, first page of every schools, one pager is their projects election. The second pages, the I think so. This is called Project plans project So so and I guess that community may
051be interested in the URL to. So when you go to that central, the 11 website, I think if you go to the bond website, it takes you somewhere slightly different. >> What you need to do is go and click on what there's like. A little drop down menu. But you'll find you want to click projects, plans and then the URL for that is 11 dot org. Slash funding slashed project plans. All one word. And brings up a list of PBS where there's, you know, you can see Adams Page one Page one, whatever the case may be. And then you can click real this slide deck with those URLs. what's as the today? >> Can you just summarize again? I know there's always consternation on diverse 20 traditional schools and charter schools who votes for district.
052So you have to be a district everybody, anybody, 18 years registered voter in the district within the boundary of the district that you live in, not Ryu attend school and can't be your second home have to primary residence rate, registered voter charter board district regardless. >> And what is our current student population of charter schools? Start to come rough sleepers. Entrance percentage total cost. A lot Spotify. Between where we're 23,000 of the 23,015%. >> 4,000. Not Try to do the math. It are few of unauthorized for schools. >> And can can you remind me again if we went for the 500 and not the 7.75, what would we be missing out on between that? Yeah, my opinion a directory vice wasn't actually 2 things. Number there would be no way to. >> All schools to
053receive funds unless we didn't do any large-scale projects, doesn't make sense all. You have to do large-scale projects and then do not believe we would be able to pay off the co peanuts are 20 million dollars. And so with that would come the inability increase teacher pay. Makes sense Thank you. Okay. And what steps I just want to close because this comes up all the time. The bond is not. >> The bond doesn't go teacher pay. The bond could pay off the COPD, which is funded by The M O and those slides shared by a Little Oversight committee says they're certainly wildly in favor of reprogramming those capital dollars out of the M O directly to recurring salary to teachers, not a bonus. One time of $10,000 literally take the pay scale that exists right
054now and that $10,000 to every cell which then makes us where the rack and stack of life are number one in the region by far. And what is might be higher than even the Denver Metro are okay. And I say that I want ways to tube is access to high quality instruction. >> And you like to students in district 11 deserve the best teachers in the best teachers deserve icing. >> Yes, >> Looking at 20 years versus 30 Is there anything else to consider? Because? >> Certainly 300 million dollar savings fight. know, sooner in 20 years. And then I'm looking at. There is. In the shaded area. The annual cost receipt. lost as president goes from $77 based on $100,000 to 66. So. Per person is. So there's per household Is there anything else to
055consider when? That you that you might point out he wasn't going towards 20 know. I mean, it's really like as you already stated, it's really just a If you just compare it to a mortgage >> you're looking at, OK, I want to be done with this principle and interest quick as possible. So all tenure. But I know I got to pay more on annual basis in order to do that. Versus a, you know, a first-time home buyer stretch so far as I can do a 30 year. They're going to be a lot more and you will be paying that principle for some Very similar to I think number we could consider most people pay attention of the monthly costs. But >> there is a break. It's 5 in something or it's 6 something. So I
056think we could have not greater than $6 a month column. If I roll into the monthly, if the difference was between $95.98, dollars and $102 you would want to cut $99 because the average person percent about $100 over $98. And I'm not I don't mean to make that sound like people to understand finances, but we could instead of looking at the payment terms, look at that impact and think is there a threshold of by going over I don't mean to put Dr Comfort on the spot, but Manitou Springs, Mike Lee, $100,000 S to increase much as of the quarters. So when Manatee just past there's $7.25 Was there a bottom increase per monthly $200,000 of the suspect? So it would split point I'm trying to make here if the board decides to go for this
057pond. People are going to say 775 million dollars. That's a lot of money. What infinitely larger than Andy, 12 and the size that the 20 win for because the law spawned a win for was really just the Reinvestment Air Academy High School and a little bit more. go recapitalize over 15 years. The entire district. But if you go back a slider about her forward to per per household one, I'm We're asking last per household then added to just ask for and passed without ever getting a headline. And just, you know, pointing, I guess, underscoring man a to Z assessed value is 222 Million. >> Deal. Evans 4.9 billion right? >> So its relative to the size of the number to the overall suspect. But we're asking less per household. Then our as your surrounding communities
058consistently on 4. And If you can go back that slide there, you've got the completion of the internal Oversight Committee. >> That's average. So. Could you? fight to the community? And I can like my input on This is coming as accommodation company. I'm a little over past in regard. That's what it's about. Putting something got to see you soon. codified just because that is a concern, but the community talked we are going that bond package passes the bond passes. I the point time to vote not going to Follow to like the So how could the picture >> I appreciate the question directly I can. So this was step one is to have committee put something in writing. They themselves would pass a and then eventually if the all the events happening, but we wanted them
059to put something in writing saying this is their attacks. My my hope is that the board will do the same thing when we bring the ballot to pass a resolution saying this is our intact. If this pond is to pass, that we will turn this money from this salaries, it would be helpful on health. I'm happy to build a salary schedule so that community can see what we're talking about where we are versus where we would be. But that's my whole intent is that the board would pass a resolution with their intent to fulfill this I'm supportive fact. >> It's easier when you going talking to the community saying he's just told taking a strong stance indicating that actions the ugly we are going end up on taxes use that sealed money to compensation. So
060yes, and then if you can, but the southeast Dr this message for teachers and our staff that this is much their potential sightings like a Letter. Let's just be careful with the legal details because super Dana Cole said this is one of the confusing part about. >> Going for a So let's let's just make sure we're not over over communicating and And there are steps that have to out and the district has to pay off a C O p first are limitations in that time. >> That we can do that. We believe that's a first peas. I think it's much simpler to say 15 million dollars is going towards capital. There's 1500 teachers, 15 million divided by 1500 is 10,000. But I don't want to have a conversation or planning yet of is that fair
061and the salary schedule? Because it's a different percentage to a step. One lane, one teacher and it is to a step. The team Lane 6 or teacher. There's roughly 15 million dollars to reinvest the van were to pass in compensation, which is roughly $10,000 recurring increase to every teacher system. But I don't want get us into a space where we're spending time on the salary schedule without having talked to the E G and understanding. Well, what is it that we value and do we want to make up their play on certain level of experience and specificity? It's a great opportunity to have those conversations with the board and a public manner after the offense. That's the goes on for now. I also like the idea to me it feels similar places where you said, for
062instance, you know, we commit to giving all money from state courts compensation. But it sounds like there's some boxes that have to be checked. First. >> So Brad, and I think just at least what I've heard so far is if you want to lean more towards the left side of that graph, look for either, you know, sweet spots on trade-off curve or places that are easy to communicate. I think that would be good. And it jettisoned tomorrow will kind of work out what the next steps will occur. With that, we will call this work session to close at 04:59PM. Thank you so much for time. Everybody. We'll see you all next week. ♪