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School Impact FeesAppendix C to POMC 20.182 (Ord. 019-17) South Kitsap School District 2015 Capital Facilities Plan VII. DISTRICT FINANCE PLAN The principal funding mechanism for school facility construction and modernization has traditionally been voter approved bonds. More recently, school districts have been turning to capital levies to support modernizations and elementary school new construction projects. Other funding sources can include state funding assistance and development impact (mitigation) fees. General Obligation Bonds Bonds are typically used to fund construction of new schools and other major capital improvement projects. A 60% voter approval is required for passage. Bonds are then retired over time through the collection of property taxes. The South Kitsap School District had an assessed valuation of $6,123,112,269 as of August 31, 2014. The limit for all outstanding bonds for SKSD is 5% of assessed value or $306,155,613. The District had $5,645,481 of debt as of August 31, 2014, and therefore has a current bonding capacity of $300,510,132. State Funding Assistance The source of State Funding Assistance, formerly State Match Funds, is the Common School Construction Fund. Bonds are sold on behalf of the fund then retired with 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 the needs of the program, the Legislature can appropriate additional funding, or the State Board of Education can ration project funding on a priority basis. School districts may qualify for state funding assistance for specific capital projects based on an eligibility system. Eligible projects are prioritized using seven different criteria. Funds are then disbursed to districts on a percentage basis that is based on a formula that compares each district's assessed valuation per pupil relative to the entire state assessed valuation per pupil. This percentage is known as the Funding Assistance Percentage, formerly State Match Ratio. The base to which this percentage is applied is the cost of construction as determined by the "Construction Cost Allocation" multiplied by the "Eligible Area". The Construction Cost Allocation (CCA) is used by OSPI to help define or limit its level of financial support for school construction. It is a budget driven value that is not intended to fully reflect the actual cost of school construction in Washington State. The Eligible Area portrays either the square footage of new space required to address unhoused students for an enrollment project, or the building square footage approved for upgrade or replacement for a modernization project. State funding assistance is available to assist districts with construction costs for enrollment and modernization related school construction projects but cannot be used for site acquisition, the purchase of portables or for normal building maintenance. Because the availability of state assistance funds may not always keep pace with the enrollment growth or modernization needs of all of Washington's school districts, assistance funds from the state may not be received by a school district until two or three years after a school project has begun. In such cases, a district may be required to "front fund" meaning it must be prepared to finance the entire project with local funds. The State's share of the project funding is then provided to the district later in the form of a reimbursement. In some cases projects may not receive any state assistance at all. State funding assistance is not guaranteed. 