Future Capital Needs - Brevard Documentsdocuments.brevardschools.org/Updates/Budget/Budget Information... · Wrap-Up – Judy Preston ... (November’s II -A Scenario) Scenario# 2:

Future Capital Needs

Board Workshop – June 12, 2012

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Overview – Judy Preston Review information from May 15th Board Workshop

Update based on projected tax roll (May 30, 2012)

Referendum Options and Project Funding Opportunities

Recommendations for November referendum

Facility Needs – Dennis Bonny

Technology Needs – Gino Butto

Wrap-Up – Judy Preston Surrounding Communities

Central Florida Public School Boards Coalition

Impact on Average Homeowner

Questions and Answers

Presentation Outline

Overview

4

Tax Levy Revenue vs. Debt Payments

2006-07 6,860,000 25,851,161 32,711,161 76,002,545 43,291,3842007-08 9,803,533 35,017,250 44,820,783 79,457,477 34,636,6942008-09 12,064,640 37,842,251 49,906,891 69,530,936 19,624,0452009-10 10,236,095 38,401,414 48,637,509 53,885,513 5,248,0042010-11 11,617,000 38,399,694 50,016,694 47,073,866 (2,942,828)2011-12 10,000,000 38,403,011 48,403,011 40,049,335 (8,353,676)

2012-13* 8,245,000 38,402,444 46,647,444 39,248,348 (7,399,096)

Fiscal YearTotal Debt Payments

Total Tax Levy Revenue

DifferenceTax Levy Funded

Short-termDebt (RAN)

Long-termDebt (COP)

2006-07 – 2.00 mills 2007-08 – 2.00 mills 2008-09 – 1.75 mills 2009-10 – 1.50 mills

2010-11 – 1.50 mills 2011-12 – 1.50 mills 2012-13 – 1.50 mills

* 2012-13 revenue is based on Best Case Scenario #4 2012-13 is the last year for the RAN

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Overview of Debt as of 5/15/12

Short-Term (RAN) Total $8.2 m

Paid Off In 2012-13 1 Year

Long-Term (COP) Total $525 m

Paid Off In 2035-36 25 Years

# of Schools in Master 54

Millage Required to Cover COP Debt: 1.4383 Millage Required for All Debt: 1.7471

Last Year Millage Rate at 2.0 Mills

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Beg. Fund Balance

State Sources

Local Sources

Debt (COP & RAN)

Legislation Changed to 1.75 Mills

Legislative Option to Reduce to 1.50 Mills and Taxable Value Decline of 11.17%

Taxable Value Decline of 11.80%

Taxable Value Decline of 14.00%

Capital Funds vs. Debt

6

7

ProjectsMajor remodel and renovation of facilities (construction) Misc. 1.360 mMaintenance and repair existing plant (non construction) 11.546 m 7.000 mMinor remodel/repair/Facility Renewal 7.938 m - mBus purchases 4.000 m 1.000 mTechnology-infrastructure-Sunrise Standard 3.900 m 1.000 mTechnology Refreshment-hardware/software (must have 5-year li 3.500 m 1.000 mFurniture Fixtures and Equipment 1.500 m - mSafety to life projects/ADA 1.013 m 0.250 mPurchase/Lease Purchase of portable or relocatable buildings 0.650 m - mPortable movement and set up (from site to site) 0.450 m 0.150 mLand purchases - m - mNew debt financings (using new pledged revenues) - m - mProperty/Casualty insurance premiums - m - mVehicle purchase - m - mTotal 34.497 m 11.760 m

2013-14FISCAL YEAR

*2007-08

* 2007-08 was the last year for 2.0 mills Note: Numbers do no reflect $38.4 m of annual COP debt

Recurring Cuts to Budget

Property Tax Roll Percentage Change Scenarios

Scenario #1: District’s Estimates (November’s II-A Scenario) Scenario# 2: District’s Estimates (November’s II-A Scenario with 2011-12 Tax Roll Update) Scenario #3: State’s Estimates (2012-13 through 2016-17) Scenario #4: Best Case Based on Very Optimistic Approach

