Citizens’ Facilities Task Force

February 9, 2006

The Citizens’ Facilities Study Committee met in the Board room of the Administration building with the following members present: Eddie Alvarado, Brian Arnold, Earl Behrends, Nancy Benham, Jason Box, David Brunson, Janet Claborn, Jim Ella Clemmons, Stacy Conner, David Dominguez, Bob Finney, Daniel Guzman, Cole Hawkins, Dani Heathington, Kenneth Henry, David Jenkins, Adena Johnson, Phil Kent, Max King, Linda Lewis, Trae McNeill, Ed Nickels, Janice Pacheco, Danna Perez, Adrienne Precure, Cindy Purdy, Shawn Rejino, Gene Sheets, April Smith, Pam Thomason, David Tipps, Sam Whalin, Don Wood ,Robin Welch, Dawn Williams, Tadd Young.

Visitors: Doug Whitt, Stephen Faulk, Melanie Sechrist

Superintendent Gene Sheets called the meeting to order at 6:05 p.m. Mr. Sheets gave a recap of the first two meetings. First meeting: we went over the Facilities Evaluation studies and basically told the conditions of the facilities. At the second meeting, the committee was given the first options to address facilities needs. Since that meeting, we have received some new cost estimates. For Example: One of the options previously discussed was to add 4 to 6 new classrooms to the north side of the Jr. High School. One option attached the addition to the existing building, and one option did not attach the addition to the building. We were told that if we attach it to an existing structure, the existing structure would have to be ADA compliant. This would cost much more money. It would cost quite a bit less to leave it unattached. Since our last meeting the architects have negotiated with the folks from Texas Accessibility Standards (TAS). TAS said that we could possibly define some spaces differently and not have to meet the ADA compliance. The architects are now working on new options. Mr. Sheets stated that this could make a huge difference in the cost of the options.

Mr., Sheets introduced Doug Whitt from Southwest Securities in Dallas. Mr. Whitt is well known in the state and has helped a lot of school districts.

Mr. Whitt handed each member a handout with Preliminary Bond Program Information. He explained that this was the best possible scenario we could look at. The cost of money with respect to financing (interest rate) is at a 40-year record low. He told the group that there are two programs the state has that govern and assist school districts with respect to bond payments. These programs are the Instructional Facilities Allotment program (IFA) and the Existing Debt Allotment program (EDA). Mr. Whitt explained each of the programs in detail.

Mr. Whitt stated that some school districts are proud to be a “pay-as-you-go” school district. He said that eventually almost every district will have to vote a bond. Mr. Whitt explained that public finance and personal finance are two different things. With our personal finance, we can try to work and save money for our projects. In public finance, if we try to tax everyone in this room in excess of what we need to operate and accumulate that money to build something in the future, we are taking your money for someone else to build something of their choice in the future. That is in general not a very fair thing to do. That is putting the entire burden on one generation and allowing the other generation to get by with no cost. If you have a 25– 30 year bond payment, someone who moves into your school district in 10 years will have the opportunity to participate in the payment of that school that their child is attending. Very few districts are able to stock pile funds. TEA will not allow it, and it is hard to accumulate enough funds to take care of needs as they occur.

Mr. Whitt explained what a bond would mean to the tax payers. He gave the committee a sample chart of examples of what a .30 increase would generally cost taxpayers per month if a bond were passed.

Mr. Sheets stated that his job is to bring the information to the committee, and they will make the recommendation. He will take whatever recommendation the committee makes to the board.

Trae McNeill gave the committee a Rate Comparison sheet with some actual properties in Bailey County. This chart showed what the increase of taxes for an additional .30 would be for 1 year on various properties.

After some discussion Mr. Sheets ended the meeting. Next meeting will be Thursday, February 16, at 6:00 p.m.

Meeting was adjourned at 8:03 p.m.