Mountain Home School District
2008 Bond Issue

BCFT Ad

4-18-08 Letter to the Editor

3-26-08 Letter to the Editor
(never published)

PowerPoint Presentation
(Download PowerPoint Viewer if needed)

Other Documentation

2004 Statewide Educational Facilities Assessment Report

AR School Facility Manual

Statewide state of condition of academic facilities
(October 1,2007)

Facilities Condition / Educational Suitability Reports
from www.arkansasfacilities.com

Adobe Reader required to view & print files

District-Wide (September 2007)

Kindergarten (3-24-08)

Nelson-Wilks-Herron Elementary (Grades 1-3) (3-24-08)

Guy Berry Intermediate (Grade 4) (3-24-08)

Pinkston Middle School (Grades 5-7) (3-24-08)

Mountain Home Junior High (Grades 8-9) (3-24-08)

Mountain Home High School (Grades 10-12) (3-24-08)

District-wide (3-24-08)

To see current reports, go to the AR Academic Facilities website, click on "School & District Reports & Maps," then follow prompts

Facility Condition Rankings of all schools in the state

On a scale of "1" (most facility needs) to "1129" (least facility needs)

  • These reports show that only one building (Nelson-Wilks-Herron) needs added square footage to meet state facilities requirements. On each report, look for the boxes labeled "Existing sq. ft.," "Required sq. ft." and "Additional sq. ft. Required."

  • Also look for the boxes labeled "Educational Suitability." This indicates how much dollar-value investment is needed to meet space requirements.

  • The 5- and 10-year growth projections on the district-wide report do show that more square footage is needed, at a cost of approximately $8.6 million (based on information collected in 2004); however, it does not specify at which campus(es).

More about Facility Condition
from 2004 Statewide Academic Facilities Condition Report

(Page 19) "Facility Condition consists of two variables. The first is Current Deficiencies. Deficiencies include ANY ITEMS THAT REQUIRE REPAIR (emphasis added), in the following system categories (site, roofing, exterior, structural, interior, plumbing, electrical, HVAC, technology, fire & safety and specialties), as identified by the assessment teams. This might include the need for new flooring, replacement of carpets, or problems associated with wiring.

View deficiency reports

"The second variable is Year Zero Lifecycle. Included in this category are systems identified by the assessors based on their age, which have expired."

View life-cycle reports

These items were identified by the state's own building assessment teams and prioritized in the following manner:

"Priority 1: Mission Critical Concerns -- These issues are considered deficiencies or conditions that directly affect the school’s ability to remain open, or deliver the educational curriculum. These deficiencies typically include items related to building safety, accessibility codes, severely damaged or failing building components and other items that require near term correction. These are also deficiencies that are currently contributing to further degradation of other building components. These are primarily systems and conditions that have failed.

"Priority 2: Concerns with an Indirect Impact to the Educational Mission --Items found, that if not addressed in the near term, may progress to a Priority 1 item. These include poor roofs that, if they deteriorate further, will cause deterioration of integral building systems, HVAC and plumbing issues that may render the building unusable if not addressed, and other items that require repair in order to keep the facility in appropriate operating condition. These are systems that are at risk of failing possibly within the year.

"Priority 3: Short Term Conditions -- These items are necessary to the mission of the school, but may not require immediate attention. These items should be considered as necessary improvements requiring incorporation in order to maximize efficiency and usefulness of the facility. Priority 3 items include site improvements and improvements to other important systems. Priority 1,2, and 3 deficiencies may be referred to as those items needing correction in order to keep the facility “safe, dry and healthy.

"Priority 4: Long Term Requirements -- These items or systems are likely to require attention within the next five years, or would be considered an enhancement to the instructional environment. The enhancements may be aesthetic or may provide greater functionality. Examples include cabinets, finishes, paving, removal or abandoned equipment, and educational enhancement associated with special programs."

In September 2007, there were

  • 2 Priority 1 items (district-wide) that added up to $180,439
  • 10 Priority 2 items that added up to $7,046,543
  • 4 Priority 3 items that added up to $290,433
  • 6 Priority 4 items that added up to $1,636,002.
  • Grand total of $9,153,418.

As of March 24, 2008, there are

  • 1 Priority 1 item at $3,220
  • 10 Priority 2 items totalling $998,652
  • 3 Priority 3 items adding up to $42,724
  • 2 Priority 4 items adding up to $47,040.
  • Grand total of $1,091,636.