Year #1 #2 #3 #4

2011-12 -14.00 -14.13 -14.13 -14.132012-13 -9.00 -9.00 -5.06 -2.002013-14 -4.50 -4.50 -0.65 0.002014-15 -2.00 -2.00 2.61 3.002015-16 0.00 0.00 3.70 6.002016-17 1.00 1.00 4.72 9.00

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A 2010-11

B 2011-12

C 2012-13

D 2013-14

E 2014-15

F 2015-16

G 2016-17

Fiscal Year

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1 Tax Roll (in billions) $32.390 $27.812 $27.256 $27.256 $28.073 $29.758 $32.4362 Percentage Change from Prior Year -11.80% -14.13% -2.00% 0.00% 3.00% 6.00% 9.00%

Projected Recurring Revenue3 Tax Revenue estimated at 96% collection 47.074 40.049 39.248 39.248 40.426 42.851 46.7084 PECO New Construction Revenue - - - - - - - 5 PECO Maintenance Revenue 4.173 - - - - - - 6 Interest Revenue/Other Miscellaneous 0.683 0.738 0.700 0.700 1.000 1.000 1.0007 Impact Fees 3.679 2.518 - - - - - 8 CO & DS Revenue 0.408 0.360 0.360 0.360 0.360 0.360 0.3609 Non Recurring Transfer from Operating - 3.000 * 4.000 *10 Non Recurring Transfer from Food Services - 1.600 * - - - - - 11 Projected Total Revenue 56.017 48.265 44.308 40.308 41.786 44.211 48.068

Debt Payment12 RAN Payment 11.617 9.949 8.200 - - - - 13 COP Payment 38.435 36.826 38.402 38.401 38.400 38.403 38.40414 Total Debt Payment 50.052 46.775 46.602 38.401 38.400 38.403 38.404

15 Balance Available after Debt Payment 5.965 1.490 -2.294 1.907 3.386 5.808 9.664

Capital Funding Plan – Scenario #4

* Non-Recurring

Project Costs 16 ADA 0.063 0.100 0.100 0.100 0.100 0.100 0.10017 Safety to Life - 0.150 0.150 0.150 0.150 0.150 0.15018 Bus Replacements/Equipment - 2.000 1.000 1.000 1.000 1.000 1.00019 Educational Technology-Refreshment 0.157 1.954 2.003 1.000 1.000 1.000 1.00020 Educational Technology-Sunrise Standard 0.501 1.500 1.000 1.000 1.000 1.000 1.00021 Portable Movement/Replacement 0.698 0.579 0.150 0.150 0.150 0.150 0.15022 Preventive Maintenance-Facilities 5.398 7.000 7.000 7.000 7.000 7.000 7.00023 Repair at Failure-Restricted funds 0.207 1.360 1.360 1.360 1.360 1.360 1.36024 Secondary Schools of National Prominence 0.429 - - - - - - 25 Property Insurance Premium 4.290 - - - - - - 26 Other District Projects 1.325 3.623 - - - - - 27 Completion of Carryforward Projects 9.725 3.483 - - - - - 28 Total Project Costs 22.793 21.749 12.763 11.760 11.760 11.760 11.760

29 Balance Available after Project Costs -16.828 -20.259 -15.057 -9.853 -8.374 -5.952 -2.096

30 Carryforward-Reserved for D S Payments 11.433 18.443 4.638 - - - - 31 Carryforward-Reserved for Capital Projects 18.197 15.899 6.182 5.282 4.382 3.482 2.58232 Carryforward-Unrestricted funds 51.431 29.891 33.154 23.635 14.682 7.208 2.156

33 Estimated Carryforward-Previous Years 81.061 64.233 43.974 28.917 19.064 10.690 4.738

34 Remaining Funds (lines 28+32) $64.233 $43.974 $28.917 $19.064 $10.690 $4.738 $2.642

A 2010-11

B 2011-12

C 2012-13

D 2013-14

E 2014-15

F 2015-16

G 2016-17

Fiscal Year

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Capital Funding Plan – Scenario #4

