What Would It Cost For Ewing To Join The District?

Editor’s Note: While most would agree kids come first in education, it’s impossible to deny that taxes are a close second, especially as the talks to between Clearwater, Orchard, Ewing and Verdigre continue. Here’s a closer look at the financial impact of the options presented in the feasibility study.

By Natalie Bruzon
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Money talks, and the financial aspect of the potential unification between Clearwater, Orchard, Ewing and Verdigre conversation is becoming louder.

But what exactly would the cost be if Ewing unified with the Nebraska Unified #1 district?

Dr. Gerald Ehlers presented the feasibility study last month and returned to answer questions. Both times he has made one thing clear — students are his priority.

When looking at the different options, financial repercussions from concepts presented in the study are one of the major concerns on the three communities’ minds.

“We need to focus on the kids, and what we can do by working together, we all win,” said Ehlers during the December 19 special meeting. “Kids win, parents win, patrons win, communities win. Are there sacrifices to get there? Yes, there are.”

Looking at the Costs
When Ehlers first presented the study, he highlighted three concepts, each with various options. The first concept, Concept A, presented options with only Clearwater-Orchard. Concept B brought Ewing into the mix and explored various options with all three sites. Option C looked at the expenses of a new school, called a Cornfield School.

Currently, the Unified District has a general fund levy of .6255 and Ewing has a general fund levy of .6942.

Ewing also has a Special Building Fund tax rate of .0261 and the Unified District has a Special Building Fund tax rate of .0252. Clearwater has a Qualified Capital Purpose Fund tax rate of 0.0151.

When adding the special fund tax rates and qualified capital purpose fund tax rate to each community’s tax levy, Clearwater landowners pay .6658 in taxes, Ewing pays .7203 in taxes and Orchard pays .6507.

Concept A would have no effect on current tax levies, as all that option explored was site location for Clearwater-Orchard. However, both Concepts B and C would affect taxpayers.

Option B: Clearwater-Orchard and Ewing
Under Concept B, Ehlers presented six different options, each with various site locations. While all three sites would have grades PK-4, each option showed a different location for the middle school and high school.

During the December 5 meeting, Ehlers said all options under Concept B provided “a significant decrease in the general fund tax rate for the Ewing school system and a small decrease for Nebraska Unified #1 school system.”

By unifying, Ewing and Clearwater-Orchard would combine resources and FTEs and therefore cut down on budget expenses.

The six options under Concept B explore different site location combinations for the middle school and high school using the three sites.

Options B-1, 4, 5 and 6 would see the general fund tax levy decrease to $.5998. There would still be special building funds added to this, but overall tax rates would still be lower than current tax rates.

In Options B-2 and 3, the general fund tax levy of $0.5958, slightly lower than for the other options. The lower rate is for not utilizing Ewing facilities for the middle or high school, as one of Ewing’s buildings would not be used, so maintenance costs would not factored in.

Overall, Concept B would lower the general fund levy for both sites, although Ewing would see the greatest change. Clearwater-Orchard would see a decrease of $.0257 or $.0297 and Ewing would see a decrease of $.0944 or $.0984.

Concept C: Cornfield School
The third concept explored the possibility of building a new “cornfield” facility for Ewing and Clearwater-Orchard. This school would house various grade levels, depending on the option considered. By adding Ewing, the assessed valuation of Ewing, Clearwater and Orchard would be $1,123,160,167.

During the December 5 meeting, Ehlers discussed potential costs of the schools that would require a bond. An analysis of facility needs and projected costs was prepared with the assistance of Bahr Vermeer Haecker Architects of Lincoln while the tax rate was assisted by Ameritas and calculated at a 20-year bond at 5 percent.

Board members spoke to Ehlers, as they felt the estimated cost for a new building and the bond interest rate were too high. Therefore, during the December 19 meeting Ehlers presented adjusted costs for the “cornfield” school.

