Current (10/21/2018) Cost Estimate:
(Our original prediction, prior to the last FOIA response was 23.6M)
Cost estimates from the 8/15/2018 board agenda
As attached to the 8/15/2018 board agenda Action Item after the closed session. On page 3 we found what the district anticipated had they gone ahead without the referendum.
New ELC_Program Summary 20180809
The districts’ FAQ for the referendum is advertising “$15 million in the latest construction bids.”
Architectural & Engineering (sum 3 lines)
994,949 + 66,920 + 368,164 = 1,430,033
957,719 + 17,248 + 368,175 = 1,343,142
Debt Service Cost
in the 8/15/2018 board packet, (item 2 in Action Items after the closed session) lease_certificate_resolution pdf page 5.
The Certificates shall become due and payable serially or be subject to mandatory redemption (subject to option of prior redemption as hereinafter described) on the dates of each of the years (not later than 2038), in the amounts (not exceeding $1,200,000 per year) and bearing interest at the rates per annum (not exceeding 5.00%) as set forth in the Certificate Notification.
The $1,200,000 is for principle + Interest. Verbally they were talking $1M/year.
Borrowing $14M and paying back $1M/year for 20 years is a total payment of $20M or $6M in interest.
If it is $1.2M/year for 20 years that is $24M or $10M in interest.
Based on what bonds have been selling for, 4% interest and $1M/year is more likely.
Debt Service – Update (10/19/2018)
On October 11 at 10:42 AM, I submitted the following FOIA:
Please provide the total cost estimate for the new Jefferson building if approved. This should include, but not limited to:
- design costs (how much has been already paid + estimate for remaining work)
- construction costs
- debt services or “lease interest”
- “owner’s cost” to include removal of old Jefferson, landscaping, furnishing the new building and storm water retention.
On October 19 at 9:04 AM, I received a response
Your request is granted. Please see information below:
design costs (how much has been already paid + estimate for remaining work) $813,138.26 paid to date
construction costs see attached document (document can also be found on district website)
debt services or “lease interest” estimate of debt service schedule attached
“owner’s cost” to include removal of old Jefferson, landscaping, furnishing the new building and storm water retention. see attached document (document can also be found on district website)
One of the attachments is the one I had found in the 8/15/2018 board packet. The other is a Debt Service Schedule, dated September 12, 2018 (after placing the referendum on the ballot). It shows borrowing $13,675,000, a coupon rate of 4%, total interest of $6,231,936.11 and “Total P+I” of $19,906,936.11
20yr Lease Certs CM Est Debt Service Schedule.shaw.10.19.2018.2
The difference between $14M and the $13,675,000 being borrowed is $325,000 which is most likely the cost of issuing the lease certificates. Our original guess for interest was $6M. We updated it to $6.5M based on this document ($6,231,936.11 + $325,000).
Since i have not confirmed the $325,000 as being a cost… I decided to not include it. Note: the cost is a close estimate based on district data. Actual cost will be determined when/if certificates are actually sold.
Originally posted 10/18/2018, updated 10/19/2018 & 10/23/2018