Apr 24, 2021 April 24, 2021 Study Session - 8:00 a.m.

[1. Opening Items/Roll Call]

[00:00:04]

OKAY. I WOULD LIKE TO CALL TO MORNING THE APRIL 24, 2021, LAKE WASHINGTON SCHOOL BOARD STUDY SESSION. LET THE RECORD REFLECT THAT FOUR OF THE FIVE MEMBERS ARE PRESENT IN PERSON.

MR. CARLSON IS ATTENDING VIRTUALLY.

ATTENDEES MUST PREREGISTER TO ATTEND A BOARD MEETING OR STUDY SESSION AND REGISTRATIONS ARE ON A FIRST COME, FIRST SERVED BASIS. PLEASE REGISTER BY 1:00 P.M. THE DAY OF THE MEETING BY E-MAILING DIANE JENKINS.

ALL ATTENDEES WILL BE REQUIRED TO WEAR A FACE MASK.

UPON ARRIVING AT THE RESOURCE CENTER, THE PUBLIC WILL BE REQUIRED TO SIGN IN. IF YOU'RE UNABLE TO LIVE STREAM A MEETING, YOU CAN CALL 425-936-2813, CONFERENCE ID 37127 TO LISTEN TO THE MEETING. THE FIRST TOPIC FOR TONIGHT'S

[1. Final Review of Equity Policy]

DR. HOLMEN CAN YOU GET US STARTED?

>> DR. JOHN HOLMEN: ABSOLUTELY. THIS MORNING'S REVIEW OF THE EQUITY POLICY IS REALLY A FINAL CHECK BEFORE WE PUSH THIS OUT TO COMMUNITY KNOWING THAT THE BOARD WILL START ENGAGING IN LINKAGE SESSIONS NEXT WEEK WITH COMMUNITY GROUPS AROUND THE POLICY, AND SO THE CURRENT DRAFT POLICY, WHICH WAS UPDATED BASED ON THE BOARD'S FEEDBACK LAST MONDAY, IT IS UPLOADED INTO BOARD DOCS AND SO COMMUNITY CAN VIEW THE CURRENT VERSION OF THAT. THIS MORNING REALLY IS ABOUT THE BOARD TAKING A FEW MINUTES REVIEWING THE CURRENT DRAFT AND ANY CHANGES THAT NEED TO BE MADE.

WE WANT TO MAKE THOSE TODAY SO WE CAN GET THE POLICY SENT OUT IN THE FINAL DRAFT VERSION TO OUR COMMUNITY GROUPS THAT WE'LL BE MEETING WITH EARLY NEXT WEEK SO THEY HAVE TIME TO REVIEW AND PROCESS THE INFORMATION. SO WITH THAT, ERIC, IF YOU WANT TO WALK THROUGH THE DIFFERENT COMPONENTS OF THE POLICY TO MAKE SURE THAT IF THERE'S ANY ADDITIONAL ITEMS THAT WE ADDRESS

THOSE. >> ERIC LALIBERTE: OKAY, SO WE'LL WORK THROUGH THIS SECTION BY SECTION.

THERE ARE THREE SECTIONS, BOARD VALUE STATEMENT, THE POLICY BACKGROUND, AND THEN A DIRECTOR TO THE SUPERINTENDENT.

DOES ANYBODY HAVE ANY COMMENTS OR CHANGES AT THIS TIME TO THE BOARD VALUES STATEMENT?

>> DO YOU WANT ME TO HANG ONTO WHAT I WORKED ON?

>> ERIC LALIBERTE: IF YOU HAVE ANYTHING RIGHT NOW THAT YOU WANT TO BRING BOARD, THAT WOULD BE A GOOD IDEA.

I'LL TELL YOU HOW I'M THINKING ABOUT THIS RIGHT NOW.

I THINK WE JUST NEED TO MAKE SURE WE HAVE ALL OF THE CONCEPTS AND THE VALUES DOWN ON PAPER SO WE CAN BRING THAT TO THE COMMUNITY AND I THINK EVERYONE RECOGNIZES THAT LINE BY LINE, WORD BY WORD, THIS IS NOT PERFECT YET AND WE'RE CONTINUING TO WORK ON IT, BUT I DON'T KNOW THAT WE -- WE CAN DO SOME WORD SMITHING BUT I DON'T THINK WE NEED TO HAVE IT ABSOLUTELY PERFECT TONIGHTPERFECT TONIGHT MORNING.

RECOGNIZING THAT EVERYBODY PROVIDED INPIT LAST MONDAY, DOES ANYONE HAVE ANY ADDITIONAL INPUT THIS MORNING?

>> I WOULD LIKE TO SAY I APPRECIATE THE REVISIONS THAT TOOK PLACE IN ORDER TO CONSOLIDATE THAT, I THINK IT READS MUCH CLEARER TO SEE THOSE VALUES AND I DON'T HAVE ANYTHING TO ADD AT THIS POINT IN TIME. I THINK THIS STATES IT.

>> ERIC LALIBERTE: I HAVE ONE COMMENT.

THE SECOND SENTENCE OF THE FIRST PARAGRAPH.

[00:05:06]

>> SIRI BLIESNER: YOU CAN COMBINE IT WITH THE THIRD ONE.

WE VALUE THE DIVERSE COMMUNITY WE LIVE IN, SOMETHING THERE,

THEY CAN MERGE. >> ERIC LALIBERTE: YEP, I AGREE

WITH THAT. >> WHEN YOU DO THAT, THOUGH, YOU LOSE THE CULTURAL PERSONAL BACKGROUNDS, IF WE COULD BLEND

THOSE IN. >> SIRI BLIESNER: ABSOLUTELY.

>> ERIC LALIBERTE: I AGREE. >> TRYING TO REMEMBER WHAT I

WROTE. >> ERIC LALIBERTE: I HAVE NO OTHER COMMENTS ON THE BOARD VALUE SECTION.

ANYONE ELSE AT THIS POINT? >> MARK STUART: I WENT THROUGH SOME OF IT AND TRIED TO FIGURE OUT, OKAY, IS THIS PERHAPS A TECHNO SPEAK OR NOT, EDUCATION SPEAK, AND THE WORD NOW, INTERSECTIONALITY. I HAD TO LOOK THAT UP.

>> DR. JOHN HOLMEN: IT WAS RECOMMENDED TO MODIFY THAT.

>> MARK STUART: AT ONE POINT I EVEN SUGGESTED INSTEAD OF MARGINALIZE, JUST PUSHED ASIDE TO MAKE SURE ON THE FIRST RUN, IT WAS REALLY DOWN TO, AS I SAY, 7TH GRADE READING LEVEL WHICH IS

MORE THAN MOST NEWSPAPERS. >> ERIC LALIBERTE: OKAY, SHOULD WE MOVE TO THE POLICY BACKGROUND SECTION? ANYONE HAVE ANY INPUT THERE? COMMENTS?BACKGROUND SECTION? ANYONE HAVE ANY INPUT THERE? COMMENTS? OKAY. HEARING NONE.

THE LAST SECTION IS THE -- >> SIRI BLIESNER: CAN I ASKED A QUICK PROCEDURAL PIECE, WITH CHRIS ON THIS, WILL HE RAISE HIS

HAND IF HE NEEDS SOMETHING? >> ERIC LALIBERTE: YEAH, I HAVE

BEEN TRYING TO. >> SIRI BLIESNER: JUST KNOWING WE CAN LOSE PEOPLE IN THE WHOLE RE

REMOTE AND IN PERSON. >> CHRISTOPHER CARLSON: AFTER DISCRIMINATED, I WOULD ADD THE WORD AGAINST.

>> ERIC LALIBERTE: YEAH, THE FIRST SENTENCE AFTER DISCRIMINATED ADD AGAINST. OH, HMM.

IT JUST NEEDS A LITTLE -- >> CHRISTOPHER CARLSON: AND PUT

A COMMA AFTER THE AGAINST. >> ERIC LALIBERTE: I SUPPOSE I WOULD CHANGE IT TO EDUCATIONAL SYSTEMS HAVE MARGINALIZED, EDUCATED AGAINST, AND LIMITED OPPORTUNITIES AND ACCESS FOR MANY STUDENTS. DOES THAT WORK? I AGREE WITH DIRECTOR CARLSON WITH PUTTING A COMMA AFTER

AGAINST. >> DR. JOHN HOLMEN: DID YOU MOVE

ON TO THE DIRECTIVE PIECE? >> ERIC LALIBERTE: I THINK WE

ARE NOW. >> DR. JOHN HOLMEN: I TRIED TO MAKE EACH OF THE OPENING OF EACH OF THE DIRECTIVE STATEMENTS MUCH MORE ACTION-ORIENTED THAN PASSIVE.

EVEN IF IT'S DEVELOP AND MAINTAIN OR ENSURE, I THINK THERE WERE COMMENTS AROUND IF WE ONLY DEVELOP, THEN THERE'S THE

[00:10:02]

I ALSO REACHED OUT TO DIRECTOR SAGE TO MAKE SURE THE COMMENT AROUND PROFESSIONAL LEARNING WAS IN ALIGNMENT WITH HER COMMENTS.

SHE FELT LIKE IT WAS, REVIEWED THE BOARD POLICY TO INCLUDE THAT

IN THESE STATEMENTS AS WELL. >> ERIC LALIBERTE: SO DIRECTOR SAGE'S COMMENTS ON TRAINING ARE ENCAPSULATED IN 14.8?

IS THAT RIGHT? >> DR. JOHN HOLMEN: CORRECT.

>> ERIC LALIBERTE: OKAY. >> CASSANDRA SAGE: IT'S STILL EARLY BY I'M GOING TO ASK THIS ANYWAY.

DID WE INCLUDE BOARD TRAINING? >> ERIC LALIBERTE: WELL, I CAN SPEAK TO THAT. THIS IS A DIRECTIVE TO THE SUPERINTENDENT OF HOW WE EXPECT THE DISTRICT TO OPERATE.

IF WE WANT TO HAVE BOARD, THAT WOULD BE BAKED INTO THE BOARD

POLICIES. >> CASSANDRA SAGE: OKAY, THAT'S

FAIR. >> ERIC LALIBERTE: BUT YOU RAISE

A VERY GOOD POINT. >> CASSANDRA SAGE: I JUST WANT TO MAKE SURE THAT WE KEEP UP WITH TRAINING AND LEARNING AND ENSURE THAT WE AREN'T ASKING EVERYBODY TO DO SOMETHING THAT WE AREN'T DOING. WE NEED TO KEEP DOING IT.

BUT I APPRECIATE YOUR POINT THAT THIS IS A DIRECTIVE TO THE SUPERINTENDENT AND SENSE WE ARE HIS BOSS, IT DOESN'T MAKE SENSE TO DIRECT HIM TO DIRECT US. [LAUGHTER]

IT'S STILL EARLY. >> ERIC LALIBERTE: NO, THAT'S A REALLY GOOD POINT, THOUGH. I DON'T WANT TO DO IT RIGHT NOW BUT I WILL LOOK AT OUR BOARD POLICIES TO MAKE SURE THAT'S CAPTURED IN THERE AND WE CAN LOOK AT AMENDING THOSE SO THAT

IT'S CONSISTENT. >> SIRI BLIESNER: I THINK AS WE GO THROUGH THIS PROCESS THAT WEB THE NEXT STEP TO SEE HOW WELL WE INCORPORATED ALL THOSE PIECES IN.

>> ERIC LALIBERTE: YEAH, THAT'S A GOOD POINT, THANK YOU.

. THAN.

THANK YOU.

ANY OTHER COMMENTS ON THE DIRECTIVE PIECE? LET'S EVERYONE A MINUTE TO READ AND THINK A LITTLE MORE.

>> DR. JOHN HOLMEN: THE ONLY OTHER SUGGESTION I WOULD MAKE IS IN THE BOARD VALUES, FIRST PARAGRAPH, LAST SENTENCE, ADDING THE WORD WITH BETWEEN FAMILIES AND SAFE.

IT FEELS LIKE THERE'S SOMETHING MISSING THERE.

>> ERIC LALIBERTE: YEAH, I AGREE.

LET'S DO IT. OKAY.

ARE WE GOOD FOR NOW? OKAY.

THANK YOU. >> DR. JOHN HOLMEN: WE'LL UPDATE THAT AND GET THAT SENT OUT TO OUR COMMUNITY STAKEHOLDERS THAT WE'LL BE MEETING WITH THIS WEEK AND THE COMING WEEKS FOR DIALOGUE. I ALSO WANT TO MAKE SURE I'M NOT MOD VYING ANYTHING AFTER THE FIRST PARAGRAPH.

THERE WERE CONVERSATIONS ABOUT TAKING THE SECOND SENTENCE AND INCORPORATING IT INTO THE THIRD. I DIDN'T HEAR A STRONG SENSE OF

SAYING YES, COMBINE IT. >> CASSANDRA SAGE: MY IMPRESSION

[00:15:02]

>> DR. JOHN HOLMEN: GREAT, OKAY. >> ERIC LALIBERTE: YEAH, I DON'T WANT TO LOSE ANYTHING. I'M THE ONE WHO MADE THE SUGGESTION BUT IF WE CAN DO IT, DO IT, OTHERWISE LET'S PUT IT FORWARD AS IT IS AND WE CAN HEAR FEEDBACK AND WORDSMITH IT MORE

LATER IF WE NEED TO. >> DR. JOHN HOLMEN: THANK YOU.

>> CASSANDRA SAGE: THIS MAY BE A DIFFERENT SECTION, BUT I DO FEEL LIKE COMMUNICATION METHODS NEED TO ENSURE THAT ALL PARENTS AND STUDENTS, FAMILIES, ETC., COMMUNITY, ARE ABLE TO GATHERING THE INFORMATION, UNDERSTAND THE INFORMATION, AND, FOR INSTANCE, OUR SOMALI FAMILIES PROBABLY HAVE A HARD TIME KNOWING THAT POLICIES EXIST AND WHAT THEY SAY AND WHAT THEY MEAN SO I'M WONDERING IF THERE'S SOME COMMUNICATION ACCOUNTABILITY.

IS THAT CAPTURED IN ENSURE ACCESS TO -- WHEN WE SAY PROVIDE ALL STUDENTS WITH EQUITABLE ACCESS TO EDUCATIONAL ACTIVITIES, 14.4. OR EVEN 14.5, STRENGTHEN AND MAINTAIN COLLABORATIVE SCHOOL CULTURE.

IS THERE ANYTHING THAT SUCCINCTLY ADDRESSES THE COMMUNICATION NEEDS IN WHICH DIFFERENT STUDENTS AND FAMILIES NEED TO HAVE IN ORDER FOR THEM TO RECEIVE THE INFORMATION IN A

MEANINGFUL WAY? >> SIRI BLIESNER: PERHAPS ON 14.9, EFFECTIVE PARTNERSHIP AND COMMUNICATION.

>> CASSANDRA SAGE: YEAH, THAT MAKES MORE SENSE IN 14.9, DEVELOPING, IMPLEMENTING AND MAINTAINING EFFECTIVE PARTNERSHIPS BETWEEN HOME S, SCHOOL, AND DISTRICT.

>> MARK STUART: YOU CAN ALSO WORK THAT IN BACK IN THE FIRST SENTENCE. IN OUR COMMUNICATIONS WITH ALL AND IN ALL WORK ENVIRONMENTS. IF YOU SAY IT UP FRONT, TOO, THAT SETS THE STAGE FOR IT.

>> CASSANDRA SAGE: I THINK IT'S ONE OF THE BARRIERS THAT OUR FAMILIES FACE AND WE JUST NEED TO ENSURE THAT WE RECOGNIZE THAT THIS BARRIER EXISTS AND WE NEED TO ENSURE THAT COMMUNICATION IS REALLY REACHING PEOPLE IN A MEANINGFUL WAY.

>> SIRI BLIESNER: ESPECIALLY WHEN WE DO HAVE AN OE THAT'S LISTED TO -- SORRY, I WAS DRINKING COFFEE.

I WONDER IF THAT'S THE PLACE TO BUILD IT IN THE STRONGEST THERE.

>> CASSANDRA SAGE: OR TO MENTION IT AND CROSS REFERENCE TO THAT?

>> ERIC LALIBERTE: I AGREE. >> CASSANDRA SAGE: SORRY,

LAST-MINUTE WRENCH. >> ERIC LALIBERTE: NO, IT'S A GOOD QUESTION BUT I WONDER IF WE CAN GRAFT THAT --

>> SIRI BLIESNER: 14.10, ADDRESS CONCERNS AND ADD THE COMMUNICATION INTO THAT COMPONENT.

THAT'S SPECIFIC TO ONLY CONCERNS BUT I THINK YOUR THOUGHT IS BROADER THAN THAT FROM WHAT I'M HEARING BUT CAN WE BROAD THAN

PIECE OUT? >> CASSANDRA SAGE: I GUESS I WOULD ASK STAFF WHERE IT MIGHT MAKE THE MOST DENSE TO PUT IT IN. I'M OKAY WITH JUST ABOUT ANY WAY WE INWCORPORATE IT AS LONG AS W INCORPORATE IT.

>> DR. JOHN HOLMEN: IF IT'S GOING TO BE UNDER THE ACTION ITEMS, FOR ME IT FEELS LIKE 14.9.

FEELS LIKE THAT'S WHERE IT LANDS.

I'M JUST THINKING ABOUT AS SOMEONE IS REVIEWING THE POLICY

[00:20:05]

BUT. >> CASSANDRA SAGE: IF WE PUT IT IN 14.9 AND FIND THAT WE AREN'T EFFECTIVE WITH IT IN 14.9 AND WE NEED TO MOVE IT SOMEWHERE ELSE, WE CAN ALWAYS AMEND, CORRECT?

>> DR. JOHN HOLMEN: YES, THESE ARE ALWAYS -- THAT WILL BE PART OF BUILDING IN THE EVALUATION OF THIS POLICY AND REALLY KIND OF TO SIRI'S POINT, MUCH OF THIS IS ALREADY CROSS REFERENCED SO IT WILL BE DATA ALSO REPORTED IN OTHER OPERATIONAL EXPECTATIONS.

>> CASSANDRA SAGE: THAT'S GREAT. WE'LL HAVE LOTS OF INFORMATION.

>> DR. JOHN HOLMEN: YES. >> CASSANDRA SAGE: THANK YOU.

>> DR. JOHN HOLMEN: ARE WE FIND WITH ADDING IT TO 14.9?

>> ERIC LALIBERTE: YEAH, I THINK JUST ADDING AND COMMUNICATION AFTER THAT MAKES EXPLICIT THAT WE ARE ALSO MONITORING NOT JUST WHETHER THERE'S A PARTNERSHIP BUT THAT THERE'S COMMUNICATION OCCURRING. DOES THAT WORK FOR YOU, DREDGE

TOR SAGE? >> CASSANDRA SAGE: THAT WORKS

FOR ME, THANK YOU. >> ERIC LALIBERTE: THANK YOU FOR THAT ADDITION, I THINK IT'S VERY IMPORTANT.

OKAY. WE'LL MOVE ON.

MOVE TO THE NEXT TOPIC. I GUESS JUST A REMINDER FOR THE BOARD AND FOR THOSE WHO ARE WATCHING THIS MORNING, THE NEXT STEP IN THIS IS THAT DR. HOLMEN AND STAFF WILL MAKE THE EDITS WE MADE TODAY AND BROUGHT TO OUR COMMUNITY FOR ENGAGEMENT AND ADDITIONAL INPUT AND BASED ON THAT, THE BOARD WILL TAKE ANOTHER PASS AT IT AND AIM TO HAVE A FINAL POLICY ADOPTED LATER THIS ACADEMIC YEAR. OKAY.

[2. Facilities and School Funding]

>> DR. JOHN HOLMEN: SO, TODAY WE BRING TO YOU A SIGNIFICANT AMOUNT OF CONTENT AND TRULY, AS WE THINK ABOUT OUR WORK AHEAD OVER THE NEXT 12 TO 16 MONTHS, KNOWING THAT WE JUST ADOPTED A RESOLUTION TO PURCHASE LAND KNOWING THAT OUR PROJECTIONS FOR STUDENT ENROLLMENT OUT 10 YEARS CONTINUES TO INCREASE THAT SPACE FOR STUDENTS IS A QUESTION THAT WE NEED TO GRAPPLE WITH AND, TH SPACE FOR STUDENTS IS A QUESTION THAT WE NEED TO GRAPPLE WITH AND FIGURE OUT HOW WE THINK ABOUT THAT AND PART OF IT IS HOW DO WE PLAN EFFECTIVELY PROGRAMS FOR STUDENTS KNOWING THAT OVER THIS LAST YEAR WE LEARNED A TREMENDOUS AMOUNT ABOUT EDUCATING STUDENTS IN DIFFERENT WAYS, WHICH MAY ADDRESS DIFFERING CAPACITY TYPES OF NEEDS WHEN WE THINK OF SCHOOL SPACES. BUT TODAY IS REALLY ABOUT UNDERSTANDING THE FISCAL OUTLAY IN TERMS OF BOTH OUR EDUCATIONAL PROGRAMS AND OPERATIONS LEVY, OUR CAPITAL PROJECTS LEVY, AND ALSO WHAT ARE THE OPTIONS AND CONSIDERATIONS IN REGARDS TO CAPITAL CONSTRUCTION FUNDING? WE HAVE TAKEN QUESTIONS FROM THE BOARD AND BELIEVE WE HAVE RESPONSE TO SOME OF THE QUESTIONS THAT HAVE BEEN ASKED AROUND FUNDING METHODS, AVAILABLE LAND, CURRENTLY, THAT THE DISTRICT OWNS AND SO JUST A NUMBER OF PIECES THAT ALL REALLY FIT INTO OUR, IF YOU WILL, PATHWAY FORWARD IN TERMS OF FUNDING.

SO WITH THAT, I WILL HAND IT OVER TO BARBARA TO LEAD US

THROUGH THIS PRESENTATION. >> ALL RIGHT, THANK YOU VERY MUCH. I'M GOING TO GO OVER, AS DR. HOLMEN SAID, WE HAVE A FULL AGENDA TODAY. WE'RE GOING TO -- WE HAD A LITTLE BIT OF AN INTRODUCTION INTO THIS AT OUR JANUARY SESSION. SO WE'RE GOING TO REVIEW OR 2022 BOND AND LEVY TIME LINE. WE'RE GOING TO TAKE A DO I HAVE INTO THE EDUCATION PROGRAMS AND OPERATIONS LEVY, LOOK AT OUR CAPITAL PROJECTS LEVY AND TUCK ABOUT OUR FACILITY PLANNING, AGAIN, THE FACILITY ADVISORY COMMITTEE BROUGHT

[00:25:06]

WE'RE GOING TO LOOK AT ENROLLMENT.

THERE ARE SOME QUESTIONS FROM THE BOARD SO WE'RE BRINGING INFORMATION ON OUR UNDEVELOPED AND UNDER DEVELOPED PROPERTY.

WE HAVE PROJECT REVIEW AND UPDATES AND LOOKING AT OUR VARIOUS FUNDING OPTIONS FOR OUR SCHOOL FACILITIES.

THEN, OF COURSE, TIME FOR BOARD FEEDBACK AND DISCUSSION.

BUT FIRST, I WANT TO CONNECT THIS WORK THAT WE'RE DOING TODAY TO OUR STRATEGIC PLAN. OUR STRATEGIC PLAN PORTION IS EFFECTIVE USE OF RESOURCES. WE'RE KNOW CUSHION ON FACILITIES AND TECHNOLOGY SYSTEMS AND FISCAL RESPONSIBILITY.

OUR DRIVING INTEREST AND GOALS ARE TO MAXIMIZE OUR RESOARSS AND POTENTIAL IN ORDER TO SUPPORT THE PROGRAMS AND OPERATIONAL SERVICES FOR OUR STUDENTS AND STAFF.

WE WANT TO MAKE SURE WE HAVE THE RESOURCES THAT WE NEED FOR OUR EDUCATIONAL PROGRAM, THE RESOURCES WE NEED FOR EXNOLOGY INVESTMENTS SO OUR STUDENTS ARE PREPARED FOR THE FUTURE.

WE ALSO KNOW THAT OUR LEARNING ENVIRONMENTS ARE A KEY FACTOR FOR STUDENT SUCCESS, SO PROVIDING EXCELLENT FACILITIES FOR STUDENT AND STAFF IS IMPORTANT AND IT'S A KEY TO OUR MISSION AND VISION TO ENSURE OUR STUDENTS GRADUATE FUTURE READY.

SO THE KEY QUESTION THAT WE HAVE FOR TODAY IS WHAT CONSIDERATIONS SHOULD BE MADE WHEN PLANNING FOR THE EPNO LEV VIE, SHAH CONSIDERATIONS SHOULD BE MADE IN PLANNING FOR THE CAPITOL LEVY AND FOR FUNDING DESTRUCTION, BOTH THE TYPE OF FUNDING AND THE TIMING OF THE MEASURE.

>> DR. JOHN HOLMEN: WHEN WE SAY SEE QUESTIONS, IT WOULD BE HELPFUL TO HAVE DIALOGUE AROUND THESE QUESTIONS BECAUSE THAT WOULD ALLOW US TO TAKE THE INFORMATION PRESENTED TODAY AND START NARROWING IN ON WHAT OUR NEXT STEPS ARE IN TERMS OF ALL

OF THESE ASPECTS. >> ALL RIGHT.

SO WE'RE GOING TO START WITH JUST A HIGH LEVEL OVERVIEW AND LOOK AT OUR TIME LINE. SO OUR GENERAL FUND HAS MULTIPLE FUNDING SOURCES. TODAY WE'RE GOING TO TALK ABOUT THE EP&O PORTION OF OUR SCHOOL FUNDING.

THEN WE ALSO RECEIVE FEDERAL FUNDING AND LOCAL FEES AND OTHER GRANTS. ALL OF THOSE GO INTO OPERATIONS AND ON THE CAPITOL SIDE WE RECEIVE CONSTRUCTION BONDS AND LEVIES TO FUND OUR CAPITAL PROJECTS, WE RECEIVE CAPITAL PROJECTS LEV VIE, THERE'S ALSO IMPACT FEES AND SALE OF PROPERTY. WE'RE GOING TO FOCUS ON THE

CONSTRUCTION BOND AND LEVIES. >> DR. JOHN HOLMEN: CAN I ADD TO THAT AS WELL? JUST SOME LANGUAGE THAT BARBARA AND I NARROWED IN ON THIS WEEK, WHEN WE THINK ABOUT THESE DIFFERENT FUNDING STREAMS TO BE VERY INTENTIONAL ABOUT THE TYPE OF LEVIES SO YOU WILL HEAR US TALK ABOUT CAPITAL PROJECT LEVY OR CAPITAL CONSTRUCTION LEVY JUST KNOWING AS WE THINK ABOUT LONG TERM CONSTRUCTION AND THE WAYS TO FUND THAT, JUST TO BE VERY CLEAR AS TO THE TYPE OF LEVY WE'RE TALKING ABOUT, THAT'S GOING TO BE A DIFFERENTIATION WE USE AS WE USE LANGUAGE REFERRING, REALLY TO THE SAME TYPE OF LEVY BUT AS WE MAKE A DISTINCTION BETWEEN A LEVY THAT WE WOULD USE FOR CONSTRUCTION PURPOSES AND OUR ONGOING RENEWAL LEVY FOR CAPITAL PROJECTS AND

TECHNOLOGY. >> SO JUST PROVIDING AN OVERVIEW OF THESE FUNDING MEASURES, I'M DESCRIBING WHAT EACH MEASURE IS, THE LENGTH, THE PARAMETERS AROUND THAT, WHEN THEY EXPIRE AND WHAT OUR CURRENT TAX RATE IS.

SO OUR EDUCATION PROGRAM AND OPERATIONS LEVY, THAT FILLS THE GAP, IT'S PART OF A MAJORITY OF OUR FUNDING FROM OPERATIONS THAT COME FROM STATE BASIC EDUCATION BUT THERE IS A GAP BETWEEN WHAT THE STATE FUNDS AND WHAT DISTRICTS NEED TO PROVIDE THE PROGRAM THAT OUR COMMUNITY EXPECTS US TO PROVIDE.

SO OUR EDUCATION PROGRAMS AND OPERATION LEVIES PROVIDE ABOUT 14% OF OUR OPERATING BUDGET. THEY ARE NEEDING TO BE RENEWED

[00:30:05]

THE LENGTH OF A CAPITAL PROJECTS LEVY CAN BE UBE TO 6 YEARS.

OUR LEVY ALSO EXPIRES IN 2022 AND THE CURRENT TAX RATE IS ABOUT 52¢ PER 1,000 OF AV. WE HAVE OUR CAPITAL CONSTRUCTION LEVY PROVIDING CAPACITY FOR OUR ENROLLMENT GROWTH.

CAPITAL CONSTRUCTION LEVIES CAN RUN FROM ONE TO 6 YEARS, OURS IS A 6-YEAR LEVY AND EXPIRES IN 2025.

THE CURRENT TAX RATE IS 28¢ PER 1,000.

BONDS ARE THE VOTERS AUTHORIZE A BOND AMOUNT AND THEN THE DISTRICT SELLS BONDS AS WE NEED TO PROVIDE THE CASH FLOW FOR OUR PROJECTS AND THAT IS PAID BACK OVER TIME, TYPICALLY AS 20 YEARS BUT YOU CAN GO UP TO 30 YEARS ON A PAYBACK SO OUR CURRENT BONDS THAT WE HAVE IN THE SYSTEM, BONDS EXPIRE EVERY YEAR BUT OUR LAST BOND EXPIRES IN 2038. SO OUR CURRENT TAX RATE IS 87¢ FOR OUR BONDS. SO OUR TIME LINE, AND WE SHARED THIS IN JANUARY, SO WE ARE -- IN JANUARY, FEBRUARY, AND MARCH, WE HAD OUR FACILITY ADVISORY RECOMMENDATIONS, WE ESTIMATED OUR AUTHORIZATION LIMITS, WE'VE GOTTEN OUR AV ASSUMPTIONS FROM THE COUNTY AND PROJECT A TAX RATE.

WE INTENDED IN MARCH TO HAVE A STUDY SESSION SO REVIEW THIS AND THAT'S WHAT WE'RE DOING RIGHT NOW IN APRIL, SO I SHOULD HAVE CHANGED THAT TO APRIL. AND THEN IN MAY AND JUNE, WE'RE ANTICIPATING HAVING A BOND AND LEVY ADVISORY COMMITTEE MEETING TO INFORM THEM OF WHAT WE'RE THINKING AND GET FEEDBACK FROM A WIDE VARIETY OF BOTH STAFF AND COMMUNITY MEMBERS.

THAT'S SOMETHING WE HAVE DONE IN THE PAST.

