Questions Raised about the CCA Bond

A flyer was posted around Tiffin this evening. Please consider that there is misinformation in the flyer. Please take the time to consider factual information as you go to the polls tomorrow.

Proposed HS Parking: $2.564 million. The long range plans would project a new HS opening in 2027. Ten years from now. The current lot at the high school will be overflowing well before then.

Proposed New Entry at the MS: Will not require removing the current drive. Will create another drive out, allowing traffic to loop through instead of turning around in the lot and coming back out the same way.

Proposed entrance to the elementary: I assume they are referencing Tiffin Elementary as one year old. Nothing is happening there. The other elementary buildings will have improved security, like TE, where visitors must be buzzed in through the office in order to enter the building.

Public Library Space: This has no effect on classroom space, or library space for that matter. The city public library is allowed to keep the space open extra hours. They also pay for staffing and materials.

The CCA tax rate did go up in FY 17. This was do to the need to utilize the Cash Reserve Levy. Without utilizing this levy we wouldn't have the cash to pay our bills, even though we have more than enough spending authority. As I've said all along, even with the district rate staying constant, if property valuations continue to rise the dollar amount patrons are asked to pay will increase. The general fund of the district is limited to the dollars we can generate by a per pupil funding formula. So that portion of the rate is variable. The debt service portion of the CCA rate would generate more dollars to pay off debt as valuations increase. I have no idea where the 10-15% increase came from. I probably did say the debt service portion of our rate could only go up a small amount. It can't exceed $4.05.

I would be very interested to hear how we can meet the needs of our growing population without a bond issue to create more classroom space. Tiffin Elementary currently has 449 students attending and North Bend Elementary currently has 459 students attending. North Bend is over its instructional capacity of 450 students, the faculty work room is being utilized as a classroom this year. If the district utilized bussing fully to Clear Creek Elementary and Amana Elementary we are projected to exceed total elementary capacity ofter the 2020-2021 school year.

The last bond vote was in February, 2014. If we stick to the long range plan and continue to grow as projected I would anticipate another vote in 2022, 5 years from now.

Please feel free to email me with any questions: timkuehl@ccaschools.org

Sincerely,

Tim Kuehl, Superintendent

Valuations, TIF and the Impact on School Finances

In light of the conversations around taxes and valuation spurred by the proposed bond here is some information of interest to CCA patrons. One area that CCA is a leader in the State is in the percentage of our valuation enrolled in TIF programs. My intent is not to argue for or against TIF, but to inform patrons regarding the impact it has on school revenues.

TIF removes valuations from the calculation of General Fund tax rate. The district is allocated revenue from the State based on a per pupil amount. The tax rate for the General Fund portion of the district budget is calculated on the valuation of $687,285,523.  Without TIF in our district the General Fund tax rate would be calculated on $1,108,765,102. In effect the TIF causes everyone else to pay a higher rate in order for the district to collect its General Fund dollars.

An important factor to know in relation to the bond is that TIF valuations are NOT exempt from the Debt Service Levy, which is used to pay off bond issues. So, the Debt Service rate of $4.036, as of FY17, is applied to the total valuation in the district.

CCA's valuations for FY 17, the 2016-2017 school year, are listed in the chart below. Under "Levy Authority" you can see the valuations for the historic Amana and Clear Creek district, followed by the combined totals for CCA.

 CCA Valuation by Historical District and Overall

Residential valuations make up the largest portion of valuations in the CCA district at 42.05%, followed by Commercial valuations at 41.79%. 

Percentage of Overall Valuation Represented by each Category

CCA lives with one of the highest TIF percentages in the State, with 38.01% of our total valuation being in TIF. Note that 72.81% of Commercial valuation and 73.58% of Industrial valuation are currently in TIF. If the TIF valuations were calculated into the CCA General Fund levy rate patrons would see a drop of approximately $1.95 in the rate.  

Percentage of each Category in TIF

There is a considerable amount of Commercial and Residential development planned in the CCA district over the coming years. The growth in valuation will allow the district to control our overall tax rate and generate the bonding capacity needed to meet the instructional needs of our growing student population. Local municipalities have to make challenging decisions regarding how to utilize TIF in those developing areas. If you have further questions about CCA valuations and the impact of TIF on the district tax rate and budget, please contact Tim Kuehl, Superintendent: timkuehl@ccaschools.org, 319-818-4510.

