QUESTIONS AND ANSWERS FEBRUARY 4, 2014 SCHOOL BOND ELECTION & THREE-MILL CAPITAL IMPROVEMENTS LEVY 1. If passed, how will the monies from the bond issue be spent? Virtually, every LCPS school will benefit from the bond issue. More specifically, bonds will pay for increased student safety, including additional alarms and security cameras and relocating front entrances at several elementary schools so they have line-of-sight with the schools’ front entrances; baseball and soccer complexes at the Field of Dreams and Oñate High School football lockers; new and remodeled multipurpose rooms and kitchens; roofs, storage and heating and cooling repairs at four schools; new school furniture, energy saving electrical upgrades and technology upgrades at 11 schools; compliance with the Americans with Disabilities Act; creating a charter school campus at Court Youth Center for Alma d’arte Charter High School, J. Paul Taylor Academy and the Mesilla Valley Youth Foundation; landscaping, irrigation and playground equipment at 11 schools; and land acquisition for the construction of future schools. Americans With Disabilities Act compliance BT Washington, Central, Cesar Chavez, Conlee, Fairacres, Hermosa Heights, Vista, Zia and district-wide $ 240,000 Athletics facilities Field of Dreams: one additional baseball field and soccer complex; Oñate High School football lockers $ 3,060,000 Charter schools campus (Court Youth Center) Alma d’arte Charter High School, J. Paul Taylor Academy and Mesilla Valley Youth Foundation $ 4,000,000 Classroom renovations & nursing center upgrade $31,000,000 Las Cruces High Phase II ($24 million), Alameda Elementary nurse area, Sierra Middle School gym and remodeled music classrooms Energy savings and technology issues Energy savings: 11 schools; technology updates: all schools $ 1,500,000 Land acquisition (for future schools) $ 4,000,000 Landscaping, irrigation and playgrounds 11 schools $ 1,900,000 New multipurpose rooms and kitchens Multipurpose room: Hermosa Heights Elementary; Kitchen remodels: Sunrise Elementary, Mayfield High School $ 5,540,000 Roofs*, heating and cooling*, and storage Roofs: Doña Ana, Mesilla elementaries; Heating, ventilation, and air conditioning: Lynn Middle School Storage: Central Elementary $ 2,120,000 Student Safety Upgrades (alarms, cameras, card access) Fire alarms and/or intercoms: Columbia, Conlee, MacArthur, Mesilla, Mesilla Park elementaries; White Sands Schools; Lynn, Vista middle schools; Oñate High School; Professional Development Center, main administration building Security swipe-card access: All schools currently without it; Security cameras: All schools currently without cameras; $ 2,905,000 Q&A Page 2 Student Safety Measures $ 1,735,000 Security fences/gates: Alameda, Hermosa Heights, Valley View elementaries; Camino Real, Lynn, Mesa, Sierra, Vista, Zia middle schools Infrastructure (furniture, electrical upgrades, contingency) $ 7,000,000 All schools, including a district-wide wireless network upgrade TOTAL $65,000,000 *potentially eligible for state Public School Capital Outlay Council match. 2. If passed, how will funds from the three-mill capital improvements levy be spent? The three-mill levy will generate about $9.2 million per year for school maintenance to protect the investment made by voters. Funds are used for major repairs and maintenance for all LCPS schools. The levy also pays for technology, playground improvements, classroom furnishings, musical instruments, school equipment, asbestos removal and many other repairs. In addition, as a result of a change in state law, about $200,000 of the capital improvements levy will be allocated to three Las Cruces charter schools: Las Montañas Charter High School, La Academia Dolores Huerta Charter Middle School and New America School. The amount of funds for the charter schools will be based on their student enrollment. 3. How will the bond issue address safety issues at LCPS schools? The safety of our students and staff remains the school district’s top priority. Children in Las Cruces continue to be safer in their schools than anywhere else. Bond funds will increase security and all schools. Fire alarm and intercom installation and upgrades will take place at nine schools. Security swipe-card access will be added at all schools that don’t currently have it. Security cameras will be installed at all schools that don’t currently have them. Additional security fences and gates will be added at nine schools. 4. Will the passage of this bond issue and mill levy raise my taxes? No. Passage of the bond issue and mill levy will not increase the school tax rate. The bond and mill levy are deliberately structured so that the school tax rate will remain at $9.81 per $1,000 of taxable value. Taxable value is one-third of the assessed value of a person's property. Therefore, a Las Cruces homeowner with home valued at $150,000 pays approximately $491 per year or $40.87 per month. $150,000 (assessed value) divided by 1/3 = $50,000 (taxable value) 50 x $9.81 = $491 per year/$40.87 per month 5. How is it possible to pass a $65 million bond issue and not have a tax increase? Reduced principal and interest payments on previously issued bonds will permit new bonds to be sold without any increase in taxes. In other words, as old bonds are retired, new bonds are sold. Although the district’s current needs exceed $65 million, in order to avoid a tax increase, the bond issue total was limited to the amount on the election ballot. 6. Can money raised from the bond issue and mill levy be used for salaries? No. In New Mexico, monies from bond issues and mill levies must only be used for building, remodeling, furnishing schools and other related improvements. 7. If the bond passes, which project will be done first? The $65 million in bonds must be sold over a four-year period; therefore, total funds are not available all at once. Based on most urgent need first, the LCPS Board of Education and administration will determine the order in which funded projects will be undertaken. Funds from the mill levy also are available to the school district over a five-year period and the most Q&A Page 3 immediate needs will be addressed first, or in accordance with the district's facilities maintenance plan. 8. Are there any funds in the bond for anything other than schools? The only funds in the 2014 bond that are not specifically earmarked for a school are a portion of the technology funds and the baseball and soccer complexes at the Field of Dreams. However, these projects do benefit students and teachers. The technology funds are necessary to support the infrastructure, which directly impacts all schools. The athletic facilities are extensions of the classroom and will benefit children from many schools and from throughout the community. 