EACH TIME WE HAVE A BOND AND LEVY MEETING WE BRING THEM TOGETHER TO PROVIDE RECOMMENDATIONS AND ADVICE FOR WHAT WE PUT ON THE BALLOT. SO OUR INTENDED TIME LINE IS TO DO THAT IN MAY AND JUNE. WE WOULD HAVE A BOARD STUDY SESSION IN AUGUST TO REVIEW AND WE WOULD HAVE A BOARD STUDY SESSION IN JUNE TO REVIEW THE RECOMMENDATIONS AND THEN ANOTHER BOARD STUDY SESSION IN AUGUST AND THEN THE TENTATIVE TIME LINE IS WE WOULD HAVE THE RECOMMENDATION COME TO THE BOARD IN OCTOBER OF 2021 AND WE WOULD LAUNCH WHAT WE CALL OUR INFORMATIONAL CAMPAIGN. THAT'S WHEN WE START PROVIDING INFORMATION TO OUR STAFF AND COMMUNITY.

IN NOVEMBER, WE ARE REQUIRED TO SELECT A COMMITTEE TO PROVIDE INFORMATION IN THE VOTERS PAMPHLET.

WE UPDATE AND PROVIDE VERSION ON OUR WEBSITE, PROVIDE FAQS, DEVELOP A PRESENTATION AND SUBMIT A PLAN TO OSPI.

THAT'S A NEW REQUIREMENT THAT WENT INTO EFFECT AFTER THE 2018 EP&O LEVY SO DISTRICTS HAVE TO GET APPROVE FROM OSPI BEFORE PUTTING AN EP&O LEVY ON THE BALLOT.

DECEMBER 10TH IS THE DEADLINE TO FILE THE RESOLUTION SO IF THE BOARD DOES NOT MAKE A RECOMMENDATION IN OCTOBER, THE LAST CHANCE TO MAKE A RECOMMENDATION IS PRIOR TO DECEMBER 10TH. THEN WE CONTINUE OUR PTA AND

[00:35:03]

>> CASSANDRA SAGE: I HAVE A QUESTION ABOUT HAVE WE LOOKED AT WHAT WILL BE LOST IF WE DON'T PASS THIS EP&O LEVY OR ANY OF THE LEVIES? AT SOME POINT, NOT TODAY, BUT I WOULD BE CURIOUS IN UNDERSTANDING WHAT GOES AWAY IF

WE CAN'T CONTINUE FUNDING. >> AS WE GET INTO THE PRESENTATION, I WILL BE SHARING WITH YOU WHAT ALL OF THESE LEVIES PAY FOR AND SO THAT WOULD INFORM WHAT GOES AWAY IF THOSE

LEVIES DON'T PASS. >> CASSANDRA SAGE: THANK YOU.

I SHOULD HAVE KNOWN YOU HAD IT READY TO GO.

>> OKAY. THIS IS A SLIDE YOU HAVE SEEN BEFORE. THIS IS JUST A PICTORIAL OF SOME OF THE THINGS I HAVE ALREADY SHARED, BUT IT IS OUR COMPILATION OF OUR LEVY AND BOND RATES.

SO WE CURRENTLY THE EP&O, WHICH IS IN BLUE, IS THE 90¢, AND THE ORANGE IS THE CAPITAL CONSTRUCTION LEVY OF 51¢.

THE GRAY IS OUR CONSTRUCTION LEVY AND THAT WE PASSED IN 2019 AND SO IT'S EFFECTIVE 2020 FOR THE NEXT 6 YEARS AND THEN OUR BOND IS IN KIND OF THE GOLD AND THAT CURRENTLY IS AT 87¢, BUT VARIES. BETWEEN THE TWO CONSTRUCTION BONDS AND OUR 6-YEAR CAPITAL CONSTRUCTION LEVY AND THERE'S A TYPO THERE, THAT SHOULD BE $1.15 SO THAT'S A COMBINATION OF ALL

THOSE LEVIES. >> DR. JOHN HOLMEN: AND WE'RE GOING TO COME BACK TO THIS SLIDE THROUGHOUT THE PRESENTATION TO GROUND US IN THE SPECIFIC FUNDING STRING THAT WE'RE DISCUSSIONING AT THAT POINT IN TIME SO YOU WILL SEE THIS THROUGHOUTNG AT THAT POINT IN TE SO YOU WILL SEE THIS THROUGHOUT

THE PRESENTATION. >> SIRI BLIESNER: I THINK I CAN ASK MY QUESTION WHEN YOU DO TO EP&O SO THAT'S FINE.

>> OKAY. ALL RIGHT.

SO I'M GOING TO MOVE. WE'RE GOING TO TAKE A DEEP DIVE INTO THE EP&O PROGRAM AND OPERATIONAL LEVY.

SO THE GOAL TODAY IS FOR THE BOARD TO UNDERSTAND OUR CURRENT FINANCING PLAN AND OUR TAX RATE ASSUMPTIONS.

WE'RE GOING TO LOOK AT THE MCCLEARY HISTORY AND THE IMPACTS TO THE EP&O LEVY. WE WANT THE BOARD TO UNDERSTAND THE ELECTION REQUIREMENTS AND THE TRENDS OF OUR PAST ELECTIONS AND THEN UNDERSTAND THE EP&O ENRICHMENT ACTIVITIES AND ASSUMPTIONS. HERE'S THE CHART.

SO JUST FOCUSING, WE'RE GOING TO FOCUS TODAY ON THE 90¢, THE BLUE PART, OF THE BAR, THE EP&O LEVY AND $1.15 IS GRAPHED IN THAT ONE. OKAY.

SO JUST A REMINDER ON MCCLEARY. IN 2018, TO LEGISLATURE PASSED THE MCCLEARY BILL TO ADDRESS THE STATE UNDER FUNDING OF SCHOOL DISTRICTS AND THE INTENT OF MCCLEARY WAS TO INCREASE STATE SUPPORT AND THEY DID THAT BY INCREASING THE TAX LEVY SO NEW PROPERTY TAXES WERE PAID TO THE STATES AND THEY PUT LIMITS ON SCHOOL DISTRICTED BECAUSE THE INTENT WAS TO INCREASE WHAT THE STATE WAS FUNDING SO LOCAL DISTRICTS COULD NOT NEED AS MANY LOCAL FUNDS TO PROVIDE FUNDING. THEY PLACE LIMITS ON WHAT SCHOOL DISTRICTS COULD COLLECT AND IT USED TO BE PREMCCLEARY WAS A PERCENTAGE MCCLEARY WAS A PERCENTAGE OF TOTAL REVENUE AT ABOUT 24% BUT SOME SCHOOL DISTRICTS WERE GRANDFATHERED IN.

LAKE WASHINGTON IS LIMITED TO $2,500 PER STUDENT AND THAT'S ADJUSTED BY INFLATION EACH YEAR. OTHER DISTRICTS WHO HAVE A LOWER ASSESSED VALUE WERE LIMITED TO $1.50 PER THOUSAND.

[00:40:07]

AT THAT TIME, BACK IN 2018, WE DID NOT ASK FOR THE MAXIMUM LEVY AMOUNT. WE ASKED FOR ABOUT $2,100 PER PUPIL BUT WE KNEW WE WOULD NEED TO VALUATE 4 YEARS LATER HOW FUNDING WAS -- WHAT OUR LEVY LOOKED LIKE, WHAT OUR STATE FUNDING, WHAT WAS HAPPENING TO OUR STATE FUNDING AND OUR OPERATIONS, SO WE'LL TALK MORE ABOUT THAT A LITTLE BIT LATER.

THE MCCLEARY ALSO CHANGED THE DEFINITION OF HOW YOU COULD USE YOUR LEVY AND THEY USED THE TERM ENRICHMENT ACTIVITIES SO THE STATE PROVIDES BASIC EDUCATION, THE MINIMUM REQUIREMENT TO EDUCATION STUDENTS AND THE LEVY IS TO BE USED FOR ENRICHMENT ACTIVITIES. THE REALITY IS THE STATE STILL IS NOT FUNDING. THERE ARE THINGS THAT ARE NOT NECESSARILY ENRICHMENT, SUCH AS SPECIAL EDUCATION.

THE STATE DOES NOT PROVIDE ENOUGH FUNDING OF WHAT IT TAKES TO SERVE OUR SPECIAL NEEDS STUDENTS AND SO OUR STATE OSPI HAS SAID, REALLY, YOUR LEVIES CAN BE USED FOR ANYTHING ABOVE WHAT THE STATE FUNDS BUT THEY ARE DEFINED AS ENRICHMENT ACTIVITIES. WE ARE REQUIRED TO GO TO OSPI AS I MENTIONED AND PROVIDE A PLAN PRIOR TO THE EH LEBS AND WE'RE ALSOLECTION AND WE'RE ALSO REQUIRED TO SEPARATELY AT FOR HOW WE SPEND THOSE DOLLARS. I CALL THEM RED AND BLUE D DOLLARS. YOU HAVE TO TRACK YOUR STATE MONEY IN ONE POD AND YOUR LEVY DOLLARS IN ANOTHER BUD SO MOVING DOLLARS AROUND TO ACCOUNT FOR THEM.

>> DR. JOHN HOLMEN: IT'S ANY UNDERSTANDING WE DID NOT HAVE TO SUBMIT A PLAN FOR OUR CURRENT EP&O LEVY BECAUSE OF WHEN WE RAN THE MEASURE AND SO DO WE KNOW JUST FROM OTHER DISTRICTS' EXPERIENCE WHAT THAT EXPERIENCE HAS BEEN LIKE, SUBMITTING A PLAN AND ANY LESSONS LEARNED AS WE MOVE INTO 2021?

>> GREAT QUESTION. THEY HAVE MADE IT FAIRLY STRAIGHTFORWARD. YOU'RE REQUIRED TO SUBMIT THE AMOUNT OF YOUR LEVY, THE CATEGORIES THAT IT'S GOING TO BE SPENT ON, AND I THINK IT'S JUST DOLLARS, THERE'S NOT MUCH NARRATIVE, AND I HAVE NOT HEARD OF MAJOR HURDLES FROM OTHER DISTRICT WHO IS HAVE HAD TO DO THIS BUT IT'S JUST ONE MORE STEP THAT WE NEED TO GO THROUGH. SO FOR THE EP&O, THE ELECTION RI REQUIREMENTS, YOU HAVE TO RENEW THE EP&O AT LEAST EVERY 4 YEARS. YOU CAN RURNL IT MORE OFTEN THAN 4 YEARS. WE CHOOSE TO RUN IT EVERY 4 YEARS. LEVIES REQUIRE 54% APPROVAL TO PASS. BELOW I WANT TO SHOW THE ELECTION RESULT TRENDS. I WILL START WITH 2006.

WE WERE GETTING 68% APPROVAL RATINGS ON OUR LEVY.

IT DIPPED A LITTLE BIT IN 2010 AND THEN IN 2014, IT WAS 65%.

IN 2018, DISTRICTS ACROSS KING COUNTY, BECAUSE OF MCCLEARY, BECAUSE OF THE INCREASE IN TAXES, APPROVAL RATING DECREASED 10% DOWN TO 54% SO WANTED TO BRING THAT TO FOLKS' ATTENTION BECAUSE WE NEED A 50% APPROVAL RATING TO PASS.

>> ERIC LALIBERTE: ANECDOTALLY, SINCE THEN, I HAVE SEEN THEM GO UP. WHAT IS YOUR PERCEPTION OF THAT AND DO WE HAVE ANY UNDERSTANDING OF WHAT IT LOOKS HIKE FOR OTHER DISTRICTS THAT HAVE GONE BACK OUT SINCE 2018?

>> THE ONES THAT HAVE GONE BACK OUT ARE MOSTLY EITHER IN THE EAST SIDE OF THE STATE OR THE SOUTHERN

[00:45:02]

>> ERIC LALIBERTE: MAYBE I'M CONFUSING WITH BOND MEASURES. >> THERE ARE DISTRICT THAT IS HAVE RUN THOSE. MOST OF THE KING COUNTY DISTRICTS ARE RUNNING THEIR

FIRST LEVY SINCE 2018, WILL BE RUN IN 2022. >> CASSANDRA SAGE: THE TABLE ON

THE SCREEN RIGHT NOW, IS THAT KING COUNTY OR US? >> THIS IS LAKE WASHINGTON SCHOOL DISTRICT ELECTION RESULTS. YES.

>> SIRI BLIESNER: MY QUESTION ON THE SAME TRENDS IF WE HAD ANY SHIFT, 2018, MCCLEARY HIT AND ITHAWKA HAD A LARGE ISSUE THERE, TOO, AND THAT IMPACTED THE CROSS COMMUNITY SO I THINK THAT'S A PIECE OF IT BUT IT'S IMPORTANT TO RECOGNIZE THAT'S A LITTLE CLOSER THAN WE WANT TO BE FOR

OUR LEVIES. >> YES. THIS NEXT SLIDE IS A SUMMARY OF OUR ENRICHMENT ACTIVITIES. THESE ARE THE FIVE MAIN CATEGORIES THAT WE PROVIDE IN THE LEVY AND ON YOUR TABLE TO YOUR TOP LEFT, OR I THINK IT'S IN EVERYBODY'S TOP RIGHT, SORRY, YOU SHOULD HAVE HANDOUTS. THE FIRSTHANDOUT IS THE BREAKOUT OF THE 20184-YEAR EDUCATION PROGRAM AND OPERATIONS LEVY. IT SHOULD SAY 2018EDUCATION PROS LEVY.

IT SHOULD SAY 2018 EP&O AT TOP. THIS PROVIDES THE DETAIL. WE HAVE OUR STAFFING FOR PROGRAM SAFETY AND SECURITY AND THAT PROVIDES THE STAFF THAT WE NEED BEYOND BASIC ED FUNDING AND SPECIAL EDUCATION, OUR HIGHLY CAPABLE PROGRAM, IN OUR ELL PROGRAMS. IT PROVIDES FINNING FOR SUBSTITUTES BECAUSE THE STATE DOES NOT FUND WHAT WE NEED FOR SUBSTITUTES, FOR NURSING STAFF AND CAMPUS SECURITY STAFF SO THAT'S ABOUT $31 MILLION OUT OF THE TOTAL $63 MILLION LEVY ON AN ANNUAL BASIS. THE LEVY ALSO PROVIDES FOR PROFESSIONAL LEARNING. WE HAVE A NEW TEACHER SUPPORT PROGRAM.

WE'RE VERY FORTUNATE WITH THE SUPPORT WE PROVIDE TO OUR TEACHERS.

WE PROVIDE AND MAINTAIN FIVE TEACHER PROFESSIONAL LEARNING DAYS.

UP UNTIL 3 YEARS AGO, THE STATE, THE FUNDING THAT THE STATE PROVIDED BASICALLY GAVE TEACHERS THE SCHOOL DAY ONLY SO THEIR EXPECTATION WAS THE FIRST DAY OF WORK FOR A TEACHER WAS THE FIRST DAY THEY HAD TO BE IN FRONT OF STUDENTS. THE STATE, AFTER MCCLEARY STARTED TO FUND PROFESSIONAL LEARNING DAYS, THEY'RE FUNDING UP TO THREE RIGHT NOW BUT OUR DISTRICT PROVIDES AN ADDITIONAL FIVE MORE OUT OF THE LOCAL LEVY. WE ALSO PROVIDE AND MAINTAIN PROFESSIONAL FUND AND PROFESSIONAL DEVELOPMENT STRATEGIES, TRAINING, WORKSHOPS AND SERVICE DAYS. WE KNOW WITH REMOTE LEARNING, HOW IMPORTANT PROFESSIONAL LEARNING IS, THAT OUR TEACHERS ARE ABLE TO SHIFT AND ADJUST AND TEACH THE STUDENTS IN THE MODE THEY'RE TEACHING IN. SO THE NEXT CATEGORY, ATHLETICS AND EXTRACURRICULAR ACTIVITIES.

THE STATE DOES NOT PROVIDE ANY FUNDING FOR THESE ACTIVITIES SO IF A DISTRICT WANTS TO PROVIDE EXTRACURRICULAR PROGRAMS, OUR LOCAL COMMUNITY, THIS IS SUPPORTED BY OUR LOCAL COMMUNITY. SO WE HAVE OUR COACHES, OUR TRAINERS, OUR ATHLETIC DIRECTORS FOR ACTIVITIES. THAT ASKED $5 MILLION A YEAR. WE ALSO HAVE COURSE OFFERINGS TO BE SURE OUR STUDENTS ARE GRADUATING AND ARE SUCCESSFUL AND COLLEGE CAREER READY SO WE IMPLEMENTED A SEVEN PERIOD DAY TO SUPPORT THE STATE 24 CREDIT REQUIREMENT AND IT ALSO PROVIDES FOR SUMMER LEARNING OPPORTUNITIES AND THAT'S ABOUT $12 MILLION PER YEAR.

AND THEN OUR EARLY LEARNING, THE STATE ONLY FUNDS PRESCHOOL FOR SPECIAL ED STUDENTS SO ANY PRESCHOOL BEYOND THAT WOULD NEED TO BE PROVIDED THROUGH THIS LEVY AND SO OUR HEAD START AND READY START PROGRAMS. SO THAT, ON AVERAGE, OUR LEVY IS ABOUT $63 MILLION PER YEAR AND

[00:50:05]

THAT'S ABOUT 14% OF OUR TOTAL BUDGET. >> DR. JOHN HOLMEN: AND TO BE RESPONSIVE TO DIRECTOR SAGE AND HER QUESTION, WHILE THESE ARE THE DISTINCT CATEGORIES THAT THEY ARE FUNDING, YOU CAN SEE THERE ARE REQUIRED PROGRAMS AND SERVICES IN HERE THAT WE WOULD ALSO HAVE TO MAKE OTHER ADJUSTMENTS WITHIN THE BUDGET TO BE ABLE TO SUPPORT SUCH AS SPECIAL EDUCATION, HIGHLY TAPEABLE SERVICES, AND ELL PROGRAMS AND SERVICES AND SO IT'S NOT JUST OH, THOSE PROGRAMS WILL SEE A CHANGE, IT REALLY WOULD BE A FULL SCALE REDO OF OUR BUDGET WITHOUT OUR EDUCATIONAL PROGRAMS AND OPERATIONS LEVY.

>> CASSANDRA SAGE: RIGHT, THERE'S CONSEQUENCES OF NEEDING TO FUND THE BASICS OUT OF THIS

ENRICHMENT. >> DR. JOHN HOLMEN: YES, SPECIAL EDUCATION SERVICES ARE LISTED AS ENRICHMENT IN THAT WE'RE FUNDING $17 MILLION, 18 MILLION IN SPECIAL EDUCATION ALONE OUT OF

OUR EP&O LEVY. >> CASSANDRA SAGE: HAVING A STUDENT RECEIVING SPECIAL

SERVICES, I'M VERY CONCERNED ABOUT THAT, THANK YOU. >> YEAH.

THE TERM ENRICHMENT IS A MISNOMER BECAUSE IT REALLY IS THESE ARE THINGS THAT WE NEED TO PROVIDE FOR. OKAY. SO WE TALKED ABOUT WHEN I TALKED ABOUT MCCLEARY, I SHARED THAT WE DID NOT ASK, IN 2018, WE DID NOT ASK FOR THE MAXIMUM AMOUNT THAT WE COULD, THE $2,500 PER STUDENT, SO I WANTED TO SHOW THIS CHARGE SHOWS THE FIRST COLUMN SHOW WHAT IS OUR CURRENT LEFF VI IS, SO WE'RE RECEIVING $63.5 MILLION.

IT'S GOING TO GO UP TO $67.7 MILLION AND THEN IT JUST GO UP BY INFLATION THE FOLLOWING YEAR AND BY THE MAXIMUM AMOUNT, THE THIRD COLUMN OVER IS WHAT WE WOULD CALL OUR LEFF VI LID, THE MAXLEVY LID, THE MAXIMUM AMOUNT WE CAN COLLECT SO IN 2021, THE MAXIMUM AMOUNT IS $82 MILLION. THERE'S A $17 MILLION GAP BETWEEN THE MAX AND WHAT WE ASKED FOR. THAT GAP DOES DECLINE IN 2022 PARTIALLY BECAUSE OF ENROLLMENT DECLINE. SO IN THAT GAB IS CALCULATED -- IF THE LEGISLATURE, I THINK WE JUST GOT WORD LAST NIGHT THAT THEY PASSED THAT THE LEVY LID CALCULATION WILL BE BASED ON THE 2019-20 ENROLLMENT SO YOUR ENROLLMENT LOST DOES NOT NEGATIVELY IMPACT YOUR LEVY.

FOR US FOR NEXT YEAR, BECAUSE WE'RE NOT COLLECTING THE MAXIMUM AMOUNT, THAT DOESN'T IMPACT US FOR JUST NEXT YEAR, BUT IT COULD IMPACT US IN THE FUTURE. SO THE RANGE IS WE'RE ABOUT $13 MILLION TO $14 MILLION THAT WE COULD GET MORE IN RESOURCES BY COLLECTING THE MAXIMUM LEVY LID, BUT THAT COULD BE UP TO 15 DLRZ MILLION DEPENDING ON WHAT OUR ENROLLMENT ENDS UP BEING.

ANY QUESTIONS? OKAY. THE $2,500 DOES INCREASE BY INFLATION EVERY YEAR. LET ME JUST USE MY LITTLE POINTER NOW.

THIS IS WHAT WE ARE COLLECTING RIGHT NOW, THE 65 MILLION AND THIS IS THE PER PUPIL AMOUNT THAT WE ARE COLLECTING RIGHT NOW AND THIS IS THE INCREASE AND THIS MIRRORS OUR INCREASE AND THE LEVY MIRRORS THE ASSESSED VALUATION INCREASE AND THAT PROVIDES FOR A LEVEL TAX RATE OF 90¢. UNDER THE MAXIMUM LEVY LID, WE CAN COLLECT 2700 TO $2,800 PER PUPIL. OUR MAX MOP IS BETWEEN $2,700 AND $2,858 AND THESE AREIMUM IS

[00:55:07]

>> ERIC LALIBERTE: OKAY, I'M TRYING TO FIGURE OUT HIGHWAY THIS MAXIMUM WORKS IN TERMS OF WHEN THE -- OBVIOUSLY IF WE -- WE DON'T -- HOW DO I ASK THIS? SO WE'RE ALLOWED TO COLLECT $2,500 PER PUPIL THIS YEAR. IS THE RATE ADJUSTED EACH YEAR? LET'S SAY WE HAVE A LEVY FOR THE MAXIMUM AMOUNT. WOULD THE RATE BE ADJUSTED EACH YEAR BASED ON ENROLLMENT? LET'S SAY THE VOTERS PASSED ONE FOR THE MAXIMUM AMOUNT. EACH YEAR, WOULD THE RATE BE REDETERMINED BASED ON ENROLLMENT? DOES THAT MAKE SENSE?

>> YES, LET ME TRY TO EXPLAIN. WHEN WE GO OUT TO THE VOTERS TO ASK FOR OUR LEVY AMOUNTS, IT'S AN ESTIMATE. SO WE'RE ASKING FOR A DOLLAR AMOUNT.

IN THIS CASE WE ASKED FOR $67.7 MILLION IN 2022. LET'S SAY WE ASKED FOR $70 MILLION IN 2022 BUT OUR MAXIMUM WAS LESS THAN THAT. WE DO SOMETHING THAT'S CALLED A ROLL BACK. IF WE ASK OUR VOTERS FOR $70 MILLION AND THE CALCULATION COMES IN THAT YOU CAN ONLY COLLECT $69 MILLION, FOR EXAMPLE, THEN ANNUALLY YOU HAVE TO ROLL BACK YOUR LEVY TO THE LEGALLY REQUIRED LID. IN LAKE WASHINGTON, WE HAVE NOT DONE A ROLL BACK IN A WHILE BECAUSE WE ARE ASKING FOR LESS THAN THE MAXIMUM.

I THINK IT'S BEEN SINCE 2016 SINCE WE DID A ROLLBACK. BECAUSE YOUR LEVY IS BASED ON YOUR ENROLLMENT, WE WOULD ESTIMATE WHAT IT IS AND, AGAIN, GOOD PRACTICE IS YOU OVERESTIMATE SO YOU DON'T LEAVE MONEY ON THE TABLE, SO TO SPEAK, SO WE WOULD ESTIMATE OUR LEVY AS CLOSE AS POSSIBLE BUT KNOWING IF WE NEEDED TO, WE WOULD DO A ROLLBACK.

>> ERIC LALIBERTE: OKAY. IF THAT ROLLBACK OCCURRED, THAT WOULD BE BEFORE BILLS WENT OUT?

HOW DOES THAT WORK? >> EVERY OCTOBER, WE RECEIVE INFORMATION FROM OUR PUGET SOUND ESD AND SAYS REVIEW YOUR LEVY LID CALCULATION AND IF YOU NEED TO DO A ROLLBACK, YOU HAVE TO TAKE BOARD ACTION ON THAT SO WE WOULD BRING THE BOARD A RESOLUTION TO ROLLBACK THE LEVY AMOUNT AND THEN THAT ACTION WOULD BE TAKEN. WE THEN SUBMIT THAT TO TO KING COUNTY ASSESSORS OFFICE AND THEY USE THAT TO INFORM THE NEXT YEAR'S TAXES.

>> ERIC LALIBERTE: THAT'S REALLY EP&OFUL, THANK YOU. >> SIRI BLIESNER: IT HAS BEEN A WHILE SINCE WE HAVE DONE THAT, I DO REMEMBER THE ROLLBACKS, THOUGH.

SO HOW DOES THAT IMPACT THE TAX RATE? >> WHEN WE PUT OUR LEVY PROJECTIONS TOGETHER, WE'RE ESTIMATING ASSESSED VALUATION INTO THE FUTURE.

WHEN ASSESSED VALUATION IS HIGHER, YOU HAVE MORE -- WE'RE STILL COLLECTING A FIXED DOLLAR AMOUNT. SO AS ASAYSED VALUATION GROWS, WE'RESESSED VALUATION GROWS, WE'RE COLLECTING A FIXED DOLLAR AMOUNT SO THEY CAN ASSESS THAT AS MORE HOMES ARE BUILT AND MORE COMMERCIAL BUSINESSES ARE BUILT, THAT MONEY IS DISTRIBUTED SO EACH TAXPAYER IS PAYING LESS PER THOUSAND. SO A HIGHER AV CREATES A LOWER TAX RATE AND THE REVERSE, IF AV ALL OF A SUDDEN DROPS, WE'RE STILL DIRCOLLECTING $67.7 MILLI BUT IF THE AV DROPS, THE TAX RATE INCREASES. ONE OF THE THINGS WE DO IS WE ESTIMATE AV GROWTH

[01:00:04]

THE TAX RATE DROPS. >> SIRI BLIESNER: THANKS. >> OKAY.

ANY OTHER QUESTIONS ON THAT? I KNOW IT'S A LOT OF DATA. >> CASSANDRA SAGE: I WOULD ADD THAT WASDA HAS TRAINING ON HOW TO DECIPHER YOUR BUDGET AND HOW ALL THOSE THINGS WORK AND EVERY SINGLE TIME I HAVE HAD A CONFLICT SO I'M REALLY LOOKING FORWARD TO TAKING THAT TRAINING

SO THIS COMES NATURALLY TO ME. >> WE'LL HAVE VIDEOS THAT WE SHARE WITH OUR LEVERAGE ADVISORY COMMITTEE, TOO, THERE ARE GOOD VIDEOS ABOUT HOW TAX RATES WORK, WHAT'S THE DIFFERENCE BETWEEN A LEVY AND BOND, SO THERE'S SOME GOOD 3-MINUTE, QUICK TUTORIAL OR BASIC INFORMATION VIDEOS.

>> CASSANDRA SAGE: I HAVE SEEN THOSE, THEY HAVE BEEN GREAT BUT A DEEP DIVE.

>> SIRI BLIESNER: SO IT LOOKS LIKE WE HAVE BETWEEN $2,270 TO $2,700 AS THE SCALE.

>> YEAH, THE $2,500 IS AN OLD NUMBER AND NOW THE MAXIMUM NUMBER IS ABOUT $2,700, TOO, SO

THAT'S THE OTHER PIECE OF THAT. BECAUSE IT'S BEEN INFLATED. >> CHRISTOPHER CARLSON: SO WE'RE SPENDING A LOT OF TIME ON THIS SLIDE AND I'M TRYING TO UNDERSTAND, ARE YOU ASKING FOR

OUR FEEDBACK ON WHETHER WE THINK THIS IS A GOOD IDEA? >> ERIC LALIBERTE: I DON'T THINK

SO YET. >> NOT YET. IT'S JUST PROVIDING INFORMATION RIGHT NOW AND THEN WE'LL HAVE TIME AT THE END FOR DISCUSSION AND FEEDBACK.

>> CHRISTOPHER CARLSON: OKAY. >> OKAY. SO ONE OF THE THINGS I WANTED TO BRING BACK TO, EVERY YEAR WE BRING TO THE BOARD A MULTIYEAR BUDGET PROJECTION AND WE SHARED IN A STUDY SESSION OUR BUDGET ASSUMPTIONS FOR THE 2021-22 SCHOOL YEAR.

SO OUR MULTIYEAR BUDGET PROJECTION ASSUMED OUR EP&O WOULD GROW AT THE SAME RATE AS OUR AV ASSUMPTION SO THAT, I WANTED TO MAKE SURE YOU KNEW WHAT WAS IN OUR MULTIYEAR BUDGET PROJECTIONS SO THE EP&O WOULD BE INFLATED BY 3 TO 4% EACH YEAR WITH A TAX RATE OF 90¢.

>> DR. JOHN HOLMEN: WHY DON'T WE PAUSE HERE, ANSWER ANY ADDITIONAL QUESTIONS ABOUT EP&O AND MONITORING NATURAL STOPPING POINTS TO TAKE BREAKS THROUGHOUT THE DAY, I THINK THIS IS ONE OF THOSE. WHY DON'T WE ANSWER MORE INFORMATIONAL TYPE QUESTIONS AROUND EP&O AND THEN IF THERE ARE NONE, JUST TAKE A 10-MINUTE BREAK.

>> OKAY. >> SIRI BLIESNER: IF I CAN ASK, IN REGARDS, THIS TELLS US WHERE WE'RE AT CURRENTLY, BUT WE ALSO HAVE BEEN HAVING THE CONVERSATION OF WHAT THE THOUGHT

IS FOR THE UPCOMING, IS THAT COMING TODAY OR FOR ANOTHER -- >> DR. JOHN HOLMEN: THE KEY QUESTIONS AT THE BEGINNING REALLY WAS TO HAVE THE BOARD START THINKING ABOUT WHAT DIRECTION DO WE WANT TO START HEADING? THERE'S RATIONALE FOR STATUS QUO, THERE'S RATIONALE FOR THINKING OF A DIFFERENT LEVY AMOUNT, SO REALLY WE WANT TO HEAR THE BOARD'S THOUGHTS ABOUT THAT TODAY. TO ME, IT'S ALL IN CONTEXT OF THE TOTAL PICTURE OF THE FOUR FUNDING STREAMS, IF YOU WILL, THAT CURRENTLY THE DISTRICT IS LEVYING THE COMMUNITY AND SO I DON'T THINK IT'S JUST A SINGULAR CONVERSATION.

