Bond project savings

  • At the time this document was written in May of 2021, a few minor projects from the 2016 bond remained to be completed.  None of these remaining projects were expected to go over budget.  At this time, the bond projects completed were $19.5 million under what was budgeted.  The reasons, in no particular order, for being under budget are as follows:

    • Initial conservative estimation of the probable cost of each project
    • Inflation was not as great as was factored into the estimates
    • The team of district staff, the general contractor, and the architect worked closely together to value engineer every major project
    • Very competitive bidding environment (every project received many competitive bids from qualified vendors)
    • Canyon Ranch Elementary project was moved two years sooner than was originally anticipated saving inflationary dollars built into estimate

    Interest Income

    Once bonds are sold, the money is temporarily invested in very safe, yet low interest income yielding investments, such as treasury bills.  The money earns interest income until it is needed to pay for projects.  Over the five-year bond program, approximately $3.9 million was earned in interest income.  The Board of Trustees voted to utilize some of this interest income for the purchase of 20 school buses.  Additionally, some of the interest income dollars were used to increase the size of the bus yard at the service center to park the additional buses. 

    It is ultimately up to the Board of Trustees to decide how to spend the bond project savings.  By law, the dollars must be used to purchase tangible assets with a life of over one year.  The money cannot be used to pay operational costs such as teacher salaries or utilities.  After the 2013 bond program was complete, there was approximately $7 million in project savings.  The Board decided to roll forward and use those dollars toward future projects included in the 2016 bond program.  The Board will be discussing at a later date how to utilize the 2016 bond savings.