Building Our Future - Funding

funding

 

80% of the project funding is from the ICO loan. We chose a fixed, not variable, rate loan because the EUROIBOR index is at a historic low. We want to protect the school against raising interest indices in the medium to long term.

18% of the funding is from our current accounts, which cycle from 500K – 1M euros during the year, peaking on June 30th and bottoming out on Sept 1st. We are allocating 440K of cash to the project.

2% of the funding is from a derrama which is forecast to be 53,025 euros. The exact amount will depend on the completed project budget, and will be determined in September 2015.

The following table shows the funding components: 

Source Amount
Hipoteca € 2,000,000
Cuentas corrientes € 440,000
Derrama € 53,025
Total € 2,493,025

 

Parent Contributions – School Fees

Parents will contribute in two ways: by a one-time increase in school fees and by a one-time derrama (if needed at the end of the project).

A one-time increase of 2.3% in school fees, levied during the upcoming 14/15 school year and maintained thereafter, will generate the income necessary to pay for the 2.0M euros loan. We will generate a positive cash flow of 29K euros per year over the life of the 15-year loan thanks to this one-time increase.

It remains for our late-June EGM to vote on the actual student fee increase for 14/15. It should be higher than 2.3%, because the cost of living has increased and there will be other priorities to fund. (We cannot drain the budget of all initiatives in the name of the new project.) But keep in mind that whatever the final approved fee is, 2.3% of that increase covers the cost of the new project. Since the loan's interest rate is fixed, we can make that calculation with certainty. We will never have to raise school fees again to pay for the project.

Here is the 2.3% increase in euros on a per-pupil basis:

 School Fee | Increase/month

Fee 14/15
Primary 486.66 11.19
Y7 - Y9 592.96 13.64
Y10 - Y11 609.16 14.01
Y12 - Y13 620.66 14.28

Parent Contributions – Derrama

The second way that parents may contribute to the project is the 53K euros derrama. This one-time derrama can be paid in one installment in September 2015, or in 10 monthly installments during the 15/16 school year.

The derrama will be levied on a scale of 5-euro steps per student year, to account for the number of years that a student will benefit from the new project. The average one-time payment is 90 euros per student, ranging from 125 euros in Nursery down to 55 euros in Year 13. The following table shows the payments.

 

Derrama simulator: 1 payment or 10 installments Sep-15 to Jun-16
Entering class Sept 2015 # of Students One full payment or Monthly Payments Class Subtotal
N 35 125 12.50 4,375
R 35 120 12.00 4,200
1 35 115 11.50 4,025 
2 42  110  11.00 4,620 
3 48 105  10.50  5,040 
41  100  10.00  4,100 
42  95  9.50  3,990 
48  90  9.00  4,320 
46  85  8.50  3,910 
40  80  8.00  3,200 
46  75  7.50  3,450 
10  42  70  7.00  2,940 
11  29  65  6.50  1,885 
12  33  60  6.00  1,980 
13  18  55  5.50  990 
Totals  580  53,025 

To use the table: if you have a student in year 11 and another in year 8, you would pay a one-time fee of 65 + 80 euros = 145 euros, in September 2015.

Alternatively, you could pay 14.50 euros per month between Sept 2015 and June 2016.


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