School Bond 2008 - Bond Project Questions
Answers to Bond Project Questions are posted here. If your question has not already been answered, feel free to Submit Your Question. We will do our best to respond to every question in a timely manner.
Bond Project Questions
Given the current financial and credit crisis, will SAISD be able to sell bonds, and if so, what kind of interest rate and other terms can the district expect?
Interest rates have risen a full point recently on 25 year municipal bonds. If the municipal bond market remains tight, the district always has the option to just sell what is needed in the short term and wait until market conditions improve.
The district and its financial advisors are monitoring this situation carefully.
One of the criteria we look at when selecting bond underwriters is their capability/capacity to buy any unsold bonds on sale date. There are still a few strong ones out there that have sufficient capital to get things done, so if the free market is not responding, our underwriters will complete the transactions.
If this school bond passes, when will the construction projects begin? Will they start at the same time and/or have to be completed in Prop. 1 before Prop 2 begins? My concern is what happened with the 1995 bond that didn't see any construction happen until 9 years later, and it ended up costing more. What are your contingencies for timeframes?
The construction projects cannot all start at the same time due to planning, bidding, and workforce limitations.
We are currently studying the timelines submitted by the architects. As we move forward in the process, there
will be some projects that can be started within the first 6 months after the bond passes. The architects still have
to develop the specifications for each building. We must plan so that we are freeing up portables from one site to
use at the next site. Due to the limited availability of general and sub contractors in our area, we need to be sure
our plans allow for the different trades to move from one project to the next. We have built in an inflation factor for
each project and believe that some projects will not be as high as projected, so we will have some extra money if
others cost more than anticipated. We do not anticipate a 9-year delay, but we fully expect some of the projects
to possibly not be completed for 5-6 years.
Due to increasing construction cost, there is concern that our bond money will fall short.
The architects have done their best at projecting costs, but if we still fall short the Board will have to make a decision whether to use interest earned, general fund balance, or reduce the scope of some of the projects.
When Rio Vista was closed we started bussing those children to Lamar. Are we going to bring them back to Crockett once renovated and what is their plan for the future?
There are no plans to move students back to Crockett at this time. Population shifts could warrant revisiting this topic in the future.
The Freshman campus was originally set to be temporary and intentions were to join the High School. What are the intentions for this campus now?
With the defeat of the 2007 bond, Central Freshman Campus will continue to be utilized for Central 9th graders.
The current proposal suggests demolishing numerous buildings and taking years to rebuild. Are the monies for the temporary buildings in the proposed cost?
We believe there are adequate monies to address temporary facilities.
With a bond the size of 117 million plus dollars there is a considerable amount of interest money that the District will receive. What are the plans for this money?
The District anticipates earning approximately $3 million over the life of the bond. Traditionally this money is used for furniture, fixtures and equipment, and any cost overruns.
The 95 Bond was designated for renovation of several schools plus the addition of an Elementary. The current proposal calls for renovation of several schools plus additions to some schools. What is the difference between the two?
There probably are some similarities in the type of projects that were completed in the 95 bond. The current plan is clearly spelled out in the documents posted on the District’s web. We would ask that you study and scrutinize them carefully to help make an informed decision.