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Long Range Facilities Plan Update

Community Forums Overview

Dr. James Crawford, Superintendent

Dr. Garth Steedman, Assistant Superintendent

July 27, August 1, & August 5, 2023

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Agenda

Long Range Facilities Plan

Levy and Bond Review

Options

Next Steps

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

Bremerton School District

Our Bremerton community has a long standing tradition of supporting and investing in EVERY child and ALL of our schools - WE ARE BREMERTON! In return, we invest in our community and our future. Our track record of fiscal responsibility keeps us continually investing in our neighborhoods. We know by investing in our community, we attract people to Bremerton and retain them, resulting in increased jobs and great neighborhoods.

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The facility planning committee with input from staff and community members evaluated our facilities across the district and prioritized our investment in our future!

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Overview of Facility

Needs and Facts

Buildings are

40+ YEARS OLD

Some aging schools

will be OVER CAPACITY

HVAC enhancements are needed

IDEAL: NO TAX INCREASE

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

Long Range Facilities Plan

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WHO WAS INVOLVED

Core Leadership Team

  • BSD District Administration & Board Members

Facility Advisory Committee

  • BSD Administration and Staff
  • Students
  • Parents
  • Community Members

Students

  • Workshops at BHS and MVMS

Community Members

  • Community open house at BHS

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ENROLLMENT PROJECTIONS & CAPACITY

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SCHOOL

 

2022/2023

Enrollment

 

Utilization w/o portables

 

Utilization w/ portables

ARMIN JAHR ELEMENTARY

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373

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113.0%

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70.6%

CROWNHILL ELEMENTARY

​

331

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83.6%

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68.4%

KITSAP LAKE ELEMENTARY

​

329

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83.1%

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62.3%

NAVAL AVENUE ELEMENTARY

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306

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86.9%

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49.7%

VIEW RIDGE ELEMENTARY

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376

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113.9%

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68.4%

WEST HILLS STEM

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306

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63.2%

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58.0%

MOUNTAIN VIEW MIDDLE SCHOOL

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826

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68.0%

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62.4%

BREMERTON HIGH SCHOOL

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1043

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55.2%

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52.2%

RENAISSANCE HIGH SCHOOL

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106

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0.0%

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56.1%

Existing Utilization by School

Pre-Pandemic Enrollment

What do we have?

  • Overall enrollment projection is relatively flat.
  • 10 year projection is up approx. 6% from today but down 11% from pre-pandemic numbers

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  • AJ and VR Elementaries have the highest utilization and are also among those most likely to grow.
  • Average utilization of west-side schools is 78% (w/o portables)

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MAJOR PROJECT PRIORITIZATION PROCESS

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What do we need?

IDENTIFY

PRIORITIZE

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Levy and Bond Review

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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Cory Plager

Managing Director

(509) 462-6370 cplager@dadco.com

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Dave Trageser

Managing Director

(206) 903-8699

dtrageser@dadco.com

Maura Lentini

Sr. Vice President

(206) 903-8687 mlentini@dadco.com

Suzanne Eide

Sr. Vice President

(206) 903-8690

seide@dadco.com

Crystal Vogl

Vice President

(406) 791-7214

cvogl@dadco.com

Mark Froio

Sr. Vice President

(206) 903-8690

mfroio@dadco.com

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Hannah Bulla

Associate

(509) 462-6370

hbulla@dadco.com

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DA DAVIDSON OFFERS:

  • Bond and Levy Planning
  • Attend and Present at Facility/Community Meetings
  • Market and Sell Bonds
  • Long Range Capital Financing
  • Credit Evaluation and Ratings Presentations
  • Continuing Disclosure Compliance
  • Annual Debt Service Fund Cash Flows
  • Tax Rate Projections
  • Budget Support and Notes to the Financials
  • Arbitrage Rebate Support
  • Monitor Potential Refunding Savings

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  • Overview with Voter Trends

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  • Property Values and School Taxes

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  • Projections and Other Considerations

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  • Education Programs & Operations Levies
    • Flexible revenue from local taxpayers to supplement basic education, athletics, and other programs
    • Subject to levy lid laws: $2,988 per pupil in 2023
    • Up to 4 years collection
    • Simple Majority 50% +1

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Source: EHJR 4204, RCW 84.52.053

Levy and Bond Overview

Capital Projects Levies

    • Common uses: Technology, Safety, Security, Athletic Fields, Repair Roofs, HVAC, Parking, etc.
    • Up to 6 years collection
    • Simple Majority 50% +1

School Bonds

    • Tax-exempt, receive proceeds up-front
    • 20-25 years most common
    • Super Majority 60%
    • Requires “validation” (40% of voters from last general election)
    • 2023 Debt Capacity: $365,410,441

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Source: OSPI 1463-GF, 1463-BI

Levy and Bond Overview

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Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

Year Issues

Levy and Bond Overview

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Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

Year Issues

Levy and Bond Overview

Capital Project Levy Success – Washington State

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School Bond Success – Washington State

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Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

Year Issues

Levy and Bond Overview

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Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

When is the best time to submit a proposition to the voters?

Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

Levy and Bond Overview

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Source: State of Washington, Office of Superintendent of Public Instruction, County Elections

Should I run a Capital Levy or Bond with my expiring EP&O Levy?

