25 Capital Investments How Should We Use Limited Resources to Support Our Capital Priorities with Limited Resources 25 26 Capital Investments – How Do We Choose? • The most recent District assessment estimates $500 million in capital improvement needs. This will likely increase to $1.3B in five years. • District currently does not generate revenue specifically for capital investment. We must rely on current revenue and/or fund balance. • The District must prioritize investments with limited resources through the following analysis: • Immediate facility needs that interrupt the day to day operation of the school or place students and faculty in danger. • Schools with strong enrollment, higher utilization, lower FCI, and multiple needs. • This overall analysis will ensure that our limited capital investments will yield long-term benefits. • Utilize fund balance for one-time costs, not reoccurring personnel costs ($85M now, no less than $70-75M EOY (likely higher), preserve and protect $35M reserve) 26 27 Identified Areas for Improvement Heating Roofing Cooling Fencing Paving Other Costs (masonry, windows, painting, abatement) 28 Total Investment: $9,717,085 Heating $460,000 Roofing $2,965,025 Cooling $3,070,000 Fencing $ Paving $ 579,698 Athletic Fields $ 120,000 Other Costs $2,440,362 82,000 (masonry, windows, abatement, painting) 29 Recommendation Rubric • The recommendations for the schools selected are derived from the following measures: • 1.The percentage (%) of students enrolled in comparison to the capacity of the building (utilization rate). Those schools that have 50% or higher enrollment to capacity building’s capacity rate meet the threshold. • 2.Using the DPSCD’s *Facility Assessment & School Facility Planning Report, the Facilities Condition Index (FCI) was the second measure. A score of 20 (the median) or less was selected as the threshold. • 3.The final data reviewed was that the selected schools are in need of multiple repairs. This component was the 3rdmeasure to determine the list the schools that met or did not meet the threshold. 29 30 Recommendation Rubric Con't. • *The schools selected represent a balanced list of needs. • The schools that meet the threshold are those that have met all three measures (>50% utilization, <20 FCI, > multiple needs) • The schools that do NOT meet the Threshold (outliers) may meet one (1) to two (2) of the components and have immediate, urgent needs for repairs. 30 31 Meets Threshold Outliers Utilization Rate FCI 50% or higher 20 or less Below 50% Above 20 31 32 Meets Threshold Facility PAVING FENCE Cass Tech Bates F.L.I.C.S. BOILERS, STEAM LINES, CHILLERS, ATHLETIC OTHER FIELDS MAJOR COSTS $120,000.00 $100,000.00 $118,000.00 $2,500.00 $300,000.00 $10,498.00 Mumford $1,200.00 Brown, Ron $50,000.00 Wright, Charles Clemente ROOF MAKE UP AIR (MUA) UNITS & WINDOW A/C ROOF TOP UNITS, EXHAUST UNITS, ) $200,000.00 Edison $100,000.00 $310,498 $201,200 $50,000.00 $5,000.00 $238,000 $412,500 $200,000.00 $500.00 $12,000.00 $10,000.00 REPAIR TOTALS $100,000.00 $50,000.00 $12,500.00 $112,500 $0.00 $100,500 $12,500.00 $79,500 $2,000.00 $2,000 Western $40,000.00 $10,000.00 $50,000 Bunche $40,000.00 $10,000.00 $50,000 $50,000.00 $70,000 $30,000.00 $7,500.00 $37,500 Renaissance/JL White $20,000.00 Bennett Clark $60,000.00 $15,000.00 $87,000 Marquette $80,000.00 $20,000.00 $100,000 Bethune $60,000.00 $15,000.00 $75,000 TOTALS $12,000.00 $173,698.00 $22,000.00 $530,000.00 $0.00 $0.00 $300,000.00 $500,000.00 $100,000.00 $10,000.00 32 $20,000.00 $270,500.00 $1,926,198.00 33 Meets Threshold Chart Title REPAIR TOTALS OTHER MAJOR COSTS ATHLETIC FIELDS WINDOW A/C UNITS, ) MAKE UP AIR (MUA) UNITS & EXHAUST ROOF TOP UNITS, CHILLERS, STEAM LINES, BOILERS, ROOF FENCE PAVING 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 Cass Tech Bates F.L.I.C.S. Mumford Brown, Ron Wright, Charles Clemente Edison Western Bunche Renaissance/JL White Bennett Clark Marquette Bethune TOTALS 33 4000000 4500000 Outliers 34 Facility Thirkell Bagley Pasteur Davison & Annex Carver Mann Gardner Marshall, Thurgood Vernor