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Examples
Reimbursement Examples
 
In general, reimbursement for school construction projects is based on the capacity of a building, which can be justified by present or projected student enrollment.  Classroom capacity is normally calculated on the basis of 25 students per regular classroom (other values are assigned to laboratories, gymnasiums, art rooms, music rooms, etc.).  For example, if a district has a twenty classroom elementary building, we would normally consider the building to have a full-time equivalent capacity of 500 (20 x 25).  The capacity in this example would have to be supported by current or projected enrollment.
 
This capacity is then converted to rated pupil capacity.  The term "rated pupil capacity" has no significance other than this is a method for calculating reimbursement.  An elementary building with a full-time equivalent capacity of 500 is deemed to have a "rated pupil capacity" of 700 (see Attachment B in the PlanCon Part A instructions for the conversion charts). (PDF - Requires Acrobat Reader
 
Click on a new elementary school to see an example of the reimbursement calculations for new construction.  Click on additions and alterations to a secondary school to see an example of the reimbursement calculations for additions and alterations to an existing school.
 

 
REIMBURSEMENT CALCULATION FOR A NEW ELEMENTARY SCHOOL WITH LEED SILVER CERTIFICATION
CALCULATION OF REIMBURSEMENT FOR A NEW ELEMENTARY BUILDING WITH A FULL-TIME EQUIVALENT CAPACITY OF 500, WHICH IS CONVERTED TO A RATED PUPIL CAPACITY OF 700.  ACTUAL PROJECT COSTS ARE $4,000,000.  THE SCHOOL DISTRICT HAS A MARKET VALUE AID RATIO OF .6500.
 
(1) Maximum Reimbursable Formula Amount
  (a) Full time equivalent capacity                      500
  (b) Conversion of full-time equivalent
       capacity to rated pupil capacity                 500 x 1.4 = 700
  (c) Rated pupil capacity multiplied
       by $4,700 (legislated per pupil amount
       for elementary)                                       700 x $4,700 = $3,290,000
  (d) MAXIMUM REIMBURSABLE FORMULA AMOUNT       $3,290,000
 
(2) Actual Structure Costs Based on Bids
  (a) Structure Costs                                                  $3,000,000
  (b) Architect's Fee (6% limit)                                     $   180,000
  (c) Movable Fixtures & Equipment                               $     50,000
  (d) TOTAL ACTUAL STRUCTURE COSTS                           $3,230,000
 
LESSER OF (1d) FORMULA OR (2d) ACTUAL COSTS                                   $3,230,000
 
(3) Additional Funding for LEED Silver, Gold
      or Platinum Certification                                      700 X $470 =     $329,000
    
(4) Specified Ancillary Costs
  (a) Rough Grading to Receive the Building                    $  30,000
  (b) Sanitary Sewage Disposal                                    $  10,000
  (c) Architect's Fee (6% limit)                                    $    2,400
  (d) Cost of Acquiring Site                                         $   20,600
  (e) TOTAL                                                                            $   63,000
 
ELIGIBLE ANCILLARY COSTS                                                                       $      63,000
 
TOTAL REIMBURSABLE PROJECT AMOUNT                                                 $3,622,000
 
(5) Other Project Costs
Contingency, Supervision, Printing,
Financing Costs, Other                                              $  707,000
 
(6) Total Project Costs (2d plus 4e and 5)                                              $4,000,000

          The reimbursable project amount is then divided by the total project costs to determine a reimbursable percentage.  A one-half percentage point reduction in the reimbursable percentage is made until Plancon Part J, Project Accounting Based on Final Costs, for the project is reviewed and approved by the Department.
 
 
REIMBURSABLE                                                     REIMBURSABLE
   AMOUNT                    PROJECT COSTS                   PERCENT
 
$3,622,000       /         $4,000,000          =             90.55%
                                                                       -0.50%  
                                                           90.05%
 
 
This percent is multiplied by the school district's bond issue (principal and interest payments) to determine the level of Commonwealth participation in the cost of the project.  The Commonwealth's share is then multiplied by a measure of a district's wealth, i.e., Market Value Aid Ratio (MVAR) or Capital Account Reimbursement Fraction (CARF), (or in some cases, a "Density Factor" of 50 percent) whichever is greater to determine the net state subsidy.
 
SEMI-ANNUAL PAYMENT        REIMBURSABLE                              COMMONWEALTH'S
(PRINCIPAL & INTEREST)            PERCENT                   MVAR                   SHARE
          
       $200,000            X            .9005        X          .6500        =     $117,065
 
 
 
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For projects financed by cash , i.e. without the issuance of debt, the reimbursable percent is multiplied by the total project costs for the school construction project to determine the level of Commonwealth participation in the cost of the project.  The Commonwealth's share is then multiplied by a measure of a district's wealth, i.e., the greater of Market Value Aid Ratio (MVAR), Capital Account Reimbursement Fraction (CARF) or Density Factor, to determine the net state subsidy.
 
          If a project is financed by cash, i.e., without the issuance of debt, no reimbursement will be paid until PlanCon Part J, Project Accounting Based on Final Costs, is submitted and approved by the Department.  At PlanCon Part J, a certification must be provided indicating that, in accordance with Section 2575.1 of the Public School Code of 1949, as amended, the school district/AVTS is providing full payment on account of the approved building construction cost without incurring debt or without incurring a lease.  For purposes of calculating reimbursement, bond proceeds that are transferred to the general fund and then used for a reimbursable construction project are still considered bond proceeds.
 