Levy and Bond Overview

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School Assessed Valuation History

Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, *excluding Timber Assessed Value

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School Assessed Valuation History

Source: County Assessor Annual Report

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Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report

School Tax Rate History

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Source: County Assessor Annual Report, Assessed Valuation with Kitsap (EP&O)

School District Tax Rates

Kitsap County School Districts

2023 Local School District Tax Rates

District

Assessed Valuation

EP&O ($)

Bonds ($)

Capital ($)

Total ($)

Bainbridge Island School District No. 303

$ 12,773,274,349

$0.8066

$0.8376

$0.3914

$2.04

Bremerton School District No. 100

$ 7,324,731,922

$1.8919

$0.0000

$1.1603

$3.05

Central Kitsap School District No. 401

$ 13,118,108,615

$1.4895

$1.1691

$0.0000

$2.66

North Kitsap School District No. 400

$ 12,834,595,934

$1.3118

$0.0000

$1.0051

$2.32

North Mason School District No. 403

$ 95,065,649

$1.1063

$0.8444

$0.0000

$1.95

South Kitsap School District No. 402

$ 14,002,799,976

$2.1075

$0.0000

$0.0000

$2.11

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Demographics

Low Income

Racial Diversity

Unhoused

Bremerton School District

68.3%

54.4%

4%

Armin Jahr Elementary

81.1%

65.5%

2.3%

Naval Avenue Elementary

75.9%

64.6%

2.7%

View Ridge Elementary

69.4%

46.4%

10.3%

West Hills Elementary

74.1%

55.6%

6.7%

  • Most incredibly and beautifully diverse school district in Kitsap county

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  • Buildings recommended for phase one have highest low income rates, greatest racial diversity, and those unhoused

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February 2024 Election

    • Current Assumptions:
      • Today’s market rates plus 1.5% interest rate cushion,
      • Conservative assessed valuation growth 4% in 2024 and 2025. 3% thereafter (5-year average is 13.94%, 10-year average is 9.36%)
      • District continues EP&O levy at per pupil limit
      • Sale Date: Split - 6/1/2024 and 12/1/2026
      • Term: 20 Years

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Levy and Bond Projections

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Levy and Bond Projections

1. Renew EP&O and renew one-year Capital Levy

    • One-Year Capital Levy, Level Tax Rate, Approximately $8.9MM, provides more time for bond planning, followed by bond election in Feb. 2025

2. Renew EP&O and renew six-year Capital Levy

    • Six-Year Capital Levy, Provides $150MM

3. Renew EP&O Levy and propose Bond

    • $150,000,000 school construction bond, Level Tax Rate

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Levy and Bond Projections

Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, ^voter approved and projected, *estimated

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Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, ^voter approved and projected, *estimated

Levy and Bond Projections

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Levy and Bond Projections

Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, ^voter approved and projected, *estimated, +matures in 2046

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Funding (Levy/Bond) Scenarios

Pros/Cons

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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Phase Two

OPTION 1

February

2024

April

2024

August

2024

November

2024

February

2025

EP&O Levy

4 yr - $14M/yr

Bond

20 yr - $150M

Capital Levy

1 yr - $8.9M

Phase One

    • Maintains current tax rate
    • Minimizes conflict with coupled initiatives on same ballot
    • 18 months to disseminate information to voters
    • No potential conflict between two measures on one ballot

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    • Minimum of 60% is necessary to pass
    • Requires validation with November Presidential election
    • Prolongs construction – somewhat
    • May increase long-term expenses: outdated structures, inflation
    • Delay in student body benefiting from new facility
    • Delay in community and neighborhood benefiting from new facilities

Benefits

Challenges

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OPTION 2

February

2024

April

2024

August

2024

November

2024

February

2025

EP&O Levy

4 yr - $14M/yr

Capital Levy

6 yr - $150M

Benefits

Challenges

    • Multiple opportunities to place critical projects in front of voters
    • Simple majority for capital levy
    • Rate increase $2.00 per thousand ($65 per month $400K home)
    • Prolongs construction
    • Increase long-term expenses: outdated structures, inflation
    • Delays student body benefiting from new facility
    • Delays community and neighborhood benefiting from new facilities

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PHASE ONE

OPTION 3

February

2024

April

2024

August

2024

November

2024

February

2025

EP&O Levy

4 yr - $14M/yr

Bond

20 yr - $150M

Capital Levy

1 yr - $8.9M

Benefits

PLAN B: In the event the bond does not pass

Challenges

    • Maintains current tax rate
    • Commence construction at an earlier date
    • Multiple opportunities to place critical projects in front of voters
    • The success rate of bond initiatives during the February cycle exhibits a consistently strong historical pattern
    • Reduces long-term expenses: outdated structures, inflation
    • Accelerates benefits to student body of new facilities
    • Accelerates benefits to community and neighborhood from new facilities
    • 7 months to disseminate information to voters
    • Minimum of 60% is necessary to pass
    • Potential challenge with coupled initiatives on same ballot

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Multiple opportunities in different fiscal years

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Next Steps

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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Board Study Session

    • Reviewed committee recommended projects
    • Discussed facility planning
    • Reviewed Bond and Levy Timeline
    • Discussed EP&O, Capital Levy Planning

February 2024 Election Timeline

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July 2023 - February 2024

July

Board Meeting

July

Board Meeting

August

    • Submit Levy Expenditure Plan to OSPI for Approval
    • Voters’ Pamphlet committee established
    • Website updates, FAQ, Presentation

August

(October, if necessary)

Board Meeting

    • 2023 Bond and Levy Recommendations (earlier, if possible)
    • Launch Informational Campaign

November

    • Resolution Filing deadline for Kitsap County Elections
    • PTSA and Community Group Presentations begin through February
    • Informational Pamphlet Mailed

December

    • PTSA and Community Group Presentations begin through February
    • Community Event Presentations

January 2024

Election Day:

February 13, 2024

February

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Questions?

INVESTING IN OUR COMMUNITY

INVESTING IN OUR FUTURE

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Recommendation for School Board’s

next steps to address LRFP:

* Bond

* Capital Levy

* No Action

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