BUSD Financing - Oak Meadow, Silva Valley and Rolling Hills
The Oak Meadow Elementary School Site is located at 7701 Silva Valley Parkway, El Dorado Hills, California and was initially designed to serve approximately 600 students in grades kindergarten through fifth grade. In approximately 2007-2008, Oak Meadow was determined to be impacted necessitating the construction of the "L" building (6 classrooms) on site to accommodate additional growth from the community. Current enrollment at this school site is approximately 760 students.
In or about January 2001, the Buckeye Union School District entered into a Purchase Agreement with Serrano Associates, LLC for the acquisition of the real property on which the Oak Meadow Elementary School Site would be located. The District made an initial deposit payment to Serrano Associates, LLC of $387,181.17 and Serrano Associates held a Promissory Note secured by a Deed of Trust for the balance due and owing, in the amount of $770,592.07, subject to an interest rate of 6.973823 percent per annum. The total cost to purchase this real property was $1,186,285.00, which includes the approximately $28,512.00 in interest the District paid with respect to the terms of the Promissory Note.
In 2002, the District issued Certificates of Participation in the principal amount of $12,580,000.00 for the acquisition and construction of the Oak Meadow Elementary School site. At initial issuance, the total principal and interest projected to be repaid by the District was $24,152,063.06. The District made all payments due and owing on the initial issuance from 2002 through 2012 at which time the District determined that it was able to refinance this debt, resulting in a projected present day value savings to the taxpayers of approximately $2.2 million dollars. Below is a history of all payments made from CFD No. 1 funds to finance the acquisition and construction of the Oak Meadow Elementary School site:
Total estimated balance of Principal and Interest remaining to be paid from CFD No. 1 funds is approximately: $11,656,503.28.
The Silva Valley Elementary School Site is located at 3001 Golden Eagle Lange, El Dorado Hills, California and was designed to serve approximately 429 students in grades kindergarten through fifth grade. Current enrollment at this school site is approximately 554 students.
In or about February 1990, the Buckeye Union School District entered into a Purchase Agreement with the El Dorado Hills Development Company for the acquisition of the real property on which the Silva Valley Elementary School site is located in the amount of $400,000.00.
The Initial Construction of Silva Valley Elementary occurred in approximately 1992. District records regarding Fund 32 – Office Review and Final Notice of Application of Expenditures evidences that the total initial construction costs for Silva Valley Elementary was $12,089,902.04.
Under the terms of the formation documents, the District was entitled to be reimbursed from CFD No. 1 funds for 1/2 of the acquisition and construction costs of the Silva Valley Elementary School site. However, in order to maintain sufficient cash flow to meet all debts secured by the CFD No. 1 revenue stream and financial solvency, the District did not seek any repayment for the advancement of these funds until the 2013-2014 school year. In the 2013-2014 school year, the District received reimbursement from CFD No. 1 funds in the amount of $3,200,000.00.
The Rolling Hills Middle School Site is located at 7141 Silva Valley Parkway, El Dorado Hills, California and was designed to serve students in grades sixth through eighth grade. Current enrollment at this school site is approximately 1015 students.
In or about July 1994, the Buckeye Union School District entered into a Purchase Agreement with Serrano Associates, LLC for the acquisition of the real property on which the Rolling Hills Middle School Site would be located. The District paid the sum of $1,701,373.00 to purchase the property and close escrow.
The Rolling Hills Middle School was constructed in three phases. The total hard costs to build the Rolling Hills Middle School site was $23,042,568.20. As a result, in 1996, the District issued Certificates of Participation in the principal amount of $8,345,000.00. At initial issuance, the total principal and interest projected to be repaid by the District was $15,260,251.28. In 1999, the District issued additional Certificates of Participation in the principal amount of $4,410,000.00. In 2007, the market presented an opportunity for the District to refinance the 1996 and 1999 COPs saving taxpayers monies and issued Refunding Certificates of Participation in the principal amount of $9,515,000.00. At initial issuance of the refunding certificates, the total principal and interest projected to be repaid by the District was $12,811,985.89
The District has made the following principal and interest Payments with respect to the 1996, 1999 and 2007 Certificates of Participation:
Total Amount of Principal and Interest Paid through April, 2015 for the construction of the Rolling Hills Middle School Site from CFD No. 1 funds: $13,468,311.22. Total balance of Principal and Interest remaining to be paid from CFD No. 1 funds is approximately $6,696,046.19.
OTHER – EXHIBIT C, PARAGRAPH 1.D: ACQUISITION OF RELATED EQUIPMENT
The Buckeye Union School District estimates that approximately 41% of our current student population resides within the boundaries of CFD No. 1. Until 2005, no revenue from CFD No. 1 was used to offset the costs incurred by the District in providing transportation services to these students. In 2005, it was determined that additional/replacement buses were needed as a direct result of the impact of the new development. As a result, on November 22, 2005, the District issued Warrant No. 80078346 in the amount of $514,155.15 for the acquisition of five (5) Blue Bird Buses and on November 28, 2005, issued Warrant No. 80078759 in the amount of $102,831.03 for the acquisition of one (1) Blue Bird bus, for a total of 6 new buses to offset the impacts of transporting the students from CFD No. 1.
Current Ending Fund Balance: $3,432,536.00
Expenses Paid to Date from CFD No. 1 funds:
