Opposition speaks out against NEVC issue
With the April 6 election fast approaching, Rob Barrett, patron of the Northeast Vernon County district, feels both sides of the issue haven't been fully explored in the pages of the Daily Mail. Responding to a story published in yesterday's edition, Barrett said his opposition to the Northeast Vernon County R-1 district's proposed bond issue is, primarily, financial in nature.
He said opponents of the levy are not trying to close the district.
"It's not opposition's goal to close the school," Barrett said.
He said the district's ability to handle the debt service and the state's ability to continue to fully support the school are of concern.
"Our concern, primarily, is the state's decision because the state's ability to support every district in the state is a really big concern," Barrett said. "From a budget standpoint, without state support it's a real big concern."
Many districts in Missouri are facing mid-year funding cuts this year, according to recent reports by the Associated Press.
Barrett said he has concerns about the levy's being too high and suppressing growth, which is needed in order for the district to meet its obligations under the proposed bonds.
"The levy is the highest in the area, Bronaugh is 3.65 and with the debt service it (the NEVC levy) would go to 5.65, literally $2 more than the Bronaugh district," Barrett said. "This is one of those details -- $2 higher than a comparable district will stifle development and growth in that district. If you're wanting to build a new home or add a structure you have to factor in that tax as a cost of that structure. This tax stifles growth."
The proposal's assumptions about growth bother Barrett as well, who said that while the overall property valuation in the district may have gone up it was as a result of events that are unusual and unlikely to be repeated.
"I know what they did is that they based part of their projections on the fact the dairy went into their school district and created an assessment growth," Barrett said. "But they are using that premise that they will be getting that growth over and over. That would be great, but probably not, in this economy. Plus, with the highest levy in the area it's going to be hard to compete."
The scope of the assumed growth also bothers Barrett who said he doesn't think it is realistic to imagine that the district would see $10 million of additional assessed valuation in the 20 years it would take to pay off the bonds.
"In their budget, to make the math work, they take their assessed valuation from $16 million to $26 million," Barrett said. "Maybe, based on history it has developed that much over the past 20 years, but going forward 20 years, if that does not happen the cash flow doesn't work -- their numbers won't work, just dollars-and-cents-wise."
Barrett said he doesn't doubt the integrity of NEVC Superintendent Charles Naas or the numbers he used, but he said in order to understand the proposal it is necessary to question the underlying assumptions.
"Mr. Naas is not distorting anything, you just need to turn to the next page, and the next page because it is quite complicated," Barrett said. "The cost of construction -- they've said they think they can do it for $100 a foot. We just don't see how, for a couple of reasons. By law it's required to pay prevailing wage. The second thing, now there is a lot of competition for work from contractors looking for work, that is a very valid point. What we did is we called Larry Goldberg, the architect for the Vernon County Jail. He said $200; but if you do it now, because of competition, it could maybe be done for $150 a foot."
Barrett said in looking over the budget he also did not see anything allocated for a septic system.
"Another concern we see with their budget, is that it does not include the septic or a lagoon and that DNR cost," Barrett said. "That would be substantial."
Another assumption Barrett disagreed with was that the district assumed the bonds would be paid off in twelve-and-a-half years, but the bonds would run the full 20 years.
"They think they can maybe pay it off in twelve-and-a-half years," Barrett said. "If you committed to pay me a rate for 20 years, I'm not going to let you prepay it. I think what they're doing, is looking at the weighted average maturity of 12.19 years and what that does is they take $2.45 million for one year, and the last balance of $250,000 for 20 years. If you take $250,000 for 20 years, and $500,000 for 19 years, and $750,000 for 18 years and so on and back it all the way up to $2.45 million for one year and do a weighted average of all those, that's where that 12-year figure comes from. These will be 20-year bonds, especially since their cash flow doesn't support it anyway."
Another concern Barrett raised was the level of teacher salaries. He believes the teachers in the NEVC district aren't paid adequately and that if the situation worsens, those teachers, and the students they teach, would suffer.
"No disrespect, but when the teachers are paid a third less than the average of the state, that almost implies that maybe the education is suffering a little bit because of the budget," Barrett said.