9. Why must we have both a bond and a three-mill levy election? The school district relies on both a bond issue and mill levy to fund capital outlay needs districtwide. In New Mexico, one of the few ways to build schools is through bond issues. Funding appropriated by the New Mexico Legislature is used for the day-to-day operation of the district, including salaries, textbooks, utilities, supplies, transportation, etc. The $65 million bond issue would pay for critical classroom needs. In 1976, the state allowed districts to acquire additional funds through local mill levies to erect, maintain, repair and renovate schools. And, districts where voters approve the levies also receive additional state funds. The current three-mill capital improvements levy will expire if it is not renewed by voters. By having both a bond issue and a mill levy in place, LCPS is eligible to apply for additional state funding from the Public School Capital Outlay Council. The additional funding is a match from the state and has been granted to LCPS for a multitude of construction projects. Millions of additional dollars from the state have assisted with making the local taxpayers’ dollar go even further. 10. How will our schools and students be affected if the 2014 bond issue and three-mill capital improvements levy are not passed? If the bond issue and two-mill levy fail: 1. schools would not have funding for additional student and staff safety 2. schools would continue to operate with aging heating and cooling systems 3. repairs to school roofs would not be made 4. repairs to and remodeling of older schools would not be made in a timely manner 5. the district would suffer a considerable loss in revenue for maintenance and emergency repairs 6. the district would not be eligible for additional Public School Capital Outlay Council funds, a potential loss of millions of dollars. 11. Will this bond issue address all of the building needs of the district? No. The list of district needs far exceeds what the bond issue will cover. However, to keep school property taxes at their current level (no tax rate increase), the $65 million figure and list of school projects for the 2014 bond was established by a citizens' committee who reviewed all of the schools' requests for capital improvements. Future bond and mill levy elections will be needed to continue to improve district facilities. 12. If the bond issue fails, will taxes be lower? If the election fails, property taxes would gradually decrease over a period of time. However, even though taxes would drop, it could be short-lived. There are other government entities in Doña Ana County that have the ability to levy property taxes and assume unused taxing authority. Even though the school district levy would be reduced, other entities could, in its place, increase their tax levies. Some government agencies have the authority to do so without voter approval. Q&A Page 4 13. Who is responsible for paying the taxes to build schools? All taxpayers in the Las Cruces Public Schools district assume the responsibility of building schools. Property taxes are the source of funds for school construction. However, voters who do not own property also are “taxed.” Homeowners, renters, businesses and consumers all pay property taxes whether it is through home or business ownership or indirect costs. 14. Are the amounts on the bond list final figures? The amounts on the bond list are estimates. In the past, some projects have cost less than the amounts on the bond list, so remaining funds from those projects are re-allocated to other capital improvement needs. Remodeling and renovating projects may also exceed the amounts listed because of unexpected issues and unforeseen costs such as asbestos removal and increased costs for labor and/or materials. When this happens, funds from the mill levy supplement bond funds to complete the project. 15. How will funds from the 2014 bond be spent on Las Cruces High School renovation? If the bond passes, $24 million will go to continue the major renovations at Las Cruces High School, the city’s oldest high school, which was built in 1955. The funds will pay for phase II of the project: construction of additional classrooms, a theatre, renovated classrooms, a new kitchen and cafeteria, and an auxiliary gymnasium. 16. If the election fails, what happens to the Las Cruces High School project? Funds are available to complete Phase I of the project (funded from a 2010 bond issue), which includes a new administration area, new academic classrooms, a bridge over El Paseo connecting to the new portion of the campus, and parking lots. However, Phase II would not be funded, which includes additional classrooms, renovations to older classrooms, and an auxiliary gymnasium. 17. How were funds from the 2010 bond issue spent? 1. Major renovation projects that are still ongoing at Las Cruces High School and Loma Heights Elementary School; 2. Major renovation projects completed at Mayfield High School, Picacho Middle School and University Hills Elementary School; 3. Completion of Centennial High School; 4. Heating and cooling and re-roofing projects at eight schools; 5. New safety systems and technology and electrical upgrades at 15 schools; some technology and electrical upgrades were district-wide; 6. Nursing area and restroom remodeling at eight schools; 7. Kitchen remodeling at two schools; 8. Outdoor improvements (including fencing, drop-off lanes, outdoor lighting and landscaping) at 21 schools; 9. Construction of a new baseball complex at the Field of Dreams; 10. New tennis courts at Oñate and Mayfield high schools and outdoor bleachers at Mesa Middle School; 11. Shade structures and play equipment at a dozen or more schools; 12. Construction contingency and land acquisition. 18. Who can vote? When do I register? When do I vote? Any registered voter in the Las Cruces Public Schools district is eligible to vote. Students who turn 18 years old by February 4, 2014 also are eligible to vote in the election, as long as they are registered. Early and absentee voting begins Friday, January 10 and end Friday, January 31, 2014. Q&A Page 5 For information on voting precincts and where to vote, call the Doña Ana County Bureau of Elections at 575.647.7428. For details about the election, call 527.5811. 19. How can someone make donations to the 2014 Bond Campaign? They can send checks to: 2014 Blue Ribbon Bond Committee c/o LCPS Foundation P.O. Box 16214 Las Cruces, NM 88004 The 2014 Blue Ribbon Bond Committee is comprised of 42 community members who are organized to support the election. Funds donated to this committee are private donations and are not deposited with the school district.