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Paul Johnson, CFOWhite Pine County School District
1135 Avenue CEly, Nevada 89301
(775) 289-4851 x125(775) 289-3999 (fax)(775) 293-0569 (cell)
Capital Needs and Resources of Nevada’s Public Schools
Nevada Rural School Districts
Nevada Rural School FacilitiesOver 1,000 rural school district facilities
Includes multiple facilities on one campus Includes support facilities (i.e. Transportation, Admin Offices, Storage, etc.)
9.3 million SF of building space$1.7 billion estimated value
NPAIP Replacement Cost – Based on appraisals
47,751.6 weighted students NRS 387.303 report FY2013
15 counties covering 95,587 square miles http://www.indexmundi.com/facts/united-states/quick-facts/nevada/land-area#map
School ages range from 129 to 4 years
School Facility - Ages2004 1994 1984 1974 1964 1964+ 1939+ 1914+
School District 0-10 11-20 21-30 31-40 41-50 50+ 75+ 100+
Carson City 2 8 12 10 4 11 0 0Churchill 1 10 21 16 3 13 2 0Douglas 10 9 20 11 1 10 3 2Elko 16 59 98 11 12 17 5 1Esmerelda 3 0 11 2 11 1 0 0Eureka 1 8 10 9 5 2 0 0Humboldt 17 29 15 5 11 10 1 0Lander 12 1 3 13 2 2 0 0Lincoln 12 9 6 5 6 4 0 0Lyon 17 50 35 21 14 12 1 1Mineral 0 14 3 11 1 24 3 0Nye 53 49 27 21 4 32 1 0Pershing 3 6 4 1 1 7 0 0Storey 3 0 6 4 0 4 4 2White Pine 0 6 6 3 0 13 6 2
Total Rural 150 258 277 143 75 162 26 8% of Total 14% 24% 26% 13% 7% 15% 2% 1%
Estimated Replacement CostsYears Years Years Years Years Years Years Years2004 1994 1984 1974 1964 1964+ 1939+ 1914+
School District 0-10 11-20 21-30 31-40 41-50 50+ 75+ 100+
Carson City 804,600$ 1,258,800$ 35,659,600$ 42,023,940$ 67,324,500$ 40,851,300$ -$ -$ Churchill 65,000 19,070,400 44,872,610 16,903,240 4,084,170.00 65,057,650 26,348,270 - Douglas 1,605,500 25,737,400 37,134,300 52,967,000 62,500.00 44,653,500 4,114,600 2,417,600 Elko 38,081,900 48,027,300 94,997,000 4,793,500 33,031,400.00 78,539,700 20,267,600 1,419,800 Esmerelda 612,200 - 1,375,400 46,200 3,773,400.00 134,700 - - Eureka - 14,987,400 2,741,100 345,700 14,810,300.00 235,600 - - Humboldt 5,783,600 30,329,300 9,029,600 17,401,000 33,503,200.00 52,858,900 1,567,000 - Lander 389,000 7,799,000 6,012,200 15,875,500 5,319,400.00 10,023,300 - - Lincoln 9,945,200 25,461,600 614,600 6,793,700 1,131,600.00 11,345,700 - - Lyon 50,343,600 50,413,200 42,727,400 37,566,400 30,837,600.00 15,897,600 2,264,800 2,264,800 Mineral - 10,909,100 23,600 5,146,400 15,800.00 21,214,500 2,753,600 - Nye 67,999,800 48,865,900 51,999,200 9,299,500 8,695,000.00 26,709,300 130,600 - Pershing 1,522,100 1,942,300 15,296,300 16,600 82,900.00 30,299,700 - - Storey 1,368,200 - 9,958,600 3,184,900 - 7,982,100 7,982,100 3,176,300 White Pine - 28,444,900 4,156,200 1,917,100 - 44,269,300 32,940,800 29,054,000
Total Rural 178,520,700$ 313,246,600$ 356,597,710$ 214,280,680$ 202,671,770$ 450,072,850$ 98,369,370$ 38,332,500$ % of Total 10% 18% 21% 12% 12% 26% 6% 2%
Condition of FacilitiesRequested the District indicate conditions as good, fair,
or poor.Received responses covering approx. 74% of school
facilities
Approx. 50% of rural school facilities are in need of improvement
This assessment was not based on a common set of objective Arch/Eng criteri
Poor 139 17%
Fair 266 33%
Good 411 50%
Other Common DemandsEquipment Replacement
Heavy Equipment, tools, etc…
TransportationSchool BussesFleet vehiclesMaintenance
TechnologySchool Safety
Facility assessments and improvements as a result of school shootings.