39 South Kitsap School District 2015 Capital Facilities Plan New Development Mitigation/Impact Fees The authority for local jurisdictions to condition new development on the mitigation of school impacts is provided for under the State Subdivision Act, Chapter 58.17 RCW, the State Environmental Policy Act, Chapter 43.21C RCW, and the Growth Management Act, Chapter 36.70A RCW. These state statutes seek to ensure that adequate public facilities are available to meet the demands of new growth by authorizing permitting jurisdictions to condition development approval on the implementation of mitigation measures that enable local jurisdictions to meet the infrastructure demands of new development. Subdivision Act Mitigation RCW 58.17.110 requires the permitting jurisdiction to find that proposed plats adequately provide for schools and school grounds. The proposed development must provide land sufficient to ensure that such facilities are provided for potential new students. • SEPA Mitigation. SEPA provides that local jurisdictions may condition the approval of a new development to the mitigation of specific adverse environmental impacts which are identified in SEPA environmental documents. See RCW 43.21C.060. Under SEPA, the "built environment" includes public schools. See WAC 197-11-444(2) (d) (iii). GMA Mitigation. Development impact fees have been adopted by Kitsap County and the City of Port Orchard as a means of supplementing traditional funding sources for the construction of public facilities needed to accommodate new development. The City of Bremerton does not impose an impact fee on new development. The District participates in the permit review processes of jurisdictions within its boundaries to ensure that its interests are considered when new developments are proposed that will generate additional students. Six -Year Finance Plans The Six -Year Capital Finance Plan (Table 12) portrays how South Kitsap School District intends to fund improvements to school facilities for the years 2015 through 2020. 40 South Kitsap School District 2015 Capital Facilities Plan Table 12 Capital Finance Plan (2015-2020) Sources: CFP Balance/Impact Funds (Aug 2014) $ 1,000,164 Impact Fee Collections 2015-2020 (est.) $ 1,438,680 Transfer from General Funds $ 0 State Matching Funds (est.) $ 0 Sale of General Obligation Bonds $ 0 Improvements to Existing Facilities $ 4,750,000 $7,188,844 Uses: CFP Balance/Impact Funds (Aug 2020 est.) $ 378,769 Improvements to Existing Facilities $ 4,750,000 Construction for Enrollment Growth $ 0 Site Acquisition $ 1,760,075 Construction of Support Facilities $ 0 Interim Classroom Space $ 300,000 Program Changes $ 0 $ 7,188,844 Balance: $ 0 41 South Kitsap School District 2015 Capital Facilities Plan VIII. UNFUNDED NEED CALCULATION The calculation of the South Kitsap School District unfunded need in support of jurisdictional school impact fee collection is provided on the spreadsheets that follow. This calculation recognizes projected costs anticipated over the life of the six -year plan including acquisition costs for interim housing and debt service payments on a 56 acre school site that was purchased in 2005. The "Unfunded Need Total" on the last line of the SKSD Impact Fee Calculation document portrays the cost of addressing new home construction related enrollment growth identified within the six -year capital construction plan. This value is greater than the actual school impact fees specified and collected under respective Kitsap County and City of Port Orchard impact fee ordinances. 42 South Kitsan School District 2015 Cabital Facilities Plan Description Grade Span Value Units Comments Student Generation Factor-SFH Elementary 0.32 StudentslResidence 2007 Kendrick Demographic Study Student Generation Factor-SFH Jr. High 0.10 StudentslResidence 2007 Kendrick Demographic Study Student Generation Factor-SFH Sr. High 0.10 StudentslResidence 2007 Kendrick Demographic Study Student Generation Factor-MFH Elementary 0.18 StudentslResidence 2007 Kendrick Demographic Study Student Generation Factor-MFH Jr. High 0.09 StudentslResidence 2007 Kendrick Demographic Study Student Generation Factor-MFH Sr. High 0.09 StudentslResidence 2007 Kendrick Demographic Study Facility Acreage Elementary 14.00 Acres District Average Facility Acreage Jr. High 22.00 Acres District Average Facility Acreage Sr. High 42.00 Acres Plan for New High School Cost per Acre All $115,000 