Brevard’s Tax Roll Decline

* 7/1/11 Brevard Property Appraiser Final, Certified by the State on 7/14/11 # Adjusted Final Taxable Value as of 10/6/11 & Adjusted Final Taxable Value as of 4/12/12 ^ Estimated by Property Appraiser on May 30, 2012

Fiscal Year Tax Roll % Change2007-08 40,927,287,793 4.11%2008-09 41,345,104,921 1.02%2009-10 36,725,058,991 -11.17%2010-11 32,390,012,540 -11.80%2011-12 * 27,894,534,249 -13.88%2011-12 # 27,855,385,828 -14.00%2011-12 & 27,812,038,128 -14.13%2012-13 ^ 27,206,326,184 -2.18%

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12

Authority UseMaximum

Time Frame AmountPotential Annual

Revenue

1. District School Millage (2 Options): Subject to the a. District School Millage - 4 year F.S. 1011.73 General Operating 4 years 10 mill Cap- $50,408,763 *

b. District School Millage - 2 year F.S. 1011.73 2 years voter approved

2. Sales Tax (2 Options): a. Local Government Infrastructure F.S. 212.055(2) Capital Projects up to 15 years up to 1% $63,081,681 ** Surtax

b. School Capital Outlay Surtax F.S. 212.055(6) Capital Projects voter approved up to 0.5% $31,540,841 **

3. General Obligation Bond F.S. 1011.71 Capital Projects Voter Approved Based on Capital Needs

Based on Capital Needs

General Operating

* Annual revenue is based on the October 6, 2011 tax roll as submitted to the State – Dollar amount calculated based on maximum of 1.888 mills, bringing grand total to 10 mills constitutional cap.

** Sales tax based on Department of Revenue data (for the 12 month period of April 2011 – March 2012) – Annual revenue for 0.5% equals $31.5 million and for 1.0% equals $63.1 million. First year revenues will be for period January – June (1.0% = $31.5 million / 0.5% = $15.7 million)

Five Options for Voter Referendum

Footnotes: (1) May need DOE or AG approval (grey area). (2) Other than footnote #3. (3) If included in or involving construction or improvement of facilities with at least 5 years life. (4) Land improvement or involving, design and/or engineering costs. (5) If related to a capital project and considered a “capital expenditure”. (6) For acquisition, capital projects and refunding GO debt and COP’s (no referendum is required for savings refunding of GO’s)

4-Year General Operating


Local Gov't Infrastructure

SurtaxSchool Capital Outlay Surtax

General Obligation

(GO) Bonds

Projects FS 1011.71(9) FS 1011.71(9) FS212.055(2) FS 212.055FS 1010.40

thru 1010.62New construction or new purchase of facilities-COP/RAN Projects

NO NO YES (3) YES (3) YES

Existing debt payments under current COP and RAN program **

NO NO NO NO YES (6)

Major remodel and renovation of facilities (construction) NO NO YES (3) YES (3) YES

Maintenance and repair existing plant (non construction) YES YES NO NO NOMinor remodel/repair/Facility Renewal YES YES NO NO NOBus purchases YES (1) YES (1) YES NO YES (5)

Technology-infrastructure-Sunrise Standard YES YES YES (3) YES YESTechnology Refreshment-Hardware/software YES (2) YES (2) YES (3) YES YESFurniture Fixtures and Equipment YES (2) YES (2) YES (3) YES (3) YESSafety to life projects/ADA NO NO YES (3) YES (3) YESPurchase/Lease Purchase of relocatable buildings NO NO YES (3) YES (3) YESPortable movement and set up (from site to site) YES YES YES (3,4) YES (4) NOLand purchases NO NO YES (3) YES (3) YESNew debt financings (using new pledged revenues) NO NO YES YES YES (6)

