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After a lengthy discussion, the School Board of Lee County has set a reserve goal of 7-8 percent in reserves, as well as moved the East Technical Center into the first five years of its 10-year capital plan.

Chief Finance Officer Dr. Ami Desamours said when focusing on the capital plan the district addresses its priorities, which includes safety, providing more student seats, maintenance, technology and appropriate upkeep of assets. That all falls within a five- to 10-year plan, as the nature of the process is longer in terms of planning for a building, remodeling, or enhancing.

“Because long-term plans are based on a set of assumptions, those could, or could not come to pass,” Desamours said, adding that they will continue to evaluate and update the plan as necessary.

To help with some of those capital projects the district can use revenues from the half cent penny sales tax for the next seven years, with an estimated $87.3 million for next year. The anticipation is the total allocation will increase 3 to 4 percent in remaining years.

The first scenario that was presented included a reserve of 5.06 percent at the end of 5 years and 7.69 percent at the end of 10 years. That would include a reduction of $68 million in years one through five to get to 8 percent reserves.

Currently the district sits at 9.5 percent reserves with a history of being within the 8 to 10 percent range.

The plans include seven projects to be completed in the East Zone, which incudes two elementary schools, innovation school K-8, two middle schools, one middle school addition, one high school, Veterans Park/old LAMS and the East Technical Center over the next 10 years.

“In this version the East Technical Center plans to open in the second five year of the plan at the cost of $80 million built into this plan,” Desamours said.

In the West Zone that includes two high school additions and the Cape Coral Technical College addition.

The South Zone includes a K-8 in Estero, high school addition, Franklin Park rebuild, Cypress Lake Middle School rebuild and Fort Myers Technical College remodel.

There is no north zone.

“Many of the new schools and remodels pass the next 10 years. There is a significant number of schools built in here . . . over $900 million investment cost in these,” Desamours said. “It will be even more expensive most likely given projected increased cost escalations in the near future. With the buildings in this plan and assuming student growth projection, the portables will be (removed) most places by fiscal year 2026. Not that they may never be used again, but no plan for permanency pass fiscal year 2026.”

In the first scenario the total new Certificates of Participation (COPs) is $856.4 million. She said the district will pay back $470 million within the short amount of time that they have the sales tax remaining.

“The debt conversation is an important one to make sure we are being financially responsible,” Desamours said. “All of the school projects are $856 million. That’s how much COPs would be taken out. (We would be) paying back $400 million remaining debt after our sales tax period is over.”

Board member Cathleen O’Daniel Morgan said she wanted to see the East Technical Center to be pushed up in the first five years, rather than in the last five years. She said the entire cost of the center is not the district’s burden to bear.

“I want it pushed up in time,” Morgan said.

Board Member Mary Fischer agreed as opening the center is not something the district can wait on due to the demands of the workforce and the business community.

Desamours said they can definitely create another scenario that would bump the center into the first five years. She said they will work with another scenario that provides wiggle room, which will push them slightly up with reserves.

The second scenario left the reserves at 3.8 percent at the end of five years and 6.49 percent at the end of 10, with having to reduce the plan by $93 million in years one to five to reach 9 percent reserve. In addition, there would be $429 million in debt with sales tax.

Desamours said this scenario includes the increase of costs for projects, as well as changing the timing in which the East Technical Center would be built, therefore taking on additional debt.

The third scenario, which Desamours did not recommend, would leave the district with 13 percent reserves at the end of five years and almost 12 percent at 10 years. The debt would be spread out over 20 years. Desamours said this scenario would cost the district an additional $100 million because they would be carrying debt over for a long period of time.

In all three of the scenarios the district will almost have a complete reduction of portables across the district, budgeted $635 million for maintenance projects, which is an increase of 2.5 times the amount expended in maintenance over the schools over the previous 10 years, as well as $65 million for security projects and $3.3 million in technology.

“One of the things we need to talk about is cost escalations. (We need to) determine how we are going to handle cost changes. We do have anticipated cost escalations that might necessitate us coming back to the board if cost is significantly more,” Desamours said.

The board was told that they might have to decide to proceed, postpone or cancel a project due to cost escalations.