Long Range Plan - Minutes November 28, 2005

Long Range Plan Review Committee
Minutes - November 28, 2005

Members in Attendance:
Harry Amend* Scott Fischer* Bryan Martin* Jill Neal Lynn Vershum
Jeff Bengtson Russ Hansen John McLeod Vern Newby* Dianna Walde
Steve Briggs* Jeffery Hill David Miller David Patzer John Young
Susan Clayton Doug Jaworski Leslie Miller Joel Palmer
Calvin DeHaas Erin Lenz Jane Morgan Ann Siebert

*Ex-officio members

Welcome:
Jill Neal called the meeting to order at 4:40 p.m. The meeting was held at Lakes Middle School in the library.

Concerned Businesses of North Idaho:
Jill and Harry introduced Kelly Richards (Executive Director) and Eve Knudtsen (current President) representatives of Concerned Businesses of North Idaho (C.B.N.I.). Harry pointed out that John Young is the past president of C.B.N.I. The committee members introduced themselves.
Kelly presented information to the committee that explained the history of C.B.N.I. and their role and mission as a taxpayer advocacy group (handout provided). In addition she outlined, from their prospective, the current property tax climate in Kootenai County and their concern about the impact of property taxes on taxpayers.
C.B.N.I. is highly supportive of education and recognizes the role quality education plays in creating a healthy business climate. Kelly believes that the Long Range Planning Committee is a model on how issues should be put forth to the taxpayers. C.B.N.I. also understands the need to construct new schools as well as remodeling of older schools and agree with the financing by use of an S.P.F.L., pay-as-you-go method. They are concerned that the $2.00 per $1,000 levy rate for a 4-year S.P.F.L. is more than the community may be willing to support.
Harry stated that the school district asked for C.B.N.I.’s help in order to establish a levy rate that the taxpayers would support as well as their organization. Coeur d’Alene is one of the most impacted school districts in the state as far as the dramatic spike in property taxes. There was some discussion with C.B.N.I. regarding a levy rate of $1.75 per $1,000 (approximately $43 million) but the Board has not voted on this yet. Once a levy rate is firmly established, C.B.N.I.’s Board will vote but the $1.75 is definitely in the ballpark. Kelly stressed that the levy rate decision really lies with this committee. Harry also pointed out that there have been conversations regarding the psychological barrier of $40 million. He opened it up for committee discussion.

Committee Discussion regarding the levy rate:
Steve Briggs reported that school districts are treated differently than other taxing entities. He pointed out that due to equalization, we have a statutory responsibility to levy .003 of whatever our tax base is and that levy is offset by general fund monies. For every dollar of increase that we took home on the M & O Levy (approximately $2 million) the State gave us almost a dollar per dollar less on equalization.
Vern Newby asked Kelly if it was the total dollar amount or the levy rate itself that is an issue. She did not have an answer to his question but stated she and the Board feel that the $2.00 per $1,000 is more than the community is willing to support especially since the jail proposal did not pass. Some of the members pointed out that schools are a lot different marketing effort than a jail. They were not just voting on the jail but also for property tax reduction. John Young polled the Board of C.B.N.I. and they feel that $50,000,000 is too high and community will not accept it. The majority of the Board would support something less than $1.75 per $1,000.
Jill Neal explained that the committee has been working on this for the past year. They looked extensively at all the schools and their needs (including a tour) but did not focus on the overall dollar amounts. It was narrowed down to five very needy schools. The committee’s focus is on facility needs and they make recommendations to the Board of Trustees but the final decision is the Board’s. Vern suggested that the Board members need to talk to patrons and businesses in respective zones to see what the community is willing to support. The fastest growing sector of this community are people that are age 55 years and up and they do not want higher taxes. Committee discussion followed regarding a compromise in order to pass the S.P.F.L.
Harry believes that the best way to pass this S.P.F.L. is to work in cooperation with C.B.N.I. John Young emphasized that while C.B.N.I. would not oppose the S.P.F.L. if it remains at $2.00 per $1,000, they would likely take a neutral position. Harry asked the committee if they were in support of $1.75 per $1,000 so he could communicate that back to the Board on Monday. Ten members were in support of $1.75 the remaining members were in support of $2.00. If the Board determines that $39,900,000 is a key factor, the levy rate would be $1.63.

Next Meeting:
The next Long Range Planning meeting will be held in early January, date yet to be determined. Jill encouraged everyone to attend.

Adjournment:
The meeting was adjourned at 6:10 p.m.

Respectfully submitted,

Cheri Beard
Administrative Secretary

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