Property/Casualty insurance premiums YES YES NO NO NOVehicle purchase YES (1) YES (1) YES NO YES (5)

District School Milage Capital SalesTax


DRAFT

Recommendation for Referendum

Recommend – 0.5% (1/2 cent) sales tax for capital Timing of Ballot – November 6th

Time Limit – 15 years

Let 0.25 mill for operating lapse on 6/30/13 with no attempt to renew

Insert language on ballot to indicate possibility of stopping prior to 15 years if certain circumstances should materialize

Facility Needs

Facility Assessment Definitions Capital Renewal & Replacement - is defined as a systematic management process to plan and budget for known cyclic repair and replacement requirements that extend the life and retain usable condition of facilities and systems and are not normally contained in the annual operating budget. Capital renewal is a planned investment program that ensures that facilities will function at levels commensurate with the academic priorities and missions of an institution. Included are major building and infrastructure systems and components that have a maintenance cycle in excess of one year (APPA BOK Chapter 13).

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Facility Assessment Definitions Renewal & Replacement - is an accounting term used to distinguish a subgroup of plant fund assets from capitalized plant additions and improvements. However, institutional accounting practices vary; decisions are sometimes made to capitalize portions of major maintenance and renewal and replacement. Replacements in the form of new construction are routinely designated as capitalized and are grouped together with renewals as capital renewal and replacement programs. As a form of capitalized construction, replacements are interchangeable with new construction, whether they are actually replacing an existing facility or are an addition to plant. Linking capital renewals with replacements is a more accurate way to describe a program for renewal of existing plant assets as distinguished from totally new additions to plant assets (APPA BOK Chapter 13).

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Deferred Maintenance - is defined as maintenance work that has been deferred on a planned or unplanned basis to a future budget cycle or postponed until funds are available. Roof replacements, major building component repairs, mechanical equipment, underground utilities, and roads and walkways are projects that are often deferred to the next annual funding cycle. This definition could serve just as well for major maintenance and offers a temptation to bypass the use of annual operating budgets and fund major maintenance through a deferred maintenance reduction program. The difference is that a deferred maintenance program is a comprehensive, one-time approach, often extended over several years, to control a massive backlog of maintenance work (APPA BOK Chapter 13).

Facility Assessment Definitions

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Underfunding of major maintenance and capital renewal and replacement inevitably results in backlogs of deferred maintenance. Unsafe buildings and unreliable infrastructure create hazardous conditions. Failing HVAC, electrical, and plumbing systems jeopardize the usability of spaces necessary for academic, student, and administrative activities (APPA BOK Chapter 13).

Chronic deferred maintenance, repair and capital renewals can result in unsafe drinking water, health risks from mold and poor air quality, outdated or inoperable alarm systems, compromised security from inoperable locks, reduced curricular and extra curricular offerings as specialized spaces like gyms and pools are closed due to poor maintenance, and danger from structural problems (21st Century School fund).

When building performance and integrity are not high priorities, deferred maintenance mushrooms. Because buildings are necessary but not primary in mission accomplishment, reinvestment in these assets is secondary. Ironically though, buildings are often the single largest investment made by an institution, making capital renewal a significant consideration (By Carl Rabenalt, SVP, 3DI)

Facility Assessment Statements (Consequences of Zero Increased Renewal Funding)

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The rationale behind the process is as follows:

The incidence of major repair and the need for general renovation of a building increase with its age and the relationship is generally skewed toward the older, un-renovated facilities.

Different elements of a building wear out or become obsolete at different ages. For example, foundations and principal elements of the superstructure are essentially permanent. Exterior walls, plumbing and lighting have expected life of 40 to 50 years. Roofs and air conditioning should last 20 to 25 years. Interior surfaces require reworking in 10 years or less.

