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Projects
Cost Summary
For a detailed breakdown of work to be performed at each site, please see the sections for each school.
Harding:
New 7th/8th grade school on Harding site, including second gym: $18,440,000
Total: $19,232,211
Madison:
Total: $11,755,213
Sunset:
Total: $6,633,493
Eastside:
Total: $20,146,552
Millicoma:
Total: $6,637,981
Project Funding:
Bonds: $59,995,000
If the District obtains a state grant for seismic work at Madison, the total proposed program will have a
surplus of approximately $1 million. This would be used for interior remodeling at Millicoma, including
converting the current office space into classroom space. This was proposed as part of the spring bond
but has been cut to save costs.
If the District does not receive a state grant for seismic work at Madison, the total proposed program
will have a shortfall of about $500,000. The District will either make-up this difference out of its general
fund or reduce the interior remodeling work to be done at Sunset.
How Were the Cost Estimates Created?
Construction Costs
The construction cost estimates are based on both industry standards and the expertise of local
architecture firm HGE, Inc, partnered with IGI Engineers and DOW-IBI Group, a national architecture
firm specializing in school construction.
Estimates for new school construction are based on the actual, average per-square-foot costs of
comparable new schools built in Oregon in 2015 and 2016.
Bond Costs
The estimated tax cost of the bonds comes from an analysis by the bond and investment banking team
at PiperJaffray. The official estimate from this analysis is that property taxes would increase by $1.60 for
each $1000 of assessed value to repay the bonds.
Bond repayment costs depend on four factors: the amount of the bonds, the length of repayment, the
interest rate, and the size of the tax base. We know the amount of the bonds--$59,995,000and the
term25 years. The interest rate wont be known for certain until the bonds are issued because they
are sold on the financial markets. The size of the tax base from year to year and its growth also cant be
known in advance.
To create the estimate, PiperJaffray assumed that the interest rate on the bonds would be 1% higher the
rate for similar bonds at the time the estimate was made (August 2017). This is an intentionally
conservative or safe estimate. If the bond measure passes, the bonds would be issued in early 2018. It
is possible that interest rates could rise by 1%, or even more, by that time. But it is also possible that
interest rates could rise by less than 1% in the next few months, or stay the same, or even fall. In any of
those cases, the actual tax cost would likely be less than the $1.60/$1000 in the estimate.
The estimate also assumes that the tax base (the assessed value of all property in the Coos Bay School
District) will rise 2.5%/year during the life of the bonds. This is based on the average rate of increase
over the past 15 years. PiperJaffray also regards this as a conservative estimate. If the actual rate of
growth is more, the tax rate for bond repayment would gradually fall.
The estimate does not include the potential construction of the Jordan Cove Energy Project (JCEP). The
JCEP site is in the Coos Bay School District (even though the north spit is not connected to the rest of the
district). If built, the County Assessor estimates that JCEP would triple the value of the tax base in the
District. This would have a dramatic impact on repayment of the bonds, whether through direct
property tax payments, or through increased Community Enhancement Plan payments that could be put
directly toward the principal.