Venturing a little away from the School Board meeting reports… Attended the Collierville BMA meeting June 8, 2015. This meeting included on its agenda the second reading and associated public hearing on the town tax property rate, as well as setting the annual budget.
The meeting was held in front of a packed house tonight. Lots of school staff and other members of the community wearing Collierville Dragon colors.
From 6 till approximately 6:35, the meeting covered regular BMA topics.
Starting at 6:35, Mr Aitken presented the Collierville Schools annual budget to the BMA. He highlighted successes of the school system in the first year, and thanked the BMA for their active support in the past 18 months. In his budget presentation, which only covered the annual operating budget, he pointed attention to certain notable items, including:
- Collierville Schools Motto starts with Scholarship – that is the primary focus around any changes in budget items for the coming year
- Total $ is $66.5M. $34.4M from state BEP, $30.4M from county, and $2.3M from Collierville.
- Coming school year enrollment projection is 8063, which is approximately 150 higher than last year.
- $500k in budget for capital expenditure: portables for ’16-’17 school year
Alderman Fraser asked how will CS accommodate 150 new enrollment – Mr Aitken: floating teachers (“teacher on a cart”)
Then Mr Lewellen presented the Town budget. Some items of interest:
- 600 new residents into Collierville in past year. Expecting 50k total population within next 2 years.
- Property tax revenue increased due to increase in property values.
- Sales tax revenues increased after a few flat years.
- Schools local option tax projection for FY2016: Collect $4,738,187. Spend $2,266,809 which will raise the balance of school-allocated funds to: $4.8M
- Town health care expenditures are going down due to participation in the same group health plan as the municipal schools. This is resulting in reduced town contribution to the health plan and reduced premiums for town staff.
- Overall town general fund budget numbers have improved, and will be unaffected by anything done for schools.
As for the tax rate that will be needed to support the bond payments for a new school – there is a challenge to get to exact funds needed determined up front. For example, a 1% increase in interest = 680k increase in annual interest expense.
Note: all Collierville long-term liability finds like retirement and OPEB are fully funded. Principal on current outstanding debts is being paid down ahead of schedule.
Next on the agenda: the public hearing about the tax rate and the mandatory second reading.
Lewellen introduction:
- 15 cent increase being proposed currently brings the total rate up to 1.68
- 10 cent increase works out to $25 annually for a $100k home
These 15 cents are going to be designated exclusively for Collierville Schools’ Capital Improvement Plan (which would include a new school facility).
Public comments – limited to 3 minutes per speaker, but speakers can donate time to others. Apologies for messing up anyone’s names… Also tried to capture gist of comments best as I could.
Bart Wilbanks. Had questions about non-residents attending and who pays for that, and confusion about 1500 student new high school option. (2000+1500 = 3500?!) (EvW note: answers are that (as seen above) the vast majority of funds for schools is not from Collierville but rather the state and the county; and anyone from outside the county pays a fairly significant tuition to attend if they are accepted in. The math of adding a 1500 student high school is that it would reduce the current high school back to a better number and create some space for improved facilities)
Heath Hudspeth. Letter to BMA last night. Describes himself as a very conservative person, has been attending school board meetings. Overcrowding is a huge problem. Collierville residential growth and student growth is great problem to have. Has a lot of facts gained from maintaining interest and serving on long term planning committee, and is convinced one high school is correct answer. Spending $99M today will save us $$ in the future.
Valerie Frazier. Donates her time to John George.
Gregory Frazier. Donates his time to John George.
Diane George. Crossview Lane. Donates time to John George, her husband. (Note: This is the same Diane George who served on the Shelby County School board and who opposed the creation of municipal schools…)
John George has 12 minutes. Lived there since 1994.
He is hoping his comments will let BMA be spurred to make “best decision.” Is concerned decision is already made. He questions the idea that the right decision has already been reached. Has no vested interest. Says he won’t mind paying higher taxes for best school. He has 2 daughters who are proud graduates of CHS. Will address 3 items. Existing school, proposed school location and alternative options.
Talked about proposed Shelby & Sycamore location – he is a “national” real estate developer by trade. Will need 4 lanes on Shelby Drive, improvements to Sycamore, including traffic lights which will cost money. He also thinks the school would be too far south, compared to where ‘the customers’ are. Provided an impressive mathematical calculation that shows it will take many decades (45 years?) at current growth rates before there’s more residents south of poplar vs north of poplar. He suggested the school board should consider Maynard Way location (70 acres behind WalMart). He also brought up ways to possibly reduce the cost of necessary renovations at the current site. Proposed other options to consider that might be solutions other than building. Questions why he hasn’t seen those options discussed. Argues a golf course can be built on landfill (property next to current CHS is old landfill).
Mike Tebbe. Thinks we need new school, and pay for it. Complimentary of the school system. Make the right call now, invest in the future. Sees positive impact on property values.
John Barrios. Chair of Chamber of Commerce. Official Position of support. Unanimous support from Chamber for this position for business. Parents, business growth, etc.
Byron Cobb. Reference to emails and previous contact with mayor and aldermen. Supportive of quality education. “Survey” done in spring was what it was – need to respect the “outcome.” He expresses his displeasure with the apparent direction and speed – not enough information out there. Not opposed to school, opposed to process being taken. Asking for vote. He also mentioned being worried about location due to the projected growth in the north reserve.
