Measure M-Proactively preparing for future growth in Folsom and Rancho Cordova

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          In a proactive move to begin financing schools for the anticipated future growth of the District, the Folsom Cordova Unified Board of Education unanimously approved the formation of a School Facilities Improvement District (SFID) 3 (Folsom and Rancho Cordova Growth) and a $750 million general obligation bond, Measure M, associated with the SFID at its June 22, 2006 regular meeting.  “This is our opportunity to plan to house students before they arrive in our district and avoid overcrowding,” said Board President Teresa Stanley.

 The Board’s action results in a general obligation bond election on November 7, 2006 for registered voters in the SFID—which encompasses the areas of Folsom, Rancho Cordova, and Sacramento County south of highway 50.  The intent of the SFID is to utilize state funding and developer fees through $750 million in bonds for the construction of new elementary, middle, and high schools, libraries, computer labs, support facilities, land acquisition, and acquisition of equipment and computer technology. 

 The Board’s action also represents their objective to maintaining a cohesive approach across Folsom and Rancho Cordova in the financing and support of the future growth of the District, which will potentially need to build 30 new schools in the area south of highway 50 over the next 20 or more years depending on state and county agency approvals and residential development schedules.  “Rather than segmenting the District into small funding areas, we need to proactively plan for students within our entire district, and provide for a funding mechanism that offers parity for homeowners,” explained Stanley. In next 25 or more years, it will take an estimated $1.7 billion to house the potentially 23,500 new students located in the SFID 3.

 The amount of financing needed for the future schools takes into consideration land acquisition, site development and construction costs will vary due to site location, mitigation for naturally occurring asbestos, other site contamination issues, topography, engineering, soil conditions, and the economic climate.  

          The District will continue to participate in the State School Facilities Program for modernization of eligible sites and new construction of school sites, and it will aim to secure local funding for the District’s share of the modernization of eligible sites and construction of new school sites as required by the State School Facilities Program.

Facts At A Glance: Future Growth of FCUSD South of Highway 50

 Land Use Planning and Development Impact

 Major land development impact south of 50: 

 *Estimates will change as land use maps change

 Financing New School Construction:

·       $1.6 billion over 25 – 35 years

o        Assumptions:

§         Land use plan (residential and commercial)

§         Student yield factors from new homes

§         Cost of land for new schools

§         Cost of construction for new schools

§         Statutory developer fees set by CA law

§         State school construction/modernization program

§         Local general obligation bonds

§         Developer agreements  

Funding sources for new school construction and improvements to existing schools include general obligation bonds through School Facilities Improvement Districts, statutory developer fees, and the state’s School Facilities Construction program.

New School Costs Used to Calculate 25-Year Projection

·       Land purchase at $500,000 per acre

·       Cost per square foot – April 2006 bids plus 5% annual escalation

·       Site development – rough grading and building pads by developer

·       Developer fees – 3% annual increase (historical)

·       State school construction grant – 3% annual increase (historical)

·       District-wide standard and amenities

·       Developers guarantee funding