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The School District of Rhinelander Board of Education has been conducting a series of informational meetings around the district to explain the need for the referendum on Sept. 9.
Attendance has been spotty, but last week’s meeting at the Cassian-Woodboro school was well-attended, as was the meeting held earlier this week in the Newbold Town Hall.
The final meeting will be held Tuesday, Aug. 26, 6 p.m. in Pine Lake Town Hall.
“This is democracy in action,” said Terry Fondow at the Cassian meeting on Aug. 14. Fondow is the new Rhinelander High School principal. “People are raising good questions that have been on their minds, and it gives the board a chance to explain.”
“It’s a way to get accurate information out to people,” said board chair Chuck Fitzgerald. “These are smaller forums that encourage people to speak out what’s on their mind.”
Eight meetings are being conducted overall. The format is similar for each one, with administrators speaking first, giving the referendum background and its need, followed by a detailed financial explanation by Carol Wirth of RBC Dain Rauscher Inc., the district’s financial investors. Then questions are taken from the floor.
District Superintendent Roger Erdahl explained that after the April 1 referendum asking for $35.5 million failed, “Our critics told us that if we could get the referendum down to a tax-neutral level, which is $25 million, the referendum would pass. This has been done. Our buildings are continuing to deteriorate; the need is still there.”
Crescent Elementary Principal Tammy Modic said her school doesn’t have enough classroom space. Without the proposed new classrooms, she said, there will have 30 students and two teachers in one classroom. The bathroom situation causes lost instruction time. Safety is an issue because of cramped space for bus and car delivery of students. The library and computer lab have no walls and inadequate space.
Pelican Elementary Principal Martha Knudtson said at her school the art and music teachers had to move from area to area with carts, a cost to instruction time. Having the computer lab in the library presents a scheduling challenge. There is no space for confidential meetings with parents and for support groups. The bathrooms are inadequate, taking time away from classroom instruction.
Central Elementary Principal Tim Howell spoke about safety issues, a poorly-located office, lack of computer labs and an aging HVAC system.
Middle School Principal Paul Johnson said that his school, 25 years old, hasn’t kept up with technology demands; the HVAC is inefficient, and the school’s concrete cladding allows cold air in and heat to escape. “There is no security at the building,” he said.
High school principal Fondow said the lack of indoor physical education and athletic facilities “may be the most controversial” part of the referendum but “the state requires every student to have 1.5 credits of physical education to graduate.”
In the 50 years since the high school was constructed, the curriculum focus has changed dramatically, Fondow said, emphasizing fitness and wellness “with 25 percent of teens overweight, which leads to health problems. Now everyone has to take PE and the age of graduation is 18, not 16, so the curriculum has changed dramtically but not our space. This is the worst space I’ve seen in 10 years,” he added, referring to his career at other schools.
“When I started looking at the numbers," Fondow said, "I found that Rhinelander provides only 14 square feet of physical education space to its students—less than half the number considered adequate. Northland Pines provides 112 square feet.” Fondow said the pool, 50 years old, is aging and when parts break down, they can no longer be purchased but must be specially manufactured.
“We’re not asking for luxury,” Fondow said, “we’re asking for adequate [for physical education space]. Passing the referendum for this extra space will benefit our kids’ schedules and it will benefit the wider community. The YMCA charges $40 per month for a family. A pool and recreational space will ease the pressure on the YMCA. And it will free up space for academic use,” he added.
Carol Wirth explained the district’s referendum budget for Fund 39 can’t exceed the $25 million requested, “even if the project ends up costing more. That’s all the district will get.”
Wirth also explained that the referendum is in two parts because the state requires a separate question for operating costs. “The second question [asking for $225,000 in annual operating costs] will be voted on each year during the 25-year span of the tax-neutral levy,” she said. “The electorate votes yes or no on this during its annual meeting.”
Wirth addressed concerns about rising taxes in this region. “'My taxes going up,' you say. 'How can you say this is going to be a tax-neutral referendum?'” she asked rhetorically, answering, “Yes, they are going up, because you are experiencing inflationary growth [in property values], and the state looks at this and says, ‘You must not need state aid for schools. You can pay your own way.’ You are one of two areas in the north that is hardest hit by the state aid formula. As the formula increases the property values here, you will be expected to pay more. That has nothing to do with the tax-neutral referendum, which is about retiring debt.”
Questions and answers
Following is a sampling of questions asked or comments made by those attending the Cassian meeting, and answers given by the administration and school board.
Jim Moyer, Cassian: "Do you admit that closing the schools [three years ago] was a mistake?"
