GOVERNING BOARD APPROVES 3.4% PROPERTY TAX INCREASE FOR 2024-2025 IN CLOSE 3-2 VOTE DESPITE $22.2 MILLION IN SAVINGS ACCOUNT IN ADDITION TO $15.1 MILLION IN BOARD DESIGNATED MINIMUM RESERVES

By R. Oliphant
Thursday, May 23rd, 2024

Lack of clarity on future allocation of $22.2 million in  savings leaves community members puzzled and questioning tax increase

In its budget book, prepared for the May 21, 2024, meeting, Yavapai Community College included a graph illustrating its savings across two of its five funds. The graph revealed that, by the end of 2023, the college had accumulated $22.2 million in cash reserves. This was in addition to $15.1 million that are Board designated minimum reserves (total $37.3 million).

Third District Governing Board member Toby Payne was the only Board member to question the substantial amount of money in reserves with no apparent clear designated purpose. When he inquired about the chart and the $22.2 million, Vice President Clint Ewell responded that it represented “savings” but did not provide any further explanation.

This raises several important questions: How much of the $22.2 million remains in savings? Was part of it, specifically the $5 million, used secretly to pay a developer for purchase of the 42-acre Prescott Pines Camp taken from those reserves? Why is there a proposed 3.4% tax increase, projected to generate approximately $1.8 million, when the college already has $22.2 million in reserves?

Answers to these questions remain elusive. Aside from Mr. Payne, only Mr. Ray Sigafoos showed interest, speculating that the funds might be reserved for future capital purchases.

Categories : Budget, Taxes

DISTRICT ONE GOVERNING BOARD CANDIDATE KIEL UNABLE TO PERSUADE BOARD THAT TAX INCREASE WAS NOT WARRANTED

By R. Oliphant
Thursday, May 23rd, 2024

Says  in last three years Community College budget has increased by 155% (about $41 million); claims per student cost around $74,588; estimates President’s Rhine’s current salary around $350,00; questions cost/benefit while agreeing College has done many good things

Yavapai Community College District one  candidate William Kiel, while addressing the Governing Board at the May 21, 2024, public tax hearing, was unable to persuade its members to reject the 3.4 percent primary property tax increase it was considering. The property tax rate was approved by a 3-2 vote.

The 2024-2025 increase will add about $1.8 million annually to the budget. The 5% rate increase approved last year provided around $2.55 million in new annual revenue. The result is a total of $4.3 million of new revenue coming from property taxes each year to the budget. The Board could have approved a 1.4 percent increase without public input.

County property taxes alone, paid mostly by homeowners,  provides  the College with about $56.5 million annually.

Mr. Kiel expressed concern to the Board about raising the tax by 3.4 percent after it had already been increased by 5 percent last year. He also highlighted that the College’s budget has increased by around 155 percent (about $41 million) in just three years. He suggested the per student cost was somewhere around $74,588.He mentioned the President’s salary, which he estimated to be the highest in the county at around $350,000. He asked the Board to consider a cost/benefit analysis before going ahead and approve the tax rate increase.

It is noteworthy that District one appears to have three candidates interested in the seat, including current Board member Ray Sigafoos, Mr. Kiel, and George Joeger. Mr. Sigafoos wrote an opinion column supporting the property tax increase, which appeared in several local newspapers.

To check on the accuracy of his posting, please listen to Mr. Kiel’s presentations, which were restricted due to Board time limits, by clicking on the video below.

 

Categories : Budget, Taxes

YAVAPAI COMMUNITY COLLEGE MAKES LAST MINUTE CHANGE TO LOCATION OF TUESDAY, MAY 21, 2024 PUBLIC TAXATION HEARINGS – PUBLIC NOTICES PUBLISHED IN NEWSPAPERS SHOWING MEETING AT ROCK HOUSE INCORRECT

By R. Oliphant
Saturday, May 18th, 2024

Tuesday’s meeting will be held in the Community Room 19-147 on the Prescott Campus beginning at 1:00 p.m.

Yavapai Community College has made a last minute change in the location for Tuesday’s taxation hearings.  Originally scheduled in published newspaper notices for the Rock House on the Prescott Campus, it has been changed as of Saturday, May 18 to the Community Room 19-147 on the Prescott Campus. 

The start time for the meeting remains 1:00 p.m.

