PIERZ PUBLIC SCHOOLS
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Pierz Facilities Committee Planning for the Future - Meeting #2

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Once again more than two dozen community members, staff and school board members gathered on Wednesday, January 3 to review information that was discussed at their first meeting on December 5 regarding the Public Schools facility needs.  

Superintendent George Weber informed the committee that a target date for the referendum has been set for April 10 with the intentions of getting into new elementary classroom space by the Fall of 2019.  

Construction Models
Architects Rich Rodich and Mark Lenz along with Preston Euerle, RA Morton Construction, presented three different facility models for the committee to review. All models included 8 elementary classrooms plus a science lab room, elementary gym space, high school kitchen/cafeteria remodel, band room addition and changing the elementary front parking and access.  This option allows elementary classrooms more privacy with the ability to close the doors off the corridor when gym classes are going on.  There will be a gain of approximately 35 parking stalls with the new layout of the parking lot.  

Three different models were evaluated based upon comments and recommendations from the last meeting.  The two-story model was more expensive, so it was dropped. The final choice between the other two models was made based on the best configuration for Elementary Education and the gym to meet Phy Ed class needs.  

Construction Costs
The total estimated project cost for this option is at around $12.0 million.  The committee has been trying to drive down the scope and costs while still addressing the school’s needs.  The committee also set a target to keep the referendum question as close to $10 million as possible.  
Some parts of this project are eligible to be paid for with Long Term Facilities Maintenance (LTFM) revenue from the state. Which means these parts of the project would not impact taxes and would not be part of the ballot question. The Facilities Committee recommendation to the Board would be to stay with a one-question bond request under $10 million and to find ways to cut costs and make up the difference between the $12 million cost by using a combination of LTFM funds and any fund balance reserves that can be accessed.

Tax Impact Comparison Data
Superintendent George Weber shared multiple scenarios of tax impact data provided by Ehlers.  
There are a couple points that impact the bond and interest rate decisions:
  1. If the term of the Bond is not 20 years or greater, the state will not provide any debt service aid for the bond payments.  So it makes sense to plan on that term.  The debt service aid pays a portion of the annual payment and then lowers the local taxes needed to make the payments by that amount. Debt service aid is based upon the size of the bond payments and the tax value of the district.  The state has a formula for every district that accounts for those variables.  Pierz would get some aid, but not a lot because we do not have a large project or school debt relative to the tax base.  
  2. Pierz can lower the interest rate on the bond by .5 % if the bond is under $10 million which automatically makes the bonds “bank qualified”.  By keeping the request under $10 million, payments would be lower, and taxes needed to make those payments would also be lower.  Interest rates vary.  The day the bonds are sold is the day you know for certain what rate you will get.  Currently School Districts in MN are getting a rate somewhere between 2.7 % to 3.4 %. Pierz has a strong financial history and emergency reserves which means the district should get a good rate. Ehlers and Associates provides the bond and tax information for the District.  To account for any unforeseen circumstances, they base their projections on the high end.  3.4% - which includes a .5% “padding” of actual current rates - was used to cover any possible increases that might occur between now and the time the bonds are sold. If interest rates do not go up, and if we are approved and sell the bonds 5 months from now, we will still be at or under 3%.  If that is the case, taxes will be lower than the projections shown below.
We do not yet have up-to-date data to compare this to neighboring districts. The best we can do is compare what these districts paid in 2017 compared to what we would pay in 2019 if a $9.9 million referendum was approved.
Even when we use the older data from the other districts, these increases would still keep Pierz taxes toward the low end compared to other districts in our area. (Milaca, Foley, Sauk Rapids, Royalton, Sartell, Upsala, Little Falls, Brainerd, Onamia):
  • In Commercial, 3 districts would be lower and 6 would be higher.
  • In Residential, 3 districts would be lower and 6 would be higher.
  • In Ag, only 2 districts would be lower and 7 would be higher.
In order to provide a more current comparison, we will work to obtain 2018 data info from these school districts over the next couple months.

