ACCF Schools Committee
Recommendations on 2007-2012
Capital Improvement Plan
The Civic Federation Schools Committee makes the following recommendations to the School Board regarding the Superintendent's proposed Capital Improvement Plan (CIP) for 2007-2012.
Summary
The Committee recommends that the 2006 bond referendum be reduced to $55 million, instead of the proposed $78.3 million - a reduction of $23.3 million. This would include $50 million for Yorktown High School, $4.3 million for Wakefield High School (design study), and $0.73 million for the High School Continuation program (design study).
We are concerned about the rate at which the school system's debt service is projected to increase over the next five years under the proposed CIP. Specifically, debt service in FY2007 is projected to be $27 million and to rise to $44 million by FY2012, a 62% increase. To paraphrase the County Manager in a slightly different context, we fear this level of growth in debt service is not sustainable. This is particularly so in a period of:
- declining school enrollments,
- apparent softening in the real estate market that may adversely affect future tax revenue, and
- the increasing needs for revenue on the operating side of the budget, just to maintain existing services, provide competitive compensation for teachers, and pursue the pre-k initiatives to which APS has committed itself.
We believe that a $264 million capital plan with six major projects in five years is too much too fast in this environment. The six major projects in the Superintendent's plan are: Yorktown High School - $98 million; Washington-Lee High School $15 million (in addition to $80 million in the current fiscal year); Wakefield High School - $67 million; the Career Center - $54 million; Reed School - $12 million; and High School Continuation $ 11 million. Accordingly, as detailed below, the Committee recommends:
- adherence to APS policy of completing design studies before putting construction projects in bond referenda;
- seeking permission from the County to put construction projects on the ballot in odd-numbered years when necessary to keep them moving;
- with respect to specific projects, deletion of some from the CIP, and a different priority for some projects.
Policy Recommendations
1. That APS adhere to its policy of completing design studies before putting construction projects in bond referenda. Traditionally, APS has recognized that the ultimate cost of a project depends on its design. Therefore, typically, money for project design is put in one bond referendum, and construction money is put in the next bond, when the design studies are complete and there is a better basis for cost estimation. However, for a variety of reasons, sometimes the design is not completed by next bond cycle. Then there can be pressure to keep the project moving by putting it on the next bond referendum anyway, with les precise cost estimates. This is what has occurred with two major projects slated for the ballot this fall: Yorktown High School ($63 million in 2006 bond; $36 million scheduled for 2008 bond) and Reed School ($12 million in 2006 bond). Design studies have not been completed for either of these projects, making their cost estimates more likely to change before the first shovel is in the ground. Indeed, a recent APS study found that, on average, "actual project costs were 46% greater than the initial project estimates . . ." and that the bulk of the increase occurred before the completion of the design studies. (Superintendent's Proposed FY 2007 - FY 2012 Capital Improvement Plan, p. 8, emphasis added.) The projects for Yorktown High School and Reed School are at precisely the phase in which their estimated costs are most likely to increase: there is a general idea of what should be done, but no specific design plan. Indeed, for Reed School, a planning committee has only recently begun to meet. The design studies should be completed for these projects before they are put in a bond referendum, so voters can know what they are voting for, and can be assured that the price is not likely to increase.
2. That APS seek permission from the County, when necessary, to put construction projects before the voters in bond referenda in "odd-years," if that is when the design studies are ready and the projects are urgently needed. Traditionally, the County has adhered to a policy of putting bond referenda on the ballot every other year, in even numbered years (2002, 2004, 2006, etc.). However, as a practical matter, nothing prevents the County from putting school bonds on the ballot in 2007, 2009 or any other odd-numbered year. By law, there are elections every year in Arlington County. If the design plan for an urgently needed project is ready in an odd-numbered year, it should be presented to the voters that year, so that it could be approved sooner, but still at a time when its scope and price are better defined.
The Committee believes that Arlington students and citizens would be better served if APS took the time to complete the design process, and then put the project on the ballot in an odd-numbered year if necessary.
Specific Project Recommendations
Reed School ($12.3 million in 2006 bond)
The Committee recommends deleting this project from the CIP entirely. We recognize that the building's condition urgently needs to be addressed. However, it serves very small number of students, and not in the school system's core service area. (The building houses a day care center for APS employees, a special education pre-school program and a teen parenting program.) With other schools at below capacity levels, the Committee believes these programs could be located elsewhere and that precious debt service dollars need not be spent on this project. Further, this project is still in its early design phase; few costs would be incurred by stopping it, and few justifications can be given for asking the voters for $12.3 million for a project for which there is as yet no plan.
Yorktown High School ($62.5 million in 2006 bond; $35.7 million in 2008 bond)
The Committee recommends putting no more than $50 million in the 2006 bond referendum for this project. There is no design plan for construction yet, and it is unfair and unwise to ask the voters to approve such a large project when no one knows yet what will be in it or what it will cost. Solely because this is the third phase of a project that is well underway, the Committee feels constrained to recommend a significant sum be included in the bond. However, the Committee is uncomfortable with the prospect of splitting the third phase of the construction project over two bond cycles, particularly when the scope and costs of the project are not yet known. This would be an excellent project to delay a year and put before the voters in 2007, when (presumably) the plans will be complete and the voters can know what they are voting for.
Washington-Lee High School (no additional bond money sought, $15 million in operating revenues in 2006)
The Committee recommends completion of this project, the bonds having already been approved by the voters and the plans completed.
Wakefield High School ($4.3 million in 2008 bond, $55 million in 2010 bond)
The Committee recommends that this be the only other major project in the 2007-2012 CIP. Accordingly, we recommend putting money for the design in the 2006 bond so that the project can be accelerated. We believe more students will be better served if this project is given higher priority than both the Career Center and the High School Continuation project.
Jefferson Middle School ($2.4 million in 2010 bond)
The 2007-2012 CIP has $2.4 million in design funds in it for the 2010 bond year. Since construction funds would not be sought until the end of the current 5-year CIP cycle, we believe it is appropriate to retain this item in the plans for 2010.
The Committee was also troubled by the frequent appearance in the CIP of the phrase, "significant HVAC and other major systems work" as the main descriptor for multi-million dollar projects. Some more detail would be helpful. A work session revealed that the phrase apparently includes replacement of acoustic ceiling tiles in many schools - perhaps a major expense, but not necessarily urgently needed work.
Conclusion
The Schools Committee recommends that rising debt service be restrained by keeping school bonds for 2006 - 2010 in the $50 million range per bond cycle, rather than $78 million, $95 million, and $60 million currently proposed for those years. We believe that APS should concentrate on its core priorities and defer or delete some projects from the Superintendent's proposal. And we strongly urge the School Board to adhere to its policy of not putting construction projects in bond referenda until the design plans for the projects are complete.
Respectfully submitted:
William Barker
Reid Goldstein
Roger Meyer
Barbara De Pauw
Herschel Kanter
Timothy Wise
John De Pauw
Roye Lowry
Beth Wolffe, Chairwoman
May 17, 2006
This page was last revised on: May 26, 2006.
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Arlington County Civic Federation