Alabama Commission on Higher Education Method

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Different types of buildings, even though constructed to similar standards of quality and of similar materials, are comprised of different combinations ("mixes") of elements, and the cost of replacing or renovating each type depends on the mix and the cost per square foot of each element. The "renewal allowance" of a building is defined as the amount, which should be budgeted in any year to provide for the aging of all elements of that building. The "renewal backlog" of a building is defined as the summation of all the years' renewal allowances to date, for that building, from its initial completion (or latest complete renovation) and is a measure of the total amount which should be spent to bring the building to essentially new condition. The renewal allowances and backlogs are estimated by multiplying the sums of maximum renewal costs for each 25-year and 50-year element by factors reflecting the age of the building elements.

Alabama Commission on Higher Education Method

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Square foot replacement cost = $132.00

Building Systems Renewal Cycle

(Years) % of total Bldg

Replaced % System Replaced

Foundations 100 10.52 5 Vertical Supports 100 0.00 5 Floor 75 0.00 5 Roof 75 18.39 10 Roofing 20 5.95 100 Exterior Walls 75 8.03 65 Windows 30 2.78 80 Exterior Doors 30 0.54 85 Partitions 50 6.97 65 Flooring 7 13.12 95 Ceiling 20 1.02 55 Furnishings 25 1.73 85 Plumbing 40 7.54 65 Fire Protection 50 0.00 0 HVAC 20 13.21 75 Controls 20 0.15 85 Elec. Service 30 0.84 5 Distribution 30 3.68 25 Lighting 30 3.68 95 Emergency 30 1.85 80

Source: Association of Physical Plant Administrators (APPA) Body of Knowledge Book (BOK), Chapter 13

Facility Renewal Cycle

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Number of Sites 141

Buildings 895

School Age

Average – 38 Years Oldest – 58 Years Newest – 2 Years

Classrooms 4,300

Land 2,500 Acres

Facility NSF*

2009 – 12,058,528 2010 – 12,046,140 (FISH)

2011 - 12,123,521 2012 – 12,129,855

BPS Facilities – Overview

23 * Net Square Footage

Plumbing

Infrastructure Ave Age – 38 YRS Inadequate Grease Traps - 12%

Fixtures to R&R – 24%

HVAC

Chillers – 138 Oldest – 31 Years Newest – 2 YRS

Roofing

Metal Roofs – 3,271,594 SF Ave Age – 11 YRS

Mod Bit Roofs – 6,194,269 SF Ave Age – 17 YRS

Other

Drainage – 59% Cabinetry – 57%

Boilers - 38%

BPS Facilities – Overview

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System Failure Rate (Bathtub Curve Diagram)

25

Roofs – 20 Years Electrical: Lighting – 20 Yrs. Generators – 25 Yrs. Service/power – 25 Yrs. Fire alarms – 15 Yrs.

Conveying Systems: Elevator – 25 Yrs. Escalator – 25 Yrs.

HVAC: Equipment – 20 Yrs. Boilers – 15 - 30 Yrs. Bldg. Control Systems – 10 Yrs.

Plumbing: Pumps – 15 Yrs. Pipes & Fittings (supply) – 30 Yrs. Fixtures – 30 Yrs. Finishes: Broadloom Carpet – 7 Yrs. Carpet Tiles – 15 Yrs. Systems Furniture – 20 to 25 Yrs.

Site: Paving – 15 Yrs.

School Age Matrix (Youngest – 2 Years / Oldest – 58 Years 0-9 10-19 20-29 30-39 40-49 50-59 6 11 11 3 36 24

6.6% 12% 12% 3.2% 39.6% 26.3%

Facility Renewal Lifecycle (General Guidelines for Expected Service Life of Building Subsystem – Fairfax County Government)

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School Type Net Sq. Ft.

(8/17/10 FISH data)

Assumed Renewal Period

(yrs.)

