Merger Feasibility Study Alfred-Almond, Arkport, and Canaseraga

1. Merger Feasibility StudyAlfred-Almond, Arkport, and Canaseraga Alan Pole, Consultant polead@yahoo.com 315.692.4615 October 16, 2013

2. Purpose of the Study This study was conducted to answer the following question: If any, which combination(s) of the three districts might make it feasible to engage in a full and complete merger study?

3. Acknowledgements • Superintendents Rich Calkins, Glenn Niles, & Kelly Houck • The Alfred-Almond, Arkport, and Canaseraga boards of education

4. Background on Districts

5. Possible District Combinations • All three districts merging into one district: • A. Alfred-Almond, Arkport, and Canaseraga • Two other two-district combinations: • B. Alfred-Almond and Arkport • C. Arkport and Canaseraga

6. Enrollment Projections Arkport and Canaseraga are projected to see enrollment declines while Alfred-Almond will gradually increase over the seven year period.

7. Elementary Section Sizes

8. Size of High Schools • Alfred-Almond-Arkport-Canaseraga (432) • Candor-448; Dundee-446; Lansing-436 • Alfred-Almond-Arkport (361) • Tioga-378; Letchworth-375; Perry-354 • Arkport-Canaseraga (221) • Keshequa-271; Newfield-268; Genesee Valley-230

9. High School Curricular Offerings

10. Interscholastic Sports and Participation Rates

11. School Enrollment and Building Aid Ratios Alfred-Almond (650)—88.3% Arkport (504)— 91.1% Canaseraga (252)—92.6% Building aid on existing debt service is raised to the higher aid ratio of the districts that merge. New construction is aided at 95% of approved costs for a 10 year period for merged districts

12. Transportation Time & Area of Merged Districts Alfred-Almond/Arkport/Canaseraga-244 square miles (Randolph, Pioneer, Corning) Alfred-Almond/Arkport-166 square miles (Penn Yan, Addison, Cuba-Rushford, Catt-Little Valley) Arkport/Canaseraga-142 square miles (Dansville, Jasper-Troupsburg, Spencer-Van Etten)

13. Central Office Administration

14. Teacher Salary Schedule Comparison

15. Cost of Leveling Up Teacher Salaries

16. Budget Votes

17. Debt Service Building Aid Ratios: Alfred-Almond-88.3% Arkport-91.1% Canaseraga-92.6%

18. Fund Balances

19. Full Value Tax Rates Calculating true value tax rates is the only fair way to compare one district to the next due to variations in local assessment practices. Also, the spread between two or more school district tax rates becomes important when districts are considering a potential merger.

20. Incentive Operating Aid

21. Incentive Operating Aid

22. Incentive Operating Aid

23. Summary-Incentive Operating Aid Total Incentive Operating Aid after 14 years for all three possible district combinations: 1-Alfred-Almond, Arkport & Canaseraga $23,569,120 2-Alfred-Almond & Arkport $18,358,982 3-Arkport & Canaseraga $14,445,761

24. The 1/3, 1/3, 1/3 Guideline for Incentive Operating Aid • 1/3 to finance transition costs to the merged district • 1/3 in reserves for long term fiscal stability • 1/3 to reduce taxes

25. Incentive Operating Aid & Tax Rate Impact

26. Incentive Operating Aid & Tax Rate Impact

27. Incentive Operating Aid & Tax Rate Impact

28. Summary-Incentive Operating Aid & Tax Rate Impact Percent of incentive operating aid needed for each district in the merger combination to achieve the lowest district’s tax rate: 1-Alfred-Almond, Arkport, & Canaseraga 39.1% 2-Alfred-Almond & Arkport 33.6% 3-Arkport & Canaseraga 9.4%

29. Conclusions-Primary Factors Financially, all three possible combinations of districts are feasible.

30. Fiscal Soundness of Districts

31. Advantages/Disadvantages • Alfred-Almond/Arkport/Canaseraga • Advantages: • 1. Greatest number of curricular options for the students • 2. Larger high school provides the opportunity to stabilize extra-curricular offerings and add even more • 3. Student enrollment is projected to be level over the next seven years • Disadvantages: • 1. Largest geographical area of merged district will result in least efficient transportation system • 2. Further study will have to be done to ensure that the merged high school and an elementary school will fit into one of the buildings • 3. Uses the largest amount of incentive operating aid to reduce tax levy and level up teacher salaries • 4. Politics of three-district merger are more complex than a two-district merger

32. Advantages/Disadvantages • Alfred-Almond/Arkport • Advantages: • 1. Curricular and extra-curricular opportunities for students of both districts will be enhanced • 2. Area of merged school district is smaller than in a three- district merger so transportation will be more efficient • 3. Student enrollment is projected to be level over the next seven years • Disadvantages: • 1. Uses the second largest amount of incentive operating aid to reduce tax levy and level up teacher salaries

33. Advantages/Disadvantages • Arkport/Canaseraga • Advantages: • 1. Curricular and extra-curricular opportunities for students of both districts will be enhanced • 2. Uses the least amount of operating incentive aid to reduce taxes and to level up teacher salaries • 3. Smallest geographic area will provide for the most efficient transportation system • Disadvantages: • 1. Enrollment is projected to decrease by 9.1% over the next seven years

34. Questions?????