Categories : Yavapai Community College

PROPOSED 3.4% PROPERTY TAX INCREASE DRAWS OPPOSITION FROM COUNTY RESIDENTS

By R. Oliphant
Wednesday, May 15th, 2024

Inflation, last year’s increase, living on fixed income, and the camp purchase is a luxury are a few of the reasons given for opposing the increase

The Yavapai Community College District Governing Board is receiving significant opposition from Yavapai County residents regarding the proposed 3.4% tax rate increase. The Board will vote on the proposed tax rate increase during its public tax hearing on Tuesday, May 21, at 1:00 p.m. at the Rock House on the Prescott Campus. Here are a few samples from the many emails being sent to the Board of what opponents of the tax increase are saying:

“We are retired couple living on a fixed income yet scramble to find the funds to live in today’s economics. We simply cannot afford any tax increases. . . . How can you possibly think we can survive?”

“With the rise in inflation our monthly expenses have almost doubled. However, as retirees on a pension, our income has remained the same. Although we support education, this proposed increase for a land grab, will not directly impact education.”

“While I think it’s honorable that you want to provide affordable housing to students and faculty and give faculty raises, why don’t you raise the tuition at the college so the people who actually use the college pay for their expenses?  That’s what I did when I went to college.  I paid tuition, room and board which paid the college’s expenses to provide those services to me.  Why burden retired citizens?  This has got to stop now.”

“This tax is a financial burden on me and my husband. We are retired and on a limited income.”

“This tax is a pocketbook issue for hundreds of our residents in Yavapai County. If anything, given rising housing costs, surging inflation and recessionary fears, this proposed tax does not help build a partnership with Yavapai College.”

“I am concerned that this tax increase which taxpayers don’t get to vote on will kill the tax increase likely being proposed for the City of Prescott for fire and police likely to be on the November ballot.    These increases surpass current inflation and their regularity has to change.  I think increase should also align with student growth. I don’t believe the growth has justified the increased.”

 “The college cannot continue to pass these increases on to the property owners.  Cutting the ADMINISTRATION and their salaries would be important to consider.”

“I feel strongly that purchasing the Prescott Pines Camp is a “luxury” instead of a requirement for the college.” 

So far, the Blog has found only one vocal supporter of the proposed tax rate increase. That person wrote, in part that: “I am 100% in support of the moves Yavapai College is making to better support their students, the education being provided, and the goal of helping with our dire housing situation. The community members at large that are ranting about the taxes are the ones that live comfortably and have zero concern for their own housing needs and really demonstrate a cold hearted attitude to the youth and educators in our community.” 

Categories : Taxes

YAVAPAI COMMUNITY COLLEGE’S REQUEST TO ADD ANOTHER 3.4% PROPERTY TAX INCREASE AFTER LAST YEAR’S 5% INCREASE IS NOT EDUCATIONALLY JUSTIFIED

By R. Oliphant
Saturday, May 11th, 2024

The only sensible part of the proposed 2025 budget to be considered  at the May 21, 2024, District Governing Board meeting is the 11% increase in salaries and benefits for faculty and staff, which is crucial for retaining and attracting quality personnel

Editor: Robert E. Oliphant

On May 21, 2024, the Yavapai Community College District Governing Board will meet to deliberate on several financial measures aimed at funding costly capital projects on the other side of Mingus Mountain. The proposals include the issuance of a new $16 million revenue bond, the refinancing of two existing revenue bonds, and at least a 3.4 percent increase in the County property tax rate. The Board has already released between one and two million dollars in revenue at its last meeting by modifying its reserves policy at the suggestion of College leadership, thereby allowing additional annual funds to be allocated for these projects.

I contend that approval of   the tax rate increase is misguided and will disproportionately burden taxpayers in Sedona and the Verde Valley, who stand to benefit little, if at all, from these expenditures. Here’s why:

  1. The proposed $11 million investment to acquire a 41-acre camp near Prescott, which includes over eighty buildings for programs and housing, lacks a compelling educational justification. While expanding the college’s footprint and providing housing are worthwhile goals, I have not seen data that prioritizes this project over other educational initiatives. Furthermore, the significant shift towards online education and the absence of a major surge in student applications suggest that such an expansion is unnecessary.

  2. Constructing a $20 to $40 million Health Science building at the Prescott Valley Center is a nice idea. But it is a project that a university would undertake. It is not a project for a small Community College struggling with enrollment to consider that would, at best, provide service of sorts to only a small portion of the County. It’s way too costly to build and far too costly to maintain!

  3. For over fifty years, the Community College has ignored the development needs of Yavapai County’s rural areas. In the past decade, the focus has been on enhancing facilities in and around Prescott, with approximately $150 million invested in capital construction and major renovations. In contrast, Sedona and the Verde Valley have seen scant attention, with only a handful of projects like a $9 million student residence, a $10 million distillery/beer project, and a planned commercial driving program—all of which were abandoned.

  4. The District Governing Board approved a 5% tax rate hike just a year ago. I think the new additional 3.4% tax rate hike has not been educationally justified. Where are the compelling education reasons for it?

