Ordinance 3010-07 - Laserfiche WebLink

CAPITAL FACILITIES FINANCING PLAN Six Year Finance Plan The Capital Facilities Plan on Table 8 demonstrates how the Everett School District intends to fund new construction and improvements to school facilities for the years 2006 through 2011. The financing components include secured funding from capital projects bonds and levies, secured funding from other sources (proceeds from property sales, school mitigation and impact fees and State Match funds remaining from prior construction projects) and unsecured future funding (bonds, school mitigation and impact fees). The state match program does not provide funding at this time to Everett School District for capacity producing projects, and no future state match funding is anticipated for such projects. The financing plan also separates projects and portions of projects which add capacity from those which do not, since the latter are generally not appropriate for impact fee funding. Funding for the Plan General Obligation Bonds Bonds are typically used to fund construction of new schools and other capital improvement projects. A 60% voter approval is required to pass a bond. Bonds are then retired through collection of property taxes. The Everett School District passed capital improvements bonds for $96.5 million in 1990, $68.5 million in 1996, $74.0 million in 2002 and 198.9 million in 2006. Several major projects have been or will be financed by these bonds. State Match Funds State Match Funds come from the common school construction fund. Bonds are sold on behalf of the fund then retired from revenues accruing predominantly from the sale of renewable resources (i.e., timber) from State school lands set aside by the Enabling Act of 1889. If these sources are insufficient to meet needs, the Legislature can appropriate funds or the State Board of Education can establish a moratorium on certain projects. School Districts may qualify for State matching funds for a specific capital project. To qualify, a project must first meet a state -established criteria of need. This is determined by a formula that specifies the amount of square footage the State will help finance to house the enrollment projected for the district. If a project qualifies, it can become part of a State prioritization system. This system prioritizes allocation of available funding resources to school districts statewide based on seven prioritization categories. Funds are then disbursed to the districts based on a formula which calculates district assessed valuation per pupil relative to the whole State assessed valuation per pupil to establish the percent of the total project cost to be paid by the State for eligible projects. The State contribution for eligible projects can range from less than half to more than 70% of the project's cost. 55 paving for Growth's Impacts - A Guide To Impact Fees. State of Washington Department of Community Development Growth Management Division, January 1992, Pg. 30. Everett School District 6-4 Capital Facilities Plan