Summerland Building Project frequently asked questions

 

October 10, 2019

Why are the Clearwater, Ewing and Orchard school boards calling a special bond election November 12th?

For several years, the three school boards have been working to find the best solution to address needs each district faces when it comes to operational efficiency, enrollment limitations, aging facilities and limited program offerings for students and families in their communities. Following a rigorous process of identifying the urgent needs, utilizing community engagement to determine an effective project solution, and creating a viable future for all three districts, the boards are asking the public to vote this November on this vision that will impact the students and families of our communities for many years into the future.

Will this be a polling place or mail in election?

These bond elections will be by mail-in ballot. Every registered voter in each district should receive their ballot between Oct. 21 and Nov. 2. Ballots must be returned to your election commissioner no later than 5 p.m. on Nov. 12.

What is included in the proposed construction project?

The project includes a new 127,500 square foot, PreK-12 school building, located at a central point between all three communities. Included in the project are all necessary site improvements to address activities, parking and utility needs.

What will be the total cost of the project?

The total project cost is estimated at $34,300,000. This estimation is based on an architect's determination of the needed space, along with a construction manager providing the project cost, based on this design. A final project number will be realized upon a successful bond election and a formal bid process. The maximum that can be issued in bonds is $34.3 million, but less can be issued if project bids are lower, not all contingency dollars are needed, or if the board chooses to utilize some current district funds to reduce the borrowed amount.

How does the potential merger of the three districts play into this bond election?

Each of the school boards have approved a merger petition stating that a bond election will be held separately in each school district. Should the bond issue pass in all three school districts, the districts will merge and the project will move forward. Should the bond issue fail in any one or more of the three school districts, the districts will not have the authority to merge or move forward with a project at this time.

What amount will I be voting on when I receive my ballot?

Each community will be voting on a proportional amount of the overall project cost. The proportional amount is based on the percentage of the newly-merged district's valuation that each district represents. Due to the fact that the districts are not currently merged, it must be structured this way to result in a common bond levy for the patrons of the newly merged district.

Valuation, percent of merger and bond amount:

Orchard: $472,811,755; 43%; $14,800,000

Clearwater: $315,693,176; 29%; $9,900,000

Ewing: $303,686,529; 28%; $9,600,000.

Regardless of the different bond amounts on each district's ballot, all patrons of the newly-merged district will pay the same tax levy if the bond passes.

Are Orchard residents paying more than everyone else since their ballot has the largest bond amount on it?

No. Regardless of the bond amount on each ballot, the end result of the merger is that all district patrons will have the same school levy. All land from the three districts will be combined into a new school district and a common tax levy will be in place. Bond amounts are dictated by the valuation percentage, as set out in the reorganization petition, and in essence, are irrelevant to the final outcome.

What will the impact on my taxes be if this bond issue passes?

Several components determine the overall impact of this project on district tax payers and what taxes will look like if the three districts become one efficient district. These components include: net tax levy impact, operational efficiency impact over time and other financial impacts to consider.

Operational Efficiency Impact

The efficiency created by becoming one district has the most impact of any other component. As a matter of fact, based on historical data and future projections, operational efficiency achieved from this solution would result in the net tax increase from the bond issue being wiped out by the operational savings within six to seven years. Instead of an ongoing tax increase, the new project results in approximately $15 million tax dollars saved over the life of the 20-year bond. Once the bond issue is paid off, the amount of savings realized grows immensely.

Most recent per pupil expenditure data from Nebraska Department of Education has Clearwater/Orchard spending $21,746 per student and Ewing spending $20,029 per student.

Based on the feasibility study, the per pupil cost of Summerland would be $15,786, a difference of nearly $6,000 per student for Clearwater/Orchard, a nearly one-third reduction of per pupil cost. The most recently published state average is $12,613.

Based on current structure and levy, Clearwater and Orchard patrons would save over $5.5 million in tax dollars over the life of the 20-year bond issue.

Considering all three districts, there will be over $15 million in savings over the life of the 20-year bond issue.

Once the bond is paid off, annual savings is projected to reach levels of $3 million and more, per year, going forward, compared to districts operating separately.

There is an initial tax increase due to the project, but that increase is lessened each year due to operational efficiency.

Projections indicate that within six to seven years, the initial tax increase will be gone and overall savings begins.

Other Financial Considerations

Financial considerations are a part of the overall financial impact story listed below:

Older facilities may require major maintenance expenditures in the next 10-15 years.

Current Clearwater windmill towers begin generating $85,000 per year in 2020-2021

Anticipated Clearwater and Ewing towers to be built next year will generate $170,000 per year in 2022-2023

These windmill funds can lower the general fund tax levy an additional two to three cents annually in years received.

The State of Nebraska has increased tax credits which may result in a credit of around $17.65 for a $100,000 home. An owner of ag land valued at $1,000,000 will receive $211.70 additional tax credit. This credit can help offset the initial tax increase of the bond issue.

Why was the proposed location selected and were other sites considered?

Early in joint board discussions, different possibilities for site locations were considered. The three boards came to the conclusion that a central site was the best option and would likely have the most support from each community. The central location of the proposed site, a seller willing to sell at the appraised value of the site and the topography of the site, allowing certain design features with limited dirt work, were the reasons that this specific location was ultimately determined to be the best site for the project.

Why is now the right time to run these bond issues?

There are several factors in place that make now a preferred time to run these bond issues.

Clearwater and Orchard's participation in the unified district expires in June 2020. Each district has determined it is in their best interest to pursue a different solution for their students and patrons. This solution must be in place several months prior to the expiration date to effectively carried out.

A feasibility study was conducted that makes it very clear that a new district made up of Clearwater, Ewing and Orchard, with a new building, would eliminate the need for investment in current facility upgrades, create a tremendous amount of operational savings by existing in one site, has an immediate impact on program offerings and post-secondary opportunities for students, create a new district with a viable enrollment for many years into the future, and take advantage of significant interest savings due to a low bond rate environment.

Now is the right time for this project because we must look at how to provide a more efficient and quality education for our students.

Frequently asked questions provided by Bobcats Unite.

Additional questions and responses will be printed in upcoming editions of the Summerland Advocate-Messenger.

 

Reader Comments(0)

 
 

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2024

Rendered 03/23/2024 19:30