Joint Meeting of Broadwater, McKinley and Cottonwood Task Forces - Thursday, April 16, 2009

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School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Joint Meeting of Broadwater, McKinley, and Cottonwood Task Forces

 

 

Call to Order

 

A joint meeting of Broadwater, McKinley, and Cottonwood Task Force Committees of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana was held at Lincoln Center, 415 N 30th, Billings, Montana, on Thursday, April 16, 2009. Board Chair Kathy Kelker called the meeting to order at 7:00 p.m. with the pledge of allegiance.

 

Broadwater Task Force Committee members present: Sheryl Alpers, Julie Anderson, Jodi Cockburn, Jon Dyre, Jim Hartung, Wendy Jam, Karin Lucas, Travis Niemeyer, Kurt Klein, and Rachel Romei.

 

McKinley Task Force Committee members present: Lisa Dubeau, Amy Griffin Jeffrey Kay, Kevin Odenthal, Sara Olsgaard, Anne-Marie Wade.

 

Cottonwood Task Force Committee members present: Liane Fieders, Summer Gappa, Lee Gibbs, Steven Wieder, and Elizabeth Potter.

 

Ex-Officio Member present: Kathy Kelker, Kathy Aaragon, Kathy Olson, Bert Reyes, Superintendent Jack Copps, and Nancy Hines.

 

CTA Architects Engineers representatives present, Karen Kelly and Kristine Keller

JGA Architect present, Terral Sukut

 

Guest presenters: Brigett Ekstrom, DA Davidson and Dan Semmens, Dorsey & Whitney LLP

 

Registered guest present: Kathy Terry, Linda Dahnke, Pam Christianson, Karen Graf, Heather Kimball, Cindy Vandenbosch, Monica Fellows, Linda Walton, Jeffrey Keller, Casey Olson, Kerra Olson, Joane Harris, Kevin Cicero, Jennifer Haan, Kim Prill, Robert Terry, Karen Rice, Robin Bedford, Tiffany Hall, Whitney Michel, Geri Funk, Mandy Koch, Cherie Curry, Jenifer Beauto, Becky Resch, Julie Diehl, Mary Keeley, Pam Berry, Kim Martin, Wendy Dahle, Tonya Bingley, Kara Norsworthy, Lisa Sulin, Julie Wickhurst, Sue Laughlin, Carleen Janecke, Tammy Holmes, Kim Kimmel, Ronna Williams, Janelle Wilson, Deb Powell, Jim Keller, Alaya, Brenton, Karen Frizzell, Sandra Mammenga, Josi Wilgus Tammy Winters, Julie Whitworht, Jane Leuthold, Angie Gray, Ceci Bentler, Bill Boyers, Nancy Boyer, Pam Dimich, Sue Baker, Thomas Harper, and District Clerk Leo Hudetz.

 

Communication from the Public

 

Pam Christianson submitted a petition that requests the Board combine the two bond issues into one bond issue.

 

Sandra Mammenga informed the Board that the area between Big Sky and Medadowlark is the most densely populated area in the state. Sandra Mammenga stated that three new apartment building are currently in the process of being built between 29th and 32nd.

 

Ceci Bentler implored the Board to do more responsible planning. CeCi Bentler is concerned about future school closures and would like to see more data.

 

Josie Wilgus has concerns with the three page facility plan, the five more phases, and the consolidation of existing schools. Josie Wilgus would like to see a good plan with a professional process and transparency in order for the public to understand the impact.

 

Explanation of the Bond Issue Election Process

 

Kathy Kelker reviewed the Board decision to have Broadwater and McKinley on one bond issue and Cottonwood on one bond issue. Kathy Kelker explained that public feedback with past bond issues indicated the public preferred several options with specific items to vote on. Kathy Kelker stated the Board could decide to combine the bond issues and rescind the two separate bond issues previously voted on.

 

Kathy Kelker explained the difference between a bond issue and a mill levy. Kathy Kelker explained that a bond issue is for capital construction paid for from property taxes spread over a period of time. A mill levy is money to operate the school generated from property taxes. Kathy Kelker explained that the entire amount of a bond has to be voted on, but the state of Montana will contribute a certain percentage. Billings would receive approximately a forty to forty five percent contribution. It was noted that there is no long term guarantee from the state of Montana that they will always pay due to the legislatures changing their minds. Kathy Kelker noted that partnering with the state is one of the least expensive ways used for taxpayers to pay for a bond. Kathy Kelker explained that at a regular election, if at least forty percent of registered voters cast ballots, then a majority vote will decide a bond issue. Montana law has changed regarding voting on a bond issue. If a mail in ballot is used to pass a bond all that is needed is a majority of voters to vote in favor of a bond issue.