CostlAcre Market Estimate Facility Size - New Construction Elementary 550 StudentslSchool District Standard Facility Size - New Construction Jr. High 900 StudentslSchool District Standard Facility Size - New Construction Sr. High 1800 StudentslSchool Plan for New High School Facility Size - Temporary Construction Elementary 24 StudentlClassroom District LOS Facility Size - Temporary Construction Jr. High 26 StudentlClassroom District LOS Facility Size - Temporary Construction Sr. High 26 StudentlClassroom District LOS Permanent Sq. Footage (Total) Elementary 507894 Square Feet State Study & Survey Permanent Sq. Footage (Total) Jr. High 286193 Square Feet State Study & Survey Permanent Sq. Footage (Total) Sr. High 345474 Square Feet State Study & Survey Portable Sq. Footage (Total) Elementary 45900 Square Feet Portables Inventory Portable Sq. Footage (Total) Jr. High 18900 Square Feet Portables Inventory Portable Sq. Footage (Total) Sr. High 10800 Square Feet Portables Inventory Facility Cost - New Construction Elementary CostlSchool Facility Cost - New Construction Jr. High CoslISchool Facility Cost - New Construction Sr. High CostlSchool Facility Cost - Temporary Construction Elementary $300,000 CostlPortable Standard Dbl Portable including Site Costs Facility Cost - Temporary Construction Jr. High $300,000 CosUPortable Standard Dbl Portable including Site Costs Facility Cost - Temporary Construction Sr. High $300,000 CostlPortable Standard Dbl Portable including Site Costs Boeckh Index I Area Cost Allowance All $206.70 Costlsq. ft. OSPI - 2015 SPI Footage Elementary 90.0 Sq. FUStudent OSPI .2015 SPI Footage Jr. High 121.3 Sq. FUStudent OSPI - 2015 SPI Footage Sr. High 130.0 Sq. FUStudent OSPI .2015 State Match Ratio All 59.98% Percent OSPI .2015 Average Assessed Value - SFH All $201,260 CostlUnit Kitsap County Assessor SFH 2O15 Average Assessed Value - MFH All $100,630 CostlUnit Kitsap County Assessor SFH 2O15 @ 50% Capital Bond Interest Rate All 0.00% Percent Years Amortized All 10 Years Property Tax Levy Rate - Capital Construction All $0.00 Costl$1000 A.V. 43 South KitsaD School District 2015 Capital Facilities Plan School Site Acquisition Cost: CALCULATIONS ((Acres X Cost per Acre)/Facility Capacity) X Student Generation Factor Facility Cost per Facility SGF SGF Cost per Cost per Acreage Acre Capacity SFH MFH SFH MFH Elementary 14 $115,000.00 550 0.32 0.18 $936.73 $526.91 Jr. High 22 900 0.10 0.09 $0.00 $0.00 Sr. High 42 $115,000.00 1800 0.10 0.09 $268.33 $241.50 $1,205.06 $768.41 School Construction Cost: ((Facility Cost/Facility Capacity) X Student Generation Fai ctor) X Pei manent/Total Sq. Ft.) % Perm/ Facility Facility SGF SGF Cost per Cost per Total Sq. Ft. Cost Size SFH MFH SFH MFH Elementary 92% 550 0.32 0.18 $0.00 $0.00 Jr. High 94% 900 0.10 0.09 $0.00 $0.00 Sr. High 97% 1800 0.10 0.09 $0.00 $0.00 Temporary Facility Cost: ((Facility Cost/Facility Capacity) X Student Generation Factor) X (Temporary/Sq. Ft) % Temp/ Facility Facility SGF SGF Cost per Cost per Total Sq. Ft. Cost Size SFH MFH SFH MFH Elementary 8% $300,000.00 48 0.32 0.18 $165.77 $93.24 Jr. High 6% 52 0.10 0.09 $0.00 $0.00 Sr. High 3% 52 0.10 0.09 $0.00 $0.00 $165.77 $93.24 State Match Credit Area Cost Allowance X SPI Sq. Ft X State Match X Student Generation Factor Boeckh SPI State SGF SGF Cost per Cost per Index Footage Match % SFH MFH SFH MFH Elementary $206.70 90.00 0.32 0.18 $0.00 $0.00 Jr. High $206.70 121.30 0.10 0.09 $0.00 $0.00 Sr. High $206.70 130.00 0.10 0.09 Tax Pavment Credit Average Assessed Value Capital Bond Interest Rate Net Present Value of Average Dwelling Years Amortized Property Tax Levy Rate Present Value of Revenue Stream NEED SUMMARY School Site Acquisition Cost Permanent Facility Cost Temporary Facility Cost State Match Credit Tax Payment Credit UNFUNDED NEED TOTAL $0.00 $0.00 SFH MFH 0.00% 0.00% 10 10 $0.00 $0.00 $0.00 $0.00 SINGLE FAMILY MULTI FAMILY $1,205.06 $768.41 $0.00 $0.00 $165.77 $93.24 $0.00 $0.00 $0.00 $0.00 $1,370.83 $861.65 44