Wednesday, September 1, 2010

You've got questions? We've got answers.



Some district residents view slides showing repairs needed at the school.






Information is available on the school's website, including a 68-photo tour of areas in the building that are in need of repair.

To see the photos, go to: www.montezuma.k12.ia.us

To over to "bond issue" on the right side of the home page, then scroll down and you will find the information.

Supertintendent Dave Versteeg said it's a $15 million project. He said a question he hears often is, "why not just build a new building?"

"We can't afford it," he said. "Our debt capacity, by law, is just over $19 million," he said. "A new building could cost between $25 an $30 million."

Versteeg said $1 million worth of roof work alone needs to be done. "Not all at once, but over 10 years," he said.

"The junior high portion of our building was built in 1928 and not much has been changed," he said. "So, some portions of our building are 90 years old. We've been putting band-aids on something that needs surgery. It happens."

Another question the superintendent gets concerns why more classrooms are proposed during a time of decreasing enrollment.

"Because some of the existing rooms would be displaced by the remodeling of existing rooms and areas," he said.

Part of the proposed plan calls for a geo-thermal heating and cooling system at a cost of $1.6 million. "But we could save $40,000 a year on our heating bill," Versteeg said. "It would be more efficient. For that much savings we could cool the building, too. So we look at it more as an investment than a cost."

Here's a preliminary "frequently asked questions" list about the issue, with more questions and answers to be added as more input and information is obtained.

Frequently Asked Questions (FAQs) about the Montezuma School District's General Obligation Bond Election

1) When is the election?

On Tuesday, Sept. 14, 2010.

2) Where can I vote and what time are the polls open?
Voting will take place at the Montezuma Public Library, 500 East Main. Hours 7 a.m. to 8 p.m.

3) Who can vote in this election?
Any eligible, registered resident of the Montezuma Community School District can vote.

4) How to I register to vote?
You can register to vote prior to the election at the Auditor's Office at the courthouse. Youc an also register to vote online at: http://www.sos.state.ia.us/elections/voterinformation/voterregistration.html

Or - you can register to vote on election day if you bring proof of residence at intentity with you to the voting poll.

5) What if I live in the Montezuma School District, but my children open enroll to a different school - can I still vote?
Yes. You are eligible to vote.

6) Can I vote absentee?
Yes. Absentee ballots are available starting Aug. 5 at the Poweshiek County Auditor's Office in the courthouse in Montezuma, or the request form is available online at www.sos.state.ia.us/elections/electioninfo/absenteeinfo.html

7) What percentage is required for passage of the election?
Sixty (60) percent.
8) On the sample ballot there are two questions that I have to vote on. Why is this?
The first question asks if you support the borrowijng of the money by the school district. The second question asks if you support the increase in property taxes. In order for the measure to pass, each question must have 60 percent approval.

9) How much money will be raised by the issuing of these school bonds?
Approximately $11,535,000.
10) What will the money be used for?
To defray the costs of construction, equipping and furnishing some new classrooms; remodeling, equipping and furnishing additions to, and remodeling, improving, and furnishing existing school classrooms and parking areas.

11) How will this bond election affect my property taxes?
Property taxes will increase between $2.80 and $4.05 per one thousand dollars of assessed valuation depending on the valuation of the property in the district at th time the bonds are sold. Because agriculture property, residential property and commercial property are taxed differently, the exact amount of property tax will be different.

12) How much debt does the school district have now?
Zero (0).

13) When was the last time the school distrcit borrowed money for a building project?
In June of 1989 the voters of the Montezuma School District approved the borrowing of $1.5 million for an addition to the elementary school.

14) What is the tax levy rate of the Montezuma School District for the 2010-11 school year and how does this compare with our neighbors? (Stated in dollars per thousand of assessed valuation).
$11.17 - Montezuma
$13.70 - BGM
$15.67 - Grinnell
$12.83 - Lynnville-Sully
$13.98 - North Mahaska
$14.99 - English Valleys

15) How is the One Cent Sales Tax going to be used for this project?
The school district will borrow against future proceeds of the One Cent Sales Tax to generate approximately $3.63 million to be used for the project.


16) For as much money as we are talking about spending on this project, why don't we just build a new building?
The short answer is we can't afford to build an entirely new building. Our current building is approximately 100,000 square feet in size. New construction is estimated at $225 per square foot. A new building of the same size as we have now would cost at least $22.5 million. Currently, our total bonding capacity (maxium debt allowed by law) is approximately $19.4 million.


17) With so much concern and news about the lack of funding or schools, how can we afford to be building?
A schools budget is broken up into several "pots" of money. Salaries, benefits, utilities, supplies and materials are funded through General Fund. The General Fund has been most affected by recent cuts in state aid by the Iowa Legislature.

While General Fund money can be used for construction, it is much more common for a school to use (and/or borrow against) its One Cent Sales Tax proceeds and/or to ask the voters to approve debt through the issuing of bonds.

The debt bonds are then reapid with the additional property tax collected to a school does not have to use General Fund money to make the payments.

18) Do we need to renovate our building if our enrollment is dropping?
Year - Enrollment
2006 - 514
2007 - 485
2008 - 487
2009 - 539
2010 - 506
Predicting the future of our enrollment is dependent on many factors. Looking a the next 10 years, it is estimated that we will maintain our current 35 to 40 students per grade level. Economic growth in our community could enhance our enrollment. Often times the quality of the school plays a key role in decisions by busineses and famlies to locate or remain in a community.

