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Oak Hills Local School District

Board of Education Meeting

March 11, 2024

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Discussion

  1. Guest Introductions
  2. Ohio Facilities Construction Commission
  3. District Data
  4. Visionary Options
  5. Impacts & Examples
  6. Strategic Plan / Destination District
  7. Timeline & Next Steps

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Guest Introductions

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Board of Education

Mischelle Philpot

President

Bart West

Vice President

Rich Haffey

Board Member

Lisa Ibold

Board Member

Sam Yorgovan

Board Member

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Administration

Jeff Brandt

Superintendent

Steve Bain

Treasurer

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Guest Introductions

Kent Cashell

Managing Director

Andrew Laskey

Director, Public Finance

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Guest Introductions

Brad Ruwe

Partner

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Valerie.Montoya@ofcc.ohio.gov �Senior Planning Manager��Joseph.Macneil@ofcc.ohio.gov �Senior Planning Manager��Tyler.Palmer@ofcc.ohio.gov �Planning Manager�

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DISCLOSURE

Amounts Stated are Estimates

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609 Districts are Eligible for Participation

Districts are Ranked per the Equity List

Oak Hills is Ranked 239 (of 609)

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How much approximately OFCC fund a construction project in Oak Hills LSD?

* Districts must follow OFCC masterplan & Locally Funded Initiatives excluded.

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Could Oak Hills LSD use the 60% state share for air conditioning only?

No

(based on today’s context of discussion)

Could Oak Hills LSD use the 60% state share to acquire land?

No

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How much does it cost to build a new school?

2023 = $358 sq ft

Future Estimate = $400 sq ft

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How much approximately OFCC fund a construction project in Oak Hills LSD?

* Districts must follow OFCC masterplan & Locally Funded Initiatives excluded.

When will the state contribute 60%?

TBD

The District would have to use local funds to start a project.

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Example 1�1 New School Bldg

600 students – Bldg Capacity

125k sq ft building

X $400 sq ft estimate

$50m TOTAL

$30m

$20m

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Example 2�2 New School Bldgs

1,200 students – Bldg Capacity (600 each)

250k sq ft bldg (125k sq ft each)

X $400 sq ft estimate

$100m TOTAL

$60m

$40m

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Example 3�3 New School Bldgs

1,800 students – Bldg Capacity (600 each bldg)

375k sq ft bldg (125k sq ft each bldg)

X $400 sq ft estimate

$150m TOTAL

$90m

$60m

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District Data

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3 Tax Supported Funds

Debt

8%

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6.7 Mill Levy

November 5, 1996 – Levy Failed (51% / 49%)

Continuing

Bond Issue

3.7 Mills

+

May 6, 1997 – Levy Passed (53% / 47%)

Operating

3.0 Mills

28 Year Term

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What percentage of the 1997 bond issue did the state fund?

OFCC Funding Models Have Changed.

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Rapid Run Middle School

Oak Hills High School

(gymnasium/commons/media ctr)

Delhi Middle School

(gymnasium / cafeteria)

Bridgetown Middle School

(gymnasium / cafeteria)

May 6, 1997 – Levy Passed

District Office

Oakdale Elementary

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Bond Issue Final Payment

(December, 2025)

Bond Issue

3.7 Mills

28 Year Term

Constituents Final Assessment – June 2025

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Property Value Increases Have Driven Millage Down

Per State Law

Bond Issue

3.7 Mills

28 Year Term

1997

2025

* estimate

2 Mills

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Visionary Options

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Options for Bond Issue Millage Upon Maturity �Approximately 2 Mills

                  • No Levy

                  • Operating Levy

                  • Permanent Improvement

                  • Bond Issue

Options Presented

Are Not Recommendations

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Options for Bond Issue Millage Upon Maturity �Approximately 2 Mills

                  • No Levy

                  • Operating Levy

                  • Permanent Improvement

                  • Bond Issue

2025 Election Dates

Not Available at this Time

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Considerations

  1. Community received a significant tax increase in 2024 – approx 25%

* On average community member would see a reduction in taxes

* Approximately 2 Mills (equivalent to $70 annually on $100k home)

  • District assesses a low tax rate

* (17th lowest of 23 districts in Hamilton County)

A. No Levy

Approx

2 Mills

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Considerations

  1. Securing Local Funding is Challenging in Oak Hills

* Approx 60% of general fund generated from local taxpayer support

* 1 Levy in 27 years

2. State Funding Projections

* Approx 40% of general fund generated from state support

  1. Messaging / Ballot Language & Timing

4. Property Tax Reform

B. Operating Levy

Approx

2 Mills

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Considerations

  1. Funding restricted to facility needs only (infrastructure)

2. Funding flexible for district wide improvements

3. Limited Borrowing Capacities

C. Permanent Improvement Levy

Approx

2 Mills

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Considerations

  1. Timing & Engagement
  2. Potentially no tax increase or even a slight tax reduction

2. Ohio Facilities Construction Commission (OFCC)

* 60% State Share

* Building Assessments

* Master Plan

* Funding Lag

* Interest Rates – debt rating (S&P / Moody’s)

