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28 May 2010 Dear VIS Community These have been challenging times for the Board, with many important issues relating to VIS’s future on our agenda. Let me start by saying thank you to all of the parents who took time to provide their thoughts and inputs to our deliberations. We gave all of them careful consideration at our May Board Meeting this week. Before addressing the issue of fees, the Board first considered a more fundamental question: should VIS strive to develop in all areas (both academically and in terms of improved facilities) as per the Strategic Plan agreed in 2008. Or should we put further developments on hold, on the grounds that the progress achieved in recent years is sufficient to the Community’s needs both now and in the near future. The Board concluded that in order to ensure continued improvements in the academic and learning environment that we all want for our children, VIS cannot afford to stand still. Instead, we should continue to invest prudently for the future, and build on the foundations for growth laid in the past few years. By continuing to use the resources at our disposal to develop and improve VIS, we believe we will achieve the best outcome for the whole VIS community. At the same time, we will remain faithful to the vision of past Boards and VIS community members, without whose commitment we would not have the VIS school facility that we are enjoying today. The Board then re-evaluated the various capital development projects called for under the Strategic Plan with a view to setting priority actions while taking into consideration the financial burden on VIS and on parents. Based on that re-evaluation, it was decided that the Wing Building must be considered as a higher priority than either the Swimming/Fitness Complex or the Creative Arts Center. This is because the Wing Building is essential to accommodate the additional courses that VIS must offer to MYP and DP students in the coming years. It is anticipated that VIS will receive its MYP authorization in the 2010-2011 school year, meaning that the Wing Building should be operational by August 2011. The Board then considered various financial scenarios that would release the funds needed for capital development. The scenarios ranged from no increase in the Capital Fee to an increase of $1,000 and several options in between. Further information will be posted on the VIS website as soon as possible. The Board also looked at different scenarios involving a possible additional bank loan. For each scenario, the following assumptions were used: 1. Annual 5% increase in the number of fee paying students; 2. Wing Building estimated cost of $280,000; 3. Swimming/Fitness Complex estimated cost of $400,000; and 4. Creative Arts Center estimated cost of $2 million. With regard to a possible bank loan, VIS Board members and management held meetings in early May with a bank in Vientiane who had expressed an interest in providing a loan to VIS. While the bank was interested in offering a loan to VIS, it finally decided that it could not do so because VIS assets are already pledged as collateral to BCEL under the existing loan (taken out for construction of the new VIS campus). This is a standard requirement for project loans. Accordingly, it appears that it will be very difficult to obtain a second bank loan for individual capital projects. However, the Board will continue to investigate the possibility of refinancing the existing loan with better terms and additional funds for new capital projects. Based upon the above, and to take into account any changes in the assumptions listed above, the Board decided that its decision regarding the Capital Fee should be limited to the next five years. Thereafter, the Capital Fee will be re-evaluated in light of circumstances. In conclusion, the Board believes that the following decisions will provide the best outcome for the whole VIS community and will ensure the continued development of VIS in all areas so that we can have the best possible school for our children. At the May Board Meeting, the Board unanimously decided to: 1. Increase the Tuition Fee by 7% for the 2010-2011 school year. This was determined to be a reasonable increase even though it still does not cover the school’s operating costs. Parents can pay the Tuition Fee either for the whole year or per semester. There will not be any refund of Tuition Fee unless there is a family emergency such as a medical emergency in the family, however, the fee for the 2nd semester will be repaid if the full year’s fee was paid and the child does not attend school in the 2nd semester. 2. Increase the Capital Fee by $500 for 2010-2011, and by $100 annually from 2011-2012 to 2015-2016, with the need for this increase being reviewed annually by the Board. The Capital Fee must be paid in full at the beginning of the school year, and is non-refundable. The increase in the Capital Fee will allow VIS to: a. Build the Wing Building with an operational date of August 2011. b. Continue active planning/preparation for the construction of a Swimming/Fitness Complex commencing in 2012-2013. c. Undertake other small capital projects to improve existing facilities at VIS. VIS will use the existing Capital Fee and reserve funds to: d. Pay the principal and interest payments on the existing BCEL loan. e. Provide funding for operational expenses for the near future. f. Provide a reserve for operations and cash flow requirements during the school year. 3. Implement a discount for families with 3 or more children at VIS starting in the 2010-2011 school year. The discount will reduce by 10% the Tuition Fee for each family’s 3rd or more children. The discount will first be applied to the youngest sibling attending VIS, and then move to the next youngest sibling. 4. Approve the Budget for the 2010-2011 school year, which has an overall net positive result of approximately $65,000. Details will be posted on the VIS website as soon as possible. 5. Make the following amendments to the VIS Board Policy: a. In October/November each year, the Board will hold a Parent Forum to present the various issues under consideration with regard to Expatriate Teaching Staff (including increase/decrease in numbers, and salaries and benefits) for the next school year. This will precede the November Board Meeting, at which a final decision must be made on these matters for the next school year. b. In February/March each year, the Board will hold a Parent Forum to present the financial scenarios under consideration as related to school fees for the next school year. This will precede the March Board Meeting, at which a final decision must be made on these matters for the next school year. 6. Approve a change to VIS Policy paragraph 8.3.3. The amended Policy states that if a student in grades 9-12 misses more than 10% of school days in a semester, he/she must attend a meeting with his/her parents and the Secondary Head to discuss their attendance record. At the May Meeting, the VIS Board discussed the following issues: 1) How to utilize the new land leased by VIS in order to improve the safety of pedestrians and cyclists entering and leaving VIS. 2) Scholarships for the children of Lao staff. 3) The setting up of new VIS Community Advisory Committees for the next school year covering the development of the Wing Building; future development of the Swimming/Fitness Complex; and school uniforms. The Board wishes to make clear that it will not issue separate responses to those who made submissions to the Board, as the issues raised are covered by this Board update or will be addressed in the coming school year. Regards, Bobby Allen Jr. Chairperson VIS Board |
