Facility Options June 20, 2019 Presented by: Dr Facility Options June 20, 2019 Presented by: Dr. Johnnie Thomas Superintendent of Schools, Rich Township High School District 227 Alicia Evans, Ed.D. Assistant Superintendent of Business and Operations

Information Sharing Timeline Demographic Report Facility Report Budget Forecast Thought Exchange Options Decision Actions Focused on Students and Student Success

ENROLLMENT PROJECTIONS SHOW DECLINES WHICH WILL LEAD TO REDUCED STATE AID Focused on Students and Student Success Source: May 2018 Kasarda Study

Replacement Cost = $40,220,000 When Forecasted Repairs = $39,704,922

Replacement Cost = $42,710,000 When Projected Repair Cost = $59,958,656

  Replacement Cost = $42,595,000 When Projected Repair Cost = $32,625,153

Net Income/(Deficit) Forecast Shows Unbalanced Budgets In Future Because Of Reduced Enrollment Sound Stewardship of District Finances

Information Sharing Timeline December 11 – January 11 Student Discussion/Forums December 11, 2018 Staff Discussion/Forums December 12, 2018 Community/Parent Forums December 13, 2018 December 19, 2018 January 3, 2019 January 10, 2019 Parent Email January 12th and January 13th

A Summary of the Results Close one school Consolidate campuses Consider the enrollment trend data Board transparency in decision making

Options Repairs to Facilities - No Upgrades Upgrade All Facilities and Address Facility Needs Upgrade and Consolidate to Two Schools in District Build One New Facility (Full student body) Build One New Facility / Partially Upgrade One Existing Site Purchase Facility and Partial Renovation of Existing Site

Option Concepts Cost Estimates Timeline Financing Legislation Referendum Percentage Increase in Overall Property Tax Bill Percentage Increase in Property Tax Rich Portion Percentage Increase in Property Tax Rich Bond Amount All options retain the same bond payments for the first two years

Option 1 Repairs to Facilities - No Upgrades Cost Estimates/Financing Timeline

Costs For Repairs by School (Only) Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Option 1 – Financing Requires a change in legislation Requires referendum Percentage Increase in Overall Property Tax Bill = 3% Percentage Increase in Property Tax Rich Portion = 9% Percentage Increase in Property Tax Rich Bond Amount = 109%

Option 2 Upgrade All Facilities and Address Facility Needs Cost Estimates/Financing Timeline

Upgrade All Facilities and Address Facility Needs Includes new Field House, Pool and Secure Entrance Additions Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Option 2 – Financing Requires a change in legislation Requires referendum Percentage Increase in Overall Property Tax Bill = 15% Percentage Increase in Property Tax Rich Portion = 41% Percentage Increase in Property Tax Rich Bond Amount = 516%

Option 3 Upgrade and Consolidate to Two Schools in District Cost Estimates/Financing Timeline

Upgrade and Consolidate to Two Schools in District Upgrade Rich Central and Rich East (Demolish Rich South) Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Upgrade and Consolidate to Two Schools in District Upgrade Rich Central and Rich South (Demolish Rich East) Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Upgrade and Consolidate to Two Schools in District Upgrade Rich East and Rich South (Demolish Rich Central) Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Option 3 – Financing Requires a change in legislation Requires referendum Percentage Increase in Overall Property Tax Bill = 7% - 9% Percentage Increase in Property Tax Rich Portion = 19% - 25% Percentage Increase in Property Tax Rich Bond Amount = 237%, 314%, 308%

Option 4 Build One New Facility Using an Existing Site (Full student body) Cost Estimates/Financing Timeline

Build One New Facility Using an Existing Site To Accommodate the Entire Student Body Note: The building costs is based on $90,470 per student Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Option 4 – Financing Requires a change in legislation Requires referendum Percentage Increase in Overall Property Tax Bill = 14% Percentage Increase in Property Tax Rich Portion = 37% Percentage Increase in Property Tax Rich Bond Amount =458%

Option 5 Build One New Facility / Partially Upgrade One Existing Building Cost Estimates/Financing Timeline

Build One New Facility and Partially Upgrade One Existing Building Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Option 5 – Financing Requires a change in legislation Requires referendum Percentage Increase in Overall Property Tax Bill = 10% Percentage Increase in Property Tax Rich Portion = 25% Percentage Increase in Property Tax Rich Bond Amount = 318%

Option 6 Purchase Facility and Partial Renovation of an Existing Site Cost Estimates/Financing Timeline

Purchase Facility and Partial Renovation of an Existing Site Note: *Other includes 10% contingency, 6% escalation, 2% abatement and 10% soft cost.

Financing Source Use of DSEB, Lease, Working Cash Funding Lease Purchase Funding Bond Working Cash Retain the same bond payments for the first two years

Option 6 – Financing Requires no change in legislation Requires no front door referendum Percentage Increase in Overall Property Tax Bill = 1% Percentage Increase in Property Tax Rich Portion = 3% Percentage Increase in Property Tax Rich Bond Amount = 32%

% Property Tax Bill Increase Option/Costs % Property Tax Bill Increase Financing Options Referendum Timeline Option 1 $169,677,893 3% Legislation and Referendum Needed Yes Summer 2021- Summer 2027 Option 2 $399,535,954 15% Option 3A-3B-3C $285,059,159 $241,697,053 $282,035,695 9% 7% Option 4 $367,947,360 14% Summer 2025 Option 5 $288,243,200 10% Option 6 $105,640,000 1% Working Cash/DSEB/Lease No Summer 2021 Partial Renovation 2023 Summary Information

Thought Exchange

Question: Of the options presented, which do you find most favorable and why? Please be sure to indicate the number assigned to the option you are discussing.

Reminder Show curiosity! If there’s a thought that really made you pause and consider, be sincere and open. Keep the conversation going, even after the exchange! Come back into the exchange to do more starring Encourage other people to come back into the exchange to do more starring

Thought Exchange Dates and Participation Exchange Dates: Thursday, June 20, 2019 – Thursday, July 11, 2019 Enter the exchange using the following link: https://my.thoughtexchange.com/#584255789 

% Property Tax Bill Increase Option/Costs % Property Tax Bill Increase Financing Options Referendum Timeline Option 1 $169,677,893 3% Legislation and Referendum Needed Yes Summer 2021- Summer 2027 Option 2 $399,535,954 15% Option 3A-3B-3C $285,059,159 $241,697,053 $282,035,695 9% 7% Option 4 $367,947,360 14% Summer 2025 Option 5 $288,243,200 10% Option 6 $105,640,000 1% Working Cash/DSEB/Lease No Summer 2021 Partial Renovation 2023 Summary Information