The average levy rate for the proposed bond issue is estimated to be $0.68 per $1,000 of assessed value over 30 years. The levy rate is estimated to be $1.40 per $1,000 for the first four years, declining thereafter. For a house assessed at $200,000 the initial annual cost would be about $280. Overall average cost is $136 annually. The total principal amount of bonds authorized by this measure cannot exceed $790 million.

Bonds would mature in 30 years or less from issuance date and may be issued in one or more series.

Approximately $324 million of the proposed bond would be invested in health and safety projects: Approximately 30% of each of the four modernization project budgets would go toward health and safety projects, and in addition at least $150 million would go toward resolving health and safety concerns at schools across the district.

The school district's taxing authority is limited by law. Currently, PPS uses property taxes and construction excise taxes to address capital needs. The construction excise tax is generated when the City of Portland issues building permits.

PPS is leveraging proposed bond funding through an $8 million state capital grant. In addition, there are other state grants for specific purposes, and PPS applies when those opportunities are available.

In the past year, PPS technical staff have assessed schools’ health and safety needs across eleven areas—from lead in drinking water and paint to fire safety—to inform a prioritized set of additional critical health and safety improvements in this bond cycle. The cost of fully mitigating all eleven health and safety areas is approximately $1.6 billion.

The $150 million in additional health and safety investments would address the most urgent needs, including resolving issues of lead in water and paint, and radon at every affected school.

However, it is not feasible to address the entire $1.6 billion in health and safety needs in this bond, for two reasons: One, it is more cost effective to address some health and safety needs as part of a full rebuild or modernization, given the major construction and long term access needed to fully accomplish the projects. The district has a long term plan to upgrade and modernize all schools.

Two, there is a practical limit to how much construction work can be accomplished over the 6-8 years bond investment cycle, both due to availability of skilled construction workers, as well as working around school schedules. Much of the health and safety work can only be accomplished when students are not in the building, limiting the amount of time available during the year to address these issues.

With the 2012 bond, PPS formed the Bond Accountability Committee, a seven-member committee made up of community members with a reputation for fairness and transparency and experience in building design, construction, public contracting, budgeting, and/or auditing. If approved by voters, the proposed Health, Safety and Modernization Bond calls for the continuation of the BAC. The BAC meets quarterly to review bond-funded projects and offer advice to the School Board, on:

• Whether bond revenues are expended only for the purpose for which the bond was approved;
• Alignment with the goals and principles of the district’s Long Range Facilities Plan;
• Alignment with the goals of the Business Equity Policy;
• Lowering maintenance and construction costs while improving operating efficiency;
• Historic preservation and school renovation;
• Potential capital partnerships for joint and shared use of PPS facilities;
• Implementation of appropriate ways to address seismic issues;
• Compliance with ADA requirements.

PPS voters have supported two bond measures over the last 22 years. In 1995, voters passed a bond that built Forest Park Elementary School; provided classroom computers and computer labs; carried out seismic safety upgrades at 53 schools, increased fire safety at 45 schools through emergency lighting, fire alarms, sprinklers and smoke containment improvements; increased accessibility; and addressed major building repairs.

In 2012, Portland voters approved the School Building Improvement Bond that renovated Franklin High School, Grant High School and Roosevelt High School, and replaced Faubion PreK-8 school; began planning for the upgrade of all high schools in the district in coming years; replaced leaking, worn or deteriorating school roofs; strengthening schools against earthquakes; repaid previous loans that funded nine roof replacements, 47 boiler conversions, and the Rosa Parks School; increased access to schools for students, teachers and visitors with disabilities; and upgraded science classrooms at middle grade schools.

The Long Range Facilities Plan, developed in 2012, laid the groundwork for fully modernizing all of the schools in the district. Per that plan, and the work of a 2014 bond development committee, high schools are slated for modernization first.

The 2012 voter-approved bond funded modernization of Franklin, Roosevelt, Grant and Faubion schools and provided master planning funding for Benson, Madison, Lincoln and Kellogg. If approved by voters, the proposed Health, Safety and Modernization bond would fund planning for modernization of Cleveland, Jefferson, and Wilson.

While the number of schools that can be fully rebuilt or modernized in this bond process is limited, $150 million of the bond would be used to resolve health and safety issues, such as lead in the water and paint, at schools across the district.

PPS will continue to respond to health and safety emergencies and take steps to make sure schools remain safe. But, PPS will not have funding available to embark on significant long-term mitigation of these hazards.

The school board approved a Capital Asset Renewal policy, which dedicates an on-going revenue to fund preventative maintenance and repair at Forest Park, Rosa Parks and any schools that would be renovated in the future.

Renovated buildings reduce PPS’ maintenance costs, as newer buildings require less maintenance and repair.

According to the Long Range Facilities Plan developed in 2012, all schools that are modernized have to be at a minimum LEED silver standard, and all new schools (including schools that are rebuilt) have to be at a minimum LEED gold standard. You can read more about LEED certification here: usgbc.org/leed.

School construction can take anywhere from 12 to 24 months, depending on the size of the school and the extent of the construction work effort. For some proposed projects, like Madison, the staff and students would temporarily move into "swing space" at Marshall, where Franklin students are currently located while their school is modernized and where Grant students will be next year.

In other cases, as happened at Roosevelt, students may remain in their current school while a replacement school is built in phases or on another part of the school property.

The decision to fully renovate or completely replace an older building depends on the school building, its construction and character, its site and the scope of the work to be completed.

Suburban school districts often construct new schools on green fields (vacant parcels that do not require removal of existing structures). This type of construction generally is easier and more economical than redevelopment of occupied sites. However, demolition followed by new construction or renovation are the only options available to PPS. PPS also has many historic schools. If a school bond is approved, historic buildings that would be upgraded through a school construction bond would be renovated in a way that is consistent with the building’s historical designations and building components, while providing up-to-date teaching and learning environments and more durable, sustainable finishes. Teachers, staff and families would be involved in planning to help preserve the unique aspects of each school and its integration into the surrounding community.

Portland Public Schools is the largest school district in Oregon, with more than 48,500 students and more than 90 school sites. Portland Public Schools is the second largest property owner in Portland and one of the region's largest employers with more than 5,000 teachers and school support staff.

More than 8 out of 10 students who live in Portland attend a PPS school. In the past 4 years, PPS’ enrollment has increased by more than 1,000 students and enrollment is projected to exceed 50,000 students by 2022.

The average age of PPS’ schools is 77 years old. More than half of PPS schools were built in the 1940s or earlier. Before the 2012 School Improvement bond, which rebuilt and modernized Franklin, Roosevelt, Faubion and—slated to begin this year—Grant, only two schools have been built in the last 30 years, Rosa Parks Elementary in North Portland and Forest Park K-5 in Northwest.