Sq. Ft. to be Renovated

/Year

Cost of Renovation/SF

Annual Facility Renewal Budget

Elementary 5,453,957 25 218,158 $50 $10,907,900

Middle 1,631,182 25 65,247 $55 $3,588,585

High 4,519,254 25 180,770 $68 $12,292,360

Ancillary 441,747 25 17,670 $40 $706,800

Totals 12,046,140 25 481,845 $57.06 $27,495,645

Dane Theodore 8/26/2010

Weighted Average Cost of Renovation (Renewal) (Based on 2010 Educational Plant Survey)

Technology Needs

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5 YR Budget Needs

30

5 YR Budget Needs

31

5 YR Budget Needs

32

5 YR Budget Needs

33

5 YR Budget Needs Adequate Internet and WAN Bandwidth:

Internet :

Single Point-of-Entry @ ESF

Single Point-of-Failure … need for secondary site (MIS)

WAN :

100MB currently to Middle and High Schools

10* MB currently to Elementary Schools

T1 (1.5MB) currently to some charter and district auxiliary sites

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5 YR Budget Needs Aging, Undersized, and Failing Routers and Switches:

Routers: Approximately ½ of the district units do not support 100MB. 2/3 are approaching 10-12 years old.

Switches: Majority support 1GB or less to wiring closets.

Majority support 100MB to the desktop.

Upgrade to 10GB closet links and 1GB to desktop.

Higher bandwidth throughput for new wireless access points:450MB’s

Current switch capacity = 100MB’s.

Upgrade switches to support 1GB capacity.

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5 YR Budget Needs

Adequate Wireless Coverage & BYOT Support:

Projected BYOT devices* (1:1) = 80,000+.

Current BPS owned wireless devices* = 2,900+.

Current wireless infrastructure supports up to 22,000 devices* district-wide.

* eReaders, iPads, iPhones, SmartPhones, Tablets, Laptops

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5 YR Budget Needs

Help Desk Quantitative Data

Total Help Desk Phone Calls : 2010-2011 22,723.

29,919 HEAT tickets opened in 2010-2011.

50% of all tickets opened are resolved at the Help Desk level.

Help Desk and Support for 9,000 Employees

Help Desk is manned from 6:30am – 5:00pm by 3 Help Desk Specialists.

After-hour Call Service.

TechOnCall: Rotating Network Operations staff providing 24x7 support.

Site-based Technology Specialist.

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5 YR Budget Needs

Network Operations 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

Software Assurance Program $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000

Computers $4,550,000 $4,550,000 $4,550,000 $4,550,000 $4,550,000 $22,750,000 Servers $890,000 $890,000 $890,000 $100,000 $100,000 $2,870,000 Internet Bandwidth $150,000 $150,000 $150,000 $150,000 $150,000 $750,000 WAN Bandwidth $415,000 $415,000 $750,000 $750,000 $750,000 $3,080,000 BYOT $500,000 $500,000 $500,000 $100,000 $150,000 $1,750,000 "Core“ Network Devices $2,283,333 $2,283,333 $2,283,333 $100,000 $150,000 $7,100,000 Maintenance Agreements $100,000 $110,000 $121,000 $133,100 $146,410 $610,510 Network Operations Total = $40,910,510

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5 YR Budget Needs

Technology Services 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

21st Sustainment $244,000 $244,000 $244,000 $244,000 $244,000 $1,220,000

21st Classroom Changes $30,000 $30,000 $30,000 $30,000 $30,000 $150,000

Portable Equity $60,000 $60,000 $60,000 $60,000 $60,000 $300,000

In-house Cabling Needs $30,000 $30,000 $30,000 $30,000 $30,000 $150,000

Technology Services Total = $1,820,000

Training & Customer Support 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

Instructional Technology $894,000 $983,400 $1,081,740 $1,189,914 $1,308,905 $5,457,959

Training & Customer Support Total = $5,457,959

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5 YR Budget Needs

Applications Group 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

* ERP Acquisition $ TBD $ TBD $0 $0 $ TBD * Current ERP Maint $0 $0 ($ TBD) ($ TBD) ($ TBD)

* Upgraded ERP Maint $0 $ TBD $ TBD $ TBD $ TBD LMS Cost $711,898 $483,558 $496,239 $510,000 $2,201,695 Applications Group Total = *$ TBD