Chuck Lesnik. Need strong schools. Pay attention to vocational tract. Likes voc ed plus MS option in current location. Not sure about $10M for athletic facilities in current plan. Not sure the “new plan” is enough, don’t move too quickly. Take time and get people involved. Not saying there should be a referendum. Just get more buy in.
Susan Hawthorne. CHS and SFMS kids, Self-described as Collierville Schools cheer leader. Something needs to be done, and there is no time. Is confident in fiscal responsibility of boards involved. Asking for full funding. Make the right decision.
Leslie Thomas. Asking for fully funding one high school. CHS kids. Very involved parent and substitute. References Nashville push for local control. References Mega District year and the lack of funding for basic school supplies. Look where we are now. Then moves to reference all the facility shortfalls of current CHS facility (in addition to overcrowding). Not everybody will be happy with any plan. She admits she doesn’t think the current plans are perfect. But thinks it is the right thing to do.
Sherry Startingham. Lancelot lane. CHS grad, property owner, business person, etc etc. 94% of Collierville voted yes. Calling for courageous and visionary leadership. References racial/ethnic division that might result from 2 locations. Do it right. Asks for full funding.
Rusty Philips. 15 year resident. 2 kids came through system, makes teachers proud. Need to look at the numbers. Great management by school district, town. Happy to bet on this BMA and School Board. Knows importance of investing.
On to board discussion.
Mayor Joyner calls for naming rights of athletic facilities funding – only half joking…
Worley: appreciates input from public. Site under consideration >100acres. Interest rates are moving up… Price of construction materials are going up (he is a contractor). Can’t afford to wait. Thanks to CS board and John Aitken. Portables needed already. Chamber support – even with commercial tax rates. Let’s estimate adjustments with citizens in the room at this (second) reading. Better to get rate reduced at third reading for accuracy.
Fraser: Agrees with Worley. Clarifiying that BMA has no say in all the external things (location, etc), and asks school board to answer open questions about current site, why other options are not feasible. Answer these questions over next 2 weeks. Doing nothing is not an option. Must make tough decisions.
Asks Lewellen what is a reasonable estimate, who answers he cannot be certain. Bonds will not be issued till fall. At 4% interest – 5.7M/year debt service = 38 cent increase of taxes. Also have sales tax funds available to help keep cost down – possibly 10 cents’ worth without consuming all of the surplus.
Allen: in favor of one school, but only responsible for $. Opposition from seniors because $100-200 is a lot for some people. Supports schools, just not sure about how to fund it. Needs more analysis.
Patton: Nobody has said 2 schools is an option. School Board is to make the choice. He supports a new school, but thinks the cost needs to be discussed more. Live within budget. Town facing rising costs partly due to school system. Talking about bond funding issues and using sales tax revenues, squeezing the overall $ to keep the numbers down. Let’s push on those numbers. Afraid 10% of votes will ask for binding referendum.
Joyner: referendums are not going to help much. Need to raise taxes before bond issue can be done. If we want to put off the project a while we can do this.
Allen: $5M contingency fund in budget is bothersome – what will it go to? How can we cut cost? “If you put in a contingency they will spend it.”
Stamps: Appreciates the background for the presentation – solid town finances. May agree to think this is rushed, but hears public sentiments. Appreciates the public input. Doesn’t think 15 cent tax is enough, too risky to depend too much on sales tax revenue. Should consider the 38 cent number.
Joyner: addressing the rush comments – town budget has to be done by specific time, including setting tax rate. And a tax rate would have to be raised (again) by end of September if not set correctly now. The “rush” is more representative of the urgency at hand.
Joyner: $1.68 is up for vote, but entertaining motion for tax rate now, but may need updates in 2 weeks up or down.
Allen moves for 1.68 second by Patton. Patton reiterates he thinks more work is needed. Won’t get taxes paid back once set.
Fraser says the BMA work hard for the people. If rate is too high, she will pledge to give it back. BMA reputation at stake. Set at best number known today, adjust (down) in 2 weeks if possible.
Worley: In reference to the “survey” which asked about 38 cents… Now discussing 20-25-30… shows responsiveness to citizens. Must make call now rather than raise rate needed in next meeting when “nobody” is here. You can’t count on sales tax. Set reasonable rate now and cut in 2 weeks if numbers come down. Board is tight, will not be frivolous.
Stamps: good points made by Allen and Patton, supports Fraser about returning rate if possible. 15 cents not high enough.
Allen argues that the town can cut more town expenses to cover any shortfalls.
Fraser disagrees: 50% is public safety, can’t cut it. Can’t cut stormwater improvements. There is no more room. Board elected to do the right thing.
Vote on 15 cents: Stamps, Patton, Allen – yes. Fraser, Worley, Joyner – no.
Fraser moves for 30 cents. Stipulates rebates or reduction of rate pledge. Worley seconds. Vote: Fraser, Worley, Stamps – yes. Joyner, Allen, Patton – no.
Patton moves for 20 cents. Fraser seconds. Allen only one to vote no. Tax rate 1.73 passes in the second reading.
Meeting Adjourned.