Old SMS building to host seniors

In addition to agreeing to offer an early-retirement package to certified staff next year, Spencer school board members authorized moving forward with a "good-will effort" deemed "worth the investment." Before the board directed Superintendent Greg Ebeling to put specifications from Cannon Moss Brygger & Associates for a heating, ventilation and air conditioning system (HVAC) for the old Spencer Middle School (SMS) building's first floor out for bid Tuesday night, the superintendent informed them that City Manager Bob Fagen has been working hard behind the scenes to see that a partnership -- aimed at earmarking money for potential improvements, such as the implementation of a handicap-accessible restroom in the building -- is established between the school district, city, county and Clay County Community Foundation.

The new HVAC system could be paid for initially from the district's sales tax receipts. The investment could then be recouped from the Spencer Area Activity Center, the first floor's potential tenant, over a period of time. Ebeling explained this lease revenue would go into the district's general fund.

City officials, meanwhile, intend to look at the old SMS as a Tax Increment Financing (TIF) building area, which could allow a portion of taxes paid for Community Housing Initiative's second- and third-floor portions of the building to be rebated back into the building and school district.

Ebeling also explained the building's first floor would eventually have to be sold to the senior center, because if the district were to rent it indefinitely, it would be required to pay taxes on the first floor.

It was also mentioned that the Iowa Great Lakes Youth Wrestling Program and Positively Spencer Youth have expressed an interest in utilizing the building's basement area.

"It is our responsibility to make that space rentable for somebody," Ebeling said.

As board member Ed Ver Steeg noted it would have cost the district $2 million to demolish the building, he then said maintenance on a new HVAC system would be "very minimal" compared to maintaining the equipment situated in the building now.

While Ebeling indicated the money the district would stand to recuperate on the project is still questionable at this point, he quickly added, "Even if we recouped half, we're still making it a usable space."

Ebeling initiated the board's ensuing discussion centered on whether or not to offer an early-retirement policy to certified staff for the 2009-10 school year by offering a list of current teachers and administrators who would be 55 and older by June 30, 2009. The list of those staff members who would be eligible to apply for an early-retirement incentive includes: Stephanie Shively, Linda Gaston, Larry Untiet, Jan Hopkins, Kae Roti, Jan Homan, Sherry Clark, Patricia Quinn, Katie Plucker, Janis Lindstrom, Carol Hanthorne, Sheryl Patten, Dale Witt, Mary Frank, Susan Nothwehr, Patricia Burke, Steve Steele, Jan Myers, Connie Drake, Cindy Davis, Duane Davis, Gary Rustwick, Steve Bomgaars, Eileen Gengler, Onalee Wright, Scott Van Houten, Rick Dupic, Pat Campbell, Diane Masienbach, Frank Boever, Doug Siepkes and Kathryn Elliott.

The superintendent then explained this list of district employees would be eligible to apply for an early-retirement benefit that would be paid for from next year's management fund, which translates into property taxes levied. A benefit could also be offered to a person 50 - 54 years old, Ebeling added, but its expense would be taken out of the district's general fund. The same would apply to an early retiree over the age of 65.

"The expense to the district," Ebeling said, "depends on how you write the policy and on the number who take it."

Two types of potential policies were offered for discussion. The first, which was offered last year and netted a handful of early retirees, did not include an insurance benefit. Instead, it offered enrollees a one-time payment of 30 percent of their base salary and the option to apply that toward either a tax shelter annuity (TSA) or insurance.

Applied to this year's budgetary figures, Ebeling said this type of policy could amount to an approximately $14,560 stipend. Ebeling indicated if 10 district staff members were to apply for a policy of this sort, it would increase a Clay County property taxpayer's bill approximately 33 cents per $1,000 of valuation.

The second policy, which was deemed "the carrot" in board discussion, was offered four years ago and netted 12 early retirees. It did include insurance. Ebeling calculated if 10 employees were to apply for a policy of this type, it would increase property taxes by 48 cents per $1,000 of valuation the first year and 16 or 17 cents thereafter. The superintendent also stated the carrot package "can't be sustained" by the district's coffers.

Board member Marti Bomgaars offered two pages of anonymous budget-related comments from current staff members. She then stated, "There's at least 10 if there's not insurance (offered), they're staying until they're 65. ... Based on the feedback I've received, I would be amazed if we would have people retire if we didn't offer insurance."

"The bottom line is, if we can offer something this year, it's going to impact the management levy," Ebeling summarized. To which board president Dave Schlichtemeier replied, "I don't mind seeing a lower tax bill."

As Todd Korbitz pushed during the board's discussion for a policy without insurance to be offered every year, which he said would serve as a good-faith effort and relieve some of the "anticipation" felt by staff, he stated, "To me, it seems it would be silly not to offer something."

By a three-vote majority, with Schlichtemeier opposing and Bomgaars abstaining, the board approved offering an early-retirement package for next year and directed Ebeling to draft potential policies with a 37.5 percent base pay figure to be earmarked for a TSA or insurance. These policies are scheduled to be discussed during the Dec. 16 board meeting.

"It's not going to do it," Ebeling said in regard to the increased percentage the board agreed to offer. "I'll be surprised if we get three with this policy. But if we offer nothing, we'll get no early retirees, period."

As board member Barb Van Wyk asked if the 37.5 percent amount would be sustainable, Ebeling replied, "Yeah. It's just going to bump the property tax rate another 8 cents."

"We're in a budget-cutting mode," concluded Schlichtemeier. "We're going to be laying people off next spring."

In other discussion last night:

* Board members learned that Eric Johnson, the district's technology director, has tendered his resignation, effective Dec. 29, in order to accept a position at Merrill Co. Ebeling was directed to place advertisements seeking a replacement and encouraged to contact past candidates who had also applied for the position 18 months ago.