CV Community from Oct. 29, 2024
Community Engagement Session
CEW #3 - District Finance 101, Priorities & Costs
Dear South Sioux City Community Stakeholders,
I’d like to share an update on two of our district’s top priorities for this year: Community Engagement and District Facilities. These focus areas are essential to not only the future of our schools but to the continued success and vitality of our entire community.
On Tuesday, October 29th, approximately 150 attendees—community members, parents, and staff—gathered at the SSC Middle School Gym for the third Cardinal Vision Community Engagement Workshop.
Community Welcome and Workshop Purpose
Cardinal Vision Chair Olga Guevara opened the session, emphasizing that, like many districts, ours faces unique challenges and opportunities as we plan for the future. She highlighted that Cardinal Vision is a collaborative effort to bring our community together in identifying key issues, finding solutions, and creating a strategic plan for our schools, community, and children.
District Context: Capacity and Safety Needs
Rogelio Rodriguez, also a Cardinal Vision Chair, revisited questions from previous sessions, underscoring concerns about current and projected capacity issues, aging facilities, and unmet safety needs:
- Capacity Issues: Most attendees were initially unaware of the overcrowding challenges within SSC facilities. Currently, half of our schools are either at or beyond capacity, with Cardinal, Covington, Dakota City, and the Middle School affected. By 2028, Harney Elementary will also be at capacity, with additional students expected as new housing developments expand.
- Aging Facilities and Safety: Six out of eight SSC schools exceed the national average age of 49 years, with Covington Elementary at 100 years and Dakota City at 75. Beyond age, these facilities face critical safety needs, such as secure vestibules (missing in all buildings) and reliance on classroom trailers at Lewis & Clark and the Middle School.
The SSC Story, as presented by Erin Heineman, Director of Facilities & Business Operations, revolves around three core aspects shown below. This was a recap to what Superintendent Dr. Rony Ortega shared previously.
- Growing Enrollment: With just under 3,800 students today, SSC’s demographic study indicates enrollment growth of around 500 new students over the next decade, challenging our current capacity.
- Aging Facilities: The majority of our schools are significantly older than the national average, and it has been 25 years since our last major capital improvements.
- Community Values: Despite these challenges, the SSC community remains resilient and united in valuing People, Place, and Programs. Our facilities should reflect the pride and connectedness of our community, ensuring safety, comfort, and adaptability for future educational needs.
District Finances and Funding
Erin Heineman discussed the current state of SSC’s finances and the need to balance immediate facilities improvements with long-term financial health:
- Funding Overview: The district’s annual revenue of $55.5M is mainly sourced from State Aid (65%), Local Taxes, and Federal Programs, with property taxes limited by low local property values and minimal agricultural land in SSC’s tax base. Comparatively, SSC receives only $3,883 per student in property tax—significantly below the $16K required per student annually.
- Expenditure Priorities: Approximately 80% (4 out of 5 dollars) of the district’s budget supports staff salaries, limiting funds available for building maintenance and repairs. Only $1.5M per year is allocated to facilities maintenance, a modest sum given the size and age of SSC buildings.
Financial Planning and Facility Funding Options
Erin Heineman also addressed some common financial questions:
- Local Funding and Bond Debt: SSC operates with limited property tax revenue per student, ranking among the lowest in the state. The last bond debt—issued for improvements 25 years ago—was paid off this summer, allowing SSC to explore a new bond as a potential funding method.
- Deferred TIF (Tax Incremental Financing) Revenue: While TIF development has impacted our revenue, the potential of deferred funds may support future projects, though not immediately. The district doesn’t receive property taxes from TIFed areas for a period of time, usually 15 years.
- Comparisons and Community Responsibility: With state aid formulas favoring high-need districts, SSC’s situation highlights the challenges faced by property-poor districts. Across the river, Iowa districts use sales taxes for school construction, an option not available in Nebraska. We must make informed choices about reinvesting in our schools to ensure a quality future for our students.
Exploring Facility Options
In collaboration with BCDM Architects, Principal Architect Matthew Erion reviewed the trade-offs between renovation and new construction. Erion presented criteria to help the community evaluate which facilities to renovate or replace, considering cost-effectiveness and long-term value.
Table Discussions and Hands-On Activities
Workshop participants engaged in small group discussions about addressing facility needs. Three main approaches to address overcrowding and capacity were considered:
- Expanding existing schools.
- Building a fifth/sixth-grade center.
- Merging specific elementary schools into a new, larger facility.
Participants were asked to think about the community as a whole (parents, staff and those who don’t have children in our schools), the current economy and our school facility needs and to rank their preferred funding range option.
We also asked each group if they had other ideas for another financing amount or solution. The results and complied information from these tasks will be shared at an upcoming workshop.
Looking Ahead
Please join us on one of our upcoming building tours. They will be on Sunday Nov. 3 and Nov 10 from 1-4 pm. The tours will give you the opportunity to see for yourself and “grade” our schools based on their facility challenges.
There will be two more Community Engagement Sessions at the Middle School Gym at 6 PM on the following dates:
- December 10, 2024
- January 14, 2025
We can’t do this without you. Your involvement ensures that we make informed decisions that benefit every student, family, and resident of South Sioux City.
Together, let’s build a community that attracts families, fosters growth, and provides a bright future for all of us.
Thank you for your continued support of our schools and our community.
Sincerely,
LAnce