Questions from the Board

The members of the Board of School Directors who do not serve on the Facilities Committee have been learning about the High School Master Plan alongside the community and the public through the scheduled six Town Hall Meetings. During the process, members of the Board have been gathering their own questions and/or points on which they seek further clarification. With the conclusion of the Town Hall meetings, discussion of the Master Plan will take place at the Board’s twice-monthly public meetings, and have a regular spot on the agenda as long as is practical. Below, please find inquiries posed by Directors.

MARCH 26, 2015

What are the projected interest rates included in the financing projections?

The district anticipates issuing general obligation bonds with amortization terms of 20 to 25 years. The projected interest rates used in the projections range from 3.90% to 4.25%.


The financing projections include a forecast of future long-term interest rates used to calculate debt service payments required to finance the master plan. What impact would a change in interest rates have on the financing projections?

This graph: 20 Year MMD displays the historical 20 year municipal bond index from January 1993 to April 2015. The average rate over that period was 4.56%, and the current rate as of April 6, 2015 is 2.65%. The second graph displays the 5 year average for the 20 year municipal bond index from January 2010 to April 2015. The average rate over that period is 3.28%. The average rates incorporated in the financing projections included in question 1 above fall between these two historical averages.

This table: Interest Rate Sensitivity Analysis summarizes the impact on changes in future interest rates compared to the average rates used in the financing projections. The base case represents the average of the interest rates included in the master plan model and the table calculates the impact on debt service interest costs based on possible changes in interest rates both positive and negative.


What is the percentage that debt service represents of the total operating budget for the district in today’s current budget and the projected budget after the master plan debt has been issued?

Please see this chart: SSD Debt Service as a % of Operating Budget that provides the percentage debt service represents of the total operating budget.


What is the percentage of educational space in the existing high school compared to the proposed new high school?

This slide: Master Plan Educational Space provides the educational program space square footage in the current building compared to the conceptual program space in the proposed master plan.

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