* TBD and approximate funding needed for possible ERP alternative

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5 YR Budget Needs

Capital Projects 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

Structured Cabling: 11 Schools $3,000,000 $3,000,000 $3,000,000 $9,000,000 CBT Labs $1,000,000 $1,000,000 $2,000,000

Digital Media (2014-15) : Media Center $850,000 $850,000 $1,700,000

Wireless Infrastructure (One-to-One Initiative) $1,550,000 $1,550,000 $3,100,000

Capital Projects $15,800,000

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5 YR Budget Needs

Educational Technology 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Total

Network Operations $9,288,333 $9,298,333 $9,644,333 $6,283,100 $6,396,410 $40,910,509 Technology Services $364,000 $364,000 $364,000 $364,000 $364,000 $1,820,000

* Applications $711,898 $483,558 $496,239 $510,000 $12,500,000

Instructional Technology $894,000 $983,400 $1,081,740 $1,189,914 $1,308,905 $5,457,959 Capital Projects $6,400,000 $6,400,000 $3,000,000 $15,800,000

Educational Technology Total = $76,488,468

* TBD and approximate funding needed for possible ERP alternative and LMS Cost

Wrap-Up

Recommendation for Referendum

Recommend – 0.5% (1/2 cent) sales tax for capital Timing of Ballot – November 5th

Time Limit – 15 years

Let 0.25 mill for operating lapse on 6/30/13 with no attempt to renew

In certain language on ballot to indicate possibility of stopping prior to 15 years if tax roll comes back to the level of 2008-09

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Sales Tax Information Counties Above 6% Sales Tax

Sales Tax # % 6.5% 7 10

7.0% 40 60

7.5% 8 12

55 out of 67 (82%) Counties are Above 6%

Alachua

Brevard

Broward

Citrus

Okaloosa

Palm Beach

St. Johns

Seminole

Collier

Lee

Marion

Martin

12 Counties (18%) Still at 6% Sales Tax

12 County Tax Roll Comparison County Tax Roll Tax Roll per FTE

Alachua $12,732,259,477 26,877.05 $473,722.36Brevard $27,894,534,249 71,057.19 $392,564.56Broward $135,621,662,076 257,455.45 $526,777.20Citrus $10,099,797,626 15,173.63 $665,615.12Collier $60,466,547,431 42,849.64 $1,411,133.15Lee $57,489,601,742 82,702.18 $695,140.10Marion $16,578,302,564 41,689.22 $397,664.01Martin $18,164,264,439 17,965.07 $1,011,087.87Okaloosa $14,823,451,571 29,340.46 $505,222.19Palm Beach $132,258,526,057 175,082.64 $755,406.28St. Johns $18,757,469,550 31,353.53 $598,257.02Seminole $26,428,638,398 63,909.50 $413,532.24

State-Wide Avg. $1,385,846,696,347 2,633,599.47 $526,217.72

FTE

45 Source: FEFP 4th Calculation dated May 7, 2012

Central Florida Public School Boards Coalition (Sales Tax Comparison)

46

CountyBrevard 6.0%Hillsborough 7.0%Lake 7.0%Manatee 6.5%Marion 6.0%Orange 6.5%Osceola 7.0%Polk 7.0%Seminole* 6.0%Volusia 6.5%

Sales Tax

* Seminole County’s total sales tax of 7.0% expired on 12/31/11

Most Recent Brevard County Taxable Sales

47

Automobiles & Accessories 1,118,420,834 17.73Consumer Durable Goods 395,431,085 6.27Tourism & Recreation 1,215,784,327 19.27Consumer Non-Durable Goods 2,271,515,212 36.01Building Investment 382,876,393 6.07Business Investment 924,140,255 14.65Total 6,308,168,106 100.00

Dollars Percent

Example: If 0.5% sales tax was added to Tourism & Recreation, the total proceeds would be $6.1 million

Impact on Average Homeowner

Example of impact on $100,000 home (less homestead exception, taxable value of $75,000)

