E-SPLOST VI Revenue Adjustment Board Presentation

AID 2039107 · View on Simbli

Agenda Item

a. E-SPLOST VI Overpayments Remedies, Impact and Options for Current and Planned E-SPLOST VI Projects ~ Updated 7.13.2026

Summary: Presented by: Mr Darrell Stallings, Chief of Capital Improvements, Division of Capital Improvements,
Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, and
Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
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IMPACT OF SALES TAX
DISTRIBUTION
ADJUSTMENT ON
E-SPLOST VI REVENUE
              E-SPLOST VI REVENUE FORECAST
• E-SPLOST VI revenue comes from two sources:
  oE-SPLOST Sales Tax Collections
  oInvestment Interest Earned
• Up to now, only sales tax collections have been forecasted as part of E-SPLOST VI revenue forecasts
  oInterest forecast not included as a buffer to future revenue fluctuations

                           Current E-SPLOST VI Revenue Forecast

                                                                           $816,564,005




 7/10/2026                                                                                              3
           CURRENT E -SPLOST VI CASH -FLOW
• As of End of May 2026, E-SPLOST VI has over $359,000,000 in liquid funds available

• Even if starting now no additional revenue were to come into E-SPLOST VI from any source, the
program would continue to be solvent for at least 2 ½ years
                                       May 2026




                                                                  $359,751,020




7/10/2026                                                                                         4
             S A L E S TA X D I S T R I B U T I O N E R R O R
• Due to an inaccuracy in E-SPLOST VI sales tax distribution, it is projected that DCSD will receive
around $13,000,000 less in sales tax revenue than the current revenue forecast indicates
                      E-SPLOST VI Revenue Forecast Minus $13,000,000

                        $816,564,005                       $803,564,005




                                           -$13,000,000




7/10/2026                                                                                              5
E - S P LO S T V I R E V E N U E F O R E C A S T A DJ U S T M E N T
• To mitigate this change in revenue expectations, it is proposed to begin including Forecasted Interest
Earned in the E-SPLOST VI Revenue Forecast
• A very conservative forecast of Interest Earned on E-SPLOST VI funds from June 2026 to July 2027 is
$12,000,000

   Updated E-SPLOST VI Revenue Forecast Including Forecasting Interest Earned to July 2027:

                            $803,564,005                       $815,564,005




                                            +$12,000,000




7/10/2026                                                                                                  6
ADDITIONAL REVENUE FORECAST BUFFERS
            E-SPLOST VI REVENUE STATEMENT
                     May 31, 2026
     ADDITIONAL REVENUE FORECAST BUFFERS
• E-SPLOST VI is expected to continue earning interest for several years after sales tax collections end in
July 2027
   – E-SPLOST V has collected over $39,000,000 in interest since collections ended in July 2022
                 Example Long-Term E-SPLOST VI Revenue Forecast Including Interest




7/10/2026                                                                                                     8
                 ADDITIONAL REVENUE FORECAST BUFFERS

                                                E-SPLOST V REVENUE STATEMENT
                                                         May 31, 2026




         End of E-SPLOST V
            Collections




Total E-SPLOST V Interest Earned Since End of E-SPLOST V Collections: $39,871,620.75
F U N D I N G R E C O M M E N DAT I O N

• By Board of Education Meeting in September 2026
   – Finance Agenda Item – "ESPLOST 6 True-Up to Certificate of Distribution"
       ▪ Will cover 48 months of collections from July 1st, 2022, through July 30th, 2026*.

       ▪ Covers distributions from GaDOR from August 1st, 2022, through August 31st, 2026 (distribution is in arrears).

       ▪ Inclusive of interest earned.

• Payment can be set up upon BOE approval of MOU with CSD and APS

• Estimate:



                                                                      APS                Decatur              Total
                                    Cumulative Revenue           $2,613,802.75        $8,125,388.58     $10,739,191.33
                                    Cumulative Interest           $228,177.83          $717,018.28        $945,196.11
                                    Total through 39 months      $2,841,980.58        $8,842,406.86     $11,684,387.44
                                    July Estimate                  $75,000.00          $225,000.00        $300,000.00
                                    Total                        $2,916,980.58        $9,067,406.86     $11,984,387.44




                  *Dependent on GaDOR correcting E-SPLOST sales tax distribution as of Aug 31, 2026

7 / 1 0 / 20 26                                                                                                           10
ESPLOST VI — Capital Program Financial Overview                                                                                                                      Data Refreshed: May, 2026
Education Special Purpose Local Option Sales Tax · Collection Cycle VI · Revenue & Commitments




  Total Projected Revenue                            Total Approved Commitments                     Total Projected Commitments                Revenue vs. Commitment Variance



  $815M                                              $651M                                          $154M                                      $10M
                                                                                                                                               Projected revenue less total approved and
  At the end of July 2027 less                       Formally committed via                         Remaining expected                         projected commitments
  payout to APS and CSD                              approved contracts and POs                     commitments per Action Plan



   ESPLOST                                                           Distribution Adjustment                                      Deferred Projects
   A one-penny-per-dollar sales tax voters                           The projected payout of ESPLOST VI                           Scheduled ESPLOST VI projects identified
   approve to fund school construction and                           overpayments received by DeKalb County                       but recommended for deferment.
   capital projects. By law it pays only for                         Schools to be redistributed to the City
   capital items — buildings, buses,                                 Schools of Decatur and Atlanta Public
   technology — never day-to-day operating                           Schools.
   costs.

   Total Projected Revenue                                           Total Approved Commitments                                   Revenue vs. Commitment Variance
   Sales tax collected to date, plus interest                        Dollars formally committed to projects through               Total projected revenue minus the total
                                                                     approved contracts and purchase orders; see approved
   earned to date, plus future sales tax and                         expense limit in the Quarterly Status Report.
                                                                                                                                  approved commitments to date minus the
   projected interest to be earned by July                                                                                        total projected commitments.
                                                                     Total Projected Commitments – The estimated
   2027, including the distributions made to                         value of all remaining commitments required to
   City Schools of Decatur and Atlanta Public                        complete the program, based on the
   Schools.                                                          recommended E-SPLOST VI Action Plan.
ESPLOST VI — Revenue · Commitment

           $900


                          815M                       805M
           $800

                                                 Total Projected
                     Projected Revenue
                                                  Commitments
           $700
                           $196M
                                                     $154M




Millions
           $600




           $500


                  Net Revenue (after $12M        Total Approved
           $400    APS/CSD adjustment)            Commitments
                           $619M                     $651M

           $300




           $200




           $100




             $0
                  Total Projected Revenue   Total Projected Commitment
ESPLOST VI Recommended Action Plan


    Planned Projects from April 2025 Retreat      $214,000,000.00

    Less Recommended Deferments

        •          d ES                               - $34,077,000.00


        • Ki       d     M                            - $21,411,790.00


        • B    P        h                             - $25,000,000.00


        • i             mE h    m                     - $14,454,000.00


    Subtotal                                      $119,057,209.00

    Add Recommended Project

        • S            i w ES                        + $35,000,000.00


    Total                                      $154,057,209.00
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Questions And
      Answers
         Thank You
     Division of Operations
                &
Division of Capital Improvement

          Thank you!
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