--- title: Microsoft PowerPoint - 20260402_Waconia_Finance Committee 2026 Update ## author: Michael Smith date: D:20260402130212-05'00' --- 877.938.7059 ## Facility Funding & ## Long-Term ## Plans 877.938.7059 ## Facility ## Assessment ## Building ## Assessment ## ASSESSMENT HEADLINES - 2023 •6 months of targeted assessments •960,000 SQFT of facilities reviewed •425 different types of assets logged •Visualizations created for all major systems •Created digital repository for all assets and systems With the objective being: Give the district the information required to make sure that all re- investment into buildings is justifiable, quantifiable, planned, and of the upmost priority ## 16 CATEGORIES OF FACILITY ASSESSMENT ## Accessibility ## Pathogen ## Mitigation ## Life Safety ## Systems ## Security ## Systems ## Exterior ## Envelope ## Grounds ## Hazardous ## Materials ## Interior Finishes ## Mechanical ## Systems ## Electrical ## Systems ## Plumbing ## Systems Controls and ## Energy ## Management ## Capital ## Equipment ## Technology ## Systems ## Utility Service ## Improvements ## Programming & Space ## Utilization •System report cards, predicted remaining life •Replacement / upgrade cost estimates •Advanced prioritization ## Comprehensive Asset AssessmentComprehensive Asset Assessment •Indoor air quality, light, sound, temperature, humidity assessments ## Indoor Environment Assessment •Identification of utility and operational cost savings opportunities ## Facility Optimization ## DISTRICT WIDE FACILITY ASSESSMENT - 2023 ## BUILDING DASHBOARD SUMMARY ## ASSESSMENTS CONTINUE •Reassessment started in January 2026 •Updated High School and District Office from 2025/6 projects •Continuing to collect athletic information With the objective being: Give the district the information required to make sure that all re- investment into buildings is justifiable, quantifiable, planned, and of the upmost priority ## WHAT DO THE ASSESSMENTS DO? The comprehensive nature of the assessments allow the district to prioritize projects by: •Asset life expectancy •Current asset condition •Building location •Interconnectivity to other systems •Educational impact •Community perception •Project cost •Project funding source ## YOUR ASSETS 2026 ## YOUR ASSETS 2026 ## Solutions Development - 2023 ## SOLUTIONS PRIORITIZATION All assets in Caution, Alert, and Alarm have had potential design solutions and estimates created Working with the district and PMA, all these assets have been cataloged by potential project year, funding type and cost, and risk to building operation. •2001 condensing unit failures •Challenges with dated steam boiler and distribution systems •Leaking at entrance canopy •Gym floor resurfacing •Original boiler burner replacement ## High SchoolSouthview ## Middle School ## BayviewLaketown •Aging HVAC air handling units •Aging HVAC terminal equipment •Aging air-cooled chillers with old refrigerant •Re-roofing considerations and opportunities •Damaged exterior doors and façade near loading dock •Parking lot needs with restoration and replacement •High CO2 readings in classrooms with opportunity for recommissioning •Single-pane windows from 1950- 1960s •Aging electrical equipment •Old wooden playground with safety concerns •Inoperable shut-off valves on plumbing system •Flooding steam tunnels and boiler room •1961 steam boiler •Single-pane windows from 1960s •High CO2 readings in classrooms with opportunity for recommissioning •Failing compressors on air-cooled chiller •Façade integration concerns between brickwork and metal panelling •Moisture control concerns in gym ## HIGH PRIORITY ITEMS OVERVIEW - 2023 •2001 condensing unit failures •Challenges with dated steam boiler and distribution systems •Leaking at entrance canopy •Gym floor resurfacing •Original boiler burner replacement ## High SchoolSouthview ## Middle School ## BayviewLaketown •Aging HVAC air handling units •Aging HVAC terminal equipment •Aging air-cooled chillers with old refrigerant •Re-roofing considerations and opportunities •Damaged exterior doors and façade near loading dock •Parking lot needs with restoration and replacement •High CO2 readings in classrooms with opportunity for recommissioning •Single-pane windows from 1950- 1960s •Aging electrical equipment •Old wooden playground with safety concerns •Inoperable shut-off valves on plumbing system •Flooding steam tunnels and boiler room •1961 steam boiler •Single-pane windows from 1960s •High CO2 readings in classrooms with opportunity for recommissioning •Failing compressors on air-cooled chiller •Façade integration concerns between brickwork and metal panelling •Moisture control concerns in gym ## HIGH PRIORITY ITEMS OVERVIEW – 2023 UPDATED ## 10-YEAR PLANNING – HIGH SCHOOL ## 10-YEAR PLANNING – MIDDLE SCHOOL ## 10-YEAR PLANNING – BAYVIEW ELEMENTARY ## 10-YEAR PLANNING – SOUTHVIEW ELEMENTARY ## 10-YEAR PLANNING – LAKETOWN & DISTRICT OFFICE ## POTENTIAL TEN YEAR RE-INVESTMENT PLAN - 2023 •SitelogiQ have identified $68 million in maintenance needs over the next ten years •A sample ten-year plan of that investment has been created •It shows a large amount being deferred from year to year – but that can be okay! •There are lots of different ways to structure that investment and how to tackle needs ## WHY DID WE CHOOSE TO DO THE 2025 PROJECTS? •The High School condensing units were failing and costing LTFM budget increasing amounts each year. •These were assessed as needing replacement and were heavily interconnected to other work making them a high priority. •At this stage there was a tax neutral opportunity for investment. •This equated to approximately $17 million •Funding types available included Indoor Air Quality health and safety funding and tax abatement of parking lots. Both of these funding sources were under board authority and could utilize that debt drop. •Closed and Open funding sources – LTFM is a closed funding source (we know how much and it is capped) Indoor Air Quality and Tax Abatement are new revenue for the district and could be used for this reinvestment, preserving existing revenue amounts. •That opportunity no longer exists, Current debt service has future drops (potentially to coincide with a referendum) but immediate projects would carry some tax impact. 