Elimination of the 0.25 mill would save the homeowner $18.75 annually

To equal $18.75, the homeowner would need to expend $3,750 in taxable items at the increased amount of 0.5% sales tax

Brevard Household Income - 2010

50 Source: Space Coast Economic Development Commission

Brevard Household Income - 2010

51 Source: Space Coast Economic Development Commission

52

Election Day - November 6 (148 days left between June 12 and November 6)

Ballot Language to Supervisor of Elections 90 Days Prior to Election – August 21 (Two Board Meetings left between June 12 and Aug. 21 - June 28 and July 10)

Board of County Commissioners places on the Ballot (Meetings scheduled for July 10 and July 24)

Sales Surtax Levy Effective Date On January 1 after Election Date

Millage Levy Effective Date on July 1 after Election

Key Dates for Referendum

53

Authority UseMaximum

Time Frame AmountPotential Annual

Revenue

1. District School Millage (2 Options): Subject to the a. District School Millage - 4 year F.S. 1011.73 General Operating 4 years 10 mill Cap- $50,408,763 *

b. District School Millage - 2 year F.S. 1011.73 2 years voter approved

2. Sales Tax (2 Options): a. Local Government Infrastructure F.S. 212.055(2) Capital Projects up to 15 years up to 1% $63,081,681 ** Surtax

b. School Capital Outlay Surtax F.S. 212.055(6) Capital Projects voter approved up to 0.5% $31,540,841 **

3. General Obligation Bond F.S. 1011.71 Capital Projects Voter Approved Based on Capital Needs

Based on Capital Needs

General Operating

* Annual revenue is based on the October 6, 2011 tax roll as submitted to the State – Dollar amount calculated based on maximum of 1.888 mills, bringing grand total to 10 mills constitutional cap.

** Sales tax based on Department of Revenue data (for the 12 month period of April 2011 – March 2012) – Annual revenue for 0.5% equals $31.5 million and for 1.0% equals $63.1 million. First year revenues will be for period January – June (1.0% = $31.5 million / 0.5% = $15.7 million)


Footnotes: (1) May need DOE or AG approval (grey area). (2) Other than footnote #3. (3) If included in or involving construction or improvement of facilities with at least 5 years life. (4) Land improvement or involving, design and/or engineering costs. (5) If related to a capital project and considered a “capital expenditure”. (6) For acquisition, capital projects and refunding GO debt and COP’s (no referendum is required for savings refunding of GO’s)



Local Gov't Infrastructure

SurtaxSchool Capital Outlay Surtax

General Obligation

(GO) Bonds

Projects FS 1011.71(9) FS 1011.71(9) FS212.055(2) FS 212.055FS 1010.40

thru 1010.62New construction or new purchase of facilities-COP/RAN Projects

NO NO YES (3) YES (3) YES

Existing debt payments under current COP and RAN program **

NO NO NO NO YES (6)

Major remodel and renovation of facilities (construction) NO NO YES (3) YES (3) YES

Maintenance and repair existing plant (non construction) YES YES NO NO NOMinor remodel/repair/Facility Renewal YES YES NO NO NOBus purchases YES (1) YES (1) YES NO YES (5)

Technology-infrastructure-Sunrise Standard YES YES YES (3) YES YESTechnology Refreshment-Hardware/software YES (2) YES (2) YES (3) YES YESFurniture Fixtures and Equipment YES (2) YES (2) YES (3) YES (3) YESSafety to life projects/ADA NO NO YES (3) YES (3) YESPurchase/Lease Purchase of relocatable buildings NO NO YES (3) YES (3) YESPortable movement and set up (from site to site) YES YES YES (3,4) YES (4) NOLand purchases NO NO YES (3) YES (3) YESNew debt financings (using new pledged revenues) NO NO YES YES YES (6)

Property/Casualty insurance premiums YES YES NO NO NOVehicle purchase YES (1) YES (1) YES NO YES (5)

District School Milage Capital SalesTax


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