Public Hearing To Discuss
The Opportunities and Issues
Related To
The Potential Establishment
Of A
Pelham City School System
June 17, 2013
Public Hearing Agenda
1. Introduction and Objectives
2. Current Environment
3. Opportunities for Improvement
4. Issues to Consider During Evaluation
5. Funding for the Potential Pelham School System
6. Summary
7. Discussion, Questions and Feedback
High-Level Issues
1. We are losing a number of our great educators to nearby school districts that offer
slightly higher salaries, fewer classes each day, fewer students in their classes
and better working conditions.
2. We compete with some of the best schools in Alabama and our students have to
compete with their students on all levels.
3. The schools located in Pelham are very poorly located for many Pelham residents
and the SCBOE has stated that they cannot consider this issue for at least three to
five years.
4. Some schools need extensive maintenance and cleaning.
5. Real estate professionals are steering young families away from Pelham and many
current residents have moved or are considering moving to neighboring areas –
this is clearly having an economic impact on our city.
6. Pelham’s economy is very interrelated with our schools and just the possibility of
improving our schools has generated additional interest/excitement from
developers.
7. Interest rates are very likely to continue increasing over the next few years so we
have a window of opportunity to consider how we can best turn around the
current momentum and minimize the impact.
8. Any solution has to consider the Pelham children participating in certain
programs and currently attending schools in Chelsea.
9. There could be significant benefit from keeping more of our taxes in
Pelham and determining the priorities for our children and schools
including how these decisions impact the city as a whole.
Map of Pelham and Related Schools
Travel To Riverchase From Chelsea Area
Travel To Riverchase From Ballantrae
Pelham Children Attending SCBOE Schools
Valley Elementary
Valley Elementary Campus
Valley Elementary is not at a good location to serve the entire city
and is squeezed into a small campus. The aging cafeteria is on the
far south end of the school and the one ball field was replaced with a
bus parking lot as part of the 2010 addition.
Valley Elementary Playground
The bordering neighborhood leaves basically no significant
area for the redevelopment of this campus that is only
slightly more than half the size of the other primary school
campuses in Pelham.
Valley Intermediate
Valley Intermediate - Portables
Valley Intermediate – Another Portable
Linda Nolen Learning Center
Linda Nolen Learning Center
Riverchase Middle
Very bad location even for most who live relatively
close because of traffic patterns – also in need of
general maintenance
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Riverchase Middle
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Riverchase Middle – Main Entrance
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Pelham High
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Pelham High
Pelham High
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Pelham High
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Pelham High
E-Government
Applications &
Systems
Integration
Application &
Database
Design and
Development
Disaster
Recovery &
Business
Continuity
Planning
Information
Security &
Risk
Management
Content
Management
Solutions
Pelham High
Pelham High
Pelham High
Pelham High
Pelham Children Attending SCBOE Schools
Pelham Population and Growth Trends
City
Pelham
Alabaster
Helena
Chelsea
Calera
2011
Population
21,669
30,779
17,008
10,332
11,791
2000 to 2011
Growth
7,299
8,160
6,714
7,383
8,633
• Since 2000, no new school has been built in Pelham
although the city has grown significantly.
• During this time, two new schools have opened in Calera,
Chelsea and Helena.
• A third new elementary school is currently under
construction in Chelsea and a new high school is
currently under construction in Helena.
Potential Opportunities for Improvement
1. Programs that allow for strong collaboration and integration among all Pelham
schools and provide a seamless transition for students as they move from one
school to the next school
2. Development programs that focus on our students’ specific needs and efforts to
ensure that our schools serve both our students and our community as a whole
3. Programs to increase our students’ confidence with the technology that they will
likely need after graduation – encourage the integration of new devices in the
learning experience for more real world training
4. As a smaller city system, we would be eligible for more technology grants and
could investigate providing students e-readers/tablets or laptops via grants adding e-reader textbooks as books need to be replaced would be a very viable
option for keeping textbook costs low and some systems are awarding tablets and
laptops to students based on attending those first days of school when attendance
establishes funding
5. Community Career Fair with local businesses and professionals invited into the
high school each February to review student resumes, share about their careers,
conduct mock interviews or real interviews offering internships and real job
opportunities if they feel so inclined
6. Incorporate our Fine Arts programs into the community by having a community
theatre and a Pelham Arts Council
More Potential Opportunities
1. More AP classes, an ACT prep class during 7th period study time at school and the
ability to allow teachers and teacher leaders an opportunity to create curriculum
based on Quality Core (ACT) standards resulting in higher ACT scores and more
scholarship money for our students
2. Community service opportunities that pair high school kids with younger students
for reading tutoring or homework help after school
3. Working together as a community to pair our high school students with our senior
citizens for the Legacy Project and other opportunities for our generations to work
together for the good of our entire community
4. Dual enrollment with local colleges
5. Design and development initiative for a new K-5 elementary school for east of I-65
(very likely on Hwy 11) - reevaluate dedicated Weatherly/Ballantrae property
6. Redesign and convert Valley Elementary to an enlarged K-5 facility and campus
7. Consider the enlargement and conversion of Valley Intermediate to a much more
centrally located middle school
8. Complete significant maintenance and cleaning efforts for Pelham High School,
also consider other opportunities to improve faculty, staff and student pride in
their school
9. Potentially include a central office at PHS for a Pelham City School System
10. Evaluate options to sell Riverchase Middle School
Sample Elevation of New K-5 School
Sample New K-5 School Campus Layout
Potential Revisions for Valley Elementary
Valley Intermediate Potential Conversion
Some Issues to Consider During Evaluation
1. Child nutrition, special education services (including gifted and
Advanced Placement instruction), psychometrist and testing
services including test preparation, career/technical education,
fine arts, extracurricular activities, after school care, summer
camp and use of facilities for community education offerings
2. The use of the Linda Nolen Learning Center as a special needs
school in partnership with the Alabaster and Shelby County
School System
3. Ongoing vocational training for enrolled Pelham students
4. Teacher/administration training programs
5. Opportunities for teachers, administrators and other support
staff
Rumors and Myths
1. Pelham would have to buy the schools located in Pelham
2. Pelham would have to take money away from city employees and
services to fund a city school system
3. Pelham does not have the tax base (property or sales) to have its own
city school system
4. Everything is still great at our schools
5. This is about power and money (it is about the children of Pelham and
absolutely the city as a whole)
6. All of the Chelsea area (Pelham) students are going to be forced to go
to “Pelham Schools” this August when we vote for a Pelham School
System tonight
7. Pelham would need the Pelham students attending Chelsea schools to
make a school system work for the rest of Pelham
8. Pelham has the best of both worlds because we receive taxes from 36
and 336 residents but do not have to fund the schools the related
children attend
Pelham Kids Attending Chelsea Schools
1. There is no statute expressly prohibiting children who live within a city
with a city school system from attending county schools.
