THE PROJECTs QSCB FUNDING

1. THE PROJECTsQSCB FUNDING Board Meeting November 17, 2009 Prepared by: Dr. Washer Mr. Douglas Barge Mr. Art Hand, Jr. Y:BusService;BoardAgenda/2003-04/B08-19-03

2. Description Introduction QSCB’s – Use of Proceeds Cost of Issuance Pays For? The Projects QSCB’s – The Repayment Plan Balancing the QSCB Program Board Direction Page No. 1 2 3 4 - 6 7 8 9 Table of Contents - i -

3. Introduction • The District’s application for Qualified School Construction Bonds (QSCBs) funding was approved through the State lottery process on August 28, 2009. • This will allow the District to borrow funds at zero percent interest for 14-16 years. • Our approved application will provide an estimated $4,390,000 of construction resources that can be used to make improvements at Lockeford, Lawrence and McNair. • The remaining proceeds from the sale will pay for borrowing discounts and the cost of issuance. • At end of that term the funds ($5.5M) must be repaid in full (by a trustee). 1

4. Qualified School Construction Bonds USES Lockeford Addition McNair Field Improvements Lawrence Parking Cost of Issuance Total Uses $5,500,000 $5,500,000 QSCB’s – Use of Proceeds $4,350,000 500,000 500,000 110,000 2

5. Cost of Issuance Pays For • Legal Services • Note Rating Services • Trustee Services • Financial Consulting Services • Document Printing • Funding Reserve Insurance • Contingency 3

6. The Lockeford Addition Project • Phase 1 and 2 of this project have been sustainably completed - including renovation of the existing administration building and completion of preliminary site work • Work on Phases 3 and 4 • Construction of 7 new classrooms/multipurpose/PE room and the conversion of the existing multi-purpose room to a library/computer lab - cannot begin until additional funding is made available, either through local or state sources • With this funding in place the Lockeford Addition Project can move forward. 4

7. The McNair Field Renovation Project • Among the numerous deficiencies in the original McNair Construction was the grading and preparation of the grass playfields – situations that have lead to sometimes unplayable field conditions • District efforts to maintain the fields in a safe condition have been extraordinary, but the base problems cannot be corrected without substantive additional work, including regrading, reseeding and sprinkler system relocations • With this funding in place the necessary improvements to the McNair playfields can get started. 5

8. The Lawrence Addition Phase 3 Project • Phase 1 and 2 of the Lawrence Addition Project - portable relocation and construction of 20 new permanent classrooms – was finished in July 2008 • Phase 3 of this project will provide planned and much-needed off-street staff/visitor parking, additional student drop-off area and a redefinition of the school’s main entrance • With this funding in place the improvements to Lawrence School can be completed as planned 6

9. Estimated Annual Payments General Fund will secure payments Additional Funding Sources State School Construction Program Development Fees Measure K Total Repayment $375,260 QSCB’s - The Repayment Plan $3,453,371 $1,989,424 $936,629 $6,379,424 7

10. $6,379,424 Balancing the QSCB’s Program 8

11. Staff Needs Direction • Board Wishes to proceed with the sale of the bonds • The Board will be asked to formally approve all the resolutions authorizing the transaction • Construction planning can proceed • Projects will be completed • The Board is not interested at this time • Projects will be delayed • District will give up its eligibility to participate in the program • Funding for the projects will have to be located • Possible penalties with existing contractors 9

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