Early Voting/Polling Sites and Bond Facts

Good morning CCA Community. Today marks the first day of early voting for both the bond referendum and for the open board of directors positions for CCA. Note that the precincts are different for early voting.

What if the bond fails?

A question that has come up several times is, "What happens if the bond fails?" In the event the bond fails the district will need to take other measures in order to alleviate the over crowding at North Bend Elementary and Tiffin Elementary. At this point there is not a hard plan with Board of Education approval to deal with that possible reality. One of two scenarios to deal with the over crowding seem likely:

1. Beginning in 18-19 students could be bussed from North Bend Elementary to Clear Creek Elementary or Amana Elementary. Students would need to be bussed from Tiffin Elementary beginning in the 19-20 school year. It's likely that fifth grade students would be transported first, with fourth graders being added as dictated by available space at North Bend Elementary and Tiffin Elementary.

2. Another option would be to reconfigure the elementary attendance boundaries. In order to alleviate the overcrowding at North Bend and Tiffin Elementary Schools the Clear Creek Elementary boundary would need to be moved east, to include more students from Tiffin. At this time I do not know exactly where the boundary would have to be in order to move enough students to Clear Creek Elementary. The Tiffin Elementary Boundary would then need to be adjusted to bring in students from the current North Bend Elementary attendance area. That could mean bringing students from the northern part of North Liberty to Tiffin Elementary. Again, we would need to closely analyze the student numbers to ensure moving enough students to balance the attendance at North Bend and Tiffin Elementary Schools.

Neither of these options are ideal, and neither deals with the long term challenges of enrollment growth. These options also create increased expenditures from the general fund, especially option 1, with the increased bussing.

It's also important to keep in mind that if we utilize every classroom in Clear Creek and Amana Elementary Schools our elementary enrollment will still surpass capacity in the 2021-2022 school year. So, the district will be forced to add more classroom space by that time. Another consideration is that construction costs inflate at approximately 3% each year. So, the $36 million  of improvements proposed on the current bond would cost $38,192,400 in two years.

The increased student enrollment is coming to CCA. Without the facilities provided by the proposed bond one of these options will need to be utilized in the short term. The district will absolutely need to add increased classroom space by 2021-2022 for elementary students and the high school will surpass its capacity of 900 students in 2022-2023.

Sincerely,

Tim Kuehl, CCA Superintendent

2017 Bond Information Presentation

This link will take you to the presentation shared at community meetings.

Presentation

Baseball / Softball Fields

In light of concerns raised regarding the baseball and softball fields here is some information regarding some of what I've seen. Please feel free to contact me directly, timkuehl@ccaschools.org, if you would like to discuss further. I would welcome the opportunity to discuss this in person.

The concerns about the facilities are understood and shared by the Board and administration. The distance to the softball field is inconvenient and a safety concern. The condition of the baseball field is not at the level that we expect for CCA facilities. We are working to resolve these issues, but fiscal resources are real limiting factors.

During the work of the facilities committee last summer they discussed these facilities, but chose to focus on the academic environment of CCA students with their bond proposal to the Board. Historically, extracurricular facilities have been constructed using the SAVE fund, revenue to the district from the State $0.01 sales tax.

Assertion that the baseball/softball complex was on the 2008 bond issue. This is not true. The ballot language at the time addressed a new elementary school, new high school, land purchase and site improvements. Site improvements referred to working on the land directly around the new buildings, specifically at North Bend, which was the new land purchase. From what I have gathered there were conceptual drawings developed showing this complex to the south of the high school. It was not ever engineered at that time. I have been told that it was part of discussion of a "second phase". I wasn't involved in the discussions at that time, but it evidently was removed from those plans at some point.

During the last year the district has researched putting a complex at the high school site. Engineers have worked on the needed grading, the building and grounds director has put together costs for the development of a complex. The cost of developing competition diamonds for baseball and softball is just under $900,000. At this time the district does not have funds available in the Physical Plant and Equipment Levy (PPEL) or SAVE (State $0.01 sales tax) funds to cover this expense. The PPEL funds are used for bus purchases, technology purchases, and facilities maintenance. The SAVE funds were largely tied up with the construction of the high school outdoor athletic complex, Performing Arts Center, and the last pod of classrooms at North Bend. The extension of the SAVE fund by the Iowa Legislature would provide the needed funds to make this complex a reality.