I THINK IT'S BROADER THAN THAT. SO THAT'S WHY, FOR US, IT'S ABOUT MAKING SURE THE BOARD HAS THE INFORMATION, HAS QUESTIONS ANSWERED SO THAT WHEN WE ARE ADDRESSING THOSE KEY QUESTIONS,

THAT IT'S REALLY HOLISTIC. DOES HA HELP? >> SIRI BLIESNER: I DOES.

THE 1 PIECE THAT I THINK WILL BE HELPFUL IS BEING ABLE TO KNOW AS WE LOOK FORWARD TO THE UPCOMING 4 YEARS, WHAT ARE THE PLANS AND GOLDS WE'RE LOOKING FOR TO BE ABLE TO DO AND THE DIFFERENT

[01:05:05]

ANY ONLY REQUEST. >> ERIC LALIBERTE: OKAY. LET'S TAKE A 10-MINUTE BREAK.

9:17. WE'LL RETURN AT 9:27. CHRIS, DID YOU GET THAT?

>> CHRISTOPHER CARLSON: SAY AGAIN? >> ERIC LALIBERTE: 10-MINUTE

OKAY. LOOKS LIKE WE'RE BACK. >> ALL RIGHT.

READY? OUR NEXT SEC THAT WE'RE GOING TO TALK ABOUT IS OUR CAPITAL PROJECTS LEVY ANDTION THAT WE'R GOING TO TALK ABOUT IS OUR CAPITAL PROJECTS LEVY AND PLANNING. SO OUR GOALS FOR THIS SECTION, AGAIN, THE BOARD WILL UNDERSTAND OUR LONG TERM FINANCING PLAN. THE BOARD WILL UNDERSTAND OUR CAPITAL PROJECTS LEVY ASSUMPTIONS AND UNDERSTAND OUR FACILITY AND TECHNOLOGY PROJECT HIGHLIGHTS AND PRIORITIES AND THEN REVIEWING THE ELECTION REQUIREMENTS AND RESULTS. SO BRINGING US BACK TO THIS CHART, WE'RE FOCUSED HERE ON THE ORANGE RATE, THE 52¢ PER THOUSAND FOR OUR CAPITAL PROJECTS LEVY. IN OUR LONG TERM FINANCING PLAN FOR THE CAPITAL PROJECTS LEVY, THE ASSUMPTION WAS THAT THE LEVY WOULD GROW AT THE SAME RATE OF AV ASSUMPTIONS, SO 21-22, THESE ARE THE AMOUNTS THE VOTERS HAVE APPROVED. THIS WOULD BE THE NEXT 4-YEAR AMOUNT AND THE RATE WOULD REMAIN LEVEL AT 52¢ PER THOUSAND. JUST TO SHOW YOU THE DOLLAR AMOUNTS IN THE LEVY, IN 2018, OUR VOTERS APPROVED THE FOLLOWING AMOUNT.

THEY APPROVED $34 MILLION THROUGH $39 MILLION IN THE 2018 LEVY, SO A TOTAL OF $146 MILLION AND THEN THAT WAS BROKEN OUT INTO $52 MILLION FOR FACILITIES AND $94 MILLION FOR TECHNOLOGY.

IN 2022 WITH THOSE AV ASSUMPTIONS AND INFLATION INCREASE, THE AMOUNTS WOULD BE $40 MILLION TO $44 MILLION FROM 23 TO 26 FOR A TOTAL LEVEL OF $170 MILLION BROKEN OUT $61 MILLION FOR TECHNOLOGY AND $109 MILLION FOR -- SORRY, $61 MILLION FOR FACILITIES AND $109 MILLION FOR TECHNOLOGIES. I'M GOING TO HAVE BRIAN AND SALLY REVIEW -- BRIAN, OUR EXECUTIVE DIRECTOR OF SUPPORT SERVICES, I'M GOING TO HAVE HIM REVIEW THE CATEGORIES OF OUR CAPITAL PROJECTS LEVY. BRIAN? MAYBE HOLD THE MIC.

>> IS THAT BETTER? >> THAT'S BETTER. >> OKAY, SO THE CAPITAL PROJECTS LEVY IS CATEGORIZED INTO FOUR MAJOR CATEGORIES. BUILDING SYSTEMS IMPROVEMENTS, SCHOOL AND PROGRAM IMPROVEMENTS, CODE AND SAFETY IMPROOICHLTS, ATHLETIC AND PLAY FIELD UPGRADES. OUR FIELD SYSTEMPROVEMENTS, ATHLETIC AND PLAY FIELD UPGRADES. OUR FIELD SYSTEM IMPROVEMENTS IS THE REPLACEMENT OF CRITICAL INFRASTRUCTURE IN THE BUILDING, ROOFS, MECHANICAL, HEATING, VENTILATION, PLUMBING AND ELECTRICAL AS WELL AS ENVELOPE ROOFING AND EXTERIOR PAINTING AND OTHERS LIKE THAT.

IN THE SCHOOL AND PROGRAM IMPROVEMENTS SECTION, THIS IS PRIMARILY PROJECTS RELATED TO CLASS ROOM CONVERSIONS AND CLASSROOM CONVERSIONS LIKE PORTABLES, PROGRAMS LIKE SPECIAL SERVICES AND OTHER ITEMS RELATED TO SCHOOL PROGRAMS FOR CODE COMPLIANCE HEALTH AND SAFETY, WE'RE LOOKING AT ADA COME GRANDS AND UPGRADES. AS FENCING AND SECURITY, TRAFFIC FLOW IMPROVEMENTS AND STUDENT AND DROP OFF AREA IMPROVEMENTS. ALL ATHLETIC AND PLAY FIELD

[01:10:09]

MILLION OF NEW PROJECTS. >> AND BRIAN, BEFORE YOU START ON THAT, THE NEXT HANDOUT THAT YOU HAVE THIS YOUR PACKAGE, SO SAY 20224-YEAR CAPITAL PROJECTS LEVY REPLACEMENT ON IT AND IF YOU FLIP THE PAGE OVER, IT HAS FACILITIES ON IT AND SO BRIAN EXPLAINED MANY OF THOSE THINGS AS HE WALKED THROUGH BUT THESE ARE THE DETAILS IN EACH OF THESE AREAS.

GO AHEAD. >> YEAH, SO THESE ARE JUST ESTIMATED ANNUAL AVERAGES IN THESE FOUR CATEGORIES, BUT I WANTED TO TOUCH ON ABOUT $10.4 MILLION OF NEW PROJECTS.

ONE IS THE WASHINGTON CLEAN BUILDING ACT, WHICH IS HOUSE BILL 1257, WHICH IS FROM 2019.

THERE'S AN EARLY ROLLOUT THAT WE ESTIMATE APPROXIMATELY $4 MILLION ADDED PROJECTS.

WE HAVE ADA PLAYGROUND UPGRADES. THIS IS TO MAKE OUR PLAYGROUNDS MORE ACCESSIBLE, BOTH IN COMPONENTS AND IN SURFACING AND THIS WOULD BE PART OF A LIFE CYCLE ROLLOUT.

WE ARE LOOKING TO UPGRADE SOME GENERATORS AT MULTIPLE SITES, INSTALLING WATER BOTTLE FILLING STATIONS TO DISTRICT STANDARD DISTRICT WIDE, THE INSTALLATION OF RADIO AND CELLULAR BOOSTERS AS WELL AS INSTALLING PHYSICAL EMERGENCY LOCK DOWN BUTTONS DISTRICT WIDE.

>> AND THOSE NEW THINGS ARE BECAUSE WE HAD OTHER SAFETY ITEMS WE COMPLETED IN THE 2018 LEVY AND SO WE'RE ABLE TO REPLACE THOSE THINGS WITH THESE ITEMS BECAUSE THERE'S INFLATION

AND THAT. >> SIRI BLIESNER: CAN I ASK A QUICK CLARIFYING QUESTION? IT HAS THE CAPITAL PROJECTS LEVY 2022. I'M SEEING DIFFERENT NUMBERS SO

I'M TRYING TO FIGURE OUT HOW THEY RELATE TO EACH OTHER. >> WHICH NUMBERS ARE DIFFERENT?

ON THE FACILITIES PAGE? >> SIRI BLIESNER: FLIP IT OVER, THANK YOU.

>> RIGHT. ANY QUESTIONS ON THE FACILITIES PORTION OF THE LEVY? I'M GOING TO HAVE SALLY GO OVER THE TECHNOLOGY PORTION. AND YOU CAN FLIP BACK OVER ON

THIS PAGE TO THE TECHNOLOGY SIDE. >> THINK.

SO THE TECHNOLOGY LEVY PORTION COVERS FIVE DISTINCT CATEGORIES ACROSS THREE DEPARTMENTS IN THE DIVISION. TECHNOLOGY INFRASTRUCTURE AND SUPPORT IS WHAT I CALL THE DIGITAL HIGHWAY THAT NETWORK AND SERVERS AND SECURITY AND THINGS THAT ALLOW US TO COMMUNICATE, CONDUCT OTHER DOES AND FOR STUDENTS AND TEACHERS, TOO, AND THAT TRANSACTIONS ACROSS THE NETWORK. EQUIPMENT IS THOSE THINGS THAT EACH OF US USE, COMPUTERS, CAMERAS, VARIOUS ITEMS THAT WE USE AT THE USER END, SMART BOARDS, THAT KIND OF THING.

SOFTWARE, OUR SUPPLEMENTAL APPLICATIONS AND TOOLS FOR STUDENTS TO SUPPORT THEIR LEARNING. BUSINESS AND TECHNOLOGY SYSTEMS, WE HAVE A PLETHORA OF BUSINESS SYSTEMS THAT RUN OUR DISTRICT, THINGS LIKE SKYWARD, HR FINANCE TRANSPORTATION, OUR PROFESSIONAL LEARNING MANAGEMENT SYSTEM, THOSE KINDS OF SYSTEMS. AND THEN TECHNOLOGY, TRAINING, AND PROFESSIONAL DEVELOPMENT IS FUNDS TO HELP OUR TEACHERS MAINTAIN THEIR TECHNOLOGY EXPERTISE. IT ALSO FUNDS OUR PROGRAM WHERE WE HAVE TECHNOLOGY INTEGRATION, PROFESSIONALS IN THE BUILDINGS THAT ASSIST WITH LEARNING NEW TECHNOLOGY AND THEY WERE CRITICAL THIS YEAR WITH OUR REMOTE LEARNING ENVIRONMENT. BREAKING IT DOWN ON A PER YEAR BASIS AND WHAT'S DIFFERENT, IN THE TECHNOLOGY AND INFRASTRUCTURE SUPPORT SECTION,

[01:15:04]

WE HAVE AN OPPORTUNITY WITH FUNDING SUCH AS A LEAD REQUEST WILL BE AN EXAMPLE.

AND THEN A DATA WAREHOUSE DATA PI DASHBOARD. TIM IS WORKING ON IT RIGHT NOW, BUT WE'LL BE ABLE TO MAKE IT SO THAT WE CAN COMBINE AND PRESENT ALL KINDS OF DATA THAT WILL HELP US WITH OUR PERFORMANCE IMPROVEMENT AND MANAGEMENT OF THE DISTRICT.

AND THEN ANOTHER NEW ITEM THIS YEAR IN THAT CATEGORY IS WHAT WE'RE USING TODAY, OUR PUBLIC BROADCASTING AND BOARD MEETING SUPPORT. LASTLY IN THE TECHNOLOGY TRAINING AND PROFESSIONAL DEVELOPMENT AREA, IT'S PRETTY MUCH THE SAME, WE JUST INCREASED THE FUNDING. THIS PROVIDES FUNDING FOR SOME OF OUR TEACHERS ON SPECIAL ASSIGNMENTS IN THE TECHNOLOGY AND GROWTH AREA UNDER MINDY MALIN AND PROVIDES FUNDING FOR TEACHERS AS THEY DEVELOP THEIR EXPE EXPERTISE IN TECHNOLOGY.

>> MARK STUART: IT'S GREAT THAT WE'RE TEACHING FOLKS NEWER SYSTEMS. ARE WE ALSO PUTTING ASIDE BUDGET FOR TEACHING THE TEACHERS AND PARAS AND IAS TO LEARN HOW TO

USE THE TECHNOLOGY, PARTICULARLY THE SPEAKING DEVICES? >> I DIDN'T HEAR THE LAST, IN

PARTICULAR? >> I'M TRYING TO REMEMBER THE NAME.

IT'S AN ACRONYM BUT I'M FAILING TO REMEMBER IT, ASSISTIVE TECHNOLOGY SO THE STUDENT CAN WRITE OUT WHAT HE WANTS TO SAY FROM THE VOCABULARY THAT'S ON THERE AND COMMUNICATE WITH THE TEACHERS AND OTHER STUDENTS. IT'S ONLY USEFUL IF THE TEACHERS USE IT AND THE PARAS USE IT.

[01:20:05]

>> RIGHT, THE TECHNOLOGY WE PURCHASE IS IN COORDINATION WITH THE SPECIAL EDUCATION DEPARTMENT. THEY HANDLE THE TRAINING AND THE USE OF THE APPLICATION DEPENDING ON THE STUDENT'S NEED. WE DO THE PROCUREMENT AND WE WORK HAND IN HAND WITH THE

PEOPLE THAT ARE THE EXPERTS. >> ALL RIGHT, GOT YOU. THANK YOU.

>> SIRI BLIESNER: AS I GO THROUGH THIS, 1 PIECE THAT MIGHT BE HELPFUL IS TO THINK OF IS WHAT ARE THE TOP THREE GOALS OF THAT LEVY FOR THOSE 4 YEARS? I SEE A LOT OF PROJECTS BUT I'M TRYING TO THINK OF HOW DOES THERE TIE TO OUR RESULTS? OUR STUDENT LEARNING? AND MAKE SURE THAT WE'RE REALLY CLEAR IN THOSE ENDEAVORS IN HOW THAT CONNECTS.

I THINK OF THE ADA PLAYGROUNDS, THAT'S VERY CLEAR TO THE WORK WE'RE TRYING TO DO WITH EQUITY AND INCLUSION BUT HOW DO THESE BUILD TO OUR AVERILL MISSION OF SERVING? I THINK THAT WOULD BE HELPFUL AS WE TRY TO WORK THROUGH HOW THIS ALL FITS AND IF IT DOESN'T, WHAT DO WE NEED TO DO TO MAKE SURE THAT DOT FIZZ SO IT WOULD HELP TO HAVE THAT ARTICULATED A

LITTLE MORE. DOES THAT MAKE SENSE? >> CASSANDRA SAGE: IS Q A NEW

PLATFORM? >> IT'S A NEW VERSION OF SKYWARD.

SKYWARD HAS MODULES THAT DON'T TALK TO EACH OTHER. Q IS BEING BUILT ON SQL SO WE CAN MINE AND USE ANY DATA FROM ANY OF THE MODULES AS WELL AS THE USER INTERFACE IS MUCH MORE

MODERN AND FLUID FOR PEOPLE TO USE. >> SO THERE ARE ALREADY TESTS, YOU CAN PLAY WITH IT AND TEST IT? OR IS IT NOT OUT YET?

>> WE ARE RUNNING A TEST SITE IN BACKGROUND IN PARALLEL WITH OUR SYSTEMS TODAY.

IT'S A MULTIMONTH ENDEAVOR THE TEST BUT WORK HAS BEGUN TO MAKE SURE IT DOES WHAT WE NEED IT TO DO IN OUR ENVIRONMENT. BUT WE HAVE OTHER DISTRICTS IN THE STATE THAT HAVE GONE BEFORE US THAT ARE SMALLER SO WE'RE NOT THE GUINEA PIGS. WE PUT IT OUT PURPOSELY TO THIS

TIME FRAME. >> I HAVE HEARD OTHER DIRECTORS IN OTHER DISTRICTS TALK ABOUT THEIR FRUSTRATION WITH SKYWARD. I HAVE NOT TALKED YET WITH ANYONE WHO HAS USED Q AND IT WOULD BE GREAT IF ANYBODY HAS ANY INFORMATION ON WHERE I CAN LOOK OR KNOWS WHICH DISTRICTS THEY ARE SO I CAN CALL ONE OF THOSE DRECK TOURS. I'M SURE THEY WILL TELL ME IT'S

MUCH BETTER THAN SKYWARD. >> THEY WILL. I WILL JUST TAKE A NOTE TO

FOLLOWUP. >> DR. JON HOLMEN: SALLY AND I STARTED TALKING ABOUT THIS WHEN SHE WAS DEPUTY 3 YEARS AGO. THIS HAS BEEN IN THE WORKS AND WE MET WITH SIPSI A NUMBER OF TIMES AND MAPPED THIS OUT AND PLANNED OUT OUR IMPLEMENTATION DATE KNOWING THAT IT IS OUR FISCAL HR AND STUDENT INFORMATION SYSTEM THAT WILL BE TRANSITIONING.

>> SIRI BLIESNER: SO THROUGH THE CONVERSATION IT'S CLEAR THERE'S A LARGER PLAN THAT THIS IS PLAYING INTO, SO TRYING TO UNDERSTAND THAT COMPONENT AS WELL AS TO WHAT PIECE OF THIS GOING FORWARD, I APPRECIATE THE ONE TO ONE IMPLEMENTATION LISTED IN HERE BECAUSE SINCE WE DID DO IT, THAT'S A LEARNING WE BRING FROM SO THERE'S THESE COME PONTES WHERE WE'RE WORKING TO ENSURE THE ACCESS TO ALL OF THAT, BUILD THAT YET AGAIN INTO HERE'S WHERE WE'RE GOING AND

THIS IS WHY WE NEED THE FUNDING TO MOVE THESE THINGS FORWARD. >> I HAVE WHAT I CALL AN OPERATIONAL PLAN FOR THE 18, 2018 LEVY AND WE CAN PROVIDE THE HIGHLIGHTS FOR THE 2022.

WE WON'T GIVE YOU THE DETAILS BECAUSE IT'S SEVERAL PAGES THICK.

>> SIRI BLIESNER: A ONE PAGE SUMMARY. >> OKAY.

[01:25:11]

>> ANY OTHER QUESTIONS FOR SALLY OR BRIAN? OKAY.

SO THE LAST SLIDE IN THIS SECTION IS REALLY JUST THE ELECTION REQUIREMENTS AND HISTORY. SO SIMILAR TO THE GENERAL FUND EP&O LEVY, THE CAPITAL PROJECTS LEVY MUST BE WE NEWED BY VOTERS EVERY 4 YEARS AND REQUIRES A 50% APPROVAL TO PASS ANDIC SEE BELOW OUR ELECTION RESULT TRENDS ARE SIMILAR TO OUR GENERAL FUND WHERE IN 2006 WE WERE CLOSE TO 68%, DROPPED IN 2010 AND THEN IN 2014, 64% AND THEN THE MCCLEARY AND THE 10% OR 9% DROP IN 2018.

ALL OUR LEVIES HAVE PASSED WITH THE 50% APPROVAL. >> ERIC LALIBERTE: IT TRACKS

VERY CLOSELY, THE RESULTS FOR THE EP&O. >> CORRECT.

>> ERIC LALIBERTE: WITHIN A PERCENTAGE POINT EACH YEAR IT SEEMS.

>> YEAH. >> SIRI BLIESNER: IN LOOKING AT THIS TECHNOLOGY PIECE AND KNOWING THAT THIS HAS BECOME PART OF A SYSTEM TO EDUCATION, HOW MUCH FUND DOG WE RECEIVE IN OUR ALLOCATION FROM THE STATE? IS IT ONLY THE LEVIES THAT SUPPORTS OUR TECHNOLOGY

COMPONENT? >> THE STATE PROVIDES AND THAT DRIVES STAFFING ALLOCATIONS FOR TEACHERS, ADMINISTRATORS AND CLASSIFIED STAFF. WITHIN THE CLASSIFIED STAFFING FORMULA, THEY DO BREAK OUT SOME FUNDING FOR CUSTODIANS, FOR NURSES, FOR TECHNOLOGY, BUT, AGAIN, WHAT'S PROVIDED IN THE GENERAL FUND IS NOT SUFFICIENT ENOUGH FROM WHAT WE NEED TO SUPPORT OUR TECHNOLOGY. SO FROM A STAFFING PIECE AND THEN THEY ALSO PROVIDE AND WE CAN PROVIDE THESE ADDITIONAL DETAILS WITHIN WHAT WE CALL MSOC, THE MATERIAL SUPPLIES AND OPERATING COSTS, THAT'S THE NONSALARY PIECE. OUT OF THAT THERE'S THE DESIGNATION FOR TECHNOLOGY. IT BARELY COVERS THE PAPER AND PENCILS THAT WE NEED FOR THE STAFF BUT WE CAN PROVIDE THOSE DETAILS WHAT THE GENERAL FUND COVERS AND WHAT WE NEED IN

ADDITIONAL SUPPORT OUT OF THE LEVY. >> SIRI BLIESNER: RIGHT, I DO THINK THAT'S A KEY COMPONENT TO BE THINKING ABOUT, ESPECIALLY AS THIS IS A KEY COMPONENT OF THE EDUCATION THAT'S PROVIDED AT THIS POINT IN TIME DURING THE PANDEMIC, IT ALLOWED US TO DO REMOTE AND NOW CONCURRENT LEARNING AT THIS POINT IN TIME BUT IT'S NOT FUNDED THROUGH STATE DOLLARS, IT REALLY IS FUNDED LOCALLY. NOW, WE NEED TO BE ADVOCATING AT THE STATE LEGISLATURE THAT THEY NEED TO PROMOTE TECHNOLOGY IF WE'RE GOING TO MOVE PUBLIC EDUCATION FORWARD BUT AT THIS POINT, WE'RE NOT THERE AND THIS IS THE ONLY OPTION WE HAVE.

>> DR. JON HOLMEN: BARBARA, THIS IS A QUESTION WE ASKED IN THE PAST AND IF I REMEMBER CORRECTLY, IN MSOC FUNDING, IT'S BETWEEN $3 MILLION TO $4 MILLION AND OUR PROJECT COST IS $25

MILLION TO $30 MILLION ANNUALLY. IS THAT IN THE BALLPARK? >> PROBABLY.

I WOULD HAVE TO GET THOSE NUMBERS. >> DR. JON HOLMEN: BUT THAT'S

GENERALLY ABOUT WHERE WE ARE? >> YES. WE'LL PUT SOME DATA TOGETHER TO

SHARE THAT. >> GREAT. ANY OTHER QUESTIONS?

ALL RIGHT. >> DR. JON HOLMEN: BEFORE WE MOVE TO FACILITY PLANNING, I FEEL COMPELLED TO BRING UP A SLIDE FROM OUR BUDGET PRESENTATION THIS LAST TIME AROUND GE U.S. TO MAKE SURE, BUZZ WHEN WE THINK ABOUT OUR EDUCATION PROGRAMS AND OPERATIONSJUST TO MAKE SURE, BU WHEN WE THINK ABOUT OUR EDUCATION PROGRAMS AND OPERATIONS LEVY, I WANT TO BE CLEARPROGRAMS AND OPERATIONS LE WANT TOEDUCATION PROGRAMS AND OPERATIONS LEVY, I WANT TO BE CLEAR WITH THE BOARD BECAUSE WHEN WE'RE SEEKING FEEDBACK AND GUIDANCE LATER IN THE DAY, I WANT US TO HAVE A GOOD CONVERSATION SO LET ME PULL UP

[01:30:03]

YOU CAN SEE HERE THE VERY BOTTOM ROW, IT SHOWS EXPENDITURES IN EXCESS OF REVENUES AND MOVING FORWARD AND INCLUSIVE OF THIS YEAR, WE'RE SPENDING ABOUT $20 MILLION OF OUR FUND BALANCE TO COVER OUR CURRENT EXPENDITURES. IF YOU GO TO THE SECOND FROM THE BOTTOM ROW, YOU CAN SEE THE FUND BALANCE STARTS TO DECLAN AND IS ESTIMATED CURRENTLY AND WE KNOW THISINE AND IS ESTIMATED CURRENTLY AND WE KNOW THIS WILL BE UPDATED AS ENROLLMENT BECOMES CLEAR IN A FEW OTHER PIECES BUT AS OF TODAY, WE'RE ESTIMATE THAT HAD OUR ENDING FUND BALANCE WILL BE AROUND $25 MILLION. WITH THAT, THAT IS NOT A SUSTAINABLE MODEL FOR US AS A DISTRICT. OUR MINIMUM FUND BALANCE IS 25% WHICH IS RIGHT AROUND $25 MILLION. JUST TO BE CLEAR, THERE HAS TO BE SOMETHING DONE TO REMEDY THIS SITUATION. IF THERE IS NO ADDITIONAL REVENUE, WE'LL HAVE TO GO THROUGH A BUDGET CUT PROCESS AND REALLOCATION OF OUR BUDGET AND THAT'S A PROCESS THAT WE WOULD GO THROUGH. THERE'S A FEW DIFFERENT WAYS TO DO THATMENT ONE IS TO WAIT UNTIL THE LAST POINT IN TIME AND DO A COMPLETE CUT. THE OTHER IS TO START OVER THE NEXT FEW YEARS DOING SMALLER LEVELS OF CUTS, OR INCREASED REVENUE SO THOSE ARE THE TWO OPTIONS AT THE POINT. EACH YEAR THE BUDGET BECOMES CLEAR ONCE THE LEGISLATIVE SESSION CONCLUDES, THAT WILL OCCUR AGAIN THIS YEAR, AND SO I JUST WANTED TO BE CLEAR ABOUT THAT AND WE KNEW 4 Y'4 YEARS AG THAT MCCLEARY WOULD CHANGE HOW WE RECEIVED FUNDING FROM THE STATE AND ALSO CHANGE OUT WE THINK ABOUT OUR LOCAL LEVIES. WE DIDN'T KNOW EXACTLY HOW TWO, WE HAD BEEN PREPARING FOR WHAT WAS CALLED AT THAT TIME THE LEVY CLIFF.

THERE WAS A POTENTIAL THAT WE WOULD HAVE A SUBSTANTIAL LOSS OF REVENUE, LOCAL REVENUE BECAUSE OF MCCLEARRY. BECAUSE OF THAT, WE HAD A VERY HEALTHY FUND BALANCE AND WE WERE EXTREMELY PREPARED FOR THAT MOMENT IN TIME. AS YOU KNOW, THE MCCLEARY PORTION DIDN'T AFFECT US AS MUCH AS OTHER DISTRICTS BUT THE MCCL EARY DECISION HASN'T AFFECTED US LIKEMCCLEARY DECISION HASN'T AFFECTED US LIKE OTHER DISTRICTS.

I WANTED TO MAKE SURE WE'RE CLEAR ABOUT THAT AS WELL BECAUSE I'M HEARING WE WERE NOT AS CLEAR

WHEN WE PRESENTED THE BUDGET AROUND THAT. >> CASSANDRA SAGE: JON, DO YOU

HAVE A COPY OF THE SLIDE YOU CAN E-MAIL US? >> DR. JON HOLMEN: I WILL SEND THIS TO THE BOARD AND WE WILL INCLUDE IT IN BARBARA'S PRESENTATION.

IT'S JUST IN A SEPARATE SLIDE DECK RIGHT NOW BY WE'LL INCLUDE THAT.

I WILL SEND IT TO THE BOARD SO YOU HAVE THAT AS WELL. >> CASSANDRA SAGE: OKAY.

>> ERIC LALIBERTE: COULD I ASK A QUESTION FOLLOWING UP ON THIS SLIDE? LOOKING AT THE 2020-2021 ESTIMATED BUDGET, A BIG -- IT'S OBVIOUS LOOKING AT IT, THE BIG DRIVER OF THE EXPENDITURES AND EXCESS REVENUES IS AN EXPECTED DROP IN REVENUES BASED ON ENROLLMENT, BASED ON A CONSERVATIVE ESTIMATE OF WHAT ENROLLMENT WILL BE?

I GUESS BASED ON WHAT WE KNOW NOW. >> SO FOR 2021, THAT'S WHAT

[01:35:02]

WE'RE NOT ANTICIPATING TO ALL OF A SUDDEN GAIN MORE ENROLLMENT IN THE LAST COUPLE OF MONTHS.

SO OUR REV KNEW LOSSES ARE PRETTY WELL-KNOWN RIGHT NOW. THAT CARRIES FORWARD AND WE'RE ANTICIPATING CONTINUED ENROLLMENT DECLINE FOR THE 21-22 SCHOOL YEAR AND SO SHOULD

THAT -- >> DR. JON HOLMEN: AND THAT'S NOT OVERALL BUDGET, IT'S A

BUDGETED. >> IT'S A BUDGETED ENROLLMENT DECLINE SO THAT COULD CHANGE

DEPENDS ON WHAT HAPPENS THIS FALL. >> ERIC LALIBERTE: GOT IT, THANK YOU. THANK YOU FOR REMINDING ME WHAT YEAR WE'RE IN AND FOR CLARIFYING

THAT. >> DR. JON HOLMEN: IF ENROLLMENT COMES IN HIGHER THAN PROJECTED, IT DELAYS THIS. IT PUSHES THIS OUT BUT IT DOESN'T ELIMINATE THE ON GOING

EXPENDITURES BEING HIGHER THAN REVENUES. >> YEAH, WHEN ENROLLMENT GOES UP, YOU HAVE TO HIRE MORE STAFF TO HIRE THOSE STUDENTS AND WHEN ENROLLMENT GOES DOWN, YOU HAVE

LESS STAFF. >> CHRISTOPHER CARLSON: THESE NUMBERS, ARE THEY ASSUMING THAT

IN 22 WE PASS AN EP&O THAT KEEPS US AT A STABLE LEVEL OF LEVY? >> YEAH, THE 4-YEAR ASSUMPTIONS THAT WE PRESENTED IN THESE NUMBERS ASSUME THE CONTINUED EP&O AMOUNT WITH JUST THE

INFLATIONARY ADJUSTMENT. >> CHRISTOPHER CARLSON: OKAY. >> DR. JON HOLMEN: THANK YOU FOR

ASKING THAT QUESTION SO WE COULD PROVIDE CLARITY. >> CHRISTOPHER CARLSON: TWO REASONS I ASKED IT, ONE F WE WERE ASSUMING WE DIDN'T PASS A NEW EP&O, IT WOULD BE WORSE THAN THIS SCENARIO AND THE OTHER IS AT SOME POINT WE NEED TO HAVE A CONVERSATION ABOUT THE MCCLEARY.

