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Merger Feasibility Study

Alfred-Almond, Arkport, and Canaseraga

Alan Pole, Consultantpolead@yahoo.com315.692.4615October 16, 2013

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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?

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Acknowledgements

Superintendents Rich Calkins, Glenn Niles, & Kelly Houck

The Alfred-Almond, Arkport, and Canaseraga boards of education

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Background on Districts

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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

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Enrollment Projections

Arkport and Canaseraga are projected to see enrollment declines while Alfred-Almond will

gradually increase over the seven year period.

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Elementary Section Sizes

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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

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High School

Curricular Offerings

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Interscholastic Sports and Participation Rates

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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

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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)

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Central Office Administration

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Teacher Salary Schedule Comparison

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Cost of Leveling Up Teacher Salaries

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Budget Votes

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Debt ServiceBuilding Aid

Ratios:

Alfred-Almond-88.3%

Arkport-91.1%

Canaseraga-92.6%

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Fund Balances

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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.

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Incentive Operating Aid

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Incentive Operating Aid

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Incentive Operating Aid

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Summary-Incentive Operating Aid

Total Incentive Operating Aid after 14 years for all three possible district combinations:

1-Alfred-Almond, Arkport & Canaseraga$23,569,1202-Alfred-Almond & Arkport

$18,358,9823-Arkport & Canaseraga

$14,445,761

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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

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Incentive Operating Aid & Tax

Rate Impact

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Incentive Operating Aid & Tax

Rate Impact

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Incentive Operating Aid & Tax

Rate Impact

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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%

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Conclusions-Primary Factors

Financially, all three possible combinations of districts are feasible.

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Fiscal Soundness of Districts

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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

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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

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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

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Questions?????