Recommendations
Based on the directives from the community survey results, the insights from the large facilities committee and information and concerns expressed to the school board, the recommendations are:
  • To get the project cost down by presenting what the school needs
  • To begin working on a policy for capping open enrollment
  • Take advantage of the Ag2Credit that is now in effect
The Facilities Committee determined that it is logical to move forward with the referendum request under $10 million and show the community both the value and the need.
After discussing all the factors between the three options presented, asking questions and giving their opinions, members of the committee agreed that from an educational standpoint that they have selected the option that makes the most sense. The Committee closed the meeting by directing the School Board to move forward with that option as the best solution for the Public Schools facility needs.   

School board members Steve Boser, Joanne Broschofsky, Rick Sczublewski, Patty Stangl and Dean Virnig were in attendance.  Colleen Seelen was unable to attend.
School staff that attended were George Weber, Superintendent, Tracey Artner, Business Manager, Karrie Boser, High School Principal, Dan Stifter, High School Assistant Principal, Tom Otte, Elementary Principal, Mark Gruber, Head Custodian, Dave Rocheleau, AD, Terri Krych, Admin. Assistant, and Joel Pohland, High School Band Director.
Community members on the committee in attendance were  Jim Andres, Sharon Bell, Janel Betsinger, Bridget Britz, Herb Broschofsky, Toby Egan, Gordy Gall, Tom Girtz, Horst Hanneken, Jennie Loidolt, Keith Marshik, Kim Rocheleau. Denny Rothstein, Ashley Toops Jeanette Watland, and Wes Young.   
Kyle Bednar, Christen Funk, Eric Hanneken, Tom Leidenfrost, and Neil Seppelt were unable to attend.
Other community members who attended were Marvin Thomas and Steve Waytashek.   

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District Office

112 Kamnic Street
Pierz, MN 56364
320-468-6458
DO Fax: 320-468-6408

High School

112 Kamnic Street
Pierz, MN 56364
HS Fax: 320-468-6577

Elementary

66 Kamnic Street
Pierz, MN 56364
EL Fax: 320-468-2841
Copyright © 2015 ISD 484

  • DISTRICT
    • District
    • District Calendar
    • District Vision and Info >
      • 2021-22 Tax Comparison
    • District Nurse/COVID info
    • Transportation/Busing
    • Emergency Notifications >
      • Connected Learning Day Plan
    • Employment Opportunities
    • Contact Us
    • School Board/Leadership
    • Enroll at Pierz Schools
    • All Staff Directory
    • About Pierz
    • District Testing Info
    • Reports
  • HIGH SCHOOL
    • High School
    • Healy Principal Page
    • Healy Parent Page
    • Daily Announcements
    • Departments and Staff
    • Counseling & Career Advising
    • Student Links
    • Chromebooks at Healy
    • Healy Media Center
    • PAP
    • Lunch Info
    • Staff Resources
  • ELEMENTARY SCHOOL
    • Elementary School
    • Pioneer Principal Page
    • Pioneer Parent Page
    • Early Childhood
    • Pioneer Media Center
    • Classrooms and Staff
    • Pioneer Lunch
    • Pioneer PTO
    • Chromebooks at Pioneer
    • Student Support Services-Pioneer
    • Staff Resources
  • STUDENT ACTIVITIES
    • Student Activities
    • Healy Student Activities
    • Activity Calendar
    • Wall of Fame
    • Pioneer Student Activities
    • Pierz Gearz
  • COMMUNITY ED
    • Community Ed
    • Early Childhood
    • Driver Education
    • Adult Classes
    • Youth Activities
    • Adult Basic Education
    • Facility Use
    • Defensive Driver Safety Program
    • Parent Guides: How to
  • District News & Updates
    • DISTRICT NEWS >
      • News
      • Open Enrollment FAQs
      • Pioneer Pride eNewsletters
      • Education Today
      • REFERENDUM 2018
    • DISTRICT NEWS & UPDATES
  • Graduation 2022
    • Meet the Class of 2022
    • Honor Graduates
    • Grad Bash Info