Deferred Costs - ExamplesDouglas CSD
$450,000 annual deferred maintenance$72 million construction/improvements
Other Capital Needs: Bus fleet replacement – 800,000 average miles Vehicle fleet – 34% poor or fair condition Technology Operations Equipment Food Services Equipment
Deferred Costs - ExamplesWhite Pine
$10,520,226 in deferred facility improvements Concrete, asphalt, asbestos abatement, clean and
repoint masonry, etc…1913 White Pine Middle School Replacement1908 David E. Norman Elementary
Replacement Other Capital Needs
$1.4 million bus fleet replacement: Purchased 4 new busses in 2005. Other replacements have been used vehicles from other districts as they have been rotated out of inventory.
$1.3 million Technology/Telecommunications/Internet $300,000 equipment
Funding Options for School FacilitiesPrimary source of funding is Property TaxProperty taxes for school facilities require voter
approvalCap on overlapping tax rates limits tax rate
access11 counties at or within pennies of the cap
Abatement caps limit revenue increases10 year rolling average of assessed value
growth (one of the factors in calculating the cap) could be less than 1% for many districts in a few years
Other revenue sources are imposed by county commission or legislature – not by school district
Fund to assist schools with capital improvements (NRS 387.333). No funding currently available.
Current Tax Rates and Voter Authorization
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Debt Rate/ Voter Highest
District CPT AuthorizationOverlapping
Rate
Carson City $0.4300 Rollover (2020) $3.5600
Churchill $0.5500 Rollover (2018) $3.6400
Clark $0.5534 none $3.4030
Douglas $0.1000 Rollover (2018) $3.6600
Elko $0.7500 CPT (2022) $3.6567
Esmeralda $0.0000 none $3.0195
Eureka $0.0000 None $1.9896
Humboldt $0.1350 Rollover (2018) $3.1716
Lander $0.0000 None $3.6600
Lincoln $0.2231Traditional (2014) $3.6600
Lyon $0.5867 Rollover (2016) $3.6600
Mineral $0.3500 None $3.6600
Nye $0.5850 Rollover (2016) $3.6567
Pershing $0.4000 Rollover (2018) $3.6592
Storey $0.1447 Rollover (2022) $3.4607
Washoe $0.3885 None $3.6600
White Pine $0.2490 Rollover (2018) $3.6600
G.O. Debt & Ad Valorem (Exc. NPM)FY2015 Final Assessed Values By CountyDepartment of Taxation
5%20 Current Estimated
(Excluding NPM) P & I Tax Rate Combined CombinedCounty Total Assessed Values $20,000,000 Needed Rate Rate
Carson City 1,286,890,682 $1,604,852 0.1247 3.5600 3.6847 Churchill 683,625,992 $1,604,852 0.2348 3.6400 3.8748 Douglas 2,659,900,426 $1,604,852 0.0603 3.6600 3.7203 Elko 1,743,259,203 $1,604,852 0.0921 3.6567 3.7488 Esmerelda 60,122,367 $1,604,852 2.6693 3.0195 5.6888 Eureka 755,497,987 $1,604,852 0.2124 1.9896 2.2020 Humboldt 1,081,333,429 $1,604,852 0.1484 3.1716 3.3200 Lander 646,297,215 $1,604,852 0.2483 3.6600 3.9083 Lincoln 349,822,781 $1,604,852 0.4588 3.6600 4.1188 Lyon 1,420,138,197 $1,604,852 0.1130 3.6600 3.7730 Mineral 134,556,573 $1,604,852 1.1927 3.6600 4.8527 Nye 1,259,400,684 $1,604,852 0.1274 3.6567 3.7841 Pershing 247,536,706 $1,604,852 0.6483 3.6592 4.3075 Storey 516,362,669 $1,604,852 0.3108 3.4607 3.7715 White Pine 420,613,741 $1,604,852 0.3816 3.6600 4.0416
Total Rural 13,265,358,652
Washoe 13,281,733,500 802,426.00 0.0060 3.6600 3.6660 Clark 63,567,838,203 802,426.00 0.0013 3.4030 3.4043
G.O. Debt & Ad Valorem (Inc. NPM)FY2015 Final Assessed Values By CountyDepartment of Taxation
5%20 Current Estimated
(Excluding NPM) P & I Tax Rate Combined CombinedCounty Total Assessed Values Net Proceeds $20,000,000 Needed Rate Rate