Chuck Fitzgerald: "We were forced to close the schools for financial reasons when the referendum failed."
Moyer: "Those schools were in good condition. West School was in good condition."
Fitzgerald: “All three schools needed a lot of maintenance and upgrades. West school needed massive amounts of money. We closed the schools and it helped us get an increase in our prime rating, so it was a good thing.”
Gail Winnie, Cassian: “Why use the old gym space for a common area and gymnastics? Why not classrooms?”
Fondow: “Using the old gym space for cafeteria space will allow us to use the current cafeteria for learning labs—that’s 5,400 square feet of learning space—specifically for what will be determined later.”
Kelly Herman, Cassian: “We really don’t know what we’re getting with the referendum. Can you say for sure we’ll get this?”
Fitzgerald: “We’ve been looking at multiple options. What you see here is what we’re getting.”
Mike Ryden, Harshaw: “I read in an article that said you [Fondow] didn’t support a referendum because you didn’t think we needed this space.”
Fondow: “That referred to a referendum in Green Bay, where they overstated their enrollment needs. That’s not the case here.”
Don Pallin, Cassian: "How in a general sense does being in an inflationary period affect the school aid formula? We experienced 10 percent inflation last month and that impacts everyone."
Wirth: “This is the danger of the what-ifs. The revenue formula of two years had different provisions. It didn’t have the ‘declining enrollment’ provision, which is supposed to help districts like this one. Those types of legislative changes have occurred from time to time. My guess is if inflation is extraordinary, the legislators will do an amendment to the formula to take this into account. A 10 percent inflation rate would affect the state budget.”
Denny Thompson, Cassian: “Can you guarantee a borrowing rate of 5.25 percent for 25 years? It’s not fair to say that if you can’t.”
Wirth: “Why don’t you tell me what the rate will be? If you can tell me what the bond market will be tomorrow? If I could tell that, I wouldn’t be here. I’d have a crystal ball. You base the rate on a reasonable assumption, based on a mininum of 10 years in the bond market. It is conservative and was achievable over the last 10 years. The School District of Rhinelander in the past has reissued that same debt rate within a 25 year period which created savings."
Thompson: “This will be $48 million over 25 years…that’s the scary part. I’ll be dead. My kids will be paying for this.”
Wirth: “It’s no different than if you took out a home mortgage at a time of high interest for 30 years—would you lock yourself into that or would you look for a better rate if it became available? If the referendum is approved, the debt may not be issued for another six months. If the rate is higher then, would you lock yourself into that rate? No, you would manage it the same way you would your pocketbook.”
Winnie: “Why do you recommend the five-year anticipation loan at a lower interest rate, followed by a 20-year loan at 5.25 percent? Wouldn’t it be more feasible to borrow all $23.5 million for a 20-year program now at the lowest rate available?”
Wirth: “A 25-year amortization loan is what is law. In the first phase, the five-year vehicle, you pay off the principle faster, and guarantee to the taxpayers that you have eliminated this risk of borrowing. The second phase, for 20 years, allows you to borrow at a better rate. One of the benefits of having Moody’s review your rating in 2005 was getting a better rating, which will position you well for lower interest loans.”
Erdahl added: “We can keep our financial house in order. With Moody’s rating us at A-2, improved from A-3, that’s crucial, and it says that the school board has taken the tough decisions to get this rating; we have proven to the taxpayers that we have been fiscally responsible with their money.”
Fitzgerald, answering a question about declining enrollment in the district: "A UW study this spring told us that enrollment will continue to decline for another three to five years, and then a mini-baby boom begins, bringing us up in about seven or eight years to about where we are now. It will come up. So we are planning for the current population.”
Winnie: “That increase in enrollment is due to early childhood 4-K, isn’t it—to those 140 to 170 kids?”
Fitzgerald: “We wouldn’t come to you and ask for this extra space [elementary classrooms] if we didn’t need it.”
Mike Ryden, Harshaw: “If we have overcrowding, why not take care of that for the elementary schools and not spend so much on an athletic program?"
Fitzgerald: “Why are we spending so much money on activities? Our entire budget for activities—mock trial, music, football, coaches, swimming, etc.—is $400,000 for the program. That's it."
Ryden: “All this extra stuff isn’t helping. We’re in a recession right now. We’ve had about six or seven foreclosures in this area. Businesses are going down the tube. My taxes in five years have doubled. I’m working two jobs to make it. You’re not looking at the big picture.”
