Update - 11.21.14

posted Dec 2, 2014, 10:02 AM by Lisa Griffin   [ updated Dec 2, 2014, 10:02 AM ]
Stargate High School continues to move forward. Our Governance Board, Finance Committee and Administration are responsibly managing our financial budget and growth plan to meet our gifted population's needs during this time of expansion.

When the bond/mill for Adams 12 failed to pass it did not impede our work. We are continuing our plans for the expansion to High School. Without the extra funding we are still able to build our 6-12 campus and keep our current campus for grades K-5. Our long term goal is for Stargate to be on a single campus and we will continue to work to that end.

Our financing for the high school is on track and moving forward quickly. Funds are scheduled to be available before the end of December 2014 with groundbreaking scheduled for late April or early May 2015.

Standard and Poor's recently completed its annual review of Stargate's bond rating on our existing facility bond issue 2006 with two results. The investment grade rating of BBB- was affirmed. The outlook on the issue was downgraded from stable to negative. The S&P ratings report cites a decrease in debt service coverage (DSC) as the primary reason for the outlook change. The decrease in DSC is the direct result of the expenditure of $115,000 General Fund dollars in 2013-2014 to fund; a onetime retention bonus for all staff in lieu of salary increase, the replacement of a failing boiler, and a significant jump in workers compensation insurance premiums. Finally, the report cited Stargate's long track history of successful charter operations and good cash levels as reasons for affirming the BBB- rating. The funding for the high school project will be separately secured and will not impact the rating on the existing bonds.

Overall, we are on track and excited to open Stargate High School in the fall of 2015 and cut the ribbon on our new building in 2016.