I THINK IT'S A GOOD IDEA FOR US TO FOREGO ANY EXTRA WE WOULD BE ALLOWED TO COLLECT UNDER MCCLEARY BECAUSE I DON'T THINK WE WANT TO GO BACK TO THE VOTERS WITH, YEAH, WE WOULD LIKE TO RAISE YOUR TAXES. TAXES WITH A VALUATION AND FOR US TO INCREASE THE RATE I THINK

THE A BAD IDEA. >> DR. JON HOLMEN: THANK YOU, CHRIS.

IF YOU CAN BRING THOSE COMMENTS BACK AT THE END OF THE DAY WHEN WE'RE CAPTURING THAT, I HAVE

WRITTEN IT DOWN BUT BRINGING THAT BACK, IT WOULD BE HELPFUL. >> ALL RIGHT, WE'LL MOVE ON TO THE NEXT SECTION, OUR FACILITY PLANNING SECTION. SO OUR GOALS HERE IS THE BOARD WILL REVIEW OUR ENROLLMENT AND CAPACITY DATA AND THEN WE HAD SOME QUESTIONS, A BOARD MEMBER ASKED FOR INFORMATION ON OUR PROPERTY, OUR UNDEVELOPED LAND AND WE UNDERSTAND THE RECOMMENDATIONS AND THEN THE BOARD WILL UNDERSTAND SCHOOL FACILITY FINANCE OPTIONS.

FIRST I WANT TO REVIEW OR STATUS. DEMOGRAPHIC PROJECTIONS WERE GIVEN TO THE BOARD IN JANUARY. JUST WANTED TO SHARE WITH YOU OUR ENROLLMENT HAS CONTINUED TO GROW IN LAKE WASHINGTON SO WE ARE PROJECTING ANOTHER 3300 STUDENTS AND THIS FOLLOWS SIGNIFICANT GROWTH OF ABOUT 7,000 STUDENTS SINCE 2008. YOU CAN SEE WE HAVE A SIGNIFICANT NUMBER OF OUR CAPACITY BEING SERVED THROUGH PORTABLES.

[01:40:01]

THE BLUE IS OUR PERMANENT CLASSROOMS. THE PINK IS PORTABLE CLASSROOMS AND BY 29-30, WE WON'T EVEN HAVE ENOUGH PERMANENT PLUS PORTABLE CLASSROOMS TO HOUSE THE PROJECTED ENROLLMENT GROWTH. THE NEXT FOUR SLIDES SHOW CAPACITY, THE PERMANENT CAPACITY AND THE ENROLLMENT PROJECTIONS BY ELEMENTARY, MIDDLE AND HIGH SCHOOL AND, AGAIN, THESE ARE BASED ON ANALYSTIC FORECASTS FROM JANUARY 2021. THEY ASSUMED 85% OF OUR COVID LOSS WOULD RETURN AND WE'RE AWAITING FOR FALL TO SEE WHAT HAPPENS THIS FALL AND SEE ABOUT THOSE STUDENTS RETURNING. I HIGHLIGHTED IN EACH AREA ON THE RIGHT WHAT THE FACILITY ADVISORY COMMITTEE RECOMMENDATIONS WERE, THINKING WE WOULD SHARE THAT WITH THE BOARD AT THE END OF JANUARY AS WELL. IN THE JUANITA AREA, WITH THE OPENING OF JUANITA HIGH SCHOOL, THEIR CAPACITY IS 1800 STUDENTS AND THEY WITH WITHIN THEIR CAPACITY. A CHECK MARK MEANS WE'RE GOOD AT THE HIGH SCHOOL, WE PROJECT THROUGH 29-30. IN THE MIDDLE SCHOOL, THE FACILITY ADVISORY COMMITTEE RECOMMENDS WE REBUILD AND EXPAND THAT WILL HELP WITH THE SHORTFALL AND IT'S ONE OF OUR OLDEST BUILDINGS AND IS NEED OF UPDATING TO MEET OUR YOU AREN'T EDUCATIONAL SPECIFICATION AND WE'LL TALK ABOUT THE PROD THAT KAMIAKIN SITS ON AS WELL. IN THE PROPERTYTHAT KAMIAKIN SITS ON AS WELL. IN THE EPROPERTY THAT KAMIAKIN SITS ON AS WELL. IN THE ELEMENTARY AREAS, WE DO HAVE PROPERTY SHORTFALLS HIGHLIGHTED IN THE RED. WE BELIEVE WE HAVE ENOUGH CAPACITY AT THE ELEMENTARY LEVEL IN THE JUANITA AREA. SO MOVING ON TO THE LAKE WASHINGTON LEARNING AREA, IN THE HIGH SCHOOL, THEY WILL BEGIN TO EXCEED THEIR PERMANENT AND TOTAL CAPACITY.

WE DON'T HAVE ANY PORTABLES AT LAKE WASHINGTON HIGH SCHOOL ANYMORE WITH THE ADDITION THAT WE JUST OPENED, SO THE FACILITY ADVISORY COMMITTEE RECOMMENDED A LAKE WASHINGTON AREA CHOICE HIGH SCHOOL IN THEIR RECOMMENDATIONS. AT THE MIDDLE SCHOOL LEVEL, WE HAVE SIGNIFICANT PERMANENT SHORTFALLS AT THE MIDDLE SCHOOL, THAT'S ROSE HILL AND KIRKLAND MIDDLE SCHOOL SO THEY'RE RECOMMENDING THAT WE BUILD AN ADDITION AT KIRKLAND MIDDLE SCHOOL.

A PERMANENT SHORTFALL OF OVER 600 STUDENTS AND WE'RE ADDRESSING SOME OF THAT SHORTFALL WITH THE 2019 CONSTRUCTION LEVY PROJECTS. WE'RE BUILDING ADDITIONAL CLASSROOMS AT FRANKLIN, TWAIN AND ROSEHILL ELEMENTARY SO THAT'S SHOWN HERE.

THE FACILITY COMMITTEE IS STILL MAKING RECOMMENDATIONS THAT WE WILL NEED A LAKE WASHINGTON ELEMENTARY AT SOME POINT IN THE FUTURE. I WANT TO NOTE AND IT'S IN THE FOOTNOTE THAT WHEN THE FACILITY ADVISORY COMMITTEE WAS MAKING THE RECOMMENDATIONS, THEY WERE USING THE PROJECTIONS PRECOVID, TOO, AND THE LAKE WASHINGTON LEARNING AREA WAS HIT ESPECIALLY HARD WITH ENROLLMENT DECLINES DUE TO CRAVE SO THEIR PROJECTIONS, WHY THE FACILITY ADVISORY COMMITTEE RECOMMENDED BUILDING AN ELEMENTARY SCHOOL THERE AS WELL IS BECAUSE THEY HAD AN ADDITIONAL 500 STUDENT SHORTFALL AT THE TIME THE FACILITY ADVISORY COMMITTEE LOOKED, SO ANTICIPATING THAT THOSE STUDENTS WILL RETURN AND THE PROJECTIONS WILL CONTINUE TO GROW SO I JUST WANTED TO POINT THAT OUT. SO IN THE REDMOND LEARNING AREA,

[01:45:05]

UP TO CURRENT EDUCATIONAL SPECIFICATIONS. >> SIRI BLIESNER: SO THESE RECOMMENDATIONS WERE ALSO GIVEN BEFORE WE JUST APPROVED THE PURCHASE OF THE LAND?

>> THAT IS CORRECT. IN THE EAST LAKE LEARNING COMMUNITY, THERE'S A SMALL SHORTFALL AT EAST LAKE HIGH SCHOOL, THOUGH WE HAVE HAD TO DO INTERIOR MODIFICATIONS TO BRING THE CAPACITY HIGHER. EVEN THOUGH IT SHOWS THERE'S NOT A SIGNIFICANT SHORTFALL AT EAST LAKE, IT IS A SCHOOL THAT IS AT 2200 TO 2400 STUDENTS WHEN IDEAL FOR HIGH SCHOOL IS ABOUT 1800 TO 2,000 STUDENTS SO, AGAIN, THE FACILITY ADVISORY COMMITTEE RECOMMENDATION WAS TO BUILD A CHOICE SCHOOL THAT SERVES REDMOND AND EAST LAKE TO PULL THE CAPACITY OFF THOSE HIGH SCHOOLS TOPULL THE CAPACITY OFFH SCHOOLS TO REDUCE THAT. THE MIDDLE SCHOOL, THE RECOMMENDATION IS TO REBUILD AND EXPAND EVERGREEN ELEMENTARY. THEY HAVE A LOT OF PORTABLES ON THEIR SITE RIGHT NOW AND ELEMENTARY CAPACITY, WE ARE, AS PART OF THE 2019 CAPITOL CONSTRUCTION LEVY, WE'RE ADDING FOUR CLASSROOMS AT CARSON BUT STILL, EVEN WITH THAT, WE HAVE PERMANENT CAPACITY SHORTFALLS, THOUGH WE DO HAVE ENOUGH PORTABLES ON OUR SCHOOLS IN THE SAMMISH AREA TO HOUSE THE STUDENTS BUT ALCOTT IS A SCHOOL WITH 12 PORTABLES ON ITS CAMPUS, SO REBUILD AND ENLARGE THAT AND REBUILDING AND ENLARGING SMITH AS WELL.

JON SAYS THEY HAVE TEN PORTABLES. I'LL GO BACK AND LOOK.

>> DR. JON HOLMEN: ALCOTT HAS 12 AND SMITH HAS 10. >> I SAID ALCOTT HAS 12.

SMITH AS 10. OKAY. I THOUGHT YOU WERE CORRECTING MY ALCOTT. ALL RIGHT. ANY QUESTION BEFORE I MOVE ON TO

THE NEXT SECTION? >> DR. JON HOLMEN: DO YOU WANT TO FRAME -- SO WE HAVE FACILITY ADVISORY COMMITTEE RECOMMENDATIONS ON EACH OF THESE SLIDES.

WILL YOU TALK ABOUT HOW WE USE THOSE RECOMMENDATIONS IN OUR PLANNING FOR ALL THIS?

>> ABSOLUTELY. WE HAVE TAKEN RECOMMENDATIONS AND WE'LL SHOW LATER ON IN THE PRESENTATION THAT NOT ONLY DID THEY MAKE RECOMMENDATIONS ON SPECIFIC BUILDINGS TO BUILD BUT THEY ALSO MADE RECOMMENDATIONS TO US IN THE FINAL REPORT ON WHEN WE PLAN, EXPLORING PARTNERSHIPS AND THINGS LIKE THAT, BUT WE TOOK THEIR BUILDING RECOMMENDATIONS AND THEN WE ALSO WORKED WITH THEM TOO BREAK THESE RECOMMENDATIONS INTO PHASES SO WHAT ARE THEIR PRIORITIES FOR BUILDING IN A FIRST PHASE AND WHAT WOULD BE THE PRIORITIES IN A SECOND PHASE, KNOWING THE HIGHER PRIORITIES FOR CAPACITY NEEDS AND ALSO ADDRESSING AGING FACILITIES.

YOU WILL SEE LATER ON IN THE PRESENTATION THE PHASING THAT THE FACILITY ADVISORY R RECOMMENDED AND WE ALSO WORKED WITH THEM WITH FINANCING OPTIONS AND I WILL TALK ABOUT THAT LATER ON IN THE PRESENTATION AS WELL. AS PART OF THE WORK, BRIAN AND HIS TEAM PUT TOGETHER OPTIONS OF

[01:50:06]

WE'RE GOING TO WALK THROUGH THIS. LET ME FIRST SHOW YOU -- WE'LL GO THROUGH THE SLIDES AND THEN WE'LL WALK THROUGH THE HANDOUT. SO WE HAVE -- I DON'T KNOW EXACTLY WHAT YEAR BUT I BELIEVE IN THE 80S AND EARLY 90S, OUR DISTRICT WAS VERY PROACTIVE IN PURCHASING PROPERTY ACROSS THE DISTRICT AND SO WE OWN -- THAT PROPERTY WAS PURCHASED TO PREPARE FOR OUR FUTURE GROWTH. WE HAVE BENEFITTED FROM THAT WITH OUR PROPERTY IN BAKER, OUR PROPERTY AT BAR TON, WE WERE ABLE TO BUILD EINSTEIN. I'M JUST TRYING TO THINK, CARSON ELEMENTARY, SOME OF OUR RECENT GUILDINGSUILDINGSBUILDINGS THAT THAT TIME.

IN 1994, KING COUNTY MADE A DECISION TO GROW AN URBAN GROWTH AREA LINE AND THAT LIMITED WHAT COULD BE BUILT OUTSIDE THAT LINE AND THE INTENT WAS TO PREVENT SPRAWL, SO THE DEVELOPMENT WAS BEING BUILT INSIDE YOUR CITIES AND THAT THE RURAL AREAS STAY RURAL AND SO WHAT THAT DID WAS LIMIT OUR ABILITY TO BUILD SCHOOLS ON SOME OF THE VACANT PROPERTY THAT WE BUILT OUTSIDE THE YOU ARE A BEEN LINE. ALCOTT AND EVERGREEN ARE OUTSIDE THAT LINE.

YOU CAN REBUILD THEM BUT IF IT'S VACANT, THERE ARE LIMITS ON WHAT CAN BE DEVELOPED.

IN 2012, THERE WAS A TASK FORCE IN KING COUNTY AND THEY ADOPTED RECOMMENDATIONS ON THE DISTRICT OWNED LAND OUTSIDE THE UGA AND I WILL SPEAK TO THAT IN THE HANDOUT.

WE HAD PROPERTY THAT HAS CAPACITY FOR ADDITIONAL PROGRAM SPACE, SO THAT'S THE UNDER DEVELOPED PIECE. THE MAPS THAT YOU HAVE -- LET ME GET MY POINTER.

THIS IS A MAP THAT FLOW ANALYTICS DID FOR US AND THIS IS THE GRAY AREA IS MOSTLY THE CITY OF SAMMISH. THIS BLACK DASHED LINE IS THE CITY LIMITS OF SAMAMISH AND YOU CAN SEE THIS GRAY AREA, WHILE IT'S NOT IN THE CITY OF SAMAMISH, IT'S WITHIN THE KING COUNTY URBAN GROWTH LINE AND THIS IS THE REMINDER OF THE CITY OF SAMAMISH.

SO WITHIN ALL OF SAMAMISH, WE HAVE ONE VACANT PROPERTY THAT'S 15.5 ACRES.

IT WAS ORIGINALLY PURCHASED INTENDING AN ELEMENTARY SITE BUT IT COULD BE USED FOR OUR EAST LIKE AND REDMOND CHOICE HIGH SCHOOL. THIS IS TO ARNE AT A TIME YOU.

THIS IS HIGHWAY 520 AND THIS IS AVONDALE ROAD, NOVELTY HILL ROAD.

THIS GRAY AREA IS OUR REDMOND RIDGE COMMUNITY. THIS IS WHERE WE HAVE ROSA PARKS AND BAKER AND TIMBERLINE THAT JUST OPENED. THE REDMOND RIDGE HOUSING AND WILDER ELEMENTARY IS UP HERE. SO THE PROPERTIES THAT WE HAVE, AND TO THE LEFT, THIS GRAY AREA, IS THE URBAN GROWTH LINE TO THE LEFT, SO THIS IS MOSTLY CITY OF REDMOND AND THEN THE URBAN

[01:55:03]

SO THERE'S AN URBAN GROWTH ISLAND WITHIN THE REDMOND RIDGE DEVELOPMENT AND THEN YOU HAVE YOUR URBAN AREA WITHIN THE CITY OF REDMOND. WITHIN THE YOU ARE BEGAN GROWTH BOUNDARY, WE OWN WHAT'S CALLED SITE 91 AND THAT'S 3.4 ACRES AND THAT IS, AGAIN, NEAR THE NIKE, THAT OLD MISSAL SILO AT NIKE PARK AND OUTSIDE THE URBAN GROWTH LINE, WE HAVE SITE 33 AND THAT'S 19 ACRES AND THERE IS NO SCHOOL USE ALLOWED. WE'LL WALK THROUGH THAT.

AND THEN SITE 90 IS JUST OUTSIDE THE URBAN GROWTH LINE, JUST SOUTH OF NOVELTY HILL ROAD AND THAT'S 26 ACRES AND THERE IS NO SCHOOL USE ALLOWED ON THAT SITE. AND THEN WE HAVE JUST SOUTH OF THE REDMOND WATERSHED PRESERVE, I JUST HIKED THIS 2 WEEKS AGO AND HAD A NICE HIKE, SO I GOT TO VISIT OUR SITE 75 AND SO THERE'S 37.8 ACRES THERE AND THERE'S LIMITED USE.

WE'LL GO THROUGH, I'LL LEAVE THIS MAP UP AND WE'LL WALK THROUGH OUR UNDEVELOPED PROPERTY. I'LL TALK FIRST ABOUT SITE 33, WHICH IS NORTH HERE OF 19 ACRES.

THE NOTES THAT WE HAVE IS THAT THE PROPERTY IS UNABLE TO BE USED FOR AN A SCHOOL SITE.

IT HAS POTENTIAL CONSERVATION VALUE SO THERE'S 19 ACRES THERE. SITE 75, THIS IS THE ONE BY THE WATERSHED PRESERVE. WE NEED TO WORK WITH KING COUNTY TO FIND AN ALTERNATIVE SITE BUT IF WE CAN SHOW THERE'S NOT AN ALTERNATIVE SITE WITHIN THE UGA, WE COULD USE THE SITE FOR A SMALL 5-ACRE ENVIRONMENTAL CHOICE SCHOOL AND PLACE THE REMINDER INTO PERMANENT CONSERVATION. SITE 90, WHICH IS THE ONE JUST SOUTH OF NOVELTY HILL ROAD, THAT'S THE WHAT WE CALL OUR NIKE SITE, IS 26 ACRES AND, AGAIN, THE PROPERTY IS UNABLE TO BE USED FOR A SCHOOL SITE DUE TO THE TASK FORCE, BUT IT COULD BE USED AS A PARK LIKE A STADIUM, FIELD, POOL, ACTIVITY CENTER OR A SCHOOL BUS BASE. AND THEN SITE 91 IS THE ONE WITHIN THE UGA AND WE HAVE THAT RESERVED FOR FUTURE USE SO IT'S 3.4 ACRES.

OUR TYPICAL SITE IS A 10-ACRE PROPERTY, BUT YOU CAN USE THIS FOR A VERY URBAN SCHOOL, THOUGH I HIGHLY DOUBT THE CITY OF REDMOND WOULD LET US BUILD A 5 STORY BUILDING IN THAT LOCATION BUT YOU NEVER KNOW. AS WE MENTIONED, SITE 59, WHICH IS IN EAST LIAKE, IS PLANNED FO OUR FUTURE CHOICE HIGH SCHOOL SO WE HAVE DONE SOME TEST FITS TO SEE IF WE CAN BUILD A CHOICE HIGH SCHOOL AND AN ELEMENTARY SCHOOL ON THAT SITE. THE UNDEVELOPED PROPERTY THAT WE WANT -- ON? SORRY, ERIC,JON? SORRY, ERIC, GO AHEAD.

OKAY. SO THERE'S 1.6 ACRES THAT ARE VACANT AND THAT COULD ALLOW FOR ADDITIONAL PROGRAM OPTIONS OR SHARED USE. ONE OF THE IDEAS THE FACILITY ADVISORY COMMITTEE TALKED ABOUT IS A PRESCHOOL, ADDITIONAL CLASSROOMS OF PRESCHOOL ON THAT SITE. AND THEN KAIMAKIN ELEMENTARY, WHEN THE SCHOOLS REBUILD THERE'S POTENTIAL CAPACITY FOR POTENTIAL PROPERTIES AS WELL. WE KNOW WE COULD REBUILD THE MIDDLE SCHOOL PLUS POTENTIALLY THERE'S SPACE FOR A CHOICE HIGH SCHOOL AND A PRESCHOOL CENTER ON

[02:00:12]

AND THEN ON THE REDMOND L.HORSH CAMPUS, THERE'S PROPERTY THAT COULD ALLOW FOR PROGRAM OPTIONS OR SHARED USE. EAST LAKE, WE HAVE THE OLD DIKINSON PROPERTY.

THIS IS WHERE WE HAD OUR PRESCHOOLHOUSED IN VERY, VERY OLDCKINSON PROPERTY.

THIS IS WHERE WE HAD OUR PRESCHOOL HOUSED IN VERY, VERY OLD PORTABLES THERE WHERE THAT WAS BEING HOUSED. WE COULD TEAR THAT DOWN AND REBUILD ON THESE 3 ACRES.

THE RULES ALLOW US TO REBUILD AT EVERGREEN AND ANY POINT IN TIME DICKINSON BUT THERE ARE LIMITATIONS. YOU COULD REBUILD EVERGREEN AND DICKINSON TO ANOTHER TYPE OF HIGH SCHOOL BUT YOU CAN'T CREATE -- AND, AGAIN, YOU CAN USE THE VACANT PROPERTY FOR A HIGH SCHOOL -- NOT A HIGH SCHOOL, SORRY, JUST TO REBUILD THE OLD DICKINSON PRESCHOOL FOR A SITE BUT WE HAVE TO WORK CAREFULLY WITH KING COUNTY TO PLAN ALL THAT.

AND THEN, OF COURSE, OUR PROPERTY THAT THE BOARD JUST APPROVED ON MONDAY, WE HAVE THAT PROPERTY NOW AS WELL OR WE WILL WHEN IT CLOSES. SO MARK?

>> MARK STUART: I'M HAVING TROUBLE VISUALIZING SOME OF THE LOCATIONS.

THE TRIANGULAR PIECE AT THE BOTTOM. THAT'S ON NOVELTY, CORRECT?

>> THAT IS JUST NORTH OF NOVELTY HILL BY THE REDMOND WATERSHED. >> MARK STUART: I'M JUST TRYING TO VISUALIZE BETWEEN WHAT STREETS. IS IT BEYOND THAT TRAFFIC

CIRCLE? >> IT'S NORTHEAST 95TH AND 173RD.

I'M SORRY, 220TH AND NOVELTY HILL. IT'S BEFORE YOU GET TO REDMOND

RIDGE AT ALL. >> MARK STUART: OKAY. AND THE NIKE SITE IS ONLY USABLE

FOR A STADIUM OR A POOL, FIELDS? >> CORRECT. >> MARK STUART: AND THAT'S

BECAUSE IT'S OUTSIDE THE UGA? >> YES, BECAUSE IT'S OUTSIDE THE UGA RIGHT NOW.

>> MARK STUART: AS WE LOOK AT THESE PROPERTIES ON THAT LIST, IT WOULD BE INTERESTING TO KNOW, EITHER ONE OF THE CHARTS HERE, IS WHERE THE GROWTH IN POPULATION OF THOSE COMMUNITIES ARE HEADED. IS THERE A DEVELOPMENT NEAR X, Y, OR Z? HAVE WE SEEN A SHIFT IN THE LAST X NUMBER OF YEARS IN THAT DIRECTION? HERE'S MY REASONING. IF THERE IS, AND WE'RE GOING TO HAVE A NEED IN THAT AREA, I SEE A GREAT NEED FOR US TO PUSH THE COAPT ON A PIECE OUTSIDE THE UGA.

IF IT'S NOT GOING IN THAT DIRECTION,UNTY ON A PIECE OUTSI UGA.

IF IT'S NOT GOING IN THAT DIRECTION, WHAT PRICES ARE THEY? >> RIGHT NOW, KING COUNTY LIMITS GROWTH OUTSIDE THE UGA. THERE'S NO HOUSING GROWTH OUTSIDE THE UGA OTHER THAN IT'S FOUR HOMES PER ACRE SO OTHER THAN THAN A SMALL PLAT REDEVELOPMENT OF A HORSE FARM OR SOMETHING LIKE THAT, BUT ALL THE GROWTH IS HAPPENING WITHIN THE UGA.

AS WE SHARED WITH THE BOARD ON MONDAY NIGHT, WITH THE MARYMORE AREA, DOWNTOWN REDMOND, TOTEM

[02:05:13]

>> MARK STUART: SO THOSE HOUSING DEVELOPMENTS ON 202 AND 238TH, THAT'S WITHIN THE UGA?

ACROSS FROM THE ALBERTSON'S >> WELL, AL. >> WELL, ALCOTT, THAT'S OUTSIDE

THE UGA. >> MARK STUART: THERE ARE 12 MEGA HOMES GOING IN THERE AND THERE ARE A FEW OTHER PROPERTIES GOING UP FOR SALE ALONG 238TH AND 236TH.

>> RIGHT, THAT'S THE INFILL, SO THEY'RE STILL NOT ABLE TO DO 170 TOWN HOMES BUT THEY COULD BUILD LARGE HOMES ONE PER ACRE, THINGS LIKE THAT. FOUR PER ACRE.

>> DR. JON HOLMEN: IT'S NOT THAT THERE'S NO BUILDING GOING ON, BUT THE SUBSTANTIAL POPULATION

DENSITY ISN'T OCCURRING OUTSIDE OF THE UGA. >> CORRECT, YEAH.

>> SIRI BLIESNER: IN REDMOND RIDGE, HAS THAT BEEN BUILT OUT AT THIS POINT IN TIME?

>> YES, AWE THE DEVELOPMENT IN REDMOND HILL HAS BEEN BUILT OUT. >> ERIC LALIBERTE: THE RATIONALE FOR THE COUNTY TO NOT ALLOW SCHOOLS TO BUILD OUTSIDE THE URBAN GROWTH AREA, DO YOU KNOW WHAT IT IS? I HAVE GUESSES. MAYBE THIS IS NOT A GERMANE

CONVERSATION RIGHT NOW. >> OUR CONCERN IS THAT PEOPLE ARE STILL LIVING OUTSIDE THE URBAN GROWTH BOUNDARY AND IT PROHIBITED US FROM BUILDING SCHOOLS TO ADDRESS THE NEED IN THOSE AREAS. YOU CAN SEE SOME IS RIGHT ON THE BORDER THERE BUT WE'RE

PROHIBITED FROM BUILDING A SCHOOL THERE. >> ERIC LALIBERTE: I'M GOING TO TAKE US OFF TRACK. I SUPPOSE IF YOU BUILD SCHOOLS OUTSIDE THE URBAN GROWTH AREA,

YOU WILL INCENTIVIZE ADDITIONAL INFILL DEVELOPMENT? >> SIRI BLIESNER: NO, YOU WILL

HAVE TO BUS PEOPLE OUT. >> IT'S THE OPPOSITE, TRANSPORTING PEOPLE.

THE OPPOSITE THEN HAPPENS WHEN YOU CAN BUILD IN THE URBAN GROWTH BOUNDARY, THEN EVERYBODY IS HAVING TO DRIVE FROM THE RURAL AREA INTO THE URBAN AREA, CREATING ADDITIONAL TRAFFIC AS

WELL. >> ERIC LALIBERTE: THANK YOU FOR THIS.

THIS IS THE MOST COMPREHENSIVE PRESENTATION I CAN EVER RECEIVING ON THIS SO THANK YOU,

IT'S VERY HELPFUL. >> SIRI BLIESNER: AND THE VISUALS REALLY HELP ME SOC: AND HELPA: AND THE VISUALS REALLY HELPS: AND THE VISUALS REALLY HELPS: AND THE VISUALS REALLY HELPA: AND THE VISUALS REALLY HELPN: AND THE VISUALS REALLY HR: AND THE VISUALS REALLY HD: AND THE VISUALS REALLY HR: AND THE VISUALS REALLY HA: AND THE VISUALS REALLY H: AND THE VISUALS REALLY HS: AND THE VISUALS REALLY HA: AND THE VISUALS REALLY HGE: AND THE VISUALS REALLY HELP ME SO THANK YOU FOR THAT.

>> SIRI BLIESNER: AND I'M ASSUMING WE'RE NOT DONE, RIGHT? >> FOR THE PROPERTY, THIS IS IT.

>> SIRI BLIESNER: IT WOULD BE INTERESTING TO ADD THE POTENTIAL STUDENT CAPACITY, LIKE IF YOU WERE TO BUILD THERE, HOW MANY STUDENTS OF WHAT AGES COULD BE HOUSED? I THINK OF LIKE EVERGREEN DICKINSON AREA, THERE'S FASCINATING POTENTIAL YOU COULD DO IN THAT AREA WITH THE LANDS THAT WOULD SERVE A K-12 OPTION BUT WE'RE NOT TALKING ABOUT THAT SO HOW DO YOU TAKE THESE LANDS AND OPPORTUNITIES AND KNOWING FLNUMBERS WILL HELP TO LAY OUT WHERE ARE THE CONCERNS AND PIECES? WE KNOW THERE'S A LOT OF GROWTH THERE, OR AT LEAST A LOT OF UNHOUSED CAPACITY. OUR HIGH SCHOOLS ARE OVERBURDENED IN THAT AREA, UP TO 2400, THOSE ARE NOT BUILD FOR IT AND TRANSPORTATION IS HORRENDOUS, THAT MEANS WE'RE BRINGING THEMHORRENDOUS, THAT M BRINGING THEM FROM ALL OVER.

THAT'S THE 1 PIECE I THINK WE'RE MISSING, UNDERSTANDING THE CAPACITY TO SUPPORT STUDENTS IN

THESE AREAS. >> RIGHT. I THINK, AGAIN, FOR THE EVERGREEN SITE IT'S ALSO MAKING THE DECISION OF IF WE REBUILD EVERGREEN, IS IT GOING TO BE A

MIDDLE SCHOOL? IS IT GOING TO BE BEYOND THAT. >> SIRI BLIESNER: AND SO HAVING THAT WHOLE PICTURE, WHAT DOES 10 YEARS LOOK LIKE IN REGARD TO THE CURRENT LAND WE HAVE

[02:10:05]

PROSPECT. >> RIGHT, AND THE FACILITY ADVISORY COMMITTEE DID NOT MAKE ADDITIONAL -- THERE WERE CONVERSATIONS ABOUT THE EVERGREEN PROPERTY, AGAIN, CAN YOU TURN IT INTO A HIGH SCHOOL? BUT THEN WE SAID, OKAY, WHERE WOULD THE ELEMENTARY AND MIDDLE SCHOOLS GO? WE DID HAVE THOSE CONVERSATIONS ABOUT THE EVERGREEN PROPERTY.

THE TASK FORCE LIMITS EXPANSION OF EVERGREEN AND DICKINSON TO NO MORE THAN 10 % SO WE'LL HAVE TO GET THE% SO WE'LL HAVE TO GET THE DETAILS ON THAT. THERE'S CAPACITY FOR 1,200 STUDENTS WITH THE PORTABLES AT EVERGREEN AND WE WOULD REBUILD THAT PROGRAM MOST LICKLY TO 900 BECAUSE THEIR ENROLLMENTKLY TO BECAUSE THEIRELY TO 900 BECAUSE THEIR ENROLLMENT IS WITHIN THAT LEVEL BUT YOU COULD POTENTIALLY HOUSE A CHOICE SCHOOL THERE.

