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Home My WebLink About3.2 Public Education Spending in CA 1- STAFF REPORT CITY CLERK �•� CITY COUNCIL File #660-40 DATE: October 21, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Resolution Supporting the Restoration of Public Education Spending in California Prepared by Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: At the request of the Dublin Unified School District, the City Council will consider adopting a Resolution in support of restoring State Facilities Bond dollars or for the establishment of other means of meeting the State's portion of new construction within the District. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution in Support of the Dublin Unified School District and for a Restoration of Public Education Spending within California. Submitted B Reviewed B Assistant to the City Manager By Y 9 Assistant City Manager DESCRIPTION: The Dublin Unified School District has requested that the City Council consider adopting a resolution in support of the District's pursuit of Level III development impact fees within the City of Dublin. The District has found itself in difficult circumstances as it attempts to fund needed new facilities within the community. Without a State Bond Measure or the ability to levy Level III developer fees, the District has indicated within the attached staff report (Attachment 1) that it will not be able to fund the construction of planned schools E-5 or E-6. As a result, the District has requested that the City Council consider adopting a resolution (Attachment 2) indicating the City's support of the District's application to the State for authorization to levy Level III impact fees to fund the cost of these new facilities. School districts within California are authorized by legislation to levy three different levels of fees (Level I, II, and III) to offset the cost of building facilities. In general, school districts can adopt Level I Developer Fees, which assesses a per square foot charge on new residential and Page 1 of 2 ITEM NO. 3.2 commercial development. Level I fees are considered the basic mitigation fee. Level II & Ill Developer Fees can be adopted if the school district meets certain "qualifying factors" set forth in the Government Code. In particular, Level II and Level III fees apply solely to residential construction. More specifically, the Level II fee is intended to recover fifty percent (50%) of a school district's facility construction cost apportioned on a per new home served basis. This fee is applicable during the period of time when the State allocates school facility funding to school districts. The Level III fee is intended to recover 100% of a school district's facility construction cost per new home served, and is applicable during periods when the State will not make apportionments of State facility funding to school districts, which is currently now the case. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Dublin Unified School District Staff Report—October 14, 2014 2. Resolution in Support of the Dublin Unified School District and for a Restoration of Public Education Spending within California Page 2 of 2 Dublin USD : Item Inspector Page 1 of 2 Dublin USD A K Oct 14, 2014 : Regular Meetina of the Board of Trustees : J. ACTION/ ',PRINTABLE VERSION INFORMATION ITEMS - PUBLIC COMMENTS INVITED 3. Restoration of Public Education Spending Within California - Joint Resolution of the City Council of the City of Dublin and the Board of Trustees - Resolution 2014/15-14 - ACTION ROLL CALL VOTE [Discussion Item] [Vote] PREVIout ITEH NEXT ITEM vPurpose The purpose of this item is for the Board of Trustees to consider approval of a Joint Resolution with the City Council of the City of Dublin in support of restoring State Facilities Bond dollars or other means of meeting the state's portion of new construction in the district. vBackground Earlier this fall Governor Brown failed to support placing a School Facilities Bond measure on the November 2014 ballot. This has prompted the district to seek other means of funding needed new construction in the district. vDetails Currently, new construction (including the cost of land) in the district is funded through three sources. Those sources include 1) state School Facilities Bonds; 2) Impact fees or mitigated agreements in lieu of fees collected from local developers building homes in the community; and 3) Other local funds such as General Obligation Bonds or partnership with local agencies including the City of Dublin. Historically, the state portion, including the cost of the land, covers approximately 40% of the cost with the other sources noted making up the remainder. Without a State Bond Measure or the ability to levy Level III Developer Fees, the district will not be able to fund the construction of planned schools E-5 or E-6. In addition, the District through the use of a Bond Anticipation Note is completing the construction of Amador Elementary School, scheduled to open in the fall of 2015. The BAN is due in 2019 and will need to be repaid with either a future Bond sale, scheduled for the spring of 2015, existing reserves of developer fees or a combination of both. Either option puts the district at risk of not being able to fund future new construction. The Superintendent, at the Direction of the Board is exploring administrative remedies to this pressing issue. One of those means is to communicate, through elected officials the gravity of the situation and to seek guidance from state legislators. The approval of this resolution in support of this important message is key to the districts future efforts at finding a solution. vKey Questions/Answers http://dublin.csbaagendaonline.net/cgi-bin/WebObj ects/dublin-eAgenda.woa/wo/5.0.7.1.3... 