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State of Minnesota
Department of Education
Preparing For a Bond Referendum?
Chris Kubesh, Facility Specialist
Minnesota Department of Education
651-582-8319
State and District Roles The State’s responsibility and role is similar to
that of the State in the construction of commercial buildings, hospitals, commercial food preparation standards, water purification, road improvements etc.
School district construction projects are a joint state and school district responsibility and working partnership.
In planning, developing and implementing school
construction projects, school districts must comply
with a complex variety of state, federal and local
laws, rules and codes.
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Financial Role of State
The State guarantees the repayment of bonds sold to finance school district construction projects,
Funds a portion of some projects through the debt service equalization payments, and
Construction costs typically represent 10-20% of the cost of school facility over its lifetime.
Planning Steps
Assessing Facility Needs
Selecting an Architect /Facility Consultant
Facility / Site Studies
Public Engagement
Review and Comment - MDE
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Review and Comment - M.S.§ 123B.71
“ A school district …must not initiate an installment contract for purchase or a lease agreement, hold a referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of an education facility that requires an expenditure in excess of $2,000,000 per school site prior to review and comment by the commissioner…
Review and Comment - M.S.§ 123B.71 Required or Not?
Facility Additions, Maintenance Projects & Remodeling are Exempt if Funded by:
General Education Revenue
LTFM Revenue
Lease Levy Proceeds
Capital Facilities Bond Proceeds
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Review and Comment
A review and comment can have three
different responses from the commissioner
of MDE:
– Positive Review and Comment
– Unfavorable Review and Comment
– Negative Review and Comment
Educational and Economic
Advisability MDE reviews the required information
submitted by the school district in consideration of the guidelines contained in the:
“GUIDE FOR PLANNING SCHOOL CONSTRUCTION PROJECTS IN MINNESOTA”
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Economic Advisability
Economic advisability guidelines used to review project proposals include:
– Necessity of reducing school district operational costs due to excess buildings,
– Square footage requirements,
– Declining student enrollments, and
– Reasonable assurance that the school being constructed or renovated should be serving students for the life of the bond issue.
Minnesota Guide for Planning
School Construction Projects https://education.mn.gov/MDE/dse/schfin/fac/cons/
Purpose of the guide is to encourage and guide planning of
school construction projects to enhance student achievement and school-community partnerships.
Provides an overview of the many considerations that go into designing school facilities.
Portions of the “Guide” have been adopted by six Midwestern states.
The “Review and Comment” Checklist
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Example Guidelines – Site Size Elementary School
– 10 to 15 acres +(one acre per 100 students)
Middle School
– 25 to 35 acres +(one acre per 100 students)
High School
– 35-40 acres +(one acre per 100 students)
Plus additional acre for each 100 students of estimated student enrollment.
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Renovation/Addition
Proposals Every effort needs to be made to acquire adjacent
properties if the current school site guidelines are not met.
School renovation/addition project must address existing site issues (e.g. lack of outdoor activity space, limited parking)
If the deficiencies of the school site and facility are numerous, a school renovation/addition project may be considered not economically or educationally advisable.
Existing Facilities
Few school facilities are constructed with
space set aside for growth, and many lack
adequate storage, office, and conference
room spaces.
Adequate square footage, flexible and
adaptable school spaces for program
expansion are keys to long-term and cost
efficient use of school facilities.
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Remodeling Facilities
When the estimated costs of renovating/improving a school facility approach 60% of the cost of replacing a facility, a school district must demonstrate why renovation is preferable to new construction.
In general, the greater the gap between the present value of the renovated facility verses the replacement facility, as well as the actual versus desired site size, the less advisable it is to expand on the existing facility and site.
In a proposed renovation project, a school district is expected to bring the facility up to current codes and address educational deficiencies as well.
Growing Complexity 1
Nisswa Riverside Garfield Harrison Baxter - EC WESB
IAQ / Asbestos / Fire Safety $1,511,843 $391,962 $412,064 $2,079,970 $339,830 $624,000
Fees / Permits / Services $302,400 $78,400 $82,349 $416,024 $68,085 $124,800
Contingency $75,758 $19,638 $20,587 $104,006 $17,085 $31,200
$1,890,000 $490,000 $515,000 $2,600,000 $425,000 $780,000
Nisswa Riverside Garfield Lowell Harrison New Baxter
Parking Improvements $207,978 $75,993 $176,027 $279,971 $215,997 $491,981
Fees / Permits / Services $41,600 $15,200 $35,178 $55,988 $43,203 $98,401
Contingency $10,422 $3,807 $8,795 $14,041 $10,801 $24,618
$260,000 $95,000 $220,000 $350,000 $270,000 $615,000
Nisswa Harrison
Building Addtion $1,279,867 $5,119,926
Fees / Permits / Services $256,000 $1,024,059
Contingency $64,133 $256,015
$1,600,000 $6,400,000
LTFM Bonds - Debt Service Levy Impact
Abatement Bonds - Debt Service Levy Impact
Table 2
Capitalized Lease - Lease Levy Impact
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Growing Complexity 2
Nisswa Riverside Garfield Lowell
Deferred Maintenance $159,983 $399,962 $240,037 $319,967
Fees / Permits / Services $32,000 $80,000 $47,970 $63,987
Contingency $8,017 $20,038 $11,993 $16,046
$200,000 $500,000 $300,000 $400,000
Nisswa Riverside Garfield Lowell Harrison
Deferred Maintenance $879,908 $2,999,712 $2,320,360 $1,519,843 $931,986
Fees / Permits / Services $176,000 $600,000 $463,712 $303,937 $186,411
Contingency $44,092 $150,288 $115,928 $76,220 $46,603
$1,100,000 $3,750,000 $2,900,000 $1,900,000 $1,165,000
Nisswa Riverside Garfield Lowell Harrison
Technology / FF&E $199,979 $199,981 $200,031 $199,979 $199,997
Fees / Permits / Services $40,000 $40,000 $39,975 $39,992 $40,002
Contingency $10,021 $10,019 $9,994 $10,029 $10,001
$250,000 $250,000 $250,000 $250,000 $250,000
Capital Facilities Bonds - No Levy impact
Table 3
Annual LTFM Revenue - Existing Revenue / No Levy Impact
LTFM Bonding - Existing Revenue / No Levy Impact
Review and Comment Most Common Omissions
• Enrollment Projections
• Operating Cost Estimates
• Detail - Major Cost Components
• Site Details
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Review and Comment Life-Cycle
A Review and Comment is for a specific project and must be started within the 24 months of the date of the Commissioner’s letter.
If an approved project has significant financial and/or design changes from the original project submission, the district should notify the MDE.
Publication / Notification
Requirements
District required to Publish Commissioner’s letter in local
newspaper before election or board decision.. Law
requires publication 20 to 60 days before election..
At least 49 days prior to a school construction project bond
referendum, the school board clerk shall provide a written
notice to the Commissioner
After project is approved and project is completed,
complete commissioning process as required under M.S.
123B.72
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2017 Legislative Changes M.S. 123B.71
• Resident Comments “The commissioner must include comments from residents
of the school district in the review and comment.”
• Public Meeting Requirement “The school board must hold a public meeting to discuss the
commissioner's review and comment before the referendum
for bonds.”
2017 Legislative Changes M.S. 205A.05
Special Election Dates:
2nd Tuesday in February
2nd Tuesday in April
2nd Tuesday in May
2nd Tuesday in August
1st Tuesday after the 1st Monday in November
The 90 Day Rule
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Trends in School Construction
Common Spaces
Secure Entrances
Passive / Active Security Measures
Larger Athletic Facilities / Field Areas
Questions?