Blackwell Law Academy Central HS Spain PAVING FENCE $5,000.00 $2,000.00 $50,000.00 $5,000.00 $30,000.00 $3,000.00 ROOF BOILERS, STEAM LINES, CHILLERS, ROOF TOP UNITS, $150,000.00 $45,000.00 $30,000.00 $50,000.00 $30,000.00 $480,000.00 $100,000.00 $25,000.00 $20,000.00 $5,000.00 $1,500.00 $3,000.00 $8,000.00 $160,000.00 $60,000.00 $150,000.00 $400,000.00 Mason $100,000.00 Palmer Park Preparatory Drew DTC Douglass, Frederick King, Dr. M.L. Greenfield Union Osborn Sampson-Webber Keidan TOTALS $70,000.00 $150,000.00 $75,000.00 $300,000.00 $200,000.00 $125,000.00 $80,000.00 $70,000.00 $28,000.00 $2,000.00 $200,000.00 $330,000.00 $180,000.00 $2,500.00 $35,000.00 $50,000.00 $6,000.00 $406,000.00 $60,000.00 $120,000.00 $60,000.00 $60,000.00 $282,025.00 $2,435,025.00 $360,000.00 $100,000.00 $880,000.00 OTHER MAJOR COSTS REPAIR TOTALS $130,000.00 $117,000.00 $655,000 $587,000 $37,500.00 $6,750.00 $7,500.00 $678,721.00 $7,500.00 $120,000.00 $187,500 $156,750 $117,500 $728,721 $37,500 $603,000 $323,240.00 $0.00 $0.00 $446,145.00 $348,240 $241,500 $158,000 $458,000 $446,145 $0.00 $120,000 $0.00 $250,000 $17,500.00 $0.00 $0.00 $0.00 $0.00 $162,500 $300,000 $200,000 $125,000 $80,000 $17,500.00 $30,000.00 $0.00 $87,500 $60,000 $530,000 $0.00 $100,000.00 $0.00 $180,000 $102,500 $85,000 $0 $30,000.00 $15,000.00 $15,000.00 $70,506 $2,169,862 $150,000 $75,000 $81,000 $477,531 $50,000.00 $120,000.00 Young, Coleman A. Noble Carstens ATHLETIC FIELDS $520,000.00 $468,000.00 Comm./Media Arts Cooke Breithaupt Vocational Burton Scott, Brenda Henderson Academy MAKE UP AIR (MUA) UNITS WINDOW A/C & EXHAUST UNITS, ) $125,000.00 $345,000.00 $675,000.00 $260,000.00 $100,000.00 34 $7,790,887 35 Outliers Capital Recommendations Outliers Sampson-Webber %Enrollment to Capacity Marquette FCI Score King, Dr. M.L. Drew DTC PAVING Carstens FENCE Young, Coleman A. ROOF Scott, Brenda BOILERS, Breithaupt Vocational STEAM LINES, Mason CHILLERS, Spain ROOF TOP UNITS, Law Academy MAKE UP AIR (MUA) UNITS & EXHAUST Vernor WINDOW A/C UNITS, ) Gardner ATHLETIC FIELDS Carver OTHER MAJOR COSTS Pasteur REPAIR TOTALS Thirkell 0% 20000000% 40000000% 60000000% 80000000% 100000000% 120000000% 140000000% 160000000% 35 Capital Projects Budget 37 FY 19 Capital Projects Budget Amendment #2 Capital Projects Fund Available Funds (As of 2/15/19): Unrestricted General Fund Surplus $ Restricted State Transition Fund $ DPSCD FY 19 Proposed Capital Fund Budget Amendment through year ending June 30, 2019 85,315,476 6,466,398 Capital Projects Fund $ $ $ $ 5,379,134 11,144,711 6,466,398 22,990,243 Previously Approved Projects $ 5,379,134 Current Balance as of 2/15/19 Transfer in from Unrestricted General Fund Surplus Transfer in from Restricted State Transition Fund Total Available Funds Remaining Forecast Expenses: New Projects Reopening 4 DPSCD Facilities Capital projects associated with facility study Contingency (25%) Total Remaining Expenses $ $ $ $ 4,371,802 9,717,085 3,522,222 22,990,243 Estimated Capital Projects Fund Balance $ 0 ✓ The Capital Projects Fund includes $5.4 M of projects previously approved, this includes ✓ $2.8 M related to the Water Hydration Stations which are still in progress. ✓ $2.6 M for other projects including $700K for Cass Tech Boiler and 350K for Roof repair at Central High School ✓ The District will transfer $11.1 M from unrestricted general fund surplus and $6.5 M from state transition funds. ✓ The District will operate schools in four current District facilities for the FY 20 school year. ✓ Academy of America’s High School will move from its current location at St. Anne’s (lease) to Logan. ✓ The District will open three new schools for the FY 20 school year on the site of Barton, Edmonson, and Hamilton. ✓ In order to address critical conditions of facilities the District will transfer $9.7 M to address facility conditions at 42 District facilities. ✓ A contingency of $3.5M (25%) is also being transferred to cover any unanticipated expenses. ✓ EOY projected fund balance will be no less than $70-75M (likely higher), not Including set-aside reserve of $35M.