19) Are our students at Montezuma Schools performing academically as well as they should be?
Montezuma students perform well on the Iowa Test of Basic Skills (ITBS) for students in grades 4-8 and the Iowa Tests of Educational Development (ITED) for students in grades 9-11 when compared to the state average. The following information comes from the Iowa Dept. of Education's School Profile website at http://www.iowaschoolprofiles.com/.

For 2006-08, some 88.68 percent of students in the 4th grade are proficient in reading as compared to the state average of 78.87 percent proficient.

For 2006-08, some 86.79 percent of students in the 4th grade are proficient in math as compared to the state average of 80.78 percent.

For 2006-08, some 73.33 percent of students in the 8th grade are proficient in reading as compared to the state average of 72.53 percent.

For 2006-08, some 77.72 percent of students in the 8th grade are proficient in math as compared with the state average of 76.09 percent.

For 2006-08, some 76.74 percent of students in the 11th grade are proficient in reading, as compared with the state average of 77 percent.

For 2006-08, some 81.61 percent of students in the 11th grade are proficient in math, as compared with the state average of 78.36 percent.

For the 2007 school year, Montezuma Schools reported a graduation rate of 96.55 percent, compared with the state average of 90.49 pereent.

20) What is the breakdown of the costs of these projects?
These are in general terms, with costs estimated on Jan. 21, 2010:
Site utilities - $50,000
Construction costs - $13,292,000
Fixtures, furnisture and equipment - $187,000
Contingency allowances - $1,703,000
Project development - $1,782,000
Total estimated budget - $17,014,000.

The following cost estimates are projections and do not reflect the total cost of the project. costs do not include the cost of hazardous materials abatement, contingency allowances and project development expenses and fees.

Phase One - Elementary/Junior High
Phase Two - Elementary/Junior High
Phase Three - High School

Roofing replacement - One - $142,500. Two - $123,800
Remodeling, mechanical - One - $798,000. Two - $693,000. Three - $1,152,200.
Remodeling, plumbing - One - $285,000. Two - $247,500. Three - $411,500.
Remodeling - FP - One - $114,000. Two - $99,000. Three - $164,600.
Remodeling, electrical - One - $342,000. Two - $297,000. Three - $493,800.
Communication/security - One - $26,600. Two - $35,200. Three - $21,900.
Technology infrastructure - One - $17,700. Two - $23,500. Three - $14,600.
Elementary classroom furniture - One - $62,000.
Junior high classroom furniture - Two - $40,000.
High school classroom furniture - Three - $85,000.
South parking lot - One - $144,000.
North parking lot - Three - $160,000.
Demolition - One - $126,000. Two - $49,500. Three - $90,000.
New mechanical room - One - $1,200,000.
8 replacement classrooms (not additional rooms, but to replace rooms lost in the remodeling) - Two - $1,851,000.
Weight/fitness room - Three - $315,000.
Remodel elementary rooms - One - $774,000.
Renovate elementary school west wall - One - $105,000.
Renovate elementary exterior - One - $142,500.
Remodel junior high rooms - Two - $495,000.
Remodel junior high stairs and elevator - Two - $150,000.
Remodel junior high restrooms - Two - $105,000.
Renovate junior high exterior - Two - $123,800.
Remodel high school rooms - Three - $1,055,000.
Remodel high school locker rooms - Three - $462,000.
Remodel high school restrooms - Three -$65,000.
Remodel high school gym - Three - $170,000.
Renovate high school exterior - Three - $205,800.


SUB-TOTALS
Phase One - $4,279,300.
Phase Two - $4,333,300.
Phase Three - $4,866,400.

21) The estimated budget of $17,014,000 for the project is more money than the $15,000,000 that will be raised for the project through the bond election - $11,500,000 and borrowing against our sales tax - $3,600,000. Why is this?
We are estimating the costs used to plan the project are 10 to 15 percent higher than they will be when bid. Alternate bids on some aspects of the project will also be used to lower costs if necessary and some things may have to be cut out if bids are higher than anticipated and the total cost of the project is more than can be afforded.
22) How long will construction and/or remodeling take?
Approximately two-and-one-half years. The work will be done in phases, so some parts of the building will be completed before others. If construction starts in the spring of 2011, the project will be totally completed by December of 2012.

23) Because of the economy, is this a good time to have a bond election?
From the school district's perspective this is an excellent time for a bond election. Interest rates are very low, thus less money will be spent on interest and more can be spent on the project. Construction companies are giving very competitive bids and it is estimated that the project could cost 10 to 15 percent less than estimated, thus allowing us to do more with the funds.

24) Why is this building project important to the community?
The school is a vital aspect of our community. The community needs the school to be an institution that can offer a first-class, quality education to all students; be a pre-K through 12 school for many years to come; and be a facility that can be used for a variety of purposes by the community. It is time to make a financial investment in the physical building that will last for many years to come.

25) Where can I see pictures of the need for this project and get other information about the plans?
a). Go to the school's website at: http://www.montezuma.k12.ia.us/
b). Click on the 'bond issue' button on the top of the page and there will be several information items to look over.

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