>> SIRI BLIESNER: SO THE POTENTIAL AND THEN WHAT DOES THAT REALLY MEAN? COULD AN ELEMENTARY SCHOOL BE THERE? WE JUST SAID WE NEEDED ONE IN KIRKLAND, THAT'S THAT PIECE OF HOW DO YOU START TO LAY THESE THINGS OUT ACROSS THE DISTRICT

GOING FORWARD WITH THOSE COMPONENTS? >> MARK STUART: THE PIECE THAT'S WITHIN SANMAMIMAMISMAMISH THAT LOOKING AT AS A CHOICE HIGH SCHOOL OR ELEMENTARY, AS SEEP AS IT IS INTO SAMMAMISH, I DON'T KNOW HOW REALISTIC IT IS FOR US TO THINK THAT'S GOING TO DRAW REDMOND HIGH SCHOOL STUDENTS. THAT DISTANCE IS VAST BUT ALSO THE TRANSPORTATION UP AND DOWN THAT PLATEAU IS A BEAR. GETTING THEM UP AND DOWN SAHOLLY OR ANY OTHER ROUTE IS ALMOST IMPOSSIBLE DURING SCHOOL COMMUTING HOURS. I'M NOT SAYING WE SHOULDN'T BUILD A CHOICE SCHOOL THERE, BUT I DON'T KNOW HOW REALISTIC IT IS TO SAY IT WILL BE FOR EAST LAKE AND REDMOND. JUST A THOUGHT. IF WE DEVELOP INTO THAT, WE NEED TO REALLY BE ABLE TO SHOW VOTERS AND RESIDENTS HOW THAT'S DOING TO HAPPEN AND HOW THEIR KIDS ARE GOING TO GET THERE AND HOW LIMITING THAT'S GOING TO BE TO THE FOLKS FROM LOWER ECONOMIC

STATUS. >> CASSANDRA SAGE: THIS MIGHT BE FOR YOUR LAST QUESTIONS ON THE COMPONENTS WE NEED BY WHAT ARE THE PARAMETERS, POLICIES AND VALUES THAT THE BOARD WANTS TO BE SURE IS BUILT INTO THAT BOND PIECE. WE TALKED ABOUT THAT WHEN YOU MENTIONED THE HIGH SCHOOLS AT 1,800 AND 2,000. DOES THAT HOLD? WE SHOULD THINK ABOUT THAT LOOKING FORWARD. ARE THERE ANY OTHER VALUES? WE TALKED ABOUT CHOICE SCHOOLS BEING AVAILABLE THROUGHOUT THE DISTRICT SO EVERY HIGH SCHOOL HAS A CHOICE SCHOOL WITHIN THAT LEARNING COMMUNITY AS WELL, DOES THAT VALUE STILL HOLD? OUR MIDDLE SCHOOL, I KNOW EVERGREEN WAS TO HAVE A CHOICE SCHOOL.

THE IDEA WAS TO PUT THAT THERE, I'M NOT SURE IF THAT'S MOVED FORWARD, THERE'S BEEN SO MANY MOVING PARTS BUT I THINK THAT'S A PIECE OF OUR DISCUSSION THAT WE MIGHT NEED TO REVISIT AS WE PUT THIS FORWARD, WHAT ARE THE VALUES AND POLICIES WE WANT TO BE SURE ARE REFLECTED IN

WHATEVER BOND PROPOSAL GOES OUT. >> CASSANDRA SAGE: I WANT US TO BE CAREFUL BRINGING FORTH RECOMMENDATIONS WHEN THIS PROPERTY WAS NOT CONSIDERED WHAT COVER BECAUSE THIS DOES CHANGE THINGS AND I DON'T KNOW IF IT'S APPROPRIATE TO ASK A FACILITY ADVISORY COMMITTEE TO

INCORPORATE LA BUT I DEFINITELY SEE THIS AS A GAME CHANGER. >> ONE OF THE THINGS THAT'S PART

[02:15:07]

BRIAN AND HIS TEAM PRESENTED TO THE SELECTION COMMITTEE ON MARCH 2ND.

I KNOW WE SHARED THIS WITH THE BOARD EARLIER BUT WE DID JUST WANT TOO TO INCLUDE WITH THE CITY THAT WE DECIDED TO GO WITH A DIFFERENT PARTNER SO ON MARCH 22ND, WE WERE NOTIFIED THAT THEY PARTNERED WITH AN AFFORDABLE SEEN YOUR HOUSING PROJECT. WE CONTINUE TO LOOK OUT FOR PARTNERSHIPS BUT WE WERE LOOKING FORWARD TO PARTNERING WITH THE CITY OF REDMOND BUT, AGAIN, THEY

WENT IN A DIFFERENT DIRECTION RIGHT NOW. >> ERIC LALIBERTE: BEFORE WE MOVE TO THE NEXT SUB TOPIC, LET'S TAKE ANOTHER BREAK. 10:42.

LET'S START AGAIN AT 11:00. SOUND GOOD? CHRIS, I DON'T KNOW IF YOU HEARD THAT, 10 READY TO GET STARTED AGAIN. ALL RIGHT.

WE'RE LIVE. >> ALL RIGHT. SO OUR NEXT SECTION IS TO LOOK AT OUR FUTURE CONSTRUCTION PROJECTS AND SOME OF THIS YOU SAW WHEN WE PRESENTED THE FACILITY ADVISORY COMMITTEE RECOMMENDATIONS, THERE W WWAS ADDITIONAL RECOMMENDATIONS SO I WILL REVIEW THE RECOMMENDED PROJECTS FOR PHASE ONE.

THIS IS A LIST OF PHASE ONE PROJECT, SO REBUILD AND EXPAND OUR TWO AGING SCHOOLS, WHICH ARE KAIMIKAN AND SCHOOLS AND A NEW LAKE WASHINGTON ALMOSTRY, REFURBISH JUANITA HIGH SCHOOL AND FIELD HOUSE AND POOL AND THAT'S WHERE WE'RE PROVIDING ADDITIONAL INFORMATION ON THE JUANITA HIGH PROJECT. WE HAVE FUNDS FOR FUTURE PROPERTY NEEDS.

WE KNOW TO BUILD A NEW LAKE WASHINGTON ELEMENTARY, WE MAY NEED TO PURCHASE ADDITIONAL PROPERTY. WE KNOW FOR SOME OF THE PROJECTS IN FACE TWO, WE'RE GOING TO NEED TO PURCHASE PROPERTY, SO WE PUT SOME FUNDS IN THERE TO DO THAT, TO GET READY FOR THOSE PHASE TWO

PROJECTS. >> ERIC LALIBERTE: FUTURE PROPERTY NEEDS, WAS THAT THE

TASK FORCE RECOMMENDATION TO HAVE THAT AS PART OF PHASE ONE? >> WE DID NOT GET INTO DETAILS ABOUT PROPERTY WITH THE TASK FORCE. THEY MADE RECOMMENDATIONS ON THE PROJECTS AND THEY KNEW WHEN WE DEVELOPED THE COST INFORMATION, THAT CENTRALLY WE ADDED FUNDS

[02:20:01]

FOR PROPERTY. >> CASSANDRA SAGE: ARE WE STILL IN TALKS WITH CITY OF CIRCUMSTANCELAND WITH HOW WE MIGHT PARTNER FOR NEW DEVELOPMENT WHEN NEW BUILDINGS ARE GOING UP? THE MAYOR AND I SPOKE A COUPLE OF MONTHS AGO AND THEY'RE STILL

INTERESTED IN PARTNERING IN THAT WAY. >> YEAH, WE MET WITH THE CITY TO GO OVER PLANS FOR -- I DON'T HAVE THE RIGHT WORDS, JON. THE NEW LIGHT RAIL STATION

THAT'S GOING IN AT 85TH. >> ERIC LALIBERTE: IT'S NOT LIGHT RAIL.

IT'S RAPID BUS TRANSIT. IT'S 405 AND 85TH. SO WE HAD A MEETING ABOUT THAT AND THAT NEIGHBORHOOD EXPANSION BECAUSE THEY'RE WORKING ON THE REZONING FOR THAT NEIGHBORHOOD SO AS PART OF THESE CONVERSATIONS, WE HAVE BEEN TALKING ABOUT MAKING SURE WE WORK TOGETHER AND LOOK AT SCHOOLS BECAUSE IT'S GOING TO GENERATE ANOTHER 1,000 NEW STUDENTS WHICH I SHARED WITH THE BOARD THAT WE DID NOT HAVE CAPACITY WITH WIN THOUSAND

STUDENTS. >> CASSANDRA SAGE: I THINK IN THAT QUARTERLY MEETING THAT ERIC AND I WERE IN, WE BREECHLY TOUCHED ON THAT BUT I'M CONCERNED THAT IF WE DON'T GET INVOLVED, THE OPPORTUNITY TO GET IN ON A GROUND FLOOR SOMEWHERE IS GONE BY THE TIME IT'S

APPROVED BY THE CITY. >> YEAH, AND THE PROPERTY JUST GETS MORE AND MORE EXPENSIVE,

TOO. >> CASSANDRA SAGE: YEAH, AND THERE'S NO SPACE.

>> WE'LL CONTINUE TO HAVE CONVERSATIONS WITH THE CITY ABOUT THAT.

>> CASSANDRA SAGE: THANK YOU. >> OKAY. SO, AGAIN, A BOARD MEMBER ASKED FOR ADDITIONAL DETAILS ON REFURBISHING THE JUANITA HIGH SCHOOL AND FIELD HOUSE WAS $1.2 MILLION. WE WERE ASKED FOR ADDITIONAL DETAILS SO I HAVE TWO SLIDES WHERE I WANTED TO SHARE THE WORK THAT WE HAVE DONE ALREADY ON THE FIELD HOUSE AND THE POOL.

WE UPDATED THE ROOFING, PROVIDED A COAT THAT GIVES IT FIVE MORE JEERS OF LIFE SPAN.

REPLACED THE LOCKERS, WE HAVE DONE BATHROOM STALL PARTITIONS IN THE SCHOOL AND GYM, WEIGHT ROOM UPGRADES. FIRE ALARM UPGRADES, ACCESS CONTROL AND THEN LAST SUMMER WE DID THE BOILER UPGRADE. WE KNOW THAT THE FIELD HOUSE AND POOL, WHILE WE REBUILT THE MAIN CAMPUS, THE EDUCATIONAL FACILITIES OF JUANITA HIGH SCHOOL, WE DID NOT HAVE THE FUNDING AND THE DECISION WAS MADE TO REDO THE POOL, BASICALLY.

WE HAD LOTS OF CONVERSATIONS YEARS AGO ABOUT DO WE KEEP THE POOL? DO WE CLOSE THE POOL? AND ULTIMATELY, IT WAS DECIDED TO KEEP THE FIELD HOUSE AND POOL FACILITY AND REBUILD THE JUANITA HIGH SCHOOL EDUCATIONAL PROGRAM AND WE DO KNOW THAT BECAUSE THAT BUILDING WAS BUILT IN 1971, THERE'S SOME SIGNIFICANT REFURBISHMENT THAT NEEDS TO HAPPEN, SO BRIAN WORKED TO DO A CITY AND IN FEBRUARY OF LAST YEAR, THEY COMPLETED THEIR STUDY AND PROVIDED US WITH SOME INSTRUMENTS FOR THE MAJOR LIFE CYCLE NEEDS OF THE POOL SO THIS IS A BREAKOUT AND BRIAN, COUNTY

DETAILS? >> YEAH, NEAR TERM LIFE CYCLE NEEDS, 14.8 MILLION.

THE ROOF HAS A COUPLE OF YEARS LEFT. UNTIL YOU REPLACE THE MECHANICAL EQUIPMENT, IT DOESN'T REALLY PENCIL TO DO A FULL REPLACEMENT OF THE ROOF SO THAT'S A TIMING ISSUE. AS IT RELATES TO THE POOL INFRASTRUCTURE, YOU CAN SEE THE

[02:25:01]

IT DOES INCLUDE THE ROOF, THE LOCKER ROOMS AND RESTROOMS IN THE POOL SIDE.

WINDOWS, CEILINGS AND DOORS AS WELL AS A NEW FIRE LIFE SAFETY SYSTEM AND SOME LIGHTING.

ON THE FIELD HOUSE SIDE, IT'S REALLY ABOUT $6.4 MILLION AND IT ALSO INCLUDES YOU HAVE TO EXTRAPOLATE A LITTLE OF THE FIELD AND MECHANICAL AND THE ROOF AND THE FIRE LIFE SAFETY IS

ABOUT A 50/50 SUBMIT. >> AND WE KNOW IF THIS IS NOT ABLE TO BE INCLUDED IN A BOND MEASURE OR A FUNDING MEASURE, IN ORDER TO NOT HAVE THE FOOL COMPLETELY FAIL AND CLOSE THE POOL, WE WILL NEED TO USE THE CAPITAL PROJECTS LEVY FOR THE HVAC AND PLUMBING TO KEEP THE POOL OPERATING AND THAT WOULD CAUSE US TO NOT BE ABLE TO DO OTHER LIFE CYCLE NEEDS AND DELAY OTHER LIFE CYCLE NEEDS NORTH TO MAKE SURE THE POOL TONIGHTS TO RUN SO THAT WOULD BE THE OPTION

THERE. MARK? >> MARK STUART: I'M TRYING TO THINK OF PARTNERS OUTSIDE OF THE CITY OF KIRKLAND, THE YMCA, THE BOYS AND GIRLS CLUBS, ANYBODY THAT WE COULD PARTNER WITH ON THE POOL/FIELD HOUSE. THE FIELD HOUSE IS VERY WELL UTILIZED I KNOW BY COMMUNITY GROUPS AND SO FORTH AND THE POOL IF WE COULD GET MORE BANG FOR OUR BUCK AND USE OUT OF IT, THE BOYS AND GIRLS CLUB OR THE Y, THEY WOULD TAKE CARE OF THE

STAFFING. >> WAVE OPERATES THE POOL ON OUR BEHALF SO THEY ARE MANAGING THE POOL AND DOING THE SWIM LESSONS AND ALL THE THINGS BEYOND WHAT THE HIGH SCHOOL SWIM TEAMS USE

THE POOL FOR. >> MARK STUART: I UNDERSTAND THAT, BUT I'M TRYING TO FIGURE OUT HOW TO INCREASE NOT JUST THE USAGE BUT ALSO PERHAPS THE REVENUE TO JUSTIFY THE COST OF

REDOING THE WHOLE THING. >> YEAH. >> CASSANDRA SAGE: THERE IS A NONPROFIT THAT'S BEEN INTERESTED AND I KNOW WOULD LIKE TO HAVE FURTHER TALKS, I THINK THEY ALSO

REACHED OUT TO YOU AND BRIAN. >> YEAH, BRIAN AND I MET WITH US ONCE AND THEY HAVE REACHED OUT BUT AT THIS TIME THEY HAVE NOT SHARED THEY'RE WILLING TO DO FUNDING BUT MORE IN CONVERSATIONS IN HOW TO PROMOTE THE NEEDS OF AQUATIC FACILITIES BUT WE'LL CONTINUE TO HAVE THOSE

CONVERSATIONS, IT'S SPLASH FORWARD. >> CASSANDRA SAGE: RIGHT AND I DO THINK THE AKUWAITICS PROJECT IN BELLEVUE, THEY DID HELP SECURE FUNDING BUT I WILL DOUBLE

CHECK. IT WOULD BE WORTH MEETING AGAIN. >> YEAH, WE HAVE A MEETING ON THE CALENDAR. OKAY. AND THEN PHASE TWO OF THE FACILITY ADVISORY RECOMMENDED PROJECTS ARE LISTED HERE AND THE CAPACITY THAT THAT WILL GIVE US THE ABILITY TO ADD, SO REBUILDING AND EXPANDING EVERGREEN MIDDLE SCHOOL, REBUILDING SMITH ELEMENTARY AND ROCK WELL SO THOSE ARE OUR AGING SCHOOLS AND THEN PROVIDING OUR EARLY LEARNING CENTER CAPACITY FOR PRESCHOOL IN BOTH THE LAKE WASHINGTON AREA AND THE JUANITA AREA AND THEN A CHOICE HIGH SCHOOL AND THEN PROVIDING ADDITIONS AT KIRKLAND AND REDMOND HIGH SCHOOL. THINKING WHERE WE WOULD PUT THESE, LIKE THE EARLY LEARNING CENTER AND THE LAKE WASHINGTON AREA, THAT COULD GO THE ROSE HILL CAMPUS OR THE KAIMIKAN CAMPUS SO THEY DIDN'T GET INTO WHERE TO PLACE THESE PROJECTS BUT THOSE ARE SOME OF THE THINGS

[02:30:02]

YOU COULD GET MULTIPLE PROJECTS COMPLETED A YEAR AFTER WE PASS THE BOND AND THEN DO THE TWO PROJECTS IN 28 AND TWO PROJECTS IN 29. ALL OF THIS IS PRELIMINARY, THE FINAL OF IT, OBVIOUSLY, IS DEPENDING ON THE BOND SELLING AND WHAT SITE WE'RE USING OR WHAT JURISDICTION WE'RE BUILDING IN, IT MAY TAKE MORE TIME. MARK? NO? OKAY. THIS IS THE LAST MAJOR SECTION, THE FINANCING OPTIONS. SO BEFORE I JUMP INTO THAT, I WANT TO MAKE SURE THERE ARE NO

OTHER QUESTIONS. >> SIRI BLIESNER: ONE OTHER THING THAT DIRECTOR SAGE ALSO MENTIONED, SEEING THE PHASE ONE AND PHASE TWO THAT ARE THERE, THERE NEEDS TO BE ADDITIONAL DISCUSSION AROUND THAT AND ALSO MAPPING THOSE OUT AND SEEING HOW THEY PLAY OUT AS WE DO, I DO THINK IS THE OTHER COMPONENT AS WE GO FORWARD, LOOKING AT FUNDING OPINGS.

WE HAD THESE PROJECTS PRIOR WHEN I THINK BACK TO OUR INITIAL BOND BACK IN 2016, CORRECT?

>> YEP, 2016. >> SIRI BLIESNER: IT DID NOT GET SUPERMAJORITY SO THAT RESHIFTED THINGS SO THIS IS A RESTRUCTURING OF THAT CONCEPT AGAIN, WHICH IS GREAT.

>> YES, THIS ENCOME PASS ALL THOSE PROJECTS AND PLUS THERE'S AN ADDITIONAL PROJECT.

COMPONENTS, WE NEED TO START TALKING ABOUT HOW THAT'S GOING TO FALL OUT OVER TIME.

>> WE'LL BRING THAT BACK UP AT THE END, TOO. OKAY.

LET'S TALK ABOUT FINANCING. LET'S TALK ABOUT HOW TO PAY FOR THINGS.

SO BRINGING BACK THIS SLIDE IS OUR DISTRICT LEVY AND BOND RATE. WE'RE FOCUSED ON THE CONSTRUCTION PORTION OF OUR TAX RATE, SO THERE ARE TWO MAIN SECTIONS, OUR 6-YEAR IN THE GRAY AND THEN OUR BOND. SO OUR LONG TERM FINANCING PLAN ASSUMED OUR FUTURE BOND SALES AND WE WORK WITH THEM TO STRUCTURE THOSE BOND SALES SO THAT WE MAINTAIN A LEVEL TAX RATE SO OUR TOTAL DEBT RATE IS $1.15 PER 1,000 OF AV AND, AGAIN, THE ASSUMPTION WAS THAT THE FINANCING PLAN ASSUMED A LEVEL TAX RATE. THIS INCORPORATES THE EP&O, THE CAPITAL, CONSTRUCTION LEVIES AND BONDS FOR A TOTAL TAX LEVEL OF $2.57.

SO WE HAVE BONDS, WE HAVE CAPITAL CONSTRUCTION LEVIES. THERE'S SCHOOL IMPACT FEES AND PROPERTY SALES SO I'M GOING TO GO OVER EACH OF THESE. YOU WILL PROBABLY REMEMBER THIS SLIDE FROM OUR 2019 LEVY INFORMATIONAL CAMPAIGN AND SO WE WANTED TO DESCRIBE THE DIFFERENCE BETWEEN A BOND AND A CAPITAL CONSTRUCTION LEVY. SO WITH A BOND, THE DISTRICT RECEIVES ALL THE PROCEEDS UP FRONT AND THEN WE PAY THAT OFF OVER A LONG PERIOD OF TIME, SUCH AS 20 YEARS. AND WITH A CAPITAL LEVY, YOU'RE LEVYING THE AMOUNT EACH YEAR UP TO 6 YEARS AND YOU RECEIVE THOSE FUNDS OVER A PERIOD OF TIME. WE SELL ALL THE BONDS AT ONCE

[02:35:10]

APPROVAL REQUIRED AND WITH A LEVY, IT'S 50%. >> MARK

>> DR. JON HOLMEN: WE HAVE A COUPLE OF COMMENTS AND QUESTIONS.

>> ERIC LALIBERTE: YOU JUST SAID WITH A LEVY YOU CANNOT FUND -- I DON'T KNOW WHAT YOU USED BUT

COULD YOU EXPAND? >> WITH A LEVY AND LET ME COUCH THAT A LITTLE BIT.

WHAT WE DID WITH OUR 2019 LEVY IS WE SCHEDULED TO COLLECT THAT MONEY OVER 6 YEARS.

WE FRONT FUNDED TO GET OUR PROJECTS DONE WITH AN LGO BOND. WHEN YOU DO, THAT BONDS LIMITS YOU TO ADDITIONS OR YOU CAN'T USE IT FOR NEW CONSTRUCTION, SO I'LL BACK UP AND SAY WHEN YOU COLLECT YOUR CAPITAL LEVY OVER TIME WITHOUT DOING AN LGO BOND, YOU CAN USE THOSE DOLLARS FOR

ANY TYPE OF CONSTRUCTION PROJECT. >> ERIC LALIBERTE: YOU JUST HAVE

TO PATE UNTIL YOU HAVE ALL THAT MONEY. >> YOU HAVE TO WAIT.

>> ERIC LALIBERTE: BUT YOU CAN DO ADDITIONS ON SCHOOLS? >> YOU CAN USE CAPITAL LEVY

DOLLARS FOR NEW CONSTRUCTIONS. >> CASSANDRA SAGE: BUT IF YOU DONNELL DO HAVE, YOU CAN USE THE

OTHER FOR NEW CONSTRUCTION? >> CORRECT, ABSOLUTELY. >> ERIC LALIBERTE: BUT THE REASON YOU FRONT FUND IS BECAUSE WE COLLECT IT OVER TIME TO HAVE ALL THAT MONEY UNTIL THE END.

MAKE SENSE? >> SIRI BLIESNER: IT DOES BUT I'M SURE THERE'S A WAY THAT IT MANAGES THAT YOU CAN DO DIFFERENT THINGS. IT'S AMAZING HOW THINGS GET

WORKED. >> DR. JON HOLMEN: YOU MADE A COMMENT IN SELLING BONDS ALL AT THE SAME TIME. THERE'S ALSO A WAY TO GO OUT FOR BOND CAPACITY AND SCHEDULE IT

OVER TIME SO YOU CAN CONTROL AND MANAGE THE TAX IMPACT. >> YEAH, ONE OPTION AND MOST DISTRICTS, INCLUDING US, WHEN THE VOTERS AUTHORIZE THAT $400 MILLION BOND, WE DON'T GO OUT AND SELL 400 MILLION IN BONDS. ONE BECAUSE THAT HINDERS YOU CREATING A LEVEL TAX RATE.

YOU CAN'T SELL MORE BONDS -- YOU HAVE TO HAVE THE EXPECTATION THAT YOU WILL SPEND 85% OF THE MONEY WITHIN 3 YEARS, SO WE ALSO COULDN'T -- OUR VOTERS APPROVING A $400 MILLION BOND SALE, WE COULDN'T SALE $400 MILLION FOR BONDS AND NOT SPEND THE MONEY FOR 4 YEARS, FOR EXAMPLE.

SO WE LOOK AT THAT WHEN WE DETERMINE HOW WE'RE GOING TO STRUCTURE OUR BOND SALES SO WE

LIVE WITHIN THOSE PARAMETERS. MARK? >> MARK STUART: I'M TRYING TO RECALL. WHEN TESLA WAS BUILT AND FOR LACK OF A BETTER TERM, IT WAS PREFAB, IF YOU WILL. WAS THAT EXEMPTED FROM THE BOND REQUIREMENT OR WAS IT ABLE TO BE

DONE THROUGH A LEVY? >> TESLA AND OUR ADDITIONS TO REDMOND HIGH AND EAST LAKE HIGH, THEY WERE ALL FUNDED OUT OF A 2011 CAPITAL CONSTRUCTION LEVY AND THEN WHAT WE DID, WE DID AN LGO BOND SALE TO FRONT FUND SOME OF THE DOLLARS AND THAT FUNDED THE ADDITIONS AT REDMOND HIGH

[02:40:07]

>> MARK STUART: MY POINT IS IF WE USE THE SAME CONSTRUCTION METHOD THAT WE USE FOR TESLA, WE

CAN EXPAND OUR CAPACITY FOR STUDENTS. >> YEAH, WHAT THE CONSTRUCTION OF STEM ALLOWED US TO DO, USING THE PREFAB, IT ALLOWED US TO GET TA PROJECT BUILT MUST FASTER.

>> MARK STUART: I REALIZE THAT, TOO -- >> THAN HAD WE BUILT IT USING

TRADITIONAL METHODS. >> MARK STUART: NOT ONLY FASTER BUT SHIFTED TO LEVY AND NOT HAVE TO GO THROUGH THE HEARTBREAK OF BONDS. I DON'T THINK WE'RE AT CAPACITY

WITH A BOND FOR A WHILE IN COMMUNITIES. >> LET ME GET THROUGH THE BONDS VERSUS LEVIES AND WE CAN TALK ABOUT NEXT STEPS WITH THAT. SIRI?

>> SIRI BLIESNER: THANKS. MY UNDERSTANDING IS SEATTLE PUBLIC SCHOOLS UTILIZES A ROTATING CAPITAL LEVY TO FUND MOST OF THEIR NEW CONSTRUCTION REHABILITATION COMPONENTS TO IT.

ARE THEY ALSO UTILIZING UGO? I'M CURIOUS HOW THEY HAVE BEEN ABLE TO SUCCEED UTILIZING THAT METHOD. IT MIGHT BE BECAUSE MOST OF THEM ARE REMODELING.

>> I'M NOT AWARE THEY'RE USING LGOS BECAUSE THEIR CAPITAL LEVY IS ENOUGH AND THEY HAVE BEEN DOING IT OVER A LONG ENOUGH PERIOD THAT THEY'RE ACCUMULATING THOSE DOLLARS AND ONCE THEY HAVE

THE DOLLARS, THEY USE IT. >> SIRI BLIESNER: AND THEY DO IT EVERY 3 YEARS.

>> THEY HAVE TWO CAPITAL CONSTRUCTION LEVIES, AND IT'S NOT JUST CONSTRUCTION, IT COMBINES WITH OTHER THINGS AND SO THEY DO THEIR EP&O LEVY COMBINED WITH THEIR BEX1 AND A BEX2 AND SO EVERY 3 YEARS THEY RUN THEIR EP&O LEVY AND THEIR BEX1, FOR EXAMPLE, THAT'S A 6-YEAR LEVY AND THEN 3 YEARS LATER THEY RUN THEIR EP&O AND BEX2, AND THAT'S A 6-YEAR LEVY

SO THEY'RE CONSTANTLY OVERLAPPING. >> SIRI BLIESNER: AND THAT'S HOW

THEY CAN GET AWAY WITHOUT DOING A UGO. >> YEAH, THEY HAVE BEEN DOING THAT FOR A LONG TIME AND WE'LL GO OVER SCENARIOS TO SHOW THAT OPTION.

>> THASIRI BLIESTHASIRI BLIESNES HELPFUL >> PLANING BONDS.

WHEN A DISTRICT ISSUES BONDS, THEY NEED 60% APPROVAL TO PASS AND YOU HAVE A TURNOUT REQUIREMENT. YOU HAVE TO HAVE 40% IN THE MOST RECENT STATE GENERAL ELECTION TO VALIDATE. THAT'S WHY MANY STACKEDS TRY TO AVOID DOING A BOND ELECTION AFTER A PRESIDENTIAL ELECTION IN NOVEMBER. WE HAVE HAD SOME OF OUR DISTRICTS IN KING COUNTY FAIL BONDS NOT BECAUSE THEY DIDN'T GET 60% APPROVAL, BUT BECAUSE THEY DIDN'T GET THE VOTER TURNOUT. BONDS PROVIDE FINANCING AT LOWER INTEREST RATES. WE'RE FORTUNATE TO HAVE A VERY HIGH CREDIT RATING BECAUSE OF OUR GOOD FINANCIAL PRACTICES SO WE ALSO HAVE LOWER INTEREST RATES.

THE INTEREST EARNED IS TAX EXEMPT. THERE'S A LIMIT ON HOW MUCH -- YOU CAN'T HAVE OUTSTANDING BONDS TO A CERTAIN DEBT LIMIT AND AT 5%, WE'RE CURRENTLY AT 1.5% SO WE'RE WELL WITHIN OUR LIMITS. SO A CAPITAL CONSTRUCTION LEVY IS -- AND THIS FIRST BULLET IS WE RENEW OUR 4-YEAR TECHNOLOGY FACILITY CAPITAL LEVY ON AN ON GOING BASIS AND WE TALKED ABOUT WHAT THAT PAYS FOR. WE CAN ALSO RUN, AS WE HAVE DONE IN 2019 AND 2011 BEFORE THAT, WE CAN ALSO RUN A CAPITAL LEVY FOR CONSTRUCTION AND WE CAN DO THAT FOR ANY LENGTH OF TIME UP TO 6 YEARS. IT CAN BE A ONE, TWO, THREE, FOUR, UP TO 6-YEAR.

AS WE TALKED ABOUT THE FUNDING IMPLICATIONS, THE CAPITAL CONSTRUCTION LEVY, WE RECEIVE

[02:45:02]

>> DR. JON HOLMEN: JUST WANTED TO -- WHEN YOU SAY REMODELING AND UPGRADES, IS THAT ALSO

REBUILDS? IS THAT CONSIDERED REMODELING? >> YES.

ANOTHER WAY TO RECEIVE FUNDING FOR CONSTRUCTION IS STATE CONSTRUCTION ASSISTANCE FUNDS, OR SCAF AND A DISTRICT HAS TO MEET CERTAIN ELIGIBILITY REQUIREMENTS BASED ON AGE AND CONDITION. YOU HAVE TO FUND THE PROJECTS FIRST IN ORDER TO -- AND THEN YOU GET REIMBURSED FROM THE STATE LATER. OUR DISTRICT, BECAUSE OF THE FORMULAS, WE ONLY RECEIVE SCAP ON REBILL BUILD PROJECTS. WE'RE NOT GETTING ANY STATE ASSISTANCE TO BUILD ANY NEW DESTRUCTION. THAT'S WHY IT'S BEEN ADVANTAGEOUS FOR US TO REBUILD SCHOOLS LIKE ROSE HILL MIDDLE AND JUANITA HIGH SCHOOL AND WE DID RECEIVE SCAP ON LAKE WASHINGTON HIGH SCHOOL BECAUSE IT WAS AN ADDITION AND THE GYM WAS A REBUILD AND EXPANSION. EVEN IN A REBUILD AND ENLARGE, I THINK WE RECEIVED FIVE MILLION OUT OF A $50 MILLION CONSTRUCTION BUDGET. SO IT DOESN'T PAY FOR WHAT IT NEEDS TO PAY FOR. MARK, DID YOU HAVE A QUESTION ON THAT?