27 ## Outstanding Bond Debt This was the debt drop used in 2024/5 ## WHAT’S CHANGED IN 2026 •Successful operating referendum •Out of SOD •Models updated to show recent project being completed •Models updated pushing original capital bond back •Remaining budget from IAQ 2025 project – this has three years to be used and could be for design or implementation. 29 ## Outstanding Bond Debt Can be used for potential projects, or for potential referendum ## Confidential & Proprietary ## MINNESOTA K-12 FUNDING OPTIONS ## Max Term Who pays for the levy and which tax base is utilized Will there be a new tax impact associated with levy What kind of borrowing? Does this require ## Voter Approval Does this generate new dollars to District budget ## Use of FundsMN StatuteDescription ## 15 yearsNot ApplicableNoSeveral optionsNoNoMultiple Uses123B.65Energy Efficiency Project 10 Years House, garage, and one acre; RMV YesTypically, noneYesYesDay-to-day operations126C.17 ## Referendum Revenue / ## Operating Levy Revenue 30 years or useful life All taxable property; ## NTC ## YesGeneral ObligationYesYesCapital Expenditures475 & 123B.02 ## School Building Bonds 10 Years All taxable property; ## NTC ## Yes Certificates of ## Participation ## YesYes Capital expenditures defined in 126C.10 subd. 14 ## 123B.63 ## Capital Projects Levy 15 years or useful life All taxable property; ## NTC ## NoGeneral ObligationNoNo Capital expenditures defined in 126C.62 ## 123B.62 ## Capital Facilities Bonds 10 years or useful life All taxable property; ## NTC ## NoGeneral ObligationNoNo Capital expenditures defined in 126C.61 ## 123B.61 ## Capital Equipment Notes 30 years or useful life All taxable property; ## NTC ## YesGeneral ObligationNoYes Deferred capital expenditures & Health and Safety projects ## 123B.595 ## Long-Term Facility ## Maintenance Levy 30 years or useful life All taxable property; ## NTC ## Yes Certificates of ## Participation ## NoYes Capital expenditures defined in 126C.40 ## 126C.40 ## Lease Levy / Capital Levies 15 years or useful life All taxable property; ## NTC ## YesGeneral ObligationNoYes ## School Parking Lot ## Improvements 469.1812 to 469.1815 ## Abatement Bond •2001 condensing unit failures •Challenges with dated steam boiler and distribution systems •Leaking at entrance canopy •Gym floor resurfacing •Original boiler burner replacement ## High SchoolSouthview ## Middle School ## BayviewLaketown •Aging HVAC air handling units •Aging HVAC terminal equipment •Aging air-cooled chillers with old refrigerant •Re-roofing considerations and opportunities •Damaged exterior doors and façade near loading dock •Parking lot needs with restoration and replacement •High CO2 readings in classrooms with opportunity for recommissioning •Single-pane windows from 1950- 1960s •Aging electrical equipment •Old wooden playground with safety concerns •Inoperable shut-off valves on plumbing system •Flooding steam tunnels and boiler room •1961 steam boiler •Single-pane windows from 1960s •High CO2 readings in classrooms with opportunity for recommissioning •Failing compressors on air-cooled chiller •Façade integration concerns between brickwork and metal panelling •Moisture control concerns in gym ## HIGH PRIORITY ITEMS OVERVIEW – 2023 UPDATED ## POTENTIAL TEN YEAR RE-INVESTMENT PLAN - 2026 •A remaining $50 plus million in maintenance needs over the next ten years •A sample ten-year plan of that investment has been created •It shows a large amount being deferred from year to year – but that can be okay! •There are lots of different ways to structure that investment and how to tackle needs For illustrative purposes - not a recommendation Further planning and prioritization to be conducted ## 10-YEAR MODELS – UPDATED 2026 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 "Pay as you go" ## Pay as You GoDeferred LTFM $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 ## Board Authority ## Board AuthorizedDeferred LTFM $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 ## BA + Referendum ## BA + ReferendumDeferred LTFM •The models have been adjusted to bring forward a potential IAQ project to utilize remaining funds and push back a potential referendum. •BA model - $22 million gap •BA + Referendum in 29/30 gets you ahead for the first time. ## AIR HANDLING UNITS AND TERMINAL EQUIPMENT •Middle School ## Site •Air handling units at expected useful life •Reviewing IAQ eligibility •Worn coils and equipment with some signs of corrosion •VAVs beyond expected useful life •VAV controls updated as needed (80%) •No need for immediate replacement, but should be included in long-term planning ## Existing Conditions ## EXTERIORS •Middle School ## Site •Blistering on roof •Failing seam at corner of skylight •Large roof section with no expansion joints •Exterior doors are heavily worn and damaged •Stained façade near loading dock ## Existing Conditions ## TALKING POINTS FROM THIS PRESENTATION •There are ongoing LTFM projects. •But LTFM isn’t enough for larger projects •Just using LTFM will result in much larger needs for deferred maintenance and a larger referendum at some point •Assessments are ongoing – prioritized by impact and life expectancy and risk •The major projects have not changed since 2023 •Larger projects have to be paid for through the community either through board authority or voter approved •You have authority over more of these assets than in previous years •All projects at this time will have some tax impact