This spring during budget development the PPEL/SAVE Committee of the Board discussed regrading the current baseball facility. The cost would be approximately $250,000. After lengthy discussion the committee decided to postpone the project, waiting to see if the legislature will extend the SAVE funds as they discussed during this session. Those funds are reserved in the SAVE budget at this time.

While I certainly understand that this issue is a real, pertinent issue, I hope that it can be resolved without muddying the waters of the bond. Please learn as much as you can about the circumstances creating the bond proposal and vote for or against that based on it's own merits. I can be reached by email: timkuehl@ccaschools.org, phone: 319-215-2200 to answer your questions.

Upcoming Bond presentations, all are at 6:30 in the school library:
7/13 Tiffin Elementary
7/18 Amana Elementary
7/20 Clear Creek Elementary
8/7   North Bend Elementary (rescheduled from 7/11)

Sincerely,

Tim Kuehl

Bond Referendum Informational Meetings

Good morning Clippers,

On September 12 our district will be voting on a bond referendum of $36 million. Projects to be completed by this bond include a new elementary building, addition to the high school, gymnasium at Clear Creek Elementary, HVAC upgrade at Amana Elementary, security upgrades at Amana Elementary, Clear Creek Elementary, and North Bend Elementary, an additional drive on the west end of the middle school, and additional parking at the high school. In July the district will be holding informational meetings around the district to inform patrons about the projects, enrollment projections, and tax impact of the proposed bond.

All meetings will begin at 6:30 pm. Meetings will be held in the library of the buildings on the following dates: North Bend Elementary, July 11; Tiffin Elementary, July 13; Amana Elementary, July 18, and Clear Creek Elementary on July 20. We hope to reach as many patrons as possible, so please share these dates with your friends and neighbors.

Sincerely,
Tim Kuehl
Superintendent

Bond Petition Language and Multi-Year Facilities Plan

At their regular meeting on May 10, 2017 the CCA Board of Education approved Bond Petition Language for the sale of bonds up to $36 million dollars. Community members will be seeking signatures on the petition over the next several weeks. Any CCA community member may gather signatures on the petition form pictured below. If you would like a blank petition you can contact the district office, 319-828-4510. In order to go before the Board of Education at their June 14th meeting, the petitions must be returned to Board President, Steve Swenka, at 327 S Augusta Ave., Oxford IA 52322 not sooner than June 5th and no later than 4:00 pm on June 14th.

The submission of the petition(s) at the June 14 Board of Education will trigger the bond vote being on the September ballot.  The Facilities Plan as you see it here is the result of the work of the Facilities Committee last summer and then the conversation with the Board that several of the Committee members were able to attend in the fall. It was decided by the Board after that discussion that including a new elementary in this bond was the "best" path with the bonding capacity presented by Piper-Jaffray. The top portion of the plan would be impacted by the September 2017 vote. The bottom portion is an anticipated bond vote in 2022.

Some anticipated questions:

1. How would passage of the bond impact the CCA tax rate?

Below is history and projection of the CCA tax rate. We anticipate maintaining a relatively constant overall tax rate of $16.94-$16.95 for the foreseeable future. Our Debt Service rate cannot exceed the voter approved rate of $4.05, currently $4.03. If the district maintains the debt service near that maximum level, other levies, could be manipulated in order to maintain the overall rate at current levels.

2. What if the bond fails?

If the bond fails the district will need to bus students from North Bend Elementary and Tiffin Elementary to Clear Creek Elementary and Amana Elementary. North Bend and Tiffin will be over capacity in the very near future, see previous post. The district would need to utilize available classroom space at CCE and AE in order to manage class sizes across the district. Additional bussing would increase General Fund expenditures, which consumes dollars that could otherwise be used for teacher salaries and instructional materials. With funding levels from the State running low, maintaining adequate funds in the General Fund is already a challenge.