>> MARK STUART: YEAH, A THOUGHT OCCURRED AND I'M NOT SURE IF IT WORKS OR NOT BUT TELL ME.

THE EXPANSION OF A GIVEN SCHOOL THAT'S THERE, IF YOU HAVE THE CAMPUS SIZE FOR IT AND YOU START ADDING ONTO THAT SCHOOL AND LET'S SAY IT'S EAST LAKE OR REDMOND HIGH AND YOU START BUILDING AN ELEMENTARY ADJACENT TO IT OR ON THE SAME PROPERTY AND CONNECTED TO IT, COULD THAT

GO INTO A LEVY PROJECT? >> IT'S NOT ABOUT TURNING A PROJECT INTO A BOND OR LEVY IMPORTANT, IT'S ABOUT HOW WE DECIDE TO FUND OUR CAPITAL CONSTRUCTION SO IF WE GO OUT FOR A MEASURE, WE'RE DECIDING WHETHER THAT'S A BOND OR A LEVY AND WE'RE DECIDING WHAT TO

BUILD. >> MARK STUART: I UNDERSTAND THAT, I'M TRYING TO FIGURE OUT ANOTHER WAY TO WORK THOSE RULES WHERE YOU CAN ONLY BUILD ONTO AN EXISTING STRUCTURE.

>> YES, YOU COULD CONSIDER -- I THINK BRIAN, RIGHT? AS LONG AS YOU TOUCH A WALL, IT'S AN ADDITION. THE CHALLENGE SOMETIMES, THOUSAND, SOMETIMES YOU'RE REQUIRED TOSOMETIMES YOU'RE REQ UPGRADE THE WHOLE BUILDING. ONCE YOU OPEN UP THE WALL, THEN YEAR REQUIRED TO UPGRADE THE REST OF THE BUILDING AND THAT CAN BE COSTLY.

>> MARK STUART: ON OUR HIGH SCHOOLS WITH THE UPGRADE TO REDMOND HIGH, I'M ASSUMING WE HAD TO UP GRATE THE REQUIREMENTS AT THAT TIME BTHAAT THAT TIME B SUBSTANTIAL UPGRADE.

HOW MANY HAVE WE HAD TO REHAB? >> FOR EXAMPLE, EAST LAKE THERE'S CAPACITY FOR A FEW CLASSROOMS, I THINK EIGHT CLASSROOMS, ADDITIONS THERE. IT WOULDN'T REQUIRE MAJOR SYSTEM

UPGRADES AT THAT POINT. >> MARK STUART: WHAT I'M GETTING AT IS IF PROPERTIES HAD ENOUGH CAMPUS SIZE TO BUILD A SCHOOL ATTACHED TO THEM THAT'S AN ELEMENTARY OR WHATEVER, BARBARA WAS SAYING THAT THE FACILITIES HAD TO BE UP GRATED. IF THEY HAVE BEEN UP GRATED ENOUGH LIKE EAST LAKE HAS BEEN, WE WOULDN'T HAVE THAT REQUIREMENT.

I'M TRYING TO PUT MY ARMS AROUND -- >> YEAH, WE WOULD HAVE TO LOOK AT ALL THE CODE. SO IT'S HARD TO ANSWER IT AT A MACRO LEVEL EXACTLY.

[02:50:04]

>> MARK STUART: I WAS THINKING THAT REDMOND HIGH HAD BEEN DONE SO RECENTLY, TOO.

>> YEAH, I WOULD EXPECT YOU WOULDN'T HAVE MAJOR UPGRADES NEEDED AT REDMOND HIGH SCHOOL.

>> MARK STUART: OKAY, THANK YOU. >> CASSANDRA SAGE: DID YOU SAY THAT BECAUSE OF OUR SIZE WE

DON'T GET SCAP FUNDING FOR NEW CONSTRUCTION? >> BECAUSE OF THE FUNDING AND FORMULAS, THEY DEEPED THAT WE HAVE ENOUGH CAPACITY AND SO IT DOESN'T -- HOW THE SCAP FORMULA WORKS AT THE STATE LEVEL, THEY HAVE NOT SAID YOU ARE ELIGIBLE FOR SCAP FUNDING BECAUSE OF HOW THEY DO THE FORMULAS. THE REALITY IS WE HAVE BUILT NEW SCHOOLS BECAUSE OF OUR GROWTH BUT THE STATE THINKS WE DON'T NEED ANY NEW MONEY FOR CONSTRUCTION.

>> SIRI BLIESNER: BECAUSE IT'S BASED ON 1970S ALLOCATION MODELS FOR SPACE.

THAT'S WHAT IT COMES DOWN TO. >> YEP. >> SIRI BLIESNER: DONE A LOT OF

LEGISLATIVE WORK ON IT, HAVEN'T BEEN ABLE TO GET IT TO MOVE. >> OKAY, ANOTHER SOURCE OF FUNDING IS SCHOOL IMPACT FEES AND THESE ARE DEVELOPER FEES, AS OUR DEVELOPERS BUILD NEW DEVELOPMENTS LIKE APARTMENTS OR CITY HOMES, THERE'S AN IMPACT FEE ASSESSED TO THEM.

WE HAVE AGREEMENTS WITH EACH OF OUR JURISDICTIONS TO COLLECT THE FEES.

THEY ARE NOT INTENDED TO PAY 100% OF THE COST OF THE FACILITIES BUT A SHARED PORTION IN A PUBLIC FACILITY. THEY HAVE TO BE USED TO FUND FACILITIES ASSOCIATED WITH THE NEW DEVELOPMENT. THEY CAN'T BE USED TO CORRECT EXISTING DEFICIENCIES SO WHAT WE USE OUR IMPACT FEES FOR IS WHEN WE HAVE TO ADD PORT BALLS TO SITES DUE TO GROWTH.

SO OUR IMPACT FEES, THEY'RE BASED ON THE EXPECTED IMPACT OF EACH NEW TYPE OF HOUSING UNIT AND THEY HAVE TO BE SPENT 10 YEARS IN THE COLLECTION WHICH WE HAVE NO PROBLEM SPENDING THEM VERY QUICKLY. SO THIS TABLE JUST SHOWS YOU OUR IMPACT FEES AND HOW IT'S CHANGED OVER TIME. IC SEE THAT WE INCREASED OUR IMPACT FEES ON THE SINGLE FAMILY, SO THIS IS THE YEAR IT WENT INTO EFFECT. THIS IS THE FEE FOR SINGLE FAMILIES SO WE'RE AT $15,000 PER UNIT RIGHT NOW AND YOU CAN SEE OVER TIME WE INCREASED THE FEE SIGNIFICANTLY. OUR MULTIFAMILY IMPACT FEES HAVE GONE FROM $816 TO $2,700 WHICH MANY DEVELOPERS IN OUR COMMUNITY WOULD NOT AGREE WITH THIS BUT THE COMMUNITY WOULD LIKE TO SEE THAT NUMBER HIGHER BY IT'S A FACTOR OF THE FACT THAT RIGHT NOW IN OUR DISTRICT, OUR MULTIFAMILY DEVELOPMENTS ARE NOT GENERATING AS MANY STUDENTS AS IN OTHER SCHOOL DISTRICTS, SO THAT'S WHY THAT FEE IS STILL RELATIVELY LOW COMPARED TO OTHER DISTRICTS.

SO THIS NEXT TABLE SHOWS HOW MUCH WE'VE COLLECTED IN IMPACT FEES BY JURISDICTION.

SO YOU CAN SEE EVEN IN A MATTER OF 4 YEARS WITHIN EACH JURISDICTION, THESE FUNDS ARE NOT GOING TO PAY FOR A BRAND NEW FACILITY OR EVEN AN ADDITION RIGHT NOW.

MAYBE A COUPLE CLASSROOMS. WE HAVE COLLECTED $21 MILLION AND WE ARE USING ALL OF THOSE FUNDS FOR OUR NEW CAPACITY IMPORTANT, SO IT IS MUCH NEEDED AND APPRECIATED, BUT IMPACT FEES

ALONE ARE NOT GOING TO CONSTRUCT NEW SCHOOLS. >> SIRI BLIESNER: CAN I DO JUST ONE FOLLOWUP QUESTION ON SCHOOL IMPACT FEES? THINKING OF THE PURR SHAGS IN THE CADMEN PROPERTY, THE COST OF LAND CAN BE ROLLED IN, AT WHAT POINT CAN THAT OCCUR?

YOU HAVE TO BE BUILD SNOWING >> ONCE WE IDENTIFY IT AS PART OF THE PROJECT.

IF WE DECIDE A NEW ELEMENTARY SCHOOL IS PART OF THE PLAN AND THE LAND CAN BE BUILT INTO THE

CAPITAL FACILITY PLAN. >> AND THAT CAN BE INCORPORATED IN?

[02:55:08]

>> YEP. >> DR. JON HOLMEN: SO WE WOULDN'T IDENTIFY THOSE IMPACT

FEES UNTIL WE IDENTIFY A SITE AND START BUILDING, CORRECT? >> CORRECT.

I'M NOT ANTICIPATING THAT BEING IN THIS YEAR'S CAPITAL FACILITIES PLAN BECAUSE WE'RE NOT AT THE POINT WHERE WE HAVE A SPECIFIC PROJECT IDENTIFIED AND WE HAVEN'T CLOSED ON ANY

PROPERTY YET, SO. >> SIRI BLIESNER: AND WE'LL SEE THAT COME IN WHEN?

>> IN MAY. WE'LL TALK MORE ABOUT THAT WHEN WE BRING INFORMATION ON THE

CAPITAL FACILITY PLAN. >> SIRI BLIESNER: THIS IS JUST ONE OF THESE PIECES AS WE LOOK AT LAND AND WHAT WE'RE DOING. WE HAVE NOD HAT TO PURCHASE MUCH IN THE PAST AT THIS POINT BECAUSE WE HAVE HAD IT. AS WE DO AND THE IMPACT OF THAT, THAT'S A DEVELOPMENT IMPACT, IT MAKES SENSE BUT HOW IS THAT BUILT IN IN THE MOST TIMELY FASHION POSSIBLE MAKES SENSE.

>> ABSOLUTELY. SO THE OTHER WAY TO GENERATE REVENUE IS SALE OF PROPERTY THAT WE ARE NOT ABLE TO USE FOR CONSTRUCTION OF SCHOOLS AND ONE OF THE THINGS -- SO WE COULD SELL PROPERTY TO GENERATE DOLLARS AND WE HAVE TALKED ABOUT SOME OF OUR UNDEVELOPED PROPERTY OUTSIDE THE URBAN GROWTH BO BOUNDARY LINE. EVEN THOUGH IT'S A LOT OF ACRES, THE VALUE OF THAT PROPERTY IS LOW BECAUSE IT'S NOT BUILDABLE, SO SELLING PROPERTY OUTSIDE THE UGA, THAT'S WHY WE HAVE CONTINUED TO HOLD ONTO IT, BECAUSE IT HAS MINIMAL VALUE RIGHT NOW AND SOME TIME IN THE FUTURE, WE DON'T KNOW IF THERE WILL BE CHANGES IN THE URBAN GROWTH BOUNDARY LINE SO WE WANT TO MAKE SURE WE'RE NOT SELLING PROPERTY NOW THAT IN THE FUTURE COULD BE VALUABLE. BUT THAT IS SOMETHING WE CAN CONTINUE TO LOOK AT AS A MEANS FOR REVENUE. SO THE DISTRICT IS CURRENTLY SELLING ITS SITE IN THE ROSE HILL AREA. THIS WAS A SITE WE PURCHASED, AGAIN, MANY, MANY YEARS AGO HOPING TO BUILD AN ELEMENTARY SCHOOL. SINCE THAT SITE WAS PURCHASED, THOUGH, THE CITY OF RED MAN PUT SOME RESTRICTIONS ON IT DIE TO THE PROXIMITY OF THE GAS BEEP LINE. YOU CAN'T HAVE SCHOOLS WITHIN 500-FEET AND THAT TOOK AWAY A MAJORITY OF THE USABLE SPACE SO WE'RE SELLING THAT PROPERTY AND WE ESTIMATE WE'RE EXPECTING TO CLOSE SUMMER OF 21 WITH $18 MILLION IN REVENUE AND WE HAVE COMMITTED THOSE PROCEEDS TO OUR CURRENT PROPERTY PURCHASE. HERE'S OUR ELECTION RESULT TRENDS FOR OUR BOND MEASURES.

ONLY ONE OF OUR FIVE BOND MEASURES WE HAVE RUN IN THE LAST 6 YEARS HAS RECEIVED A SUPERMAJORITY NEEDED TO PASS. IN FEBRUARY 2010, WE RAN A MEASURE, 55% APPROVAL, DID NOT PASS. RAN AGAIN IN 2014, 58% APPROVAL, DID NOT PASS.

APRIL 2014, 52%. APRIL 2016, PASSED AT 67% AND THEN WHEN WE RAN PHASE TWO OF OUR FOUR PHASE BOND PLAN IN FEBRUARY 2018, THAT WAS A 54% AND THAT'S PART OF THAT 10% DECLINE DUE TO MCCLEARY AS WELL. THEN OUR 26-YEAR CAPITOL CONSTRUCTION LEVIES THAT WE RAN IN THE LAST 8 YEARS DID PASS AND SO THE FEBRUARY 2011 THAT PAID FOR THE TWO ADDITIONS AND STEM HIGH SCHOOL WAS APPROVED AT 60% AND OUR APRIL 2019 HAD APPROVING READINGIAITING OF 57%.

SOME OF OUR FUNDING OPTIONS, AND WE TALKED TO THESE OPTIONS WITH THE ADVISORY COMMITTEE AND YOU CAN GO BACK AND LOOK AT THEIR RECOMMENDATIONS BUT THEIR RECOMMENDATION WAS A BOND IN TWO PHASES AND SOME OF THEIR REASONABLE WAS THE ABILITY TO GET THE FUNDS FASTER BUT THEY

[03:00:07]

SO ONE OF OUR OPTIONS IS TO RUN A PHASE ONE AND PHASE TWO BOND. ANOTHER OPTION IS TO RUN A CAPITAL CONSTRUCTION LEVY WE CAN COMBINE WITH A 4-YEAR CAPITAL AND TECHNOLOGY LEVEL.

WE HAVE RUN SOME SCENARIOS, OUR BOND UNDERWRITER THAT WE WORK WITH, I JUST WANTED TO SHOW YOU THE CHART WE HAVE BEEN SHOWING ALL ALONG HAS THE $1.15 SET ASIDE FOR BONDS AND KEEPING THAT TAX RATE LEVEL. THE REALITY IS, THOUGH, IS AS WE PAY OFF BONDS, STARTING IN 23, THERE'S ROOM FOR A 19 TO 28¢ LEVY. THE TAX ROOM PROVIDES SOME ROOM WITH ADDITIONAL BOND MEASURES OR A LEVY AND THEN WE WILL GO OVER THAT, WELL, LET ME SHOW THIS LAST SLIDE AND WE'LL LOOK AT THE DETAILS. SO THE CAPITAL CONSTRUCTION LEVY. EVERY 20¢ OF A CAPITAL CONSTRUCTION LEVY GENERATES $15 MILLION IN FUNDING. IF THIS TABLE SHOWS A PORTION, IF WE WERE TO RUN A LEVY AND THE ASSUMPTION IS STILL TO MAINTAIN THAT $1.15 TAX RATE, THIS IS THE LEVY DOLLARS WE COULD COLLECT EACH YEAR BUILDING UP TO REALLY THE LEVY THAT WE'RE ASSESSING FOR THE BONDS.

RIGHT NOW, WE ARE ASSESSING ABOUT $80 MILLION A YEAR IN DEBT SERVICE TO PAY OFF OUR BONDS, OR I SHOULD SAY $70 MILLION A YEAR TO PAY OFF OUR BONDS, SO WE COULD EVENTUALLY GET THE LEVY, THE SEATTLE OPTION UP TO THAT LEVEL TO REPLACE BONDS. BUT IT DOES -- YOU ARE ONLY ACCUMULATING THE DOLLARS ON THE LEFT WITHOUT AN LGO BOND SALE. YOU ARE HAVING TO WAIT SEVEN YES TO GETYEARS TO GET $323 MILLION WITH A BOND SALE, YOU CAN SALE THEM UP FRONT OR YOU HAVE TO USE LGO BONDS. SO I HAVE HANDOUTS AND THERE'S A LOT OF DATA ON THESE BUT YOU SHOULD HAVE THESE LARGE HANDOUTS AND TO ORIENT YOU ON THE UPPER LEFT, THERE SHOULD BE A SCENARIO ONE AND THEN EACH OF THESE -- THERE'S FOUR SCENARIOS, SO WELL JUST ORIENTITATETO TOYTOOUT TO NUMBER. THESE SCENARIOS ARE OUR EP&O GROWTH STAYS THAT SAME RATE AS THE SAMEARE OUR EP&O GROWTH STAYS THAT SAME RATE AS THE ARE OUR EP&O GROWTH STAYS THAT SAME RATE AS THE SAME 90¢ RATE. $141 MILLION WITH ABOUT $100 MILLION BOND SALES EACH YEAR FOR THE NEXT 4 YEARS AND THERE'S A 2026 AUTHORIZATION AMOUNT OF $100 MILLION FOR THE NEXT 4 YEARS AS WELL. IN THE BOX BELOW, THE LEFT HAND COLUMN IS THE AV ASSUMPTIONS. IN THE MIDDLE WHERE IT SAYS LEVY AMOUNT DETAIL, YOU HAVE YOUR EP&O DOLLAR AMOUNTS. YOU HAVE YOUR CAPITAL LEVY DOLLAR AMOUNTS AND CONSTRUCTION LEVY, THAT'S THE $20 MILLION FOR 6 YEARS. THAT'S THE 2019 LEVY THAT WAS APPROVED. YOU HAVE A COLUMN WITH PRIOR DEBT.

THAT'S THE BONDS THAT WE HAVE SOLD AND COMMITTED TO AND YOU CAN SEE THAT THOSE BOND ARE PAID OFF, IF WE DO NOTHING ELSE GOING FORWARD, ALL OUR DEBT WILL BE PAID OFF IN 2038.

[03:05:03]

AS WE SELL $100 MILLION IN BONDS, YOUR LEVY IS ADDED TO YOUR TOTAL NEW BONDS AND THEN THE NEXT COLUMN SAYS TOTAL BOND LEVY. THAT'S THE DOLLAR AMOUNT WE WOULD BE LEVYING IN BONDS EACH YEAR SO RIGHT NOW WE'RE LEVYING TO PAY OFF OUR BONDS AND THAT WOULD GROW TO ALMOST $100 MILLION BY 2028. AND THEN ON THE VERY RIGHT OF THE SPREADSHEET, THE LAST BOXES, ALL THE RATE INFORMATION. YOU CAN SEE OUR EP&O LEVY RATE OF 90¢, THE CAPITAL LEVY RATE OF 62¢, THE CONSTRUCTION RATE LEVY OF 24¢ TO 28¢, OUR PRIOR DEBT AND YOU CAN SEE THAT'S DROPPED DOWN FROM OVER $1, $1.15 AND WHEN WE COMBINED IT WITH THE CONSTRUCTION LEVY AND THE BONDS, IT'S 84¢ PLUS THE 48¢, STILL $1.15 OR SO AND FURTHER DOWN IS THE PRIOR DEBT AND THE LEVY RATING FOR THE NEW DEBT AND THE COMBINED BOND DEBT, THE VERY LAST COLUMN IS THE TOTAL SCHOOL RATE OF $2.57. I KNOW I WENT THROUGH THAT

REALLY FAST. >> CHRISTOPHER CARLSON: CAN SOMEONE SHOOT ME AN E-MAIL OF

THE HANDOUT? >> YES. >> DR. JON HOLMEN: ONE OF THE THINGS THAT WAS CONFUSING TO ME EARLY ON, NOT TODAY, BUT EARLIER IN MY CAREER WAS THE CONCEPT OF WE SELL BONDS, YET WE LEVY TO PAY THOSE BONDS OFF AND SO THERE'S TOE DEFINITIONS OF LEVY.

ONE IS WE RUNWO DEFINITIONS OF . ONE IS WE RUN LEVIES BUT WE ALSO LEVY OUR COMMUNITY SO --

>> YES. THE COMMUNITY AUTHORIZES THE DISTRICT TO SELL BONDS IN A CERTAIN DOLLAR AMOUNT AND PART OF THAT SAYS YOU WILL SELL BONDS AND THE COMMUNITY, IT AUTHORIZES US TO LEVY AN APPROPRIATE AMOUNT EACH YEAR TO PAY OFF THOSE BONDS.

>> [INAUDIBLE] >> YEP, I KNOW. HOLD ON A MINUTE, CHRIS, WHILE I E-MAIL YOU THOSE.

>> ERIC LALIBERTE: THE IDEA IS THAT BARBARA WILL FINISH THESE, WE'LL BREAK FOR LUNCH AND THEN WE'LL HAVE DISCUSSIONS. EVERYONE CAN COLLECT THEIR THOUGHTS AND COME BACK AFTER

LUNCH AND HAVE A DISCUSSION. >> THERE ARE NO MORE SLIDES. SO IF YOU WANT TO FLIP TO SCENARIO TWO, WHICH IS ON THE BACKSIDE, THIS IS AN EXAMPLE OF IF WE DID A CAPITOL CONSTRUCTION LEVY IN LIEU OF BONDS, IN THE MIDDLE, INSTEAD, YOU CAN SEE IF YOU FIND IN THE MIDDLE WHERE YOU SEED THE $20 MILLION FOR 6 YEARS, OVER IS THE NEW CONSTRUCTION LEVY AND YOU CAN SEE WHAT YOU COULD K50E7 THE SCHOOL LEVY THE SAME. THESE ARE ASSUMING THE LEVY RATE THEKEEP THE SCHOOL LEVY THE SAME. THESE ARE ASSUMING THE LEVY RATE THE SAME. SO THE TOTAL CONSTRUCTION DEBT WITH OUR CURRENT CONSTRUCTION, 6-YEAR LEVY, A NEW CONSTRUCTION LEVY, THE PRIOR BONDS, YOU CAN SEE THE COMBINED DEBT STILL

[03:10:05]

REMAINS $1.15. THE OTHER SPREADSHEETS -- >> SIRI BLIESNER: I JUST HAVE A QUESTIONMENT WHEN PUTTING FORWARD THE ADDITIONAL CONSTRUCTION LEVY RATE, THAT'S

WHAT'S FREEING UP AS OUR BONDS ARE BEING [INAUDIBLE] >> DR. JON HOLMEN: WHEN I COMPARE SCENARIO ONE TO SCENARIO TWO, AS AN INDIVIDUAL TAXPAYER, MY ANNUAL RATE THAT I'M TAXED FROM THE SCHOOL DISTRICT DECLINES OVER TIME WHEREAS WITH SCENARIO TWO, MY ACTUAL DOLLARS OUT OF POCKET GO UP OVER TIME BECAUSE THERE'S NO ADJUSTMENT, SO AS AV CONTINUES TO INCREASE, THE TAX RATE STAYS THE SAME OVER TIME AND SO RATHER THAN A DECLINING TAX RATE IT MAINTAINS THE TAX RATE WHICH THEN INCREASES AS ON INDIVIDUAL, POTENTIALLY, MY OVERALL COST

WITH TAXES. >> LET ME CLARIFY. SCENARIO WIN, THE $2.57 STAYS THE SAME UNTIL 2030. IT'S INTENDED TO STEP DOWN AFTER 2030 BECAUSE THE ASSUMPTION IS WE WILL CONTINUE TO GROW AND MAY NEED ANOTHER BOND SALE SO IT'S LEAVING ROOM FOR A FUTURE BONN BOND SALE WITH THE INTENT THAT YOU'RE GOING TO KEEP THAT RATE AT $2.57 BUT IT'S LEAVING ROOM FOR FUTURE BOND SALE THAT IS WE HAVEN'T YET DEVELOPED. DOES THAT MAKE SENSE? AND THERE'S ANOTHER STEP DOWN IN 2027, SO THERE TWO STEP DOWNS TO LEAVE ROOMS FOR FUTURE BOND SALES BECAUSE THEY KNOW THAT DISTRICTS ARE TYPICALLY DOING BOND SALES EVERY 8 YEARS OR SO.

AND WHERE THE SCENARIO TWO, WITH A LEVY, THEY DIDN'T NEED TO LEAVE ROOM FOR A STEP DOWN.

>> SIRI BLIESNER: AS YOU LOOK THROUGH THAT LEVY PIECE, IT BECOMES SO IT'S CLEAR THAT YOU'RE ENDING AT $1.15 AS THE TAX RATE ON A LEVY AND THAT'S JUST A STANDING PIECE THAT'S

GOING FORWARD. >> CORRECT. >> SIRI BLIESNER: IS THAT FAIR?

>> YES. >> SIRI BLIESNER: THAT COULD BE CHANGED DEPENDING ON NEEDS AND THINGS. THAT'S THE JUST THE CURRENT WAY FOR HOW IT COULD PLAY OUT IN ORDER TO MAINTAIN THE CURRENT TAX RATE GOING FORWARD. AS YOU PLAN AND DO FISCAL PIECES, THIS MAKES SENSE TO BE ABLE TO HAVE MEASURE AND ASSUMPTION GOING IN AS YOU LOOK AT THAT GOING FORWARD BUT THERE'S A LOT TO BE SAID ABOUT SHIFTING TO A CAPITAL LEVY TO AT LEAST GET SOME CONSISTENCY IN REGARDS TO HOW THE FINANCING OF OUR CAPITAL PROJECTS ARE POSSIBLE AND IT'S NOT SO DEPENDANT UPON CAMPAIGN AND MAKING THAT OCCUR.

>> I BELIEVE SEATTLE COMBINES THEIR CONSTRUCTION AND THEIR TECHNOLOGY AND THEIR FACILITY LEVY ALL IN ONE SO THAT'S THE OTHER PIECE OF THAT. BUT THAT'S NOT THE SCENARIO HERE. AND THEN THE OTHER HANDOUT, JUST THREE AND FOUR, ARE ASSUMING A HIGHER EP&O AT THE MAXIMUM ALLOWED LEVY LID. THAT'S JUST WHAT THAT SCENARIO ASSUMES. THERE ARE MULTIABLE WAPLE WAYS SCENARIOS.

YOU COULD RUN. THERE'S A WAY TO DECREASE THE CONSTRUCTION PIECE, CHANGE HOW YOU STRUCTURE BONDS OR DELAY SOME OF THE CONSTRUCTION SO YOU CAN TEEP THE TAX RATE LOWER ON THE CONSTRUCTION SIDE, SO YOU CAN KEEP THEK THE TAX RATE LOWE CONSTRUCTION SIDE, SO YOU CAN KEEP E THE TAX RATE LOWER ON THE CONSTRUCTION SIDE, SO YOU CAN KEEP E THE TAX RATE LOWER ON THE CONSTRUCTION SIDE, SO YOU CAN KEEP THE TAX RATE LOWER ON THE CONSTRUCTION SIDE, SO YOU

CAN KEEP THE TAX RATE LEVEL. WE JUST HAD THEM DO FOUR TODAY. >> SIRI BLIESNER: WHO YOU DO I KNOW THE TOTAL DOLLAR AMOUNT GENERATED BY THAT APPROACH? WHICH COLUMN AM I LIKING THAT

FOR THAT INFORMATION? >> WHICH ONE DO YOU WANT TO LOOK AT? FOR NUMBER ONE, THE TOTAL DOLLARS GENERATED FOR CONSTRUCTION IS THE TOTAL BOND

[03:15:06]

COLUMN. >> SIRI BLIESNER: TOTAL BOND LEVY?

>> YEP, THAT'S WHAT WE'RE LEVYING EACH YEAR FOR CONSTRUCTION.

>> SIRI BLIESNER: SO THAT'S THE YEARLY AMOUNT COMING IN FOR CONSTRUCTION?

>> YEP. THE OLD BONDS AND NEW BONDS. >> ERIC LALIBERTE: SOME OF THAT

IS GOING TO SERVE AS THE INTEREST THOUGH, RIGHT? >> ABSOLUTELY.

THAT'S THE TOTAL LEVY THAT WE NEED TO PAY PRINCIPAL AND INTEREST BACK ON BONDS.

>> ERIC LALIBERTE: IT'S ALL GOING TO SERVICE THE DEBT. Y.DEBT

>> YES. >> ERIC LALIBERTE: ON NAIR JOE FOUR, THAT ASSUMES THESCENARIO

FOUR, THAT ASSUMES THE MAXIMUM? >> THREE AND FOUR ARE THE SAME AS ONE AND TWO BUT THE EP&O IS

NOT THE SAME, IT'S A HIGHER AMOUNT. >> DR. JON HOLMEN: CHRIS HAS A

QUESTION. >> CHRISTOPHER CARLSON: I'M TRYING TO -- I'M SEEING ONE AND TWO IS BOND VERSUS CAPITOL LEVY AS THE FUNDING MECHANISM AND THREE AND FOUR ARE ONE AND TWO WITH A BOOST IN OUR EP&O. I DON'T THINK WE CAN USE THE EP&O FUNDS -- THEY'RE CONSTRAINED. THAT BOOST DOESN'T HELP US RAISE DOLLARS FOR CONSTRUCTION, DOES

IT? >> NO, THE EP&O TO LAIRS, YOU'RE CORRECT, CAN'T BEDOLLARS, YOU'R CORRECT, CAN'T BE USED -- WELL, CAN'T BE USED FOR SCRUBBINGS OR ARE NOT INTENTEDCONSTRUCTION OR ARE NOT INTENTED TO BE USED FOR CONSTRUCTION. CAN WE? ABSOLUTELY. THE GENERAL FUND CAN BE USED TO PAY FOR ANYTHING WE'RE GOING WITH OUR CAPITAL LEVY, OUR TECHNOLOGY, FACILITY UPGRADES AND CONSTRUCTION.

THE INTEND OF THREE AND FOUR WAS SO JUST SHOW IF YOU GO BACK TO OUR EP&O SECTION, TO SHOW IF WE RAN THE LEVY AT THE MAX THAT WE WERE ALLOWED, WHAT THAT IMPACT WOULD BE.