  5. The only sensible part of the proposed budget is the 11% increase in salaries and benefits for faculty and staff, which is crucial for retaining and attracting quality personnel. This increase is sustainable, funded by the substantial student tuition hike already approved and the funds released from the reserve policy adjustment in April 2024.

Given the absence of serious educational justification or a showing of a dire need for the 3.4% tax rate increase, approval of it appears very unwise. Moreover, the use of the additional funds, as explained by the Community College leadership,  fail to adequately serve the broader community’s interests, some of which have been ignored for a half century.

Categories : Editorials/Essays, OPINIONS

YAVAPAI COMMUNITY COLLEGE OUTLINES TO GOVERNING BOARD THE NEED FOR MILLIONS OF NEW DOLLARS TO SUPPORT CAPITAL DEVELOPMENT ON WEST SIDE OF COUNTY (ESTIMATED COSTS INCLUDE NEW 41 ACRE CAMP ($11M); HEALTH SCIENCE CENTER ($21M to $40M); DIGITAL LEARNING COMMONS ($19M OR MORE)

By R. Oliphant
Friday, May 10th, 2024

College expected to request approval at May meeting of $16 million revenue bond, refinance of existing revenue bonds, and around 4% County property tax increase. Board agreed at April meeting to reduce fund reserve accounts to free up about $2 million of additional revenue annually

Yavapai Community College is seeking significant funding from new sources to successfully complete its extensive capital expenditure plan on the west side of Yavapai County. While estimates vary, the College may need as much as $60 million to complete three major capital projects.

To secure funding for the projects, the College plans to propose several financial strategies at the May public Taxation hearing. These include:

  1. Issuing a $16 million revenue bond.
  2. Refinancing existing bonds to release additional funds.
  3. Proposing a 4% increase in the county property tax rate.

At a meeting on April 21, 2023, the District Governing Board revised its cash reserve policy, which will make about $2 million available annually.

The funds raised will support three key initiatives:

  1. The Digital Learning Commons at the Prescott Campus, which involves a complete overhaul of the current library.
  2. The acquisition and renovation of a 41-acre camp near Prescott, which will initially use about $5 million from reserves to purchase but will require at least $6 million more for refurbishments.
  3. The construction of the Health Science Building at the Prescott Valley Center, with cost estimates ranging from $20 million to $40 million, depending on the final design.

The decisions on the proposed tax increase and bond issuance will be made at the public hearing scheduled for May 21, 2024, at the Rock House.

To read the posted proposed budget for 2025, please click here.

Categories : Bonds, Taxes

YAVAPAI COMMUNITY COLLEGE SELECTED AS ELIGIBLE TO OFFER A CERTIFIED PRISON EDUCATION PROGRAM

By R. Oliphant
Thursday, May 9th, 2024

Requires HLC, Department of Education approval, and College must  work closely with the warden of the selected prison and the Department of Corrections. | Pell grants will provide tuition and Bachelor of Science and Business is the program that the Community College  will initially offer

Yavapai Community College President, Dr. Lisa Rhine, announced at the April 23, 2024 District Governing Board meeting that the College was selected by the Arizona Department of Corrections as one of the few community colleges in Arizona to be certified as eligible to offer a prison education program. This allows the College with an opportunity to be assigned to a prison.

Dr. Rhine explained that “we’re assisting those individuals that are in prison to come out with some type of credential that will hopefully allow them to be once again taxpaying citizens and part of the fabric of society and contributing.”

Research shows that participants in college-in-prison programs are 48% less likely to return to prison. By providing postsecondary education, Yavapai Community College aims to break the cycle of recidivism and promote successful reintegration.

The College must still obtain approval from the Higher Education Commission, the Department of Education, and it must work closely with the warden of the prison selected to offer the program and the Department of Corrections. It is anticipated that the program will be ready by the fall semester 2025. It is also anticipated that the Community College will be offering its Bachelor of Science and Business to begin the program.

It is noteworthy that as of July 1, 2023, incarcerated individuals are eligible to receive full Federal Pell Grants, which will provide the tuition for a student in the program. This significant change was brought about by the FAFSA Simplification Act, which restored Pell Grant eligibility for confined or incarcerated individuals for the first time since 1994.

One estimate is that up to 463,000 incarcerated people will now be eligible for Pell Grants. It is also estimated that Nationwide, offering education to incarcerated individuals could reduce state prison spending by as much as $365.8 million annually.

Categories : Prison program

YAVAPAI COMMUNITY COLLEGE ONLINE BACHELOR’S PROGRAMS SEE HIGH LOCAL ENROLLMENT

By R. Oliphant
Wednesday, May 8th, 2024

County residents make up 85% of persons “declaring” for the Business B.S. program and 96% of acceptances (49 students) into the Spring 2024 Nursing B.S.

