1. Beyond $175M The Next Step in Financing the Capital Improvement Plan

2. Objective Provide additional funding for CIP projects beyond the $175 M The Plan –Needs Assessment –Financial Feasibility –Financing Methods –Implementation Plan

3. Facility Requirements Needs of $20+ million have been identified by LISD to complete the five year CIP Plan beyond the $175 Million Program. (See list of projects) Student Facility Needs Financing Methods Feasibility Finance Plan

4. Meeting the Needs The Needs Assessment: –Architect must provide a certification of the budget needed to complete the CIP assigned to him/her. –(Cost, Square footage and description) Preliminary Design Design Development Construction Documents Bidding Construction

5. Financial Analysis and Feasibility M&O Election $1.32 Status Fund Balance Status $11M Outstanding Debt$144 M FIRST Rating - Superior Achievement Property Values $62,000/pupil and collections94%

6. Our Strengths A Rating Moody’sS&P FITCH A FIRST FIRSTRating 19 /22 SuperiorExemplary Audit TEA Fund Balance $11 Million Growth ADA B- Budget Low Debt $144 M Low Tax Rate $1.32 Value/pupil62,000

7. Financing Methods –Beyond $175M A Combination of strategies –1) Fund Balance Draw down –2) Lease Revenue Financing –IFA & EDA –3) Reduction in expenses –4) Additional Interest earnings –5) Bond Issue –IFA & EDA –6) Grants and joint ventures with other entities –7) Land swap and sale

8. Next Steps –Beyond $175M Instruct the Superintendent to develop a plan of action to implement a combination of the seven identified methods of financing. Approximate timeline: –Beyond $175M Workshop June 2002 –Call Election (M&O) Nov 2002 –Architects Estimates Nov 2002 –Develop Plan Dec 2002 –Prepare application for June 2003 –Fund projects from Fund balance and pass a resolution to reimburse after bond passage. October 2002 to August 2003

9. Non IFA Eligible Needs Food Services Complex $6,000,000 Food Services Equipment $6,000,000 Transportation Center $700,000 Technology Center $1,500,000 Admin Complex $1,500,000 Fine Arts and Sports Complex $5,000,000 Total $20,700,000

10. Other Funding Sources for Non-IFA Technology Center: Plan: $500,000 in Dell rebates over the next five years Public Facility Corporation and issue bonds Need Land and federal matching

11. Other Funding Sources for Non-IFA Food Services Complex: And equipment Plan: $700,000 in admin charges to food services fund Public Facility Corporation and issue bonds Need Land

12. Other Funding Sources for Non-IFA Transportation Center: And equipment Plan: $700,000 from fund balance Land available –Quesada Property

13. Other Funding Sources for Non-IFA Administrative Complex: Plan: $1,500,000 from fund balance Need Land –possible old food services

14. Other Funding Sources for Non-IFA Fine Arts and Sports Complex : Plan: $3,5000,000 – other sources $1,500,000 Coca Cola contract Need Land

15. Next Steps –Non –IFA Eligible Instruct the Superintendent to develop a plan of action to implement a combination of the seven identified methods of financing. Approximate timeline: –Non-IFA Projects Workshop June 2002 –Resolution and Create PFC Jul 2002 –60 Day Notice –Develop Plan July 2002 –Sell PFC Bonds October 2002 –Proceeds of projects November 2002

16. Summary Developing tentative plan by: –Superintendent-Board –CFO –Construction Manager –Tech Director, Food Services Director –Athletic Director, Accounting Director –IT Director, other staff –Financial Advisor –Bond Counsel –LISD Attorney –Kitchen Consultant –Architects