Option C-1 looked at constructing a new facility for grades PK-12, which Ehlers described as being located in a “central location,” possibly along the Orchard Road. According to the report, this would allow the three communities to combine resources and expand the high school curriculum. It would also result in a “substantial decrease in the general fund tax rate for the Ewing school system and the Nebraska Unified #1 school system.”

Originally, the facility was estimated at $38,804,220 with a 20 year bond at five percent. However, during the December 19 meeting Ehlers adjusted the cost to cost to $30,764,340 with a 20-year bond at 3.5 percent interest. The lower estimate was made by reducing the number of classrooms and adjusting the cost of contingencies.

The bond levy for Concept C-1 would be $0.1905 and the general fund levy would be $0.53, leaving an overall levy increase of $0.095. The annual increase to Clearwater and Orchard taxpayers for every $100,000 in valuation would be $95.00. Ewing taxpayers would see a valuation of $26.30 per $100,000

In Option C-2, the three sites would house their own grades PK-4 while grades 5-12 would be in the new facility. Originally, the facility was estimated at $30,637,035. However, during the December 19 meeting Ehlers presented an adjusted estimate of $24,481,890 with a 20 year bond at a 3.5% interest rate.


As in Concept C-1, the adjusted estimate came from a reduction of classroom space and contingencies.

The bond levy for Concept C-2 would be $0.1517 and the general fund levy would be $0.6188, leaving an overall levy increase of $0.145. The annual increase to Clearwater and Orchard taxpayers for every $100,000 in valuation would be $145. Ewing taxpayers would see a valuation of $76.30 per $100,000.

Ehlers presented a new option under Concept C during the December 19 meeting. Previously, the board hadn’t considered a 7-12 building, but Ehlers showed that could be a compromise between a 5-12 and an all-grades school.

The numbers would vary little from Option C-2. The bond levy for Concept C-3 would be $0.1445.

One of the major considerations for any of the options in Concept C, according to the feasibility report, would be the bond needed for the new facility.

“In order to finance a new school facility, a bond would need to be approved by the legal voters in the Ewing, Clearwater, and Orchard school districts to provide the necessary funding,” Ehlers said during the December 5 meeting.

Nate Schwager, Loan Officer at Bank of Orchard and secretary for the Orchard Board, said that he believes a new school would be hard to pass in Orchard.

“With the cost of building a new school, how much money we’ve put into this one, and just looking at the need for a new school, I would say that iit would be very tough to pass building a new school in our district,” said Schwager. “ . . . Just talking to people around town there is very little support for it at this time.”

Concept D: Pk-4 at one site
Ehlers presented a new concept to the board during December 19 meeting. Previously, the Unified Board had agreed that parents would not like the idea of sending their elementary students to a site out of town. However, the board decided during their December meeting to explore all options, and asked Ehlers to present the feasibility of uniting with Ewing and choosing one site for Pk-4.

Option D-1, the only option presented under Concept D, assigned the high school to Clearwater, Pk-4 in Ewing and 5-8 in Orchard.

This would reduce the general fund levy to 0.563. Annual savings to Clearwater and Orchard taxpayers for every $100,000 in valuation would be $62.50. Ewing would see savings of  $131.20 per $100,000.

What does this mean?
Ehlers has met with the boards various times throughout the course of the month, and each time he has further clarified the concepts in the feasibility study and given the boards more information.

The financial information presented with each concept may also seem like the culminating factor in what decision to make, but other factors, such as projected enrollment and job prospects, should also contribute to the decision made.

Ehlers reiterated that a lot of a school’s budget is dedicated to salaries, and many of the options in the feasibility study would cut down on the need for full-time employees because the three sites could share teachers.

However, this could also mean a cut in jobs which could lead to a drop in enrollment.

“It’s detrimental because the first teachers to go are the young ones who have the kids or who are going to start families here,” said Schwager. “So you’re going to talk about eliminating a third of the workforce of the biggest employer in town and that’s pretty detrimental.”

This goes to show that in making a decision for the future, the boards will take various factors into consideration, not just finances.

The Unified Board will meet on January 16, during which they will further discuss the feasibility study and site location. The meeting will be in Orchard at 6 p.m.