Capital Bond Measure February 13, 2018

The board has resolved to place another capital bond measure on the ballot for February 13, 2018. This bond will be for $12.2 million over a 21 year period for the purpose of modernizing Toledo High School and certain other projects at TES and TMS.

The following projects have been removed from the bond plan:

  • Track- $590,000
  • Stadium Restrooms- $360,000
  • TMS Roof- $500,000
  • THS Roof- $593,000
  • Total Reduction- $2,043,000
Most recent SCAP projections are $7.4 million- $800,000 less than projections on the November measure.

The district is requesting $600,000 less than the estimate and expects to make up the difference in design and construction. In addition, if all projects can be completed and there are sufficient funds remaining, the board resolved that the track project would be undertaken. If sufficient funds remain after the track project, the restrooms at the stadium would be installed. Any remaining funds would be used to pay down the principle on the debt.

If the bond is approved, construction would begin in Summer of 2019 and complete in Fall, 2020. Estimated construction cost escalation is $1.01 million to that date.


Facilities Master Plan

 Site

 Estimated Project Cost

 Estimated State Share (SCAP)*

 Estimated Local Share

Toledo Elementary 

$207,000 

$207,000

Toledo Middle 

$437,000

 $437,000

Toledo High 

 $18,596,900

 $7,455,292

$11,141,608

 Subtotal

$19,240,900

$7,455,292

 $11,785,608

 Construction cost inflation (3.5%) 2018

 $1,010,147

 

  $1,010,147

 Total

 $20,251,147

  $7,455,292

$12,795,755

* Only Toledo High School is eligible for SCAP. TES and TMS will be eligible in 2025.



Frequently Asked Questions (updated 1/10/18))

What will this cost?

The following table is an estimate of what a taxpayer can expect to spend per year and per month based on an assessed valuation of a property and an estimated tax rate for the bond of $1.94/1000.

Property Assessed Valuation Annual Tax  Monthly
$ 50,000 $97.00 $8.08 
$100,000 $194.00 $16.17 
$110,000 $213.40 $17.78 
$120,000 $232.80 $19.40 
$130,000  $252.20$21.02 
$140,000 $271.60$22.63 
$150,000  $291.00$24.25 
$160,000 $310.40 $25.87 
$170,000 $329.80 $27.48 
$180,000 $349.20 $29.10 
$190,000 $368.60 $30.72 
$200,000 $388.00 $32.33 
$250,000 $485.00 $40.42 
$275,000 $533.50 $44.46 
$300,000 $582.00 $48.50 
$350,000 $679.00 $56.58 
$400,000 $776.00 $64.67 
$450,000 $873.00 $72.75 
$500,000 $970.00 $80.83 


Why were the track and restrooms removed?

Feedback from the community indicated that modernizing was the priority and that the track and restrooms were not as important. Many indicated they could not support a measure that included the track and restrooms while others indicated they could not support a measure that did not provide for those facilities.

The compromise was to remove the estimated cost of those projects from the bond measure with the understanding that they would be completed only if additional funds could be obtained or savings could be found after all of the other projects were completed.

If you removed over $2 million in projects, why is the bond only $700,000 less than last time?
Construction costs continue to increase as time goes on. In addition, estimated SCAP funding (State contribution to construction) is reduced since last time. Our ability to remove projects without compromising the quality of the modernization is more and more limited. We continue to look for grants and economies, but they are becoming less promising as time goes on.

What about McCleary? That's supposed to fully fund schools. Can't you use that to pay for these projects?
There are no funds available for construction in the McCleary solution. All of those funds are restricted to operating costs with a small amount (not enough) for maintenance. Capital construction has been and will continue to be a local responsibility with assistance from the state.

Couldn't we consolidate with Winlock and save some money?
The Facilities Advisory Committee concluded that none of our neighboring school districts have capacity to accept Toledo students without finding room for their students somewhere else. Consolidating with another district would not remove the need to update the high school and could increase tax burden on Toledo residents (Winlock has the highest tax rate in the county.)

Our district is shrinking and we have fewer students. Why are  we spending a lot of money when the district is getting smaller?
In 1973, when Toledo was considering a new high school, the enrollment was 825 students with THS enrollment at 262. In January, 2018 enrollment is 786 with THS enrollment at 233.  While the district not as large as was projected several years ago, it is not significantly smaller than it was when THS was envisioned. Since 2015, TSD has grown from 759 students to current enrollment of 786.

What am I going to pay for the McCleary decision?
Beginning in 2018, taxpayers will see an increase of approximately $.84/1000 over what they currently pay in property taxes that will go directly to the state. These funds are intended to allow the state to fully fund education in Washington. The McCleary plan also requires that the current M&O levy in Toledo be reduced from approximately $2.22/1000 to $1.50/1000- a reduction of $.72/1000. Under the current statute, M&O levies will be replaced by "Enrichment" levies that have a maximum of $1.50/1000. 

Why is this bond different? How did you come up with these figures?

TSD continues to work on the Facilities Master Plan developed in 2016. To date, we've completed many of the projects on the plan using existing funds. We've also completed some of the projects that were scheduled to be paid for by the bond. In addition, we've obtained grants such as the recent TransAlta grant to install new boilers at TES. Since the November bond, we've been able to make some headway on projects:
TMS Roof- This project was promised as part of the 2015 M&O levy. Another project promised in that levy was THS water supply renovations required by City of Toledo. The water supply project had not been completed before November and the City was requiring additional features that were not planned. The roof was on the last bond, but we're confident now that we can use levy funds to restore the TMS roof this summer. The estimated $500,000 for that roof was removed.
Track and Restrooms at the Stadium- The board heard from the community that these projects were among the least popular on the prior bond measures. The board decided that, the track and restrooms will be done if there are savings or additional funds at the end of the modernization projects sufficient to do  so. Otherwise, they will await other solutions/funding. The estimated $950,000 for these projects was removed.
THS Roof- When investigating roofing solutions for TMS, I requested a quote from a company that claimed to be able to restore the roof at THS for much less than our estimate. After a board presentation and due diligence, I determined that we could reduce the estimate for that project.
THS Kitchen- In 2016, we were able to repair the main vent hood system and install a new dishwasher. We also upgraded the sinks. The costs for these upgrades were removed from the estimates for the kitchen. This reduced the estimate to about $365,000.

Why wasn't the FAC reconvened?
In order for a bond measure to be on the February ballot  and reduce the impact of increased construction costs, a board resolution had to be made by Dec. 15. This left less than one month for the board to decide. A special board meeting was convened on Dec. 12, 2017 to study options and make a decision. This interactive meeting was attended by several community members who contributed to the board's deliberations. On December 14, 2017, the board resolved to place this measure on the ballot during their regular meeting.

Why didn't TSD get bids for these projects rather than estimates?
In order to engage in a bid process, the district would need to engage an Architect to develop biddable plans. This is a very expensive process with no guarantees that the community will support the funding needed. In addition, companies that bid on projects are reluctant to spend resources to draft a bid that isn't funded. Kelley from CSG reported on this at the May 9, 2017 FAC meeting, "(It would cost) 
$50,000-$100,000 dollars for a preliminary design. ... The estimates will get better, but until bid day, you won’t know the costs. You are putting a lot of money on the line without voter approval. We don’t recommend spending that much early on." The district did not feel it was prudent to spend $50,000-$100,000 on plans that might not be built in order to develop more detailed estimates when CSG was able to produce accurate estimates for $10,000.

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