10/13/2014 Dublin USD : Item Inspector Page 2 of 2 Q: What is essence of the resolution? A: The resolution is in support of seeking alternative remedies to the lack of State School Facilities Bond funds for new construction. Q: What is the purpose of a joint resolution with the City Council of the City of Dublin? A: The joint resolution that includes both the City Council and the Board of Trustees sends a strong message about the partnership between the two entities and the commitment to finding a solution to this issue. Q: When will the City Council consider action on a similar resolution? A: The City Council is scheduled to consider a resolution at the October 21, 2014 meeting. ®Goals Strategic Initiative - Resource Alignment Strategic Initiative - Partnerships ,vFinancial Impact There is no financial impact to the approval of this resolution. vContacts Stephen Hanke, Ed.D., Superintendent Beverly Heironimus, CPA, Assistant Superintendent, Business Services ,vOuick Summary / Abstract The Board of Trustees will consider approval of a Joint Resolution with the City Council of the City of Dublin in support of restoring State Facilities Bond dollars or other means of meeting 1 the state's portion of new construction in the district. vSupporting Documents Resolution No. 2014/15-14 - Restoration of Public Spending Within I DOWNLOAD WWY Calif.A Joint City/DUSD Resolution PREMUS ITEM NEXT ITEM i i I 1 I http://dublin.esbaagendaonline.net/egi-bin/WebObj ects/dublin-eAgenda.woa/wo/5.0.7.1.3... 10/13/2014 RESOLUTION NO. XX - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * IN SUPPORT OF THE DUBLIN UNIFIED SCHOOL DISTRICT AND FOR A RESTORATION OF PUBLIC EDUCATION SPENDING WITHIN CALIFORNIA WHEREAS, the City of Dublin ("City") has a strong, collaborative relationship with the Dublin Unified School District ("District") and remains committed to maintaining a City-District partnership to continually support and improve the education system including the school building infrastructure, the quality of life, and economy of the City of Dublin; and WHEREAS, the City Council and the District's Board of Trustees believe that education is a community endeavor; and WHEREAS, the District is recognized by Alameda County as a high achieving district having eight of its nine schools designated California Distinguished Schools a total of sixteen times between 1986 and 2014, and its continuation school designated as a model Continuation School two consecutive years; and WHEREAS, the District's API Scores has consistently increased for the last ten years to a district-wide score of 904 in 2013, demonstrating its commitment to student learning as its fundamental purpose; and WHEREAS, the City has demonstrated its ongoing commitment to excellence in education and to young people, reflecting the fundamental values of the community; and WHEREAS, California has the largest public school system in the nation, which is key in fueling economic needs into the future; and WHEREAS, according to certain studies, per pupil funding from the State for public education has been reduced by more than 13% since 2008, and WHEREAS, Average Daily Attendance allocations to the District have decreased by more than 7% between 2009 and 2014; and WHEREAS, Dublin schools have significantly contributed to the quality of life creating an ongoing demand for residential housing; and WHEREAS, Dublin's growing student population requires the District to develop new schools and ancillary facilities to meet the needs of an increasing in student population; and WHEREAS, the lack of State bond funding for new school facilities has adversely affected the District; and WHEREAS, the City, in an effort to assist the District in meeting its operational needs, currently contributes over $2.8 million annually to support District operations by providing support through: Educational Revenue Augmentation Funds, School Resource Officers, Tennis Court Resurfacing, Red Ribbon Week, Dry Grad Night, DARE programs, crossing guards, as ATTACHMENT 1 well as other programs and services supporting Dublin schools through the City's annual operating budget; and WHEREAS, the District's financial health is primarily dictated by the Legislature and the Governor; and WHEREAS, the City continues demonstrating unwavering support of the efforts of the District and the City remains committed to assisting in future endeavors. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Dublin joins with the Dublin Unified School District Board of Trustees in calling upon State legislators and the Governor to act now to assist the District in imposing developer impact fees to fully mitigate the impact of new development. PASSED, APPROVED AND ADOPTED this th day of 20147 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT 1