Created : May 10, 2014 at 10:45 PM
May 06, 2014
Status:
Open Agenda
AMENDMENT
Adopt Resolution No. 14-85 - Authorizing the request to the Florida Department of Education (DOE) for approval of the issuance of general obligation bonds (Bonds) of the School District of Broward County, Florida in an aggregate principal amount not to exceed $800 million to modernize and improve the safety of outdated educational facilities and upgrade instructional technology.
The District generates just over $200 million from millage each year; 73% of that goes towards paying down the Board?s Certificates of Participation and 27% is used for a much pared back maintenance program, minimal technology, safety projects, indoor air quality and other uses. As of today, the District has $45 million in deferred maintenance.
In May 2008, the legislature lowered the 2.0 mill capital outlay millage by 0.25 mills and again in 2009, the legislature reduced the capital outlay millage by another 0.25 mills, making the capital outlay millage equal to 1.5 mills. The decline in taxable property values further compounded the problem and many school districts, including Broward, lost hundreds of millions of dollars for capital projects. The District had to cut $1.8 billion in construction projects, computers, and buses. Before the millage reduction, the District's 5-year building program was $3.5 billion, now the program has been reduced to $1.3 billion.
The District has recently prepared an Information Technology Plan estimated to cost over $200 million. In addition, there is a significant gap in funding for remodeling, repair, replacement and new construction of the District's facilities.
Broward School District and other districts have asked the legislature to restore the capital millage without success. Other school districts have exercised local tax options that require public support to increase school capital funding. Broward County Schools is in need of new investment and this item is the first step towards securing that investment.
The statutory process for approval of school district general obligation bonds involves several steps. Because the Broward County Supervisor of Elections requires that a November ballot question be submitted to it by mid-June, before the District's Needs Assessment study has been completed, it is necessary to take the first step in the process at this time. The Board is being requested to approve Resolution No. 14-85 requesting DOE approval of the issuance of $800 million of Bonds for safety enhancements and improvements to schools and technology upgrades, listing most of the schools in the District as potential candidates. Upon DOE approval the Board will be asked on June 9th to approve the ballot question, which will be transmitted to the Supervisor of Elections for inclusion on the November ballot. Upon completion of the Needs Assessment the Board and Superintendent can determine, with input from the citizens of Broward County, which projects should be funded from the Bonds in this first phase of the District's capital program, allowing sufficient flexibility based on changes in circumstances over an estimated six or seven year construction period.
There is no financial impact for this item. Upon approval by the voters of Broward County, the School District of Broward County will issue Bonds in an aggregate principal amount not to exceed $800 million.
Requested Action
AMENDMENT
Adopt Resolution No. 14-85 - Authorizing the request to the Florida Department of Education (DOE) for approval of the issuance of general obligation bonds (Bonds) of the School District of Broward County, Florida in an aggregate principal amount not to exceed $800 million to modernize and improve the safety of outdated educational facilities and upgrade instructional technology.
Summary
The District generates just over $200 million from millage each year; 73% of that goes towards paying down the Board?s Certificates of Participation and 27% is used for a much pared back maintenance program, minimal technology, safety projects, indoor air quality and other uses. As of today, the District has $45 million in deferred maintenance.
In May 2008, the legislature lowered the 2.0 mill capital outlay millage by 0.25 mills and again in 2009, the legislature reduced the capital outlay millage by another 0.25 mills, making the capital outlay millage equal to 1.5 mills. The decline in taxable property values further compounded the problem and many school districts, including Broward, lost hundreds of millions of dollars for capital projects. The District had to cut $1.8 billion in construction projects, computers, and buses. Before the millage reduction, the District's 5-year building program was $3.5 billion, now the program has been reduced to $1.3 billion.
The District has recently prepared an Information Technology Plan estimated to cost over $200 million. In addition, there is a significant gap in funding for remodeling, repair, replacement and new construction of the District?s facilities.
Broward School District and other districts have asked the legislature to restore the capital millage without success. Other school districts have exercised local tax options that require public support to increase school capital funding. Broward County Schools is in need of new investment and this item is the first step towards securing that investment.
The statutory process for approval of school district general obligation bonds involves several steps. Because the Broward County Supervisor of Elections requires that a November ballot question be submitted to it by mid-June, before the District?s Needs Assessment study has been completed, it is necessary to take the first step in the process at this time. The Board is being requested to approve Resolution No. 14-85 requesting DOE approval of the issuance of $800 million of Bonds for safety enhancements and improvements to schools and technology upgrades, listing most of the schools in the District as potential candidates. Upon DOE approval the Board will be asked on June 9th to approve the ballot question, which will be transmitted to the Supervisor of Elections for inclusion on the November ballot. Upon completion of the Needs Assessment the Board and Superintendent can determine, with input from the citizens of Broward County, which projects should be funded from the Bonds in this first phase of the District?s capital program, allowing sufficient flexibility based on changes in circumstances over an estimated six or seven year construction period.
School Board Goals
| Goal 1: High Quality Instruction |
Financial Impact
There is no financial impact for this item. Upon approval by the voters of Broward County, the School District of Broward County will issue Bonds in an aggregate principal amount not to exceed $800 million.
Source of Additional Information
I. Benjamin Leong, 754 321-1990 Maurice L. Woods, 754 321-2610 Leslie M. Brown, 754 321-2100 Shelley N. Meloni, 754 321-1500
Associated File Attachments
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Resolution 14-85 (Files) | |
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Exhibit A - General Obligation Bond Project List (Files) | |
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Memo to Amend (Files) |