3. Will elementary attendance areas be changed with the addition of another elementary in Tiffin?

Not likely. With the anticipated growth in the Tiffin, North Liberty, and Coralville communities maintaining adequate space will continue to be a challenge for CCA. When the new elementary, hopefully, comes online in August 2019 the intention would be for it to be a 4-5 center for Tiffin Elementary and North Bend Elementary. This will allow the district to maintain the current elementary boundaries for K-3 students and fits with the long-range plan of a new, larger high school, conversion of the current high school to a 6-8 middle school, and conversion of the current middle school to a 4-5 center, and elementary schools to a PK-3 configuration.

Please feel free to email me at: timkuehl@ccaschools.org with any questions you have, or post them as a comment on this post. 

It's an exciting time for the Clippers!

Tim Kuehl

Superintendent

CCA Enrollment Projections

CCA continues to see growing enrollment and the projections from RSP and associates show a likely continued increase for the foreseeable future. The enrollment growth is concentrated in the communities of Tiffin, North Liberty, and Coralville. Each of these cities have a number of developments in our district which will bring more students to CCA.

One concern that I hear periodically is that students open enrolling into CCA are causing the need for increased capacity in our facilities. While we do see a positive balance in open enrollment at CCA, the net has remained fairly constant over the past several years at approximately 200 students open enrolled into the district. The need for increased instructional space is due entirely to the developments within our district and the resulting increase in resident students.

Below you will see two charts from the RSP report that demonstrate our historical growth and projected enrollment over the next five years.

The RSP report in it's entirety can be found HERE

Enrollment Projections:

The Facilities Committee developed a proposal which the Board of Education reviewed and is moving forward with. Look for that post in the near future!

If you have any questions regarding this post please contact me at timkuehl@ccaschools.org.

While the enrollment growth brings challenges to our schools and communities, it is an exciting and positive time to be a Clipper!

Sincerely,

Tim Kuehl
Superintendent

cpreston: The current plan was not an administrative recommendation. It came about at a fall work session where several Facilities Committee members worked with the Board. You are correct, the budget was increased from $25 million to $35 million per the updated projections from Piper-Jaffray. The timing for the Facilities Committee was definitely not ideal. What came out of that work session was consensus that if adding the elementary to the Committee's proposal was feasible, the district should pursue it.

The higher projections for Tiffin Elementary are related to the known planned developments in that attendance area. There is a large development beginning in Tiffin to the north and west of Tiffin Elementary. There is also planned development in the near future in Coralville, the West Land Use Area, on the east side of 380. 

CCA FY 18 Certified Budget

At their special meeting on April 12th the Board of education approved the Certified Budget for FY 2018. Districts are required under Iowa law to have their certified budgets approved by April 15.

The top box gives Total Special Program Funding. For CCA these include the Instructional Support Levy (ISL) and the Voted Physical Plant and Equipment Levy (VPPEL). The ISL is a portion of the general fund that is used for instructional materials, staff salaries, etc. The VPPEL is, as the name says, used for the upkeep and improvements of our facilities, technology, vehicle purchases, some band instruments, and other equipment with an individual price over $500. It cannot be used for salaries. A unique characteristic of these levies is that they are funded by a combination of property tax and income surtax.

The second box down shows that the ISL is funded with a 7% income surtax rate, in combination with a property tax rate of $0.02471(Line 7 lower on the page). The VPPEL is funded with a 5% income surtax rate and a property tax rate of $0.05539 (Line 14 lower on the page). These rates are consistent with FY 17.

The bottom box, with numbered lines has the breakdown of CCA property tax rates. The FY 18 rate of $16.95892 is within 100ths of a cent of the FY 17 rate. CCA is unique in that the Amana Library Fund is utilized by our district. The historic Amana district pays a $0.20 higher rate than the rest of the CCA district.  The $16.95 rate is for the historic Amana district, the remainder of CCA pays a rate of $16.75. Our projections show a stable rate over the next five years. Reminder that the property tax you pay each year may go up or down based on your valuation changes, as well as the potentially changing tax rates of other entities.

If you have any questions regarding the CCA certified budget or tax rate, please contact Tim Kuehl or Lori Robertson at the district office: 319-828-4510.

Sincerely,

Tim Kuehl

Superintendent

CCA Calendar for 2017-2018

At their January 18th meeting the CCA Board of Education approved the following calendar for the 2017-2018 school year. My apologies for the incorrect calendar that was released previously. Due to the Governor's actions a couple years ago we cannot start prior to August 23rd.

Sincerely,
Tim Kuehl