Yavapai Community College introduced its first baccalaureate degree, the Bachelor of Science (B.S.) in Business, starting in the Fall 2023. This degree offers concentrations in Accounting, Organizational Management and Leadership, and Entrepreneurship. At the April 23, 2024 District Governing Board meeting, the College reported that although course completion data is not yet available, 614 students have “declared” for this program.  According to the Community College,  85% (521 students) are residents of Yavapai County.

Following the successful launch of its business degree, the Community College introduced a Bachelor of Science in Nursing (BSN) for the Spring 2024 semester. The nursing program, which had an enrollment cap of 50 students for its inaugural semester, accepted 49 students. Remarkably, 96% of these students are from Yavapai County, reflecting the college’s strong local appeal and community impact.

It is believed that both of the baccalaureate degree programs are taught exclusively online.

Categories : B.A. DEGREES

YAVAPAI COMMUNITY COLLEGE PUTTING IN WATER AND SEWER INFRASTRUCTURE AT CHINO VALLEY CENTER FOR 30 UNITS: MAY BE USED FOR RVS OR SMALL HOMES

By R. Oliphant
Tuesday, May 7th, 2024

City water and sewer will be connected to project rather than build  septic system like that on the Verde Campus

Yavapai Community College announced at its April 23 District Governing Board meeting that it is currently installing infrastructure for at least 30 units at the College’s Chino Valley Center. These units could accommodate recreational vehicles, small homes, or both. Dr. Clint Ewell mentioned during his presentation, in response to Board questions, that the infrastructure will connect to the Chino Valley sewer system. This eliminates the need for a separate septic system like the one at the Verde Campus in Clarkdale.

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Categories : Chino Valley campus, Housing

AFTER SPENDING OVER HALF A MILLION DOLLARS, COLLEGE FINDS 3D CONCRETE PRINTERS NOT READY FOR USE IN YAVAPAI COMMUNITY COLLEGE’S HOUSING PROGRAM

By R. Oliphant
Saturday, May 4th, 2024

The College has pivoted toward manufactured homes, travel trailers and the purchase of a 41 acre church camp in its quest to provide low cost housing assistance for faculty, staff, and students

Recall the decision made over three years ago, January 27, 2020, when the District Governing Board approved the Community College executives investing around a half a million dollars in two 3D concrete home printers. At the time, the printers were touted by Community College executives as capable of constructing the foundation, interior, and exterior walls of a medium-sized home within three to five days. For example, in its  press release of January 27, 2020, the Community College said in part:

“This new process would enhance several trades and early estimates suggest the printers can have the foundation, interior, and exterior walls completed for a medium-sized home in 3-5 days. After roofing, electrical, plumbing, and other services are installed, it is estimated that these 3D printed homes will help alleviate Yavapai County’s attainable housing shortage.”  . . .

“We believe this can be a part of the solution to our long-standing attainable housing crisis in Yavapai County,” said Dr. Lisa Rhine, Yavapai College President. “The emerging opportunities that 3D printing provides are quite remarkable and we want to bring this innovative technology to help our communities in need.” . . .

Subsequently, the College acquired the 3D printers. However, they proved unsuitable for their intended purpose, as later openly acknowledged by Yavapai Community College executives. Consequently, they were essentially discarded, prompting the Community College staff to embark on a challenging and time-consuming journey to develop and construct their own 3D printers. (Cost estimates unknown.)

In January 2022, the first class on how to use these machines was announced.  However, despite the enormous time-consuming staff effort and large expenditure of funds, the total enrollment in the class since 2022  is reportedly as of the last semester very small.

Now, County residents have learned from the presentation to the District Governing Board at its April 21, 2024 meeting that the current 3D printers are not equipped to print homes to meet the needs of the Community College staff and students. Apparently, it has become clear they cannot print the type of concrete homes it was anticipated they could back in 2020.  Nor can they be printed in 3-5 days.

The College is now turning to alternative housing such as the recent purchase of a 41 acre church camp. It is also beginning to purchase travel trailers and prefabricated homes.

Surprisingly, despite the significant previous investment and failures, it is believed that College administrators may have been quietly considering proposing to the Governing Board a purchase of a new 3D printer or printers  with a potential additional investment of $600 thousand. Fortunately, such an expenditure is not included in the proposed 2024-25 academic year budget.

The College’s arduous journey with 3D concrete home printing technology underscores the importance of careful pre-planning and skeptical evaluation of major investments by the executives in charge of higher education at the Community College, especially when it comes to emerging technologies. It also serves as a valuable lesson to the District Governing Board when considering approving similar ventures and expenditures. 

Click here to go to the video clip of Dr. Clint Ewell explaining the status of the College’s 3D printer project to the Governing Board at the April meeting.

Categories : PRINTER 3D
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