Carson City 1,286,890,682 - $1,604,852 0.1247 3.5600 3.6847 Churchill 683,625,992 24,217,467 1,604,852 0.2267 3.6400 3.8667 Douglas 2,659,900,426 - 1,604,852 0.0603 3.6600 3.7203 Elko 1,743,259,203 179,399,883 1,604,852 0.0835 3.6567 3.7402 Esmerelda 60,122,367 25,089,453 1,604,852 1.8834 3.0195 4.9029 Eureka 755,497,987 884,566,984 1,604,852 0.0979 1.9896 2.0875 Humboldt 1,081,333,429 488,843,326 1,604,852 0.1022 3.1716 3.2738 Lander 646,297,215 1,483,808,094 1,604,852 0.0753 3.6600 3.7353 Lincoln 349,822,781 256,290 1,604,852 0.4584 3.6600 4.1184 Lyon 1,420,138,197 3,764,932 1,604,852 0.1127 3.6600 3.7727 Mineral 134,556,573 4,945,738 1,604,852 1.1504 3.6600 4.8104 Nye 1,259,400,684 163,959,748 1,604,852 0.1128 3.6567 3.7695 Pershing 247,536,706 57,004,381 1,604,852 0.5270 3.6592 4.1862 Storey 516,362,669 1,322,718 1,604,852 0.3100 3.4607 3.7707 White Pine 420,613,741 58,855,667 1,604,852 0.3347 3.6600 3.9947
Total Rural 13,265,358,652 3,376,034,681
Washoe 13,281,733,500 3,472,463 $1,604,852 0.0121 3.6600 3.6721 Clark 63,567,838,203 - $1,604,852 0.0025 3.4030 3.4055
Other Sources.125% Sales Tax (NRS 374A)
Only available to districts utilizing the Fund to Assist School Districts (NRS 387.3335)
.25% Sales Tax (NRS 377B) Imposed by county commissionAllocation of funding determined by county commissionFew districts have seen any money in the seven
counties levying the tax Residential Construction Tax (NRS 387)
Imposed by county commissionMust be reviewed every 4 years by Tax Commission
Room Tax (NRS 244)/Real Property Transfer Tax (NRS 375)Approved by Legislature in 1997 for Clark County
JNA Consulting Group, LLC
G.O. Debt & Sales TaxLSST Worksheet - Fiscal Year 2014-2015Department of Taxation - 3/15/2014
5%Estimated Impact of 20
2.60% Gross 0.25% P & I Surplus/County LSST Sales LSST $20,000,000 (Deficit)
Carson City 18,060,612 694,638,923 1,736,597 $1,604,852 $131,745.56Churchill 6,106,829 234,878,038 587,195 $1,604,852 ($1,017,656.65)Douglas 14,407,963 554,152,423 1,385,381 $1,604,852 ($219,470.69)Elko 42,907,680 1,650,295,385 4,125,738 $1,604,852 $2,520,886.72Esmerelda 129,231 4,970,423 12,426 $1,604,852 ($1,592,425.69)Eureka 2,199,071 84,579,654 211,449 $1,604,852 ($1,393,402.61)Humboldt 12,544,884 482,495,538 1,206,239 $1,604,852 ($398,612.90)Lander 1,981,763 76,221,654 190,554 $1,604,852 ($1,414,297.61)Lincoln 337,460 12,979,231 32,448 $1,604,852 ($1,572,403.67)Lyon 8,142,967 313,191,038 782,978 $1,604,852 ($821,874.15)Mineral 494,220 19,008,462 47,521 $1,604,852 ($1,557,330.59)Nye 8,790,041 338,078,500 845,196 $1,604,852 ($759,655.49)Pershing 600,942 23,113,154 57,783 $1,604,852 ($1,547,068.86)Storey 1,008,760 38,798,462 96,996 $1,604,852 ($1,507,855.59)White Pine 3,164,909 121,727,269 304,318 $1,604,852 ($1,300,533.57)
Total Rural 120,877,332 4,649,128,154 11,622,820
Clark County 792,016,088 30,462,157,231 76,155,393 $1,604,852 $74,550,541.33Washoe County 143,443,675 5,517,064,423 13,792,661 $1,604,852 $12,187,809.31
Availability of Other Revenue Sources
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.125% Sales Tax
.25% Sales Tax RCT Room Tax RPTT
NRS 374A NRS 377B NRS 387 NRS 244 NRS 375
Carson City No No No
Churchill Levied – No No No
Clark No No Yes Yes
Douglas No No
Elko No No
Esmeralda No No
Eureka No No
Humboldt No No
Lander Levied – No No No
Lincoln Levied – No No No
Lyon Levied – No No No
Mineral No No
Nye No No
Pershing Levied - ? No No
Storey Levied – No No No
Washoe No No No No
White Pine Yes Levied – No No No
Available
Prohibited
Revenue ChallengesPer Capita Taxes do not generate sufficient
revenue for demandProperty Tax Base is insufficient to support
capital demands of multiple local government entities with competing interests and “allowable” rates.