>> CHRISTOPHER CARLSON: I'M STILL TRYING TO UNDERSTAND WHERE THE VALUE IS TO US IN RUNNING IT

AT THE MAX IF IT CAUSES US TO BREAK FAITH WITH A STABLE RATE. >> YEAH, I THINK THAT'S THE CONVERSATION. THERE'S BEEN YEARS IN THE DISTRICT WHERE HAVING A LEVEL TAX RATE, THAT WASN'T THE MAIN DRIVER OF THE ELECTION CONVERSATION.

THERE WERE YEARS WHERE EP&O RATE DID INCREASE EACH YORE BASED ON INFLATION SO I THINK THAT'S THE

CONVERSATION WE CAN HAVE AFTER LUNCH, WHAT OUR GOALS ARE. >> CHRISTOPHER CARLSON: JUST TO PROVIDE MY FEEDBACK, I HAVE NOT HEARD, IN TODAY'S PRESENTATION, A STRONG ARGUMENT FOR WHY WE WOULD DO THAT SO I'M IN FAVOR IN THAT WE ONLY TRY TO HAVE A STABLE TAX RATE FOR 4 YEARS NOW AND IF WE'RE GOING TO LET GO OF THAT ALREADY, WE NEED A STRONG ARGUMENT TO THE COMMUNITY FOR HOW TO APPROACH THIS AND I HAVEN'T HEARD ONE, SO I'M IN FAVOR OF SCENARIOS ONE OR TWO,

I'M NOT SURE WHICH YET. >> ERIC LALIBERTE: WE'LL HAVE THAT SKUKS AFTER LUNCH.

ANY OTHER QUESTIONS? >> CASSANDRA SAGE: I THINK THERE'S VALUE IN LOOKING AT IT BECAUSE THIS IS WHAT TAXPAYERS WOULD HAVE PAID THE ENTIRE TIME SO EVEN JUST HAVING THIS AVAILABLE FROM THIS POINT BACKWARD IN TIME WOULD BE USEFUL TO KNOW THAT WE HAVE NOT ASKED FOR THE HIGHER AMOUNT, HOW MUCH MONEY THAT REALLY IS, THAT HIGHER AMOUNT.

>> ERIC LALIBERTE: OKAY, ARE WE DONE? ANY LAST QUESTIONS?

[03:20:01]

>> DR. JON HOLMEN: WILL YOU JUST GO BACK TO THE SLIDES AND BACK UP TO BOARD QUESTIONS.

THIS WOULD ALLOW THE BOARD TO HAVE THOSE AGAIN IN FRONT OF THEM AND WHAT WE'RE GOING TO

DISCUSS AFTER. >> SORRY, I SHOULD HAVE GOTTEN TO THE CORRECT SLIDE.

>> DR. JON HOLMEN: IT'S AT THE VERY BEGINNING. >> I KNOW.

HERE WE GO. SO WHAT CONSIDERATION SHOULD BE MADE WHEN PLANNING FOR THE EP&O LEVY? WHAT CONSIDERATION SHOULD BE MADE FOR PLANNING FOR THE

CAPITAL CONSTRUCTION LEVY? >> DR. JON HOLMEN: AND WE DID THIS THIS WAY IS BECAUSE THIS IS ABOUT WHAT CONSIDERATIONS NEED TO BE BROUGHT FORWARD SO THAT THE BOARD HAS WHAT YOU NEED TO FEEL COMFORTABLE IN THE DECISION AROUND TYPE, LEVEL, AND TIMING OF FUNDING MEASURES.

>> AND KNOWING THAT WE WILL BRING A BOND AND LEVY ADVISORY, TOO, TO PROVIDE FEEDBACK AS

WELL. >> ERIC LALIBERTE: GREAT. OKAY.

W CAN WE LEAVE THAT UP DURING THE BREAK, TOO? 12:06. HOW MUCH TIME SHOULD WE SCHEDULE FOR LUNCH? HALF AN HOUR? IS THAT OKAY? OKAY.

ALL RIGHT. WE WILL COME BACK ALL RIGHT.

SO THE LAST PART OF THIS DISCUSSION IS THIS DISCUSSION. I DON'T KNOW, JON, COULD YOU

FACILITATE THIS? >> DR. JON HOLMEN: ABSOLUTELY. AND FOR OUR PURPOSES, LIKE I SAID BEFORE THE BREAK, IT'S REALLY ABOUT HEARING FROM THE BOARD AROUND THE DIFFERENT FUNDING STREAMS AND WHAT CONSIDERATIONS WE SHOULD BE MAKING AS WE PLAN FOR OUR NEXT TIME TOGETHER. WE HAVE HEARD SOME OF THAT TODAY.

IF THERE'S DOORBELL QUESTIONS THAT WE CAN ANSWER HERE ADDITIO THAT WE CAN ANSWER HERE TODAY, WE'RE HAPPY TO DO THAT BUT KNOWING THAT TODAY IS NOT ABOUT MAKING A DECISION AROUND ANY ONE OF THESE POINTS. WE HAVE DISCUSSED ALL OF THESE AS WELL IN OUR OWN MINDS AND TO PUT IT IN CONSUMABLE TIME FOR US BUT IT FEELS VERY STRUCTURED TO SAY, OKAY, EP&O, LET'S TALK ABOUT THAT. BUT I KNOW THAT COMMENTS WILL BE MADE THAT ARE EITHER HOLISTIC OR ABOUT A DIFFERENT PIECE SO I'M FINE IF THE FEEDBACK TAKES WINDY PATHS.

WE'LL MAKE NOTES, WE HAVE THE RECORDING, BUT LET'S START WITH THE EP&O LEVY AND GIVE THAT A SHOT FOR FEEDBACK. YOU HEARD US DISCUSS WHERE WE ARE WHERE THE EP&O.

THERE'S BACKGROUND AROUND THE MCCLEARY DECISION, THE IMPACT OF THAT NEW STATE FUNDING THAT CAME TO DISTRICTS, OUR DISTRICT MADE A DECISION TO NOT SEEK FULL AUTHORITY AT THAT TIME.

YOU SAW TODAY MODELS AROUND SEEKING FULL AUTHORITY. YOU SAW MODELS THAT KEPT STATUS QUO MOVING FORWARD. WE KNOW THAT THERE ARE ADDITIONAL IMPLICATIONS FOR STATUS QUO GIVEN OUR CURRENT PROJECTIONS WITH OUR BUDGET THAT I THINK ARE ALSO PART OF THE CONSIDERATION AROUND EPO. HAPPY TO TAKE COMMENTS AND QUESTIONS AROUND THAT.

>> ERIC LALIBERTE: COULD WANT TO GO FIRST? >> CHRISTOPHER CARLSON: MY FIRST REACTION IS THE FIRST TWO QUESTIONS ARE IN THE WRONG GRAN YOU LATER.

IT'S WAY TOO SOON TO CONSIDER CHANGING THE STABLE TAX VALUE. OTHERWISE WE'RE GOING TO WEAKEN

[03:25:07]

THE TYPE OF FUNDING, PASSING LEVIES WAS EASIER BUT BONDS ARE THE RIGHT WAY TO DO IT.

I THINK I FINALLY FOUND A REASON THAT I PREFER SCENARIO ONE AND THAT'S THAT IF YOU LOOK AT THE FAR RIGHT COLUMN, THE TOTAL SCHOOL, IT'S LABELED LEVRY RATE BUT IT'S THE TOTAL SCHOOL TAX RATE, IT COMES DOWN WITH TIME FOR BONDS. IT DOESN'T COME DOWN WITH TIME FOR LEVIES AS IN SCENARIO TWO AND THAT, TO ME, IS A BIG DEAL. IT'S SHOWING THAT THIS IS THE LONG TERM INVESTMENT. NOW, IT'S HARDER TO PASS THEM, BUT UH IF IT'S POSSIBLE, I THINK WE SHOULD BE OPENIF IT'S POSSIBE SHOULD BE OPEN TO DOING IT. I'M OPEN TO LICK DATING PROPERTY

TO USE IT FOR SCHOOLS AND THAT'S ALL THE FEEDBACK I'VE GOT. >> ERIC LALIBERTE: BARBARA, COULD YOU TOUCH ON THE COMMENT ON THE TOTAL LEVY RATE REDUCTION THAT WE SEE?

>> YEAH, CHRIS, AND MAYBE, AGAIN, HOW THE SCENARIOS WERE DRIVEN, IT'S A LOT OF DETAIL AND IT COULD BE CONFUSING BUT I WANT TO SAY, AGAIN, THE REASON SCENARIO ONE HAS A STEP DOWN IS BECAUSE THERE'S PLANS FOR FUTURE BONDS THAT WOULD FILL IN THAT TEEP DOWN.

SO THE LONG TERM INTENT ISN'T THAT THE RATE IS STEPPED DOWN, IT JUST ALLOWS FOR A PHASE THREE BOND AND A PHASE FOUR BOND FOR BEYOND 2030, ANY PLANNING BEYOND 2030, WHERE THE SCENARIO TWO, YOU'RE JUST BUILDING IN A CONSTANT LEVY, CONSTRUCTION LEVY.

YOU COULD ALSO PHASE THAT DOWN AS WELL. IF EVERYTHING WAS KNOWN AND WE DIDN'T HAVE TO DO ANY CONSTRUCTION AFTER 2030, YOU COULD PHASE SOMETHING DOWN BUT, AGAIN, THERE WILL ALWAYS BE CONSTRUCTION NEEDS GOING FORWARD.

DOES THAT MAKE SENSE? IT'S NOT BECAUSE ONE IS LESS THAN THE OTHER.

>> CHRISTOPHER CARLSON: OKAY, SO IN BOTH CASES -- WITH 50 BRAKE LIGHTINGS, WE NEED TO DO A REBUILD ON ONE BUILDING A YEAR. OKAY, SO IN THAT CASE I NO LONGER HAVE A STRONG FEELING ONE WAY OR ANOTHER. I WISH I COULD FIND SOMETHING HERE THAT COULD MAKE ME HAVE A

STRONG FEELING ABOUT IT. >> SIRI BLIESNER: CA I JUST CLARIFY THAT WE'RE TRYING TO

BUILD SCHOOLS TO LAST LONGER THAN 50 YEARS NOW? >> YEAH, 50 TO 70 YEARS IS WHAT WE PLAN OUR BUILDINGS. OF COURSE THAT'S THE SHELL AND KEHR OF THE BUILDINGS UNDERSTANDING THERE'S LIFEOF TH THERECO OF THE BUILDINGS UNDERSTANDINR OF THE BUILDINGS UNDERSTANDINE OF THE BUILDINGS UNDERSTANDING THERE'S LIFE MANAGEMENT.

>> MARK STUART: CAN YOU COMMENT ABOUT THE CONFIDENCE LEVEL OF MAINTAINING A LEVEL TAX RATE WAS BROUGHT TO THE FOREFRONT BY DR. PIERCE AND I BELIEVE THAT WAS EITHER IN 2014 OR BEFORE AND SO DO YOU HAVE THE HISTORY? IS THAT SOMETHING WE NEED TO GO BACK IN TIME AND JUST LOOK AT

OUR MATERIALS? >> I BELIEVE IT WITH THE 2016 BOND, BUT I WILL GO BACK AND LOOK AT 2014 BECAUSE WE RAN TWO BONDS, WIN WAS A LARGER BOND MEASURE THAT DIDN'T PASS AND A

[03:30:06]

SPECIFICS. >> MARK STUART: OKAY, THANK YOU. >> ERIC LALIBERTE: IDENTIFY ALWAYS VIEWED THAT LEVEL TAX RATE, JUST TO BE BLUNT, AS A SALES APPROACH RATHER THAN A -- I ALWAYS THOUGHT OF IT AS SOMETHING THAT WE USE WHEN WE ARE -- IT IS A WAY TO MAKE IT SEEM MORE PALLATABLE TO THE COMMUNITY BECAUSE IN THE END, TAXES ARE GOING UP ALL THE TIME

BECAUSE THE ASSESSED VALUE IS GOING UP, TOO. >> SIRI BLIESNER: INCREASING ASSESSMENT VALUE DOESN'T ALWAYS MEAN YOUR TAXES GO UP, EITHER, BECAUSE THE COMPANIES COMING IN.

IT'S NOT LIKE A SALES TAX, IT WORKS DIFFERENTLY. >> CHRISTOPHER CARLSON: SIRIV

YOU LOOKED AT YOUR PROPERTY TAXES? >> SIRI BLIESNER: I HAVE AND I HAVE SEEN THEM DECREASE. KIP MINE ARE GOING UP WAY FASTER THAN INFLATION.

>> THE DISTRICT IS COLLECTING A FLAT DOLLAR AMOUNT AND IT'S AN ACCURATE STATEMENT THAT AS MORE HOMES ARE BUILT AND MORE COMMERCIAL PROPERTIES, THEY'RE GRABBING MORE OF THAT BURDEN, HOWEVER, YOU AS AN INDIVIDUAL, YOUR INDIVIDUAL SITUATION DEPENDING ON WHAT YOUR INDIVIDUAL AV IS DOING MAY BE ON THE HIGH END BY THAT MEANS THAT SOMEONE ELSE'S AV IS GOING DOWN AND THEY'RE PAYING LESS SO IT JUST DEPENDS, WE'RE DEALING WITH AVERAGES, WHICH IS HARD, FOR

INDIVIDUALS. >> ERIC LALIBERTE: THANK YOU. THAT'S A VERY NUANCED AND

HELPFUL RESPONSE. >> SIRI BLIESNER: IT'S THE BENEFIT WE HAVE IN OUR DISTRICT BECAUSE WE HAVE A FAIR SHARE OF COMMERCIAL WITH RESIDENTIAL AND IT HELPS THAT AV AND THE WAY IT

BREAKS DOWN. >> MARK STUART: I DON'T SEE ANY APPETITE IN ESPECIALLY NEAR TERM FOR THE PANDEMIC, POST-PANDEMIC TIME FRAME, THAT ANY VOTER, OR THAT ENOUGH VOTERS WILL PASS A BOND. I WOULD LOVE TO SEE IT AND I WOULD WORK FOR IT, BUT EVEN IN GOOD TIMES, BONDS ARE A TOUGH SELL IN THIS AREA. GIVEN THE ANIMOSITY AROUND DURING THE PANDEMIC, I THINK WE WOULD BE SMART TO STICK TO LEVIES AND STICK TO THE LEVIES THAT DON'T RAISE THE RATE. I THINK THAT THE FARTHER AWAY WE GET FROM THE PANDEMIC SITUATION,

THE BETTER. IF WE CAN AVOID IT, AVOID IT. >> ERIC LALIBERTE: THE QUESTIONS RIGHT NOW WE'RE TRYING TO ANSWER, WHAT ARE THE CONSIDERATIONS AND THE THING WE HAVE BEEN DANCING AROUND IS WHAT ARE THE LIKELIHOOD OF THESE SCENARIOS OF WORKING? IF WE GO OUT FOR A MAXIMUM LEVY, WE'RE ALL SITTING AROUND GUESSING WHAT WE THINK PEOPLE WOULD APPROVE AND NOT. HOW DO WE UNDERSTAND THE LIKELIHOOD -- HOW DO WE UNDERSTAND THE LEVEL OF COMMUNITY SUPPORT FOR DIFFERENT OPTIONS? IF WE GO FORWARD WITH A PARTICULAR APPROACH, WE WANT IT TO BE APPROVED.

I DON'T THINK THIS DISTRICT HAS EVER DONE POLLING. I DON'T KNOW THAT WE CAN.

I'M NOT CERTAIN, BUT I DO THINK -- I WANT TO KNOW WHAT THE LEVEL OF COMMUNITY SUPPORT IS

FOR SOME OF THESE DIFFERENT OPTIONS. >> DR. JON HOLMEN: WE DO SOME LEVELS OF -- IT'S A LITTLE DIFFERENT THAN TYPICAL POLLING BECAUSE THERE'S BOUNDARIES THAT WE HAVE TO STAY WITHIN AROUND WHAT WE CAN AND CAN'T ASK. WE HAVE DONE THAT IN THE PAST TO GAIN SOME LEVEL OF COMMUNITY SENTIMENT. IT'S DONE IN A STATISTICALLY VALID AND RELIABLE MANNER AND IT DOES SOME -- IT PROVIDES SOME INFORMATION AROUND BOUNDARIES OF

[03:35:06]

BARBARA, DO YOU WANT TO SPEAK TO THAT? >> YEAH, THAT'S TYPICALLY, WE ALSO AS PART OF OUR LEVY, WE HAVE THE INFORMATIONAL CAMPAIGN AND THEN THERE'S THE GROUP THAT DOES THE SUPPORT OF THE LEVY MEASURE, WHICH IS SEPARATE AND OCCURS OUTSIDE AND SO THAT IS THE GROUP THAT WORKS ON THAT PIECE OF THAT. SHANNON IS NOT HERE TODAY, BUT THE GUIDELINES THAT WE LIVE UNDER, I BELIEVE WE CANNOT SPECIFICALLY AS A DISTRICT ASK ABOUT APPROVING WILL YOU APPROVE THIS RATE OR WILL YOU APPROVE THIS.

AS A DISTRICT, WE CAN DO CERTAIN THINGS AND THEN THERE ARE THINGS THAT WE CAN'T DO.

WE CAN BRING THAT BACK AND REMIND OF WHAT WE CAN ASK AND CAN'T ASK.

>> DR. JON HOLMEN: CASSANDRA AND SIRI. >> CASSANDRA SAGE: I DO NOT SUPPORT ASKING THE MAXIMUM OF ANYTHING. I THINK THIS LAST YEAR HAS SHOWN HOW DIFFICULT IT CAN BE TO JUST KEEP YOUR HEAD ABOVE WATER IN A DISTRICT SUCH AS OURS, ESPECIALLY IF YOU ARE NOT FULL TIME EMPLOYED OR IF YOU'RE WORKING TWO JOBS TO TRY TO KEEP FOOD ON THE TABLE. I FEEL VERY STRONGLY THAT I WILL NOT SUPPORT A MAXIMUM LEVY.

>> SIRI BLIESNER: IN THINKING THROUGH THESE THINGS, THERE ARE A FEW QUESTIONS THAT I HAVE.

IN REGARDS TO THE EP&O, IT WOULD BE THE SAME THING OF HOW DO THE ITEMS WE HAVE ON HERE TIE INTO OUR VALUES AND HOW ARE THEY CONTINUING TO PROMOTE THOSE COMPONENTS GOING FORWARD? I THINK THAT'S A BIG PIECE TO THINK ABOUT AS WE'RE LOOKING AT HOW THIS FITS, WHERE'S THE INTERPLAY OF THIS WITH OUR CURRENT BUDGET? BECAUSE I THINK THAT'S THE OTHER COMPONENT THAT WAS BROUGHT UP. WE'RE DEFICIT SPENDING ONCE MIGHT SAY SINCE WE HAVE OUR EXPENDITURES HIGHER THAN OUR REVENUES. WE DID IT KNOWINGLY, BUT HOW DO WE NEED TO RIGHT THAT GOING FORWARD AND HOW DOES THE EP&O LEVY PLAY INTO THAT IF IT NEEDS TO. AS THE NEW LEGISLATIVE BUDGET COMES OUT, WHAT IMPACT WILL THAT HAVE AND HOW MIGHT THAT SHIFT? WHAT HAPPENS IN THAT ENVIRONMENT? IN REGARDS TO THE CAPITAL PIECE, WE HAVE A LARGER -- FACILITIES HAVE BEEN A CHALLENGE FOR A LONG TIME. THE PIECE I'M MISSING FROM THE WHOLE PUZZLE ON THE FUNDING IS WHAT WOULD IT COST FOR US TO ADDRESS THE ENTIRE PROBLEM? IN THE SENSE OF IF WE HAD TO BUILD FOR THE 4,000 STUDENTS, WHAT WOULD THAT BE? WHAT'S THE ESTIMATED COST IN ORDER TO DO THAT? AND THAT'S JUST TRYING TO PUT IT INTO A BIGGER PICTURE BECAUSE THEN YOU HAVE MULTIPLE PIECES AROUND THERE. YOU HAVE THE COMPONENTS OF DOES REMOTE LEARNING AND ONLINE OPTIONS PROVIDE AN ABILITY TO ADDRESS THOSE ISSUES.

I KNOW THAT'S NOT THE BOND BUT IT CREATE IT IS FRAMEWORK AROUND IT.

WE HAVE SEVEN SCHOOL THAT IS STILL HAVE NOT BEEN REMOLDED OR REBUILT, RIGHT?

>> IT'S JUST THREE. SMITH, ALCOTT AND ROCK WELL. >> SIRI BLIESNER: SO WE ONLY HAVE FIVE. I THINK THAT'S A COMPONENT TO PLAY INTO THIS CONVERSATION LOOKING AT WHAT NEEDS TO BE BUILT AND WHAT GETS PHASED. LOOKING AT JUANITA AND THE CHANNELS WE HAD IN GETTING THAT FUNDED. THE ADDITION AT LAKE WASHINGTON HIGH TOOK SEVERAL PIECES TO TAKE ON. THAT'S WHAT I LOOK AT IN REGARDS TO THAT FROM A VALUE STANDPOINT AND HOW THAT PLAYS INTO THOSE PHASES OF HOW YOU MIGHT FUND THOSE. SO THAT'S ANOTHER PIECE I WOULD LIKE TO UNDERSTAND BECAUSE THAT WILL BE QUESTIONS WE'LL GET. WHY ISN'T ANY SCHOOL ON THERE? WHY ISN'T THIS ON THERE? SO BEING CLEAR WITH THAT I THINK IS IMPORTANT TO UNDERSTAND AND THE FUNDING PIECE OF IT, AND

[03:40:02]

A BOND? >> DR. JON HOLMEN: IT'S ON SLIDE 65.

>> SIRI BLIESNER: BUT I'M NOT CLEAR HOW THAT WOULD PLAY OUT OVER TIME.

I DON'T HAVE ENOUGH UNDERSTANDING OF HOW -- BECAUSE SHIFTING TO A CAPITAL LEVY CONCEPT FOR OUR FACILITIES IS A LONG RANGE GOAL, OR A STRATEGY. HOW WOULD WE GET THERE? POTENTIALLY IS IT THAT WE DO ONE BOND AND WHILE WE'RE PLANNING TO DO A CAPITAL LEVY AS THE NEXT STEP? THAT'S WHY YOU HAVE TO KNOW THE WHOLE PROBLEM.

IT'S GOING TO COST US $1.5 BILLION TO ADDRESS OUR FACILITY ISSUES.

WHAT ARE THE WAYS WE CAN STRUCTURE THAT IN LOOKING THROUGH BONDS AND SHIFTING TO A CAPITAL LEVY AS A STRATEGY GOING FORWARD? SO THAT'S THE PIECE THAT I LOOK AT FROM FUNDING FOR A LONG TERM. I LIKE THE FACT THAT YOU GET TO A BASIC RATE OF WHAT IT WOULD COST FOR CAPITAL. IT MAKES IT CLEAR, YOU PUT IT OUT TO THE COMMUNITY AND YOU HAVE A WAY TO PLAN THAT THESE COLLARS ARE COMING THAN HAVING TO CONSISTENTLY CREATE NEW BOND MEASURES. I GUESS THOSE ARE THE THINGS THAT I THINK ABOUT AS I PLAY

THESE PIECES OUT. >> I THINK WHAT WE TRIED TO SHOW IS THERE'S A WAY TO GET THERE, SWITCHING FROM BONDS TO CAPITAL LEVY AND MAINTAIN THE CURRENT TAX RATE.

THAT'S WHAT WAS SHOWN ON SLIDE -- >> SIRI BLIESNER: AND HOW QUICKLY IT RESOLVES THE ISSUES, THAT'S THE THE PIECE THAT'S NOT CLEAR.

>> DR. JON HOLMEN: SO I THINK WHAT THIS DOESN'T SHOW, TO YOUR POINT, SIRI, IS WHAT IS THE TOTAL NEED? THIS SHOW IFS WE MAINTAIN A LEVEL TAX RATE FOR THESE DIFFERENT ITEMS, WHAT IS THE DOLLARS THAT ARE GENERATED, WHICH DO NOT MEET THE NEED?

>> SIRI BLIESNER: RIGHT. WHAT AM I GIVING UP BY BALANCING TO A STABLE TAX RATE BECAUSE THAT'S THE PRIORITY WE'RE PUTTING IN THERE. AND BY DOING SO, DOES THAT MEAN IT WILL TAKE 20 YEARS TO RESOLVE THE ISSUES OF OUR FACILITIES AS OPPOSED TO DOING IT NOW AND DO

IT IN TEN? >> ERIC LALIBERTE: I HAVE A SIMILAR BUT AN INVERSE QUESTION.

BY SWITCHING TO A CAPITAL CONSTRUCTION LEVY APPROACH, WHAT CAN WE DO IN THE SHORT TERM? WHAT DOES THAT LOOK LIKE? WHAT WOULD WE BE ABLE TO BUILD IN THE SHORT TERM? IF WE DO IT WITH TWO BONDS, WHICH I THINK WAS SCENARIO ONE, IT MATCHES UP WITH THE SLIDES WHERE YOU HAD PHASES ONE AND TWO, SO IT'S PRETTY CLEAR WHAT WE THINK WE COULD DO IN THE SHORT TERM, THE MEDIUM TERM IN THAT APPROACH. IF WE WERE TO MAKE A TRANSITION TO GOING WITH A CAPITAL CONSTRUCTION FUNDING APPROACH. THAT HAS A LOT OF APPEAL TO ME BUT IF IT'S AT THE EXPENSE OF NOT REALLY BEING ABLE TO DO ANYTHING FOR A DECADE, I WOULD

NEED TO UNDERSTAND THAT TRADEOFF. >> THAT MAKES SENSE.

>> DR. JON HOLMEN: THIS IS AN INITIAL RUN AT TRYING TO LOOK AT FUNDING.

WHAT WE DIDN'T DO IS BRING A PROPOSAL OR AN OPTION THAT LOOKS AT ADDITIONAL BOND TRANSITIONING TO A CAPITAL CONSTRUCTION LEVY AND SO I HAVE SOME THOUGHTS AROUND THAT THAT ARE MULLING AROUND IN MY HEAD, BUT IT FEELS LIKE THERE'S, IN THE MIDST OF THAT, THERE'S A BUMP IN TAX RATE TO START GENERATING THAT CONSISTENT FLOW, BUT I'M NOT DA DAVIDSON AND SO THAT'S JUST THAT'S JUST WHAT IT FEELS LIKE WE CAN PROPOSE THAT TO DA DAVIDSON AND WHAT THAT LOOKS

[03:45:06]

LIKE AND THE POSSIBLE IMPLICATIONS. >> ERIC LALIBERTE: CAN I KEEP GOING? THE OTHER THING I'M THINKING ABOUT IS WHAT DOES DELAY LOOK LIKE? OUR EP&O LEVY NEEDS TO BE RENEWED.

WE KNOW THAT, BUT WHAT DOES IT LOOK LIKE IF WE PUSH OFF GOING OUT FOR A BOND BY A FEW YEARS? OR GOING OUT PREF MOR MORE BOND WHAT DOES THAT LIKE LIKE IF WE DECIDE THAT THE RIGHT WAY TO GO?

>> DR. JON HOLMEN: [INAUDIBLE] >> ERIC LALIBERTE: SOAK, WHAT IF WE GO OUT IN 2022 AND WHAT IFO,E GO OUT IN 2022KA, WHAT IF WE GO OUT IN 2Y, WHAT IF WE GO OUT IN 2022 AND WHAT IF WE

GO OUT IN 2025, JUST SOME BENCHMARK. >> DR. JON HOLMEN: OKAY.

>> ERIC LALIBERTE: I'M NOT SUGGESTING THAT'S A GOOD IDEA BUT I THINK THAT'S INFORMATION THAT WOULD HELP ME THINK ABOUT IT. DR. BLIESNER IS HOOOOLOOKING AS

AT ME. >> SIRI BLIESNER: NO, I'M THINKING WITH THE PLAN TO DO A BOND, ACROSS THE BIGGER PIECE IN 2025 AND IS THAT THE WAY THAT YOU START THE LEVY PIECE IN?

THAT'S JUST GETTING MORE DOLLARS FOR THE TAX RATE >> DR. JON HOLMEN: SIRI RING YOU TALKED ABOUT THE NEED BUT I WOULD LIKE TO HEAR ABOUT PORTABLE CLASSROOMS RIGHT NOW.

RIGHT NOW WE HAVE 4,000 STUDENTS IN PORTABLE CLASSROOMS. THAT'S SCHOOLS WORD OF STUDENTS LEARNING IN PORTABLES. WHEN YOU SAY THE NEED, DO YOU DEFINE NEED AS JUST TO PROVIDE SPACE ASSUMING PORTABLES? OR IS APPROPRIATE SPACE WITHIN THE WALLS OF A BRICK AND IN

ORDERER SCHOOL? >> SIRI BLIESNER: I WOULDLY WE WOULD WANT TO HAVE A POLICY ACCOMPLISHED AS TO WHAT'S ACCEPTABLE BECAUSE THAT ALLOWS FOR EBB AND FLOW AS A CONSISTENT REALITY OF WHAT HAPPENS. I'M NOT SURE WE HAVE THAT POLICY IN PLACE.

WHETHER WE SAY IT'S 10% OF OUR STUDENTS OR 5% OF OUR STUDENTS, THAT MAKES IT EASIER IN WHICH TO

BE ABLE TO DRIVE THAT DEFINITION. >> DR. JON HOLMEN: THANK YOU.

>> MARK STUART: IT'S EASIER TO WRAP OUR ARMS AROUND, OR I THINK IT IS, WHICH ROAD TO GO DOWN IF WE LOOK AT WHICH PROJECTS CAN WE DO WITH X? WHAT PROJECTS COULD WE DO WITH Y? AND WHAT ARE OUR NEEDS UP TO THOSE POINTS.

IF WE CAN PUT OFF A BOND UNTIL X YEAR, GREAT, BUT ARE OUR STUDENTS GOING TO SUFFER THAT MUCH? ARE WE GOING TO HAVE THEM ELBOW TO ELBOW EVEN MORE SO THAN THEY ARE? WHERE DO WE NEED OUR PROJECTS MOST? THE IDEA THAT JUANITA WAS THE LAST HIGH SCHOOL TO BE REDONE AND EVERYBODY WAS CHOMPING AT THE BIT AND RIGHTFULLY SO BECAUSE THEY HAVEN'T HAD A NEW HIGH SCHOOL FOR SOME TIME BUT THE WHAT PROJECTS IN THE WINGS REALLY NEED ATTENTION? AND BY VIRTUE OF KNOWING THAT, WE COULD KNOW WHAT WE REALLY NEED TO GO FOR. IF WE NEED ANOTHER HIGH SCHOOL COMPLETELY, WE NEED TO START TRYING TO GET INTO PEOPLE'S WILLS, I THINK.