 

REIMBURSEMENT CALCULATIONS FOR ADDITIONS AND ALTERATIONS TO AN EXISTING SECONDARY SCHOOL
 
CALCULATION OF REIMBURSEMENT FOR A SECONDARY BUILDING WITH AN ADDITION AND ALTERATIONS AND A FULL-TIME EQUIVALENT CAPACITY OF 901, WHICH IS CONVERTED TO A RATED PUPIL CAPACITY OF 1,000.  ACTUAL PROJECT COSTS ARE $9,500,000. THE GROSS AREA (OR ARCHITECTURAL AREA) OF THE ADDITION IS 30,000 SQUARE FEET AND THE GROSS AREA (OR ARCHITECTURAL AREA) OF THE EXISTING BUILDING IS 130,000 SQUARE FEET FOR A BUILDING TOTAL OF 160,000 SQUARE FEET.  THE SCHOOL DISTRICT'S MARKET VALUE AID RATIO IS .6500 .
 
(1) Maximum Reimbursable Formula Amount
  (a) Total Full-Time Equivalent Capacity                901
  (b) Conversion of Full-Time Equivalent
       Capacity to Rated Pupil Capacity                   901 x 1.1100 = 1,000
  (c) Rated Pupil Capacity multiplied
       by $6,200 (legislated per pupil
       amount for secondary)                              1,000 x 6,200 = $6,200,000
  (d) Architectural area of addition
       as percent of total building area                      18.75%
  (e) Architectural area of existing
       as percent of total building area                      81.25%
  (f) MAXIMUM REIMBURSABLE FORMULA
       AMOUNT – ADDITION ((c) times (d))                  $1,162,500
    (g) MAXIMUM REIMBURSABLE FORMULA
      AMOUNT – EXISTING ((c) times (e))                    $5,037,500
   
(2) Actual Structure Costs Based on Bids    Addition              Existing                     
  (a) Structure Costs                                $2,500,000        $ 5,700,000
  (b) Architect's Fee (6% limit)                   $   150,000        $    222,000
  (c) Movable Fixtures & Equipment             $     80,000        $     20,000
  (d) TOTAL ACTUAL STRUCTURE COSTS      $2,730,000         $5,942,000
  (e) LESSER OF (1f) FORMULA OR (2d) ACTUAL COSTS - ADDITION    $1,162,500
  (f) LESSER OF (1g) FORMULA OR (2d) ACTUAL COSTS – EXISTING    $5,037,500
  (g) TOTAL                                                                                                      $6,200,000
 
 
(3) Additional Funding for Project with Additions
      and/or Alterations to Existing Building
      (Appraisal Value=0)                                                  1,000 X $620 =     $620,000
 
(4) Specified Ancillary Costs
  (a) Rough Grading to Receive Building                       $  50,000
  (b) Sanitary Sewage Disposal                                  $  65,000
  (c) Architect's Fee (6% Limit)                                 $    6,900
  (d) TOTAL                                                                        $121,900
ELIGIBLE ANCILLARY COSTS                                                                                               $   121,900
TOTAL REIMBURSABLE PROJECT AMOUNT
  (2g plus 3 and 4d)                                                                                      $6,941,900
 
(5) Other Project Costs
  Contingency, Supervision, Printing,
  Financing Costs, Other                                           $706,100
(6) Total Project Costs (2d, Addition and Existing,
   plus 4d plus 5)                                                                                            $9,500,000
 
The reimbursable project amount is then divided by the total project costs to determine a reimbursable percentage.  A one-half percentage point reduction in the reimbursable percentage is made until Plancon Part J, Project Accounting Based on Final Costs, for the project is reviewed and approved by the Department.
 
REIMBURSABLE                                                     REIMBURSABLE
   AMOUNT                   PROJECT COSTS                   PERCENT
 
$6,941,900       /         $9,500,000          =             73.07%
                                                                                     -0.50%  
                                                                    72.57%
 
This percent is multiplied by the school district's bond issue (principal and interest payments) to determine the level of Commonwealth participation in the cost of the project.  The Commonwealth's share is then multiplied by a measure of a district's wealth, i.e., Market Value Aid Ratio (MVAR) or Capital Account Reimbursement Fraction (CARF), (or Density Factor, if applicable) whichever is greater to determine the net state subsidy.
                                   
 
SEMI-ANNUAL PAYMENT       REIMBURSABLE                              COMMONWEALTH'S
(PRINCIPAL & INTEREST             PERCENT               MVAR                       SHARE
            
           $500,000         X           .7257       X       .6500        =        $235,853
 
 
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For projects financed by cash , i.e. without the issuance of debt, the reimbursable percent is multiplied by the total project costs for the school construction project to determine the level of Commonwealth participation in the cost of the project.  The Commonwealth's share is then multiplied by a measure of a district's wealth, i.e., the greater of Market Value Aid Ratio (MVAR), Capital Account Reimbursement Fraction (CARF) or Density Factor, to determine the net state subsidy.
 
If a project is financed by cash, i.e., without the issuance of debt, no reimbursement will be paid until PlanCon Part J, Project Accounting Based on Final Costs, is submitted and approved by the Department.  At PlanCon Part J, a certification must be provided indicating that, in accordance with Section 2575.1 of the Public School Code of 1949, as amended, the school district/AVTS is providing full payment on account of the approved building construction cost without incurring debt or without incurring a lease.  For purposes of calculating reimbursement, bond proceeds that are transferred to the general fund and then used for a reimbursable construction project are still considered bond proceeds.