Ken Milender, school board treasurer: “It’s important to look at the big picture, like you mention. Activities keep kids busy and have a positive effect on their behavior and keeps kids off the street. Each team brings in visiting teams that adds money to the area economy. People are arguing over these dollars of the referendum, but if you have a $150,000-valued home, you would save only $8.79 per month by not passing the referendum. This doesn’t seem like an insurmountable amount, especially when it means helping the community.”
Denise Zalewski, parent: “It’s important to remember we all have children in this community and we want them to return. If we don’t take care of our school district, they won’t come back. If that means having a new pool, maybe so. My taxes also went up last year but I think [the referendum] is important.”
Lori Haug, parent: “This is not ‘extra stuff’ we’re asking for. These are opportunities that students outside this district have had for 20, 30 years. There is nothing ‘extra’ about what’s on this referendum.”
Judy Conlin, board member: “I was skeptical at first about the need for a new pool, but I checked into it and it is used half of every day for physical education. It’s not just for swim teams and competitions. It’s part of how we provide physical education for students.”
Gary Baier: “I’m neutral here. I’m from another district and a school board member. I support schools. But I think referendums are bad. They pit one group against another. As residents we have to stop this from happening. We need to go to Madison to fix the formula. It’s broke. It’s time we join together and put all the money we’re spending, join that money and go fight the legislators. When you’re on Social Security, a $10 or $20 increase in anything is huge for us seniors. We’re property value rich here and tax poor.”
Fitzgerald: “I could talk with you for days about the state aid formula; if it doesn’t change, education in northern Wisconsin is going to die. Does the City of Rhinelander have to go to referendum for its wastewater treatment facility? No. When Oneida County builds a law enforcement center, does it have to go to referendum? No. Only the school district has to go to referendum.”
Al Broman to the Miron Construction representative: "This proposal says you’ll use union and nonunion local workers? You can’t do it in bricks in mortar.You’re signatory to the union contract.”
Miron representative: “In all the projects we’ve done in Wisconsin, all the information is shared for bidding. Any savings is reverted back to the district. This overall project will employ about 100 people, union, nonunion, trades…the workforce is definitely local. We did the YMCA, Aspirus Clinic, in the same fashion. We’ve done other school districts—D.C. Everest, Marathon, Tomahawk, Rib Lake, Clintonville—in the same way.”
Moyer: “Was this referendum planned for a primary because you know a majority of voters won’t come to a primary, and then because that allowed you 45 days after that, if it failed, to get it on the presidential election?”
Fitzgerald: “It’s hard enough to plan for next Monday and Tuesday, let alone November. No, there is no plan to go to November right now. Sept. 9 was chosen because if we don’t piggyback on an existing election, it costs us $10,000, and because we have to put the budget together and finalized by the end of October.”
Mary Peterson, board member: “We’re at the best time right now to help all of our kids. We are a community. A school district is like a family. Do we have differences in our community? Yes. But we need to put aside our bickering. It’s time to help our whole school district. There may not ever be a better time. They are are kids, our grandkids.
"There was mention of a car payment," Peterson added. "I had a car I made payments on for five years. I paid it off. I didn’t take that extra money and spend it. I put it away for the next car. That’s what we need to do here. We’re not trying to frivolously spend your money. It’s my money, too. Their money, too. I spent 40 years in education, and the kids really meant something to me and I did for them. Some of them were your kids. I don’t want anything different for anyone’s kids than I did for those.”
Winnie: “Why did you refuse to consider our proposal to fix the schools and add the 12 classrooms?”
Conlin: “In the June meeting, dedicated to board members getting information, Mr. Fitzgerald said we had two groups with proposals. I specifically asked the K-12 United Voters if you would like to share information on your proposal. At that time you said your proposal was basically the same one as the one you proposed in April. Someone made copies of that proposal for us to look at.
"After that meeting," Conlin continued, "a revised proposal was sent to us by mail. Procedurally, we didn’t discuss this. I did look at it, and saw that the $12 million proposal [compared to the first proposal for $15 million] I saw that it would be $35 per year difference and would not get what we need for our children.
"As for the athletic space," Conlin added, "I looked at the gym and the space for education. I remember specifically asking that question at the meeting, What are we going to do with the current PE space, and the answer was it would be used for instruction.”
Fitzgerald: “Mr. Winnie, you were at the meeting, and the vote was 8-0 to go with the $25.5 million proposal.”
Steve Oestreicher: “Were Dan Meyer or Don Friske invited to attend any of these meetings?” (Fitzgerald answered “yes.”) Did they reply? (Fitzgerald: “no.”)