April-1-2019-BoardWorkSession-Segment-4
[00:00:00] That same relationship exists between the 184 in the 204 scenarios it just instead of a drop to 280 in the 20-year option. It drops the 291. You know that same kind of relationship exists. So here is the graphical representations of those 284 million dollar scenarios. You can see the. Difference in the size of the drops that Carol was talking about I personally am a visual person.
So I really like looking at the graphs versus the table. It helps me conceptualize. It better what that drop means to The District in terms of future borrowing capacities, you know, you can see the one on the left. There's still a step there. They're still future borrowing capacity under $3 Levi, but it would be for a much smaller project size versus a scenario on the right.
The next in this is the to 204 million dollar scenarios again. You [00:01:00] see same relationship there with the drops the timings the same but the magnitude of the drops is materially different between the 20 and 30-year amortization
zones. And here is where you guys would stack next to your competitors. I know a lot of people like to think about. Well, where does that put us compared to X or compared to Y currently as you guys sit right now. Um, you are compared to the other Portland metro area school districts, you're on the upper end.
But you know, if you really just look at The District's who also have just local option levies and just bonds, you know, you're probably much closer to the, you know, got a kind of middle range of that group as you can see a lot of districts do not have the local option Levy for the operating Levy support that you guys also have.
Just flagging a [00:02:00] thought as we're working through this in. Our board is trying to make come to contemplate future decisions information. I think that might be potentially helpful is those those actual drops and what they translate into as far as future bonding capacity because that would help me kind of way.
Yeah, 20 year versus 30 year as well as what our bonding capacity could be. In.  our most future Bond like yeah, because I'm kind of looking out to Cycles as much as I'm looking at. The present cycle so just kind of embarrassed to admit. I've actually run that for you guys and I have not brought it with me and I figured and that's why I'm not asking for it tonight because that's really not the purview of tonight.
But I as a board member I'm just sharing out loud that that is something that would help me as I'm working through this in the future. I think it matches up with our thinking out longer with our long-range plan to so we know you know, 10 [00:03:00] years out what might be the anticipated new buildings or additions we're going to need so we are trying to contemplate out that far and having that additional piece of information does inform our decision-making I think on us issue.
The other thing to keep in mind.  and built drops at specific times.  based on feedback from your staff if you shift the timing of those drops that also potentially has. So keep that in mind the longer you wait for a drop the more capacity you have the sooner you want the drop to occur the less capacity.
And here is that [00:04:00] same table from before this one right here, but just comparing the bond rates and where you guys Stack Up compared to your peers. You guys are much more kind of middle-of-the-road here going to realize your kind of farther to the left, but really you're kind of in that. Mid to dollar range like a lot of your peers in the Portland metro area is this up?
Is this updated because I know North Clackamas now has a local option. So we added there's in there. I think they might be this they might move up the chart. Yes. This is just the bond rates. The previous slide does not have North Clackamas again local option, right? Yes. No, correct. Correct.
Yeah, what was there's like a dollar?  Dollar
17. Okay. Yeah. So here ya Bond Levy rate and/or contact info if you guys have any additional questions, but if you have any right now or you're an [00:05:00] available, so I have one question. Yes. I'm not entirely certain you'll prepare to answer it. So that's fine to say as well. I just won. Mental hurdle.
I'm just trying to get over as we're thinking about bonding and bonding capacity that when we went through this process roughly four five years ago. I remember being very conscious about when we were picking, you know, our bond some for the last Bond and ensuring that we could cover our projects, but also reserving capacity.
For what is this pain cycle? And at that time our capacity was actually much smaller than what we're discussing here. It was more like 40 million or something and I'm just kind of curious what has happened to now get us to we can very reasonably have a 200 million dollar but far right column on that table that your guys is property [00:06:00] value growth has been very fast.
And and can we is that something because of the fastest growth? Is that something over time, you know going forward were able to rely upon so if you look at the 11 million real market value and multiply that by the 7.95 max that you can take you get the 943 million. Yes. Well and I thought we covered two.
I've just had a few people who were involved in that process just be like, I thought we only had you know. 40 47 million essentially available to them. This was five years. I mean our communities have grown since then. So there are other outside factors. I was just curious what the what when I'm being asked I could point to this would be a property value growth.
You guys have had a lot of development. A lot of yeah, just home appreciation. So yeah that goes ultimately if I if I had a handicap what's the biggest like driver of like, you know what your [00:07:00] Levy rate is and stuff. Like it's the property values not the interest rates. The property values are the biggest.
The biggest thing is I would say input. Yes. I mean your real market value, which is Brendan has mentioned doesn't set the tax rates but gives you some indication about what's been going on with new construction and appreciation has tripled since 2001. That's.  very robust growth.
It's a tie isn't Reagan's question more about the the capacity within the $3.00 assessment rate that she was asked if she was saying the 40 verses the 184 not the nine hundred and some yeah, but that but that so if you keep that same three dollar rate, but now you're taxing it as a so. Let's look at 2015 when you guys like soap on your total assessed [00:08:00] value.
Was six point nine which is rounded up and call it seven verses now, you're at a point begins running of 8.5, you know, 1.5 billion dollars of property value materialized over four years. That's a huge amount of that's a huge tax base to just add on, you know, there's a lot of school districts in Oregon that are just a fraction of that number.
So yeah, I mean like what we're seeing here is not dissimilar from what we've seen in places like sure would even out like Hermiston and other Bend school district that are very fast growth areas has seen this kind of change in their sort of property tax environment because of just booming growth.
and we're question. Any other questions from our budget committee members who [00:09:00] are present today?
Thank you very much for your time. Thank you for your patience. It's a lot of dense information. Yeah, sorry for talking very fast. I'd just like to say thank you if I could because this is pretty dense. Stop and I at least had an advantage of working through this one other Bond cycle. And even when I came tonight, I mean it I needed a huge refresher because it's not what I deal with in my everyday life and you made it very.
Manageable and now I feel confident in my understanding as we're moving towards, you know, making decisions in the future. So thank you both. Welcome. Welcome. Well, thank you, Carol and Brandon and also they're available at any time. So when we get closer we want to run some actuals and then sit and have that.
Well, you already have this context you can just kind of look at these last remaining tables with the actuals in their head that [00:10:00] stair-step really. Finite it out as discreet as you feel comfortable with it and they'd be available to to run those graphs for us and those scenarios and I just want to inform the board again kind of our next steps are and this is from dr.
Ludwig's March 22nd email that they'll be. Additional Community input listening sessions in May and early June and then in June is when we anticipate making a final decision about the bond.  Thank you.
Did we take a one-minute break and that way we can thank our. Take a legit longer breaks in that and then we'll have a public comment recent. Okay.