1. Making Our Facilities Better Board of Directors Update – Wednesday, July 24, 2013

2. Where we’ve been: Post right-sizing In 2010 alone, the District closed 21 Schools

3. Where we’ve been: Immediate needs *Photos from 2011. Some challenges have been addressed.

4. Where we’ve been: Immediate needs *Photos from 2011. Some challenges have been addressed.

5. Where we’ve been: Immediate needs *Photos from 2011. Some challenges have been addressed.

6. Where we’ve been: The Cornerstone Project Work to fix critical failures and code violations. Install energy-efficient heating and cooling handlers and upgrades. Upgrades to masonry, fencing, concrete flooring, elevators, security systems and more. Cost: $158 million paid through savings and new taxpayer revenue.

7. Where we’ve been Two years ago the Cornerstone Project was found to be not viable and was discontinued. A scaled-down, $55 million project energy performance project was also discontinued. East High and Northeast High remained without air conditioning. These false starts left KCPS with the status quo regarding its facilities and its students with an environment that were just passable to support student achievement.

8. Where we are today Our facilities are improving!

9. A brand new day More than $32 million in projects began in December 2012: Improved and energy-efficient heat and cooling systems at East High, Northeast High and Banneker Elementary. A re-construction of the Interscholastic League Stadium. Energy-efficient and cost-saving improvements were planned for multiple schools. A plan to renovate and use middle schools was initiated. The auditoriums at Lincoln College Prep and Paseo Academy were set to be updated.

10. The progress is real: Woodland

11. The progress is real: Paseo Academy auditorium

12. The progress is real: Lincoln Prep auditorium

13. The progress is real: East High School

14. The progress is real: Northeast High School

15. The progress is real: Banneker Elementary

16. The progress is real: Interscholastic League Stadium

17. Interscholastic League Stadium

18. Completion These projects are currently being finished: Major renovation of Banneker Elementary, Northeast High and East High Auditorium renovations at Paseo and Lincoln The Interscholastic League Stadium Woodland Early Learning School Security camera installation at ACC Prep Fire suppression system installation/upgrades at three elementary schools Roof replacement at Lincoln Prep and Banneker Elementary

19. Projects in planning Central Middle and Northeast Middle - $25M Hale Cook Elementary - $2M Facility Master Plan - $8-10M Energy Performance Contracting - $30 - $60M

20. The next big step to Making It Better Moving from reactive maintenance to enhancement.

21. Five-year Capital Renewal DescriptionFY14-FY16FY16-FY18 Middle School Renovation $25,000,000 Facility Master Plan$8,700,000 Athletics – District-wide Upgrades to Gymnasiums/Locker Rooms Track & Field, Locker Rooms$2,520,000$4,080,000 Woodland Pool$150,000 Educational Environment Classroom Upgrades $3,000,000$2,000,000 Flooring replacement $1,500,000$1,000,000 Cafeteria Renovations $1,800,000$1,200,000 Restroom Renovation $750,000$500,000 Student Locker Repair/Upgrades $300,000$200,000 Minor Capital Projects $1,500,000$1,000,000 Auditoriums Upgrades$3,000,000$2,000,000

22. Five-year Capital Renewal DescriptionFY14-FY16FY17-FY18 Safety & Security Integrated Security System $5,300,000$4,700,000 Elevator Upgrades $2,700,000$1,800,000 Fire Alarm/ Suppression/Kitchen Exhaust Systems $4,425,000$250,000 Fencing $225,000$75,000 Building Infrastructure Building Exteriors Repairs $6,106,300$3,761,813 Window Replacement/Repair$6,500,000 Concrete Repairs $4,366,750$980,000 Roof Repair/Replacement $5,700,000$4,500,000 Parking Lot Maintenance & Repair $6,990,754$8,381,746 Energy Performance Contracting (utility/op savings) $30,000,000 Heating and Air Conditioning Repair/Replacement $26,700,000$9,000,000 Electrical Service Maintenance/Replacement$2,000,000 Total three-year plan$140,733,804$53,928,559 Total five-year plan $194,662,363

23. Five-year Capital Renewal Three Year Plan Capital Funds Available$10,734,434 Energy Performance Contract$30,000,000 Middle Schools Project$25,000,000 Total ($65,734,434) Capital Project Needs$140,733,804 Funds Needed Through FY 2016 $74,999,370 Five Year Plan Capital Funds Available$10,734,434 Energy Performance Contract$30,000,000 Middle Schools Project$25,000,000 Total ($65,734,434) Capital Project Needs$194,662,363 Funds Needed Through FY 2018 $128,927,929

24. Option 1Option 2 Pay as you Go Use of operational funds to pay for completed projects when funds are available $5,000,000 Annually Use of Building Corp (Lease purchase) Bond Issue and use of operational funds to pay back (current process) $75,000,000 Debt ratio = 4% (including current debt) Financing Options

25. Option 3a Option 3b Bond Issue$75,000,000 Annual Payment $5,518,63120 Years at 4% Debt Service Levy Increase.21 cents Total Debt Ratio including current debt 4% Bond Issue$129,000,000 Annual Payment $9,492,04620 Years at 4% Debt Service Levy Increase.36 cents Total Debt Ratio including current debt 6% Financing Options cont.

26. Option 3a Option 3b Tax Increase on Average Home in KCSD $80,000 Appraised Value 19% Residential Assessment Ratio Divided by $100 Per $100 of Assessed Value X.21 Debt Service Levy Increase Divided by 12 Monthly Amount $2.66 TOTAL MONTHLY INCREASE $80,000 Appraised Value 19% Residential Assessment Ratio Divided by $100 Per $100 of Assessed Value X.36 Debt Service Levy Increase Divided by 12 Monthly Amount $4.56 TOTAL MONTHLY INCREASE

27. Recommendation

28. Questions