Construction ChallengesConstruction companies have to relocate and pay
per diem costs to their workers.Logistics can increase mobility costsThe long distance can increase costs for even
simple jobs. The freight costs for everything shipped also adds
to high repair costs. Experience difficulty getting competitive bidsBig jobs can exceed local contractor’s bonding
capacityLocal vendors can not provide supplies to
construction projects so materials must be shipped
Voter Approval
Nevada Studies1954 – Peabody Report1971 – Governor O’Callaghan Study1994 – Legislative Commission’s
Subcommittee to Study Public Elementary and Secondary Education (S.C.R. 52 Committee)
1996 – Legislative Commission’s Subcommittee to Study the Realignment of School Districts (S.C.R. 30 Committee)
1998 - Nevada School Needs Assessment (ISES Corporation Study)
Nevada InitiativesState School Construction Relief Fund
(1955-1979) No continual funding source was established and the fund was
eliminated.
Account for State Assistance for School Construction (1979-1983) No continual funding source was established and the fund was
eliminated.
Fund to Assist Schools With Capital Improvements (1999 – Present) No continual funding source established
All of the programs contained specific criteria to qualify for funding and limit state liability
Other legislation has been confined to specific appropriations
Learning EnvironmentsResearch has confirmed that there is a
consistent relationship between the condition of a school facility and student performance. The cognitive requirements for learning and teaching are
affected by the physical surroundings where they take place (Do School Facilities Affect Academic Outcomes ?; National Clearinghouse for Educational
Facilities; Mark Schneider, November 2002)
The amount of natural light, the indoor air quality and temperature impact student learning (Prioritization of 31 Criteria for School Building Adequacy; Glen I. Earthman, Professor
Emeritus, Virginia Polytechnic Institute & State University, January 2004)
Poor building conditions greatly increase employee absenteeism and turnover that directly affect the quality of education Growth and Disparity: A Decade of U.S. Public School Construction, October 2006
Impact of Quality Schools School quality has a direct and positive impact on property values or
tax base (Kane et al. 2003); School quality affects the quality of life and ability to attract
businesses and workers (Salveson and Renski 2002); Investments in the construction and maintenance of school facilities
bring money into local economies through job creation and supply purchases (Economics Center for Education Research 2003);
Investments in a community have a multiplier affect that indirectly affects local merchants, local tax revenue, and the labor force.
New or well-maintained school facilities can help revitalize distressed neighborhoods (Local Government Commission 2002)
Environments that are in a well ordered condition may stop vandalism as well as crime (http://www.manhattan-institute.org/pdf/_atlantic_monthly-broken_windows.pdf).
Growth and Disparity: A Decade of U.S. Public School Construction, October 2006
Discussion PointsEach school district has there own unique capital demand
and financial hurdlesExisting sources of revenue are insufficient to meet
demandDeferred construction, improvements and maintenance will
continue that may adversely affect economic development, property values and student performance
As capital demand continues to outpace funding, more and more capital projects will be deferred making it increasingly difficult to maintain facilities
All school districts regardless of size are financially stressed to meet operating and capital demands
Smaller school districts may never be able to replace or construct school facilities