DCSD Board of Education Presentation

1. DCSD Board of Education Presentation June 5th, 2012

2. History • August 2006 – opened North Star Academy • Board desire to replicate grew • Strong parent interest in second school • Summer 2008 - second school application approved • Winter 2009 – DCSD approved COP’s to purchase SkyView facility

3. History, con’t. • 2008 - Apex Classical High School start-up group formed with intent to apply to DCSD for a stand alone charter high school opening for the 2011-12 school year • August 2010 - Apex Classical group merged with SkyView Academy when the DCSD BOE approved the addition of high school to the SVA program • It was understood as part of that approval we would renovate the remaining half of the SVA facility to house our entire PK-12 program

4. History, con’t. • Hoped for another partnership with DCSD forCOP’s • November 2011 - requested COP’s for renovation • March 2012 – DCSD staff asks SkyView to pursue other methods of financing so DCSD could use limited COP funds for expansion into growth areas of District • April 2012 – CECFA approves bond financing for renovation without further investment by DCSD

5. Construction Financing • D. A. Davidson – experienced in Charter finance • Financing program designed for schools like SkyView • Payments are intercepted at state level • Refinance in 2-5 years when SkyView has a bond rating • Shared collateral position with DCSD

6. Construction Financing, con’t. • Other successful schools using this program • Jefferson Academy • Union Colony • Liberty Common • Capitalizing some interest so Middle School and • High School programs can pay for additional • construction • Investors consider SVA a very strong school with • limited risk • $10.5 million construction costs for 800 additional • student capacity

7. First Floor

9. Truths About Closure Risk • Never has a Charter school over 700 students closed in Colorado; we will exceed 700 next year reaching 1,400 students by 2016 • Never has a John Irwin Award winning Charter school in Colorado closed • SkyView has built reserves during lean years when many Charter schools & Districts used up reserves • SkyView High School enrollment will more than double next year • 1,500+ on waitlist

10. “We know SVA is great, but what if…?” • What happens in the highly unlikely scenario that our High School enrollment projections don’t materialize? • Staffing needs will be re-adjusted • Additional students can be added at the Middle School level which will roll up to High School • Salary reductions can take place since we are not bound by collective bargaining agreements • Other program costs can be controlled with the budget autonomy we possess as a Charter school

11. Worst Case Scenario • What if high school enrollment never grows or trickles away? • Trigger for change – 2 consecutive years of operating expenses exceeding revenues which result in expenditures of $250K or more from reserves • SkyView Board would consider elimination of the High school program and convert to PK-8 • Resulting school would have 150 students per grade, with an enrollment of over 1,400 students, PK-8 to fill entire facility

12. SkyView Academy – A Great Investment • Strong, experienced leadership in our Board of Directors – SkyView is the second successful school we’ve started • Strong, experienced leadership in our Administrative team – over 40 years of Charter experience with connections to two of the top K-12 schools in the state • Strong passionate parent base is very involved • Waitlist of over 1,500 students • Tremendous student body anxious to enjoy the completion of this summer’s renovation

13. In Summary • SVA adds unique value to the community • Our program is strong and successful in every way • We are asking for your approval of the financing agreement tonight so we can get started on the completion of our renovation and serve our students who deserve the best