3. Building specific / rather than district wide

D. Bond Issue

Approx

2 Mills

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Impacts & Examples

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Millage Impact

D. Bond Issue

Generates $30m of local funding for New Construction

2 Mills

Constituent

District

Generates $60m of local funding for New Construction

1 Mill

$35 on $100k Home Annually

No Tax Increase

$70 on $100k Home Annually

No Tax Increase

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Oak Hills Buildings �Estimated 2024 Cost

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Oak Hills Buildings �Estimated 2024 Cost

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Oak Hills Buildings �Estimated 2024 Cost

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Example 3�3 New School Bldgs

1,800 students – Bldg Capacity (600 each bldg)

375k sq ft bldg (125k sq ft each)

X $400 sq ft estimate

$150m TOTAL

$90m

$60m

2 Mill Levy

No Tax Increase

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If Oak Hills wanted place a bond issue on the ballot in the spring of 2025, is there still time?

Yes, per OFCC.

However since building assessment needs to be completed, the board would need to pass a resolution to get started ASAP.

OFCC will need to work on assessments over the summer for district to bring their projects to the Spring Ballot.

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If Oak Hills wanted to receive OFCC funding, what are the next steps?

Have OFCC complete building assessments

Process takes 3-4 months to complete

OFCC could start the building assessments in the summer

IF

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The Board of Education Passes a Resolution

With the Estimated Date of the Bond Issue

The date of the expected bond issue must be at least 12 months after the resolution is passed.

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Per the Ohio Revised Code��0.5 Mill Must be Set Aside for the New Building�For 23 Years���

Maintenance Requirement

Maintenance Fund Established 1 of 2 Ways:

      • Add 0.5 to the Levy Request

2. Allocated 0.5 from an existing Perm Improve Fund

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If the Board passes a resolution for a building assessment, is there a penalty is the district does not move forward with a bond issue?�

No

There are no penalties if the board were to move forward with a resolution to enter the ELPP program but not issue a bond. Once an ELPP project agreement is executed, the district would have 12 months to pass their bond or we would mark their agreement as expired and the district would have to re enter the program.

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Will OFCC renovate buildings rather than replace buildings?

When the cost of renovating a school facility exceeds two-thirds the cost of replacing the facility, the Commission will recommend a new facility or the population of the existing facility will be assigned to another facility.

District Wide Building Assessments

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When Could Oak Hills LSD Receive State Funding?

Oak Hills LSD is considered a deferred funding district which is not in the queue for state funding with OFCC for the state share of 60%.

Funding would be available by OFCC when it becomes made available through the biennium budget.

This process could take many years.

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If Oak Hills passes a bond issue, does Oak Hills move to the back of the line for OFCC Funding?

No

If Oak Hills fails a bond issue, does Oak Hills move to the back of the line for OFCC Funding?

No

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Cost of Construction

Is a cost escalator built in for cost of construction for future years?

Yes

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Strategic Plan

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Oak Hills Local School District��Strategic Plan�

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Indian Hill 2021

Madeira 2021

Finneytown 2019

Lockland 2019

Sycamore 2019

Deer Park 2017

Southwest 2017

Norwood 2017

St. Bernard 2017

Winton Woods 2017

Reading 2015

Northwest 2015

Forest Hills 2014

Wyoming 2012

Princeton 2010

Three Rivers 2010

North College Hill 2007

Loveland 1998

Mariemont 2010

Cincinnati 2003

Mt. Healthy 2007

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Indian Hill 2021

Madeira 2021

Finneytown 2019

Lockland 2019

Sycamore 2019

Deer Park 2017

Norwood 2017

St. Bernard 2017

Reading 2015

Wyoming 2012

North College Hill 2007

Loveland 1998

Mariemont 2010

Cincinnati 2003

Mt. Healthy 2007

EVERY OTHER DISTRICT IN HAMILTON COUNTY HAS A PASSED A BOND ISSUE SINCE 1997

LAST NEW BUILDING

1997

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Expedited Local Partnership Program (ELPP)�Other Districts that Have Participated in ELPP

OFCC

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Timeline & Next Steps

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Sample Timeline�Assuming a May, 2025 Election�* 2025 Election Dates to be Determined

Board Mtg

1997 Bond Issue

Millage Option

* Mar/Apr Bd Mtg

BOE passes resolution

2025 bond issue date

* Required for OFCC to begin Assessment

OFCC District Wide Bldg Assessment

& Enrollment Study

Starts

Meeting with OFCC

Master Plan Discussion

Board Passes Resolutions to Run a Bond Issue

Election Day

OFCC District Wide Bldg Assessment

& Enrollment Study

Completion

&

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2024

2025

COMMUNITY ENGAGEMENT

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Sources

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Open Discussion on Next Steps