If you'd like to see this report for yourself, go to http://www.facilitymaps.state.ar.us/ and scroll down to "Click a button to get a report"; click on "district" and go from there.

Regarding the Facility Condition Index, according to Page 23 of the 2004 State Report, buildings with an FCI of less than 30% are considered to be in "relatively better condition." Those with an FCI of over 50% are considered to be in need of major renovation or replacement. (Page 23)

MH School's FCI's for academic buildings range from .89% at the high school to 6.13% at Guy Berry. (These statistics can be found on the District-wide facilities condition report, above.)

The 2004 State Report also says: "To provide an understanding of the comparisons from school to school, use the FCI. To gain an understanding of the longer term costs use the total facility condition costs. To gain an understanding of the shorter-term costs, use the priority 1 & 2 costs." (Page 27)

BCFT has done just this, using the numbers given to us by the state of AR. We are not arguing the fact that work is needed to keep our schools in proper order; what we're concerned with is how much, and at what cost. Not just to be difficult, as our detractors seem to believe, but to keep the cost to the taxpayers of this district as low as possible, while still delivering the quality education we all want for our kids and grandkids.

More about Educational Suitability & Existing Facilities
from 2004 Statewide Academic Facilities Condition Report

(Page 33) To determine Educational Suitability, the space guidelines were applied to all existing schools in Arkansas. A program space model based on size and type of schools was applied and if a school had more space than required, no cost was identified. If there was less space than required, the cost of the additional space was determined.

Based on the suggested space requirements, it is interesting to note the statewide comparison above. The problem clearly lies not in the required amount of space, but in the location of space.

BCFT's research into the state-prepared reports shows that based on gross square footage, the district has enough space, even allowing for growth, for several years. The problem lies in how that space is allocated. MHSD administration has decided this inequity is reason enough to demolish part of Nelson-Wilks-Herron and build a new elementary school across town.

It is possible to have an existing building that meets gross square footage standards but has other areas that are below standard. According to the AR School Facility Manual, the state's standards and guidelines "will apply to new school facilities and new additions to existing buildings." (See Section 2, Chapter 1: Standards & Guidelines, p. 1000-1, first paragraph.)

Another section in the AR School Facility Manual on existing buildings says: "Consideration should also be given to realistically maintaining existing spaces and functional areas, although not originally designed in accordance with new facility space standards, with application of the new space standards where practical." (See Section 2, Chapter 1: Standards & Guidelines, p. 1200-1, last paragraph.)

In our opinion, this confirms that there are other options available besides building a new $18 million elementary school, and there is no immediate need to bring all parts of every building up to the new standards. A less-ambitious, less-costly construction plan should suffice.

Overage calculator

  • Over the course of the next 30 years, the millages that provide the revenue to pay back this bond will generate many millions of dollars in excess tax revenue, or "overage." This happens because the school district's annual bond payment remains the same over the 30-year term, but revenue generated by the millage goes up whenever property values go up.

  • Based on the millages the district is asking for, even if there were a 0% increase in property values over the next 30 years, they would still take in approximately $11.4 million more than it will cost to retire (or pay off) the bond. A conservative 5% increase in property values over the next 30 years would produce $157 million in overages. Average annual increase for this area recently has been about 4% per year.

% of Annual Tax Base Increase Assessed Value of all Taxable Property in MHSD Total Revenue Generated (30 yrs) Total Annual Payments (30 yrs) Total Surplus (30 yrs)
0 * $467,004,156 $93,362,070 $81,955,890 $11,406,180
1 $642,103,011 $111,533,156 $81,955,890 $29,577,266
2 $880,088,289 $133,978,212 $81,955,890 $52,022,322
3 $1,202,574,349 $161,786,948 $81,955,890 $79,831,058
4 $1,638,278,014 $196,333,983 $81,955,890 $114,378,093
5 $2,225,247,469 $239,353,181 $81,955,890 $157,397,291
  • * This is the actual 2006 assessed value for the MHSD, which is the basis for all the proposed bond-issue calculations; all other assessed values are projections based on an average annual increase of X% over a 30-year period.

  • This “overage” goes into a separate account; taxpayers have no control over how this “extra” money gets spent.

  • BCFT has asked the school board to commit to using a large part of the overage at the end of every fiscal year to pay down the principal on the outstanding debt; they have so far refused to make any public commitment to this proposal.

  • Download an interactive Excel spreadsheet that shows how the overage estimates were calculated.