 

Explanation of How Bonds Are Obtained

 

Brigett Ekstrom, of D.A. Davidson commended Billings on having almost no debt. Brigett Ekstrom noted debt limitation is set by the state. Bridgett Ekstrom explained due to little debt, the district will be able to obtain bonds at a better rate. Bridgett Ekstrom explained the estimated debt limitation calculations. Bridgett Ekstrom presented an estimated mill levy impact analysis. Bridgett Ekstrom clarified bond ratings and the rating criteria. Bridgett Ekstrom presented data from experts on “how to get your bond passed”. Bridgett Ekstrom suggested giving clear simple messages that resonate with voters.

 

Dan Semmens, of Dorsey & Whitney LLP presented the financial process to obtain bonds. Dan Semmens explained debt limitations and limitation on the term of bond issue. Dan Semmens explained steps required when issuing a general obligation bond such as determining which type of election to have, call for an election, notice, and what will be on a ballot. Dan Semmens gave examples of some bonds, such as qualified school construction bonds, new tax credit bonds vs. general obligation bonds, and tax exempt bonds. Dan Semmens presented information on the America Recovery Act and Reinvestment, (ARRA) – stimulus money, and potential new bonds called, Build America Bonds.

 

Dan Semmens stressed it is important to create a fact based “purpose” for obtaining general obligation bonds. It was noted that nothing has been decided with HB 645, which is a bill that allows different ways to sell tax credit tax exempt bonds.

 

Recommendations from Task Force Members

 

The following questions, comments and concerns that were posed by Task Force Committee members to the Board are as follows:

 

Kathy Aragon – is there operating funds to operate a new school?

Wendy Jam – there is no consensus regarding the bond issue from Broadwater.

Julie Anderson – the numbers regarding a bond issue show the cost is relatively little money to taxpayers if a bond issue is passed.

Steve Wieder – combine the two bond issues into one bond issue. Since the district can obtain good bond rates the district should proceed with presenting the bond issue to voters.

Kevin Odenthal – questioned whether Cottonwood should be built at all due to shortfalls in the operating funds. Are schools going to be closed?

Anne-Marie Wade – when running a bond issue one guiding principle should be represented in the bond issue. At this time it appears there are too many questions and fracturing issues among the community to promote a bond issue. It is a political problem to get a bond issue passed.

Summer Gappa – would like to see the two bond issues combined into one bond issue to present a unified front.

Jeffrey Kay – Is there money to operate Cottonwood school? Could a resolution not to close schools for two years by the Board be made?

Amy Griffin – has question regarding the data of ANB student counts.

Jon Deyer – the Board is not ready to run a bond issue.

Rachel Romei – the district is not ready to run a bond issue.

Kathy Aragon – what are the expenditures for the coming year?

Jim Hartung – suggested that until the legislature makes their final decisions and until we know how and what the American Recovery and Reinvestment/stimulus money can be used for, there are issues that can not be decided on at this time.

Karin Lucas – would like to see the bond issues combined into one. Cottonwood is a neighborhood school to that neighborhood. As a Board the Board needs a unified front.

 

 

Superintendent Jack Copps stated the district has a space issue. Superintendent Jack Copps gave background regarding elementary enrollment over the last few years. Superintendent Jack Copps noted that the elementary enrollment has increased. Superintendent Jack Copps said the state found that 17 of the district’s 22 elementary schools are overcrowded. Superintendent Jack Copps stated extra money comes in each year from new student enrollment. Superintendent Jack Copps suggested in the near future temporary buildings may have to be placed at school sites to accommodate extra students.

 

Description of May 4th Meeting

 

 

Kathy Kelker announced that the Board will hold a special meeting May 4, 2009 to hear final proposals, written reports, summaries, and recommendations by Broadwater, McKinley, and Cottonwood Task Force Chairs, CTA Architect Engineers and JGA Architects.

 

The consensus of the Cottonwood Task Force Committee is to combine the two bond issues into one bond issue. Kathy Kelker will inform the Board members that no consensus has been reached by the Broadwater and McKinley Task Force Committees.

 

The meeting adjourned at 9:00 p.m.

Adjournment

 

 

 

Julie Anderson, Broadwater Chair

 

 

Kevin Odenthal, McKinley Chair

 

 

Steve Wieder, Co-Chair

 

 

Brenda Cross, Recorder