[03:50:18]

>> SIRI BLIESNER: IT'S A WHOLE 'NOTHER THOUGHT. AS WE LOOK AT CAPITAL LEVY VERSUS A BOND, I THINK THOUGHT OF TOTAL COST MIGHT BE SOMETHING TO THINK ABOUT IN REGARDS TOO INTEREST RATES, SO FROM A FISCAL COMPONENT, WHAT ARE THE DOLLAR SAVINGS VERSUS A BOND APPROACH? THAT'S JUST ANOTHER PROGRAM TAR, THAT'S SOMETHING WE SHOULD BE TAKING INTOARAMETER,

THAT'S SOMETHING WE SHOULD BE TAKING INTO ACCOUNT. >> ERIC LALIBERTE: I APPRECIATE THAT, WHAT DR. BLIES. R BLIESN JUST SAID, BUT I THINK TIME VALUE OF MONEY, IF YOUSAID, BUT MONEY, IFJUST SAID, BUT I THINK VALUE OF MONEY, IF YOU BRING THAT TO US SIMPLY COUNTING UP THE DOLLARS AND INTEREST IS NOT REALLY AN ACCURATE WAY OF LOOKING AT IT.

>> AND THERE'S 2 PIECES, THERE'S INTEREST WHEN YOU SELL BONDS AND THERE'S THE COST OF DELAYING PROJECTS THAT NEED TO BE BUILT.

WE CONSTRUCT IN 2028 BY IT WOULD BE MORE EXPENSIVE. >> SIRI BLIESNER: ABSOLUTELY AND IF WE DON'T PASS A BOND, WE DELAY IT THAT WAY AS WELL SO HAVING PLANNED CONSISTENCY IN

THOSE COMPONENTS IS ALSO A VALUE. >> ERIC LALIBERTE: I AGREE.

A THING I HAVE BEEN THINKING ABOUT IS LET'S ASSUME THERE'S APPETITE FOR TAXPAYERS TO PAY A TAP. WE NEED TO THINK ABOUT PRIORITIZING THESE AND I HAVE BEEN THINKING ABOUT IT IN MY MIND. THE BIGGEST PRIORITY FOR ME IS OUR OPERATIONS IN THE EP&O AND NOT HAVING TO MAKE LARGE CUTS TO OUR BUDGET AND OUR OPERATIONS AND I RECOGNIZE THAT PRIORITIZING THAT MEANS IT COULD BE AT THE EXPENSE AT OTHER THINGS. I DON'T KNOW IF EVERYONE ELSE SHARES THAT SAME PRIORITY BUT I THINK THAT'S SOMETHING WE NEED TO THINK ABOUT, PRIORITIZING THAT, WHETHER WE WANT TO.

MAYBE THAT'S NOT EVEN THE RIGHT WAY OF FRAMING IT, BUT THAT'S SOMETHING I WAS KICKING AROUND

IN MY HEAD. >> MARK STUART: I SEE WHERE YOU'RE GOING AND I THINK THIS LAST YEAR HAS DRIVEN HOME THAT THERE ARE CERTAIN OPERATIONAL CONSIDERATIONS WE HAVE TO LOOK AT FOR THE FUTURE LIKE TECH, OTHER CONSIDERATIONS WE HAVE TO LOOK AT FOR WHAT WE NEED TO DO BEYOND BUILDINGS. ARE WE GOING TO HAVE TO FACE ANOTHER SITUATION IN WHICH WE NEED TO EXPAND REMOTE? DO WE WANT TO EXPAND THE IDEA THAT REMOTE SCHOOL ON THE BACK BURNER OR SIDE BURNER, IF YOU WILL. IF WE'RE GOING TO LOOK AT BUILDING PROJECTS, WE NEED TO IDENTIFY FOR THE PUBLIC, I MIGHT USE SOME ROOMS HERE OR THERE, IF YOU KNOW, OKAY, IN X YEAR, WE'RE ONLY GOING TO BE ABLE TO DO THESE CLASSROOMS. IF WE GO FOR A BOND IN X YEAR, WE'RE GOING TO BE ABLE TO DO A HIGH SCHOOL, A MIDDLE SCHOOL, PEOPLE NEED TO VISUALIZE. IF THEY CAN'T SEE IT, THEY'RE NOT GOING TO VOTE FOR IT.

RIGHT NOW THEY WILL ONLY SEE THE LOSS OF INCOMES AND THE LOSS OF MOMENTUM IN THE ECONOMY FROM THE LAST YEAR. IT'S STARTING TO BOOM BUT PEOPLE ARE STILL FEELING THAT PAIN.

[03:55:04]

IF WE CAN VISUALIZE THEM, WE HAVE A BASE TO WORK WITH. >> DR. JON HOLMEN: MY SECOND QUESTIONS I HAVE, DIRECTOR SAGE, YOU COMMENTED THAT THERE WAS -- I DON'T REMEMBER, THAT YOU WOULDN'T SUPPORT FULL AUTHORITY. IS THERE CONTEXT? WHAT I DON'T KNOW IS WAS TODAY -- I DON'T THINK IT WAS ABOUT SAYING YES OR NO BUT IS THERE INFORMATION TO HELP PROVIDE ACCESS, IS THERE INFORMATION THAT WE CAN PULL TOGETHER TO HELP IN THAT CONVERSATION SO IT'S TRANSPARENT WHATNOT SEEKING FULL AUTHORITY, THE CONSEQUENCE TO THAT VERSUS

IS CONSEQUENCE OF SEEKING FULL AUTHORITY? >> CASSANDRA SAGE: YES, IT'S A PERSONAL VALUE ON WHAT OUR COMMUNITY IS GOING THROUGH AND SUFFERING AND I THINK WE HAVE TO BE VERY AWARE OF ASKING FOR FULL AUTHORITY MEANS RENT GOES UP BECAUSE THE LANDLORD IS PASSING THAT COST DOWN TO THEIR RENTERS, WHICH MEANS A LOT OF FAMILIES IN OUR DISTRICT ARE GOING TO BE AFFECTED. IT'S NOT JUST THE PEOPLE WHO OWN THE HOUSES.

IT'S BECAUSE OF THE ECONOMIC SITUATION WE FACE OURSELVES WITH AND ASKING FOR THE FULL AMOUNT OF ANYTHING RIGHT NOW IS, IN MY PERSONAL OPINION, THE WRONG MOVE TO MAKE.

>> DR. JON HOLMEN: IS THERE INFORMATION THAT CAN HELP PROVIDE CONTEXT FOR WHAT THAT DECISION OUTCOME DOES, THEN, TO PROGRAMS AND SERVICES, TO DISTRICT STAFFING LEVELS? DOES THAT HELP WITH THAT CONVERSATION? OR IS THAT BESIDE THE POINT?

>> CASSANDRA SAGE: ARE YOU ASKING ME TO SAY WHAT WOULD HAVE TO BE CUT IF WE DIDN'T GO TO

MAX? >> DR. JON HOLMEN: NO, I WANT TO MAKE SURE WE BRING THE INFORMATION THE BOARD NEEDS TO EVALUATE THIS, BECAUSE I AGREE. IT'S A VERY SIGNIFICANT DECISION. CHRIS ARTICULATED SOME OF HIS COMMENTS AROUND PREVIOUS CONVERSATIONS, YOU'RE ARTICULATING THE IMPACT OF THE PANDEMIC.

THERE'S ALSO IMPACT TO A DECISION TO MAINTAIN STATUS QUO, WHICH THAT'S --

>> CASSANDRA SAGE: WE HAVE FLEXIBILITY BETWEEN STATUS QUO AND GOING UP TO MAXIMUM AUTHORITY. I'M JUST SAYING I DON'T WANT TO BE ON THE MAX END OF THAT ASK.

I DON'T THINK OUR COMMUNITY NEEDS THAT ADDITIONAL COST RIGHT NOW IN THEIR POCKETBOOKS GIVEN

THE LAST 14 MONTHS. >> DR. JON HOLMEN: SO IF WE COME BACK NEXT TIME WE HAVE THE CONVERSATION AND HAVE THIS STATUS QUO, THIS IS SOME OF THE IMPLICATIONS, IF WE WERE TO INCREASE 25% BEYOND WHAT WE CURRENTLY ARE, WOULD THEY HELP THE CONVERSATION?

>> CASSANDRA SAGE: THAT WOULD HELP ME A LOT. IT SOUNDS LIKE A LOT OF EXTRA

WORK. >> ERIC LALIBERTE: IT WOULD HELP ME A LOT, TOO.

>> CHRISTOPHER CARLSON: I'M WITH CASSANDRA ON THIS ONE. IF WE'RE GOING TO BOOST OUR ASKING ON EP&O, THERE BETTER BE A LINE ITEM THAT WE CAN'T DO NOW UNDER THE CURRENT EP&O AND I

HAVEN'T SEEN ONE. >> CASSANDRA SAGE: MY GUESS IS WHAT'S THE STRATEGIC REASON THAT WE WOULD INCREASE IT? WE WOULD LOSE THESE THINGS, WE CAN'T AFFORD TO DO THIS BASED ON THE BUDGET AND THE WAY THE EXPENDITURES AND BUDGETS ARE ALIGNING, HOW THAT WOULD CHANGE.

[04:00:01]

ALIGN TO WHERE THE VALUES ARE AND THE POLICIES. >> SIRI BLIESNER: WELL SAID.

>> ERIC LALIBERTE: YES, I AGREE WITH DIRECTOR BLIESNER. >> SIRI BLIESNER: I THINK THE CHALLENGE IS AS YOU WORK TOWARDS THE HOW DO WE ADDRESS THE CONTEXT IN WHICH OUR COMMUNITY FINDS THEMSELVES AND IN THE FUNDING OF EDUCATION, THEN YOU HAVE THE NEEDS WITHIN OUR DISTRICT AND WHAT'S GOING ON. THE MORE WE CAN SEE HOW THE FUNDING HELPS TO DRIVE THOSE

THINGS GOING FORWARD, THE EASIER IT WOULD BE FOR THE DECISION. >> ERIC LALIBERTE: JUST FOR THE RECORD, DIRECTOR CARLSON HAD TO DROP OFF. HE SAID HE SAID EVERYTHING HE

HAD TO SAY BUT HE HAD ANOTHER XHIM FE COMMCOMMITMENT HE HAD T. >> DR. JON HOLMEN: THERE HASN'T BEEN A LOT OF COMMENT AROUND OUR CAPITAL PROJECTS LEVY. I HEARD EARLIER FROM SIRI ALIGNING IT WITH VALUES TO MAKE SURE THAT OUR GOALS AND VALUES ARE BEING REPRESENTED IN IT.

ARE THERE ANY ADDITIONAL COMMENTS AROUND OUR CAPITAL PROJECTS LEVY THAT ANYONE HAS?

>> MARK STUART: WE KNOW THAT ONE OF THE BIG TICKET ITEMS ON THE WISH LIST IS THE POOL AND THE

FIELD HOUSE. >> MARK, THAT'S THE CAPITAL CONSTRUCTION OR THE BONDS SO I THINK JON WAS ASKING THE FACILITY AND THE TECHNOLOGY PIECE.

>> SIRI BLIESNER: I THINK WHAT I WOULD ASK ON THE CAPITAL PROJECTS, TRYING TO KEEP THEM STRAIGHT, IS ARE THERE ONES THAT REALLY ARE MISSION CRITICAL IN WHAT'S IN THERE.

THESE WOULD BE GREAT BUT THEY COULD BE POSTPONED TO THE NEXT ONE.

THAT COULD BE OKAY OR IT COULD BE PHASED IN SO THAT THERE'S SOME PLAY ROOM POTENTIALLY OF WHAT EXISTS THERE IF THERE'S A NEED TO ADJUST TAX RATE IF THESE DIFFERENT COMPONENTS GO THROUGH.

>> ERIC LALIBERTE: I APPRECIATED THE REPORT ON THE VACANT PROPERTY THAT WE OWN.

I THINK THAT THERE WAS A COMMENT BUT I THINK IT WAS DIRECTOR CARLSON WHO SAID HE SUPPORTED LIQUID DATING THOSE PROPERTIES IF USED TODATING THOSE PROPERTIF USED T USED TO BUILD NEW SCHOOLS. I DON'T KNOW THAT I SHARE THAT, BUT AS I THINK ABOUT WHAT WATCHED DO WITH THOSE PROPERTIES OR IF WE SHOULD DO ANYTHING WITH THEM AT THIS TIME.

IF WE WERE TO SELL THEM, WHAT IS THE VALUE OF THE PROPERTY? PARTICULARLY THE ONES WE OWN OUTSIDE THE URBAN GROWTH AREA, AND I RECOGNIZE THAT'S DOING APPRAISALS OF ALL OF THOSE IS

POTENTIALLY EXPENSIVE, BUT -- >> WE HAD DONE APPRAISALS ON THOSE MANY YEARS AGO, SO THAT'S

SOMETHING WE COULD LOOK INTO AS UPDATING THOSE APPRAISALS. >> ERIC LALIBERTE: I DON'T THINK WE SHOULD SELL ANY OF THEM, SO THAT'S NOT A CONSIDERATION FROM ME BUT I'M THINKING WHAT IT

COULD BE FOR THE REST OF THE BOARD. >> DR. JON HOLMEN: I WAS ASKED WHY WOULD WE KEEP PROPERTY OUTSIDE THE URBAN GROWTH AREA AND IT'S THE ONLY LEVERAGE GROWTH WITH LARGE SCALE PROPERTIES THAT WE CAN HAVE A CONVERSATION SO IF WE REDUCE ALL THAT, OUR LEVERAGE TO SAY WE OWN PROPERTY, PLEASE PROVIDE US A WAIVER, THEN IT VANISHES BECAUSE PURCHASING NEW PROPERTY OUTSIDE THE URBAN GROWTH BOUNDARY AND ASKING FOR THAT, THAT MAY FEEL DIFFERENT VERSUS PREVIOUSLY ACQUIRED PROPERTIES. SO THAT'S ANOTHER CONSIDERATION

[04:05:01]

AS WE THINK ABOUT THOSE PROPERTIES. >> ERIC LALIBERTE: I AGREE.

>> CASSANDRA SAGE: TO ANSWER ERIC'S QUESTION ABOUT THE EP&O, I AGREE, THOSE ARE OPERATIONAL DOLLARS, 14% OF WHAT WE HAVE, SO THAT WOULD BE A PRIORITY THROUGH THIS PROCESS TO ENSURE THAT THAT IS FUNDED AS NEEDED TO BE AND IF THAT MEANS SLOWING SOMETHING OR TAKING SOMETHING SOMEWHERE ELSE IN ORDER TO HAVE THAT WHERE IT NEEDS TO BE, I WOULD SUPPORT THOSE TYPES OF MOVES.

>> MARK STUART: ON THAT SAME NOTE, I THINK THAT PARENTS, FAMILIES IN PARTICULAR WHOSE KIDS ARE IN MIDDLE SCHOOL OR HIGH SCHOOL SEE THE VALUE MORE IN THE EP&O RATHER THAN THE CONSTRUCTION OR THE BUILDING OUT BECAUSE BY THE TIME THE CONSTRUCTION IS FINISHED, THEIR KIDS WILL BE OUT OF HERE. GRANTED THAT'S SHORTSIGHTED THINKING IF YOU WANT TO LOOK AT IT LIKE THAT, BUT IF YOU LOOK AT THE LAST 14 MONTHS, THAT'S SOMETHING TO THINK ABOUT AND WE DON'T WANT TO LESSEN SERVICES, WE DON'T WANT TO CUT STAFF. WE DON'T WANT TO NOT BE ABLE TO UPGRADE THE EQUIPMENT THAT OUR KIDS HAVE. THE LAPTOPS WE WERE ABLE TO ACQUIRE, SOME OF THE ONES OUT THERE ALREADY WERE NOT CUTTING THE MUSTARD.

THEY COULDN'T HANDLE THE NEEDS. SO WE NEED TO BE ABLE TO ENSURE OUR STUDENTS HAVE THE EQUIPMENT

THEY NEED. >> ERIC LALIBERTE: THIS IS PRETTY GRANULAR BUT ONE OF THE PROJECTS WAS BUILDING OR EXPANDING KAIMAKIN. I HAVE IN MY HEAD THAT THERE'S POTENTIAL IN BEING ABLE TO MAINTAIN THE EXISTING BUILDING. WHEN I THINK ABOUT PROJECTS AND WHAT WE PAY FOR, THAT'S THE A CONSIDERATION FOR ME, WHAT WE CAN DO, WHAT THAT SITE LOOKS LIKE. I THINK THAT WAS EVEN IDENTIFIED AS THE TASK FORCE AS ONE OF THE TOP PRIORITIES, THAT PARTICULAR PROJECT. IF WE'RE THINKING ABOUT -- IF YEAR NOT THINKING ABOUT SHIFTING TO THE CAPITAL PROJECTS LEVY APPROACH, KNOWING WHAT WE COULD AND WHAT THAT WOULD LOOK LIKE, GETTING INTO THAT LEVEL OF GRANULARITY WOULD BE HELPFUL TO KNOW WHAT THAT WOULD LOOK LIKE. DO I HAVE THAT RIGHT, THOUGH? JUST A GENERAL CONCEPT, THAT THERE'S ENOUGH ROOM THERE TO POTENTIALLY BUILD SOMETHING AND KEEP THE EXISTING STRUCTURE?

>> THERE HAVE BEEN TEST FITS DONE THAT YOU CAN RETAIN CURRENT KAIMAKIN AND REBUILD AROUND IT.

THAT'S WHAT WE DO ANYWAY, WE TRY TO KEEP THE OLD SCHOOL THERE BECAUSE WE HAVE STUDENTS THERE BUT THE DECISION WOULD BE WHETHER TO KEEP THE OLD BUILDING IN PLACE FOR OTHER USES VEER DUHS -- BUT, VERSUS -- BUT, YES NEED THE FUNDING TO REBUILD THAT SCHOOL.

>> SIRI BLIESNER: BUT IF YOU KEPT THE OLD BUILDING, YOU CANNOT PROVIDE EDUCATIONAL

SERVICES IN IT IF WE RECEIVE SCAP DOLLARS IN IT, CRICKET? >> THAT'S CORRECT.

IF IT'S ELIGIBLE FOR SCAP YOU WOULDN'T BE ABLE TO. >> SIRI BLIESNER: AS WE LOOK AT THAT PRIORITIZATION, WHAT'S THE GOAL AND VISION IN WHAT OUR FACILITIES LOOK LIKE IN THE LAKE WASHINGTON SCHOOL DISTRICT IN 15 TO 20 YEARS? THAT SHOULD DRIVE A LITTLE BIT OF HOW THOSE PRIORITIES COME INTO PLACE. SO IF IT IS A CHOICE SCHOOL OPTION CONNECTED TO EVERY MIDDLE SCHOOL OR HIGH SCHOOL OR LEARNING COMMUNITY, HOW DOES WHAT WE CHOOSE HERE HELP TO ACCOMPLISH THAT GOAL? LET'S USE THIS TO REALLY TRY TO SET TOWARDS THE VISION OF WHERE WE'RE GOING AND TRY TO FIND THOSE OPPORTUNITIES TO DO SO WITHIN THERE. I THINK ONE GOAL IS TO FINISH OUT THE FIVE SCHOOLS LEFT TO BE REBUILT. THAT'S ONE THAT'S PROBABLY A TOP PRIORITY IN SOME REGARDS IN MANY WAYS. I THINK ACCESS TO FLEXIBILITY OF PROGRAMS AND TRYING TO CREATE

[04:10:04]

I THINK ABOUT HOW THIS WEIGHS OUT, NOT JUST MEETING A PHYSICAL CAPACITY FOR THE STUDENTS.

>> CASSANDRA SAGE: WERE YOU TALKING ABOUT ADDITIONS TOWERE ADDITIONS TO A BUILDING?

NOT BEING AN EQUITABLE ENVIRONMENT? >> SIRI BLIESNER: IF WE SHOULD BE AT 2,000 STUDENT AND WE HAVE ALREADY MORE THAN THAT AND WE'RE ADDING TO THAT, WE NEED TO FIND

ANOTHER OPPORTUNITY. >> SO IT'S ABOUT HOW MANY STUDENTS WOULD BE ON THAT CAMPUS

WITHOUT ANY OTHER CHANGES. >> SIRI BLIESNER: RIGHT, AND IT'S SOMETHING WE HAVE HAD A LOT OF DISCUSSIONS AROUND. THERE ARE 3,000 PERSON HIGH SCHOOLS, LOTS OF OPPORTUNITIES FOR WHERE THAT COULD BE BUT CONSISTENTLY WE HAVE COME BACK TO SAY WE VALUE A SMALLER ENVIRONMENT, WE SEE SELECTION TO CHOICE SCHOOL IS VERY HIGH AND THOSE ARE SMALLER ENVIRONMENTS AND SO YOU'RE CREATING A MORE SHIFTED DIFFERENCE AS YOU LET ONE GO VERY LARGE AND KEEPING

AT A VERY FIXED SIZE. >> ERIC LALIBERTE: I HAVE QUESTIONS ON SLIDES 64 AND 65.

IT'S MOSTLY JUST TERMINOLOGY. I CAN ASK IT WITHOUT YOU PULLING IT UP.

I KNOW THEY GO TOGETHER, BUT THE -- WHERE IT SAYS PROVIDES ROOM FOR THE 17 TO 19¢ IN THE SHORT TERM -- I DON'T UNDERSTAND THAT. CAN YOU EXPLAIN THAT?

>> YES, I WILL EXPLAIN THAT. THIS ASYMES NO FUTURE MEASURES. IF WE DO NOT ASK FOR ANOTHER BOND. IF WE DON'T GO OUT TO OUR VOTERS FOR ANOTHER BOND AND YOU CAN SEE THIS IN SCENARIO ONE. I CAN PROVIDE A SCENARIO WITH NO FUTURE MEASURES, IF WE DON'T SELL FUTURE BONDS, ALL WE WILL NEED IS TO PAY OFF OUR PRIOR DEBT SO THAT STARTS DROPPING.

OUR DEBT GOES FROM $65 MILLION TO $54 MILLION TO $50 MILLION. THAT LEAVES ROOM AND EITHER YOUR TAX RATE DROPS OR IT PROVIDES ROOM FOR A NEW BOND OR A NEW LEVY AND THAT'S HOW WE WERE ABLE TO DO OUR 6-YEAR CAPITAL CONSTRUCTION LEVY, BECAUSE WE DIDN'T PASS A BOND SO THE ROOM THAT WE BUILT INTO THE LONG TERM PLAN WAS USED TO PROVIDE FOR THAT 6-YEAR LEVY.

DOES THAT HELP? >> ERIC LALIBERTE: IT DOES A LOT.

AND THE SLIDE THAT FOLLOWS THIS, THAT ASSUMES LEVYING AN AMOUNT THAT WOULD FILL?

. >> IT FILLS IN THAT ROOM. >> ERIC LALIBERTE: AND THIS IS

WHAT THE LEVY ROOM WOULD LOOK LIKE. >> THESE ARE THE SAME NUMBERS YOU'RE USING TO BUILD IN, YOU'RE HAVING THE BOATERS PASS A BOND AND YOU'RE SELLING BONDS PERIODICALLY THAT ARE STRUCTURED TO HAVE DEBT OF THESE AMOUNTS THAT THEN FILL IN THE BALANCE.

SO IT'S EITHER THIS IS A BOND DEBT LEVY OR CAPITAL CONSTRUCTION LEVY.

>> SIRI BLIESNER: SO IF I'M UNDERSTANDING YOUR ABLE RIGHT, 2023, IF YOU DID A LEVY FOR 2023 THROUGH 2027, YOU COULD DO $145 MILLION WOULD BE THE CUMULATIVE TOTAL?

[04:15:08]

>> YES, THAT'S ONE WAY OF DOING IT. >> SIRI BLIESNER: HELP ME OUT

THERE. >> IF WE DID A 6-YEAR LEVY FOR $145 MILLION.

IT WOULD MAINTAIN A STABLE TAX RATE BASED ON THE LEVY COMBINED WITH THE OTHER LEVIES AND BOND

DEBT SERVICE THAT WE HAVE WOULD BE WITHIN THIS STABLE TAX RATE. >> SIRI BLIESNER: THANK YOU.

>> DID THAT HELP? >> ERIC LALIBERTE: YES, A LOT. THANK YOU.

LGO BOND SALES, THE FRONT FUNDING. WE CANNOT USE THEM FOR NEW CONSTRUCTION, BUT I THINK I HEARD YOU SAY THAT IF WE'RE REPLACING AN EXISTING FACILITY,

YOU CAN USE IT. DID I HEAR THAT RIGHT? >> YES, YOU CAN DO A REBUILD.

I'M GOING TO GO BACK AND CHECK ONE MORE TIME WITH OUR BOND COUNCIL TO VERIFY THAT REBUILD

AND ENLARGES ARE NOT CONSIDERED NEW CONSTRUCTION. >> ERIC LALIBERTE: IF WE WERE TO

BUILD ON VACANT LAND, THAT WOULD BE NEW CONSTRUCTION? >> CORRECT, LIKE STEM HIGH SCHOOL WAS NEW CONSTRUCTION SO WE DIDN'T USE OUR LGO BONDS TO PAY FOR --

>> ERIC LALIBERTE: WE DID USE -- OKAY. WE DID USE LEVY DOLLARS BUT NOT

LGO DOLLARS. I'M GETTING IT. >> WHO KNEW WE WOULD GET INTO SUCH DETAIL. THIS IS FUN. THIS IS REALLY FIUN.

>> DR. JON HOLMEN: ARE THERE ANY COMMENTS THE BOARD WANTS TO MAKE TO START REFINING THIS?

>> CASSANDRA SAGE: I THINK A COMMON THEME WAS ALIGNMENT. WE NEED TO UNDERSTAND WHAT THE TRADEOFFS ARE IN A MORE DETAILED WAY AND ALIGN OUR VALUES LIKE SIRI WAS SPEAKING TO TO OUR OPTIONS TO MAKE SURE WE'RE REALLY CONSIDERING IMPACT IN ALL AREAS RATHER THAN JUST THE

FINANCIAL AREA. DOES IT ALIGN WITH OUR VALUES? >> ERIC LALIBERTE: IS COMMENT IS THAT I WANT US BUILDING NEW CLASSROOM SPACE FOR STUDENTS AND I WANT US DOING THAT NOW, BUT I ALSO THINK -- I THINK THAT THE ONLY WAY WE CAN DO THAT IS THROUGH A LEVY APPROACH IN THE NEAR TERM. THAT'S WHY I WANT TO UNDERSTAND THE FEASIBILITY OF THAT APPROACH IN THE NEAR TERM. I DO THINK THIS IS AN URGENT ISSUE.

>> SIRI BLIESNER: I'M WORKING ON THAT TABLE YOU PUT UP TRYING TO UNDERSTAND IT.

SO IF I LOOK AT THE BOTTOM, OVER 8 YEARS, IT'S $323 MILLION. PHASE ONE, IS IT ABOUT THAT SAME

AMOUNT BASICALLY? >> DR. JON HOLMEN: THE $323 MILLION PHASE ONE BOND WAS

AROUND $400 MILLION. >> SIRI BLIESNER: IT'S ANOTHER 100 MILLION ABOVE IT.

>> AND YOU DO MORE BECAUSE YOU'RE PAYING THAT OVER 20 OR 30 YEARS AND YOU'RE NOT SELLING THEM ALL IN THE FIRST YEAR, OVER A 4-YEAR PERIOD AND PAYING IT BACK SO IT'S A 20 TO 24-YEAR PAY

BACK. >> SIRI BLIESNER: AND WE BUILD WITHIN 6 YEARS, TYPICALLY WE HAVE DONE IT ALL, RIGHT? WE'RE JUST REALLY QUICK, TOO, IS THE OTHER PIECE.

>> YEAH, BECAUSE OF THE NEED AND THE GROWTH ISSUES, WE HAVE BEEN BUILDING REALLY FAST.

WE HAVE NEVER OPENED FOUR SCHOOLS IN 1 YEAR. WE DID THAT.

NEVER OPENED THREE SCHOOLS IN 1 YEAR, WE DID THAT, SO, YEAH, WE DID AN INCREDIBLE AMOUNT

REALLY FAST WITH THE 2016 BOND BECAUSE OF THE NEED. >> RIGHT, AND OUR CAPACITY TO BE

ABLE TO BUILD QUICKLY. >> YES. >> ERIC LALIBERTE: ANYTHING

[04:20:15]

>> DR. JON HOLMEN: NO, FIVE-AND-A-HALF PAGES OF NOTES FROM THE BOARD, WHICH I THINK BARBARA HAS ABOUT THE SYME BUT WE'LL COMPARE NOTES BUT IT'S TRULY HELPFUL TO HEAR YOUR COMMENTS SO WE CAN PROVIDE THE LEVEL OF DETAIL THAT WAS REQUESTED.

THIS IS A CRITICALLY IMPORTANT DECISION THAT WE'RE MAKING MOVING FORWARD.

IT AFFECTS OUR COMMUNITY GREATLY AND I APPRECIATE THE IMPLICATIONS FOR BOTH.

I APPRECIATE THE CONVERSATION TODAY. WE HAVE NOTHING FURTHER TODAY.

>> ERIC LALIBERTE: OKAY. >> CASSANDRA SAGE: CAN I ASK ONE MORE QUESTION? YOUR TABLE SHOWS WHEN THE CURRENT CAPITAL LEVY GOES OFF IN 2025, THAT'S THE JUMP IN THE TAX

RATE I'M ASSUMING, CORRECT? IN THE LEVY CAPACITY. >> YOU CAN SEE THAT 23, 24, 25 IS LOWER AND THEN IT JUMPS TO 40 IN 26 AND THAT'S BECAUSE OUR $25 MILLION 6-YEAR LEVY, THE 25

SCHOOL YEAR IS THE LAST YEAR FOR THAT. >> CASSANDRA SAGE: THANK YOU, I

WAS JUST COME FIRMING. >> DR. JON HOLMEN: AND IN 27 WE HAVE SOME BONDS BEING PAID OFF.

>> SIRI BLIESNER: SO YOU CAN THAT AS THIS GOES YEAR BY YEAR. , THAT WOULD BE INCREASING.

>> DR. JON HOLMEN: WE HAVE BONDS PAYING OFF THROUGH 2028 AND THIS WOULD DECREASE AND MAINTAIN

STABLE AND BEYOND. >> 38. YEAH.

AND THAT'S ONLY 17 YEARS AWAY. >> WE THOUGHT 2020 WAS YEARS AND YEARS AWAY AND HERE WE ARE NOW.

>> ERIC LALIBERTE: I'LL HAVE A SENIOR IN HIGH SCHOOL THEN. THERE WE GO.

OKAY. OKAY. THERE ARE NO OTHER EYE GENERAL DA ITEMS SO

* This transcript was compiled from uncorrected Closed Captioning.