2. Children living within city limits of a city school system are not statutorily
prohibited from attending county schools (Phenix City Bd. of Educ. v.
Teague, 515 So. 2d 971).
3. We would not recommend that any of the Pelham kids living in the 36 and
336 area and currently attending Chelsea Schools transfer to schools in
Pelham.
4. If a Pelham School System is established, we would recommend that the
applicable residents have the ability to be included at some point in the
future if it eventually makes sense.
5. The Shelby County Board of Education would have to approve the related
children continuing to attend the Chelsea area schools.
Alabaster Transition Plan
Review of Feasibility Study Findings
Table 5-27
Local Tax Based Revenues Net of Required State Matches
Pelham Estimated
Shelby County
Category
Amount
Budgeted Amount
Ad Valorem Taxes
$
10,232,435 $
71,150,000
Sales and Use Taxes
$
1,302,547 $
10,800,000
Other Taxes
$
139,410 $
1,397,576
City Council Appropriations
$
135,000
included above
Total
$
11,809,392 $
83,347,576
Subtract Foundation Program Match
$
(3,858,296)
(23,444,520)
Subtract Capital Purchase Match
$
(401,823)
(2,431,708)
Net Unrestricted Local Taxes
$
7,549,274 $
57,471,348
Foundation Program ADM
3,429.10
28,432.20
Unrestricted Local Taxes Per ADM
$
2,201.53 $
2,021.35
Pelham 1% Schools Sales Tax Alternative
SALES & USE TAX
TOTAL 3% SALES
TOTAL POTENTIAL 1%
FISCAL YEAR
AUTO (1%)
& USE TAX
ADDITIONAL FOR SCHOOLS
2008
$1,275,061
$14,643,801
$4,881,267
2009
$1,310,066
$12,846,814
$4,282,271
2010
$1,369,542
$12,592,542
$4,197,514
2011
$1,704,538
$12,557,402
$4,185,801
2012
$1,519,744
$13,872,280
$4,624,093
2013-YTD April
$267,944
$8,834,547
$2,944,849
2013-Projected
4.6% Estimated Increase Based on April YTD Totals$4,836,802
Review of Feasibility Study Findings
Category
Shelby County
Budgeted Total
Revenues*
Percent of
Total
Pelham City
Estimated Total
Revenues
Percent of
Total
Federal
State
Local
$
$
$
13,857,654
112,206,128
83,850,789
6.57%
53.23%
39.78%
$
$
$
1,998,695
15,116,406
14,746,495
6.23%
47.09%
45.94%
Other Local
$
871,109
0.41%
$
240,897
0.75%
32,102,494
100.00%
Total
$
ADM
Revenues Per ADM
210,785,679
100.00%
$
22,858.02
3,429.10
9,221.52
$
9,361.78
Additional 1% Sales Tax
Revenue Estimate
N/A
$
4,836,802
Total Est Revenue
Including 1% Sales Tax
N/A
$
36,939,295
9,221.52
$
10,772.30
Revenues Per ADM
$
$
Est Pelham
Schools vs
SCBOE Rev
101.52%
116.82%
* Amended after March 4, 2013 approval by Alabama State Department of Education to estimate impact of Alabaster's
separation from Shelby County Schools
Debt That Would Be Assumed
PELHAM SCHOOLS 10-YEAR LOAN OPTION FOR ASSUMED DEBT
INCLUDES $12.9M DEBT REMAINING JULY 2014
Approximate Assumed Debt Using 7/1/2014 as Sample Date
10 Year Fixed Loan Terms Assumed @
$12,900,000
1.80%
TOTAL ANNUAL PAYMENTS
$1,410,546
1995 Capital Purchase Allocation Funds Available for Pelham Schools ~
$1,064,478
REMAINING FOR PELHAM SCHOOLS TO FUND
SCBOE Budget for Capital Purchase/ADM
$346,067
$294.74
ADM 3,429
PELHAM SYSTEM ANNUAL SURPLUS COMPARED TO SCBOE BUDGET
$1,010,663
$664,596
* Total debt per ADM related to the Pelham schools should be slightly more than half
SCBOE average by July 2014 and the ~$2.8M debt service should drop to under $500K
if these debt payments are not spread out via a new capital investment program
Review of Feasibility Study Findings
Potential Additional Expenses and Adjustments
Annual Amount
General Administrative Services
$
250,000
Transportation Operations
$
225,000
Allowance for $40M in New Construction/Facility Upgrades
$ 2,662,008
Eight Additional Teacher Units
$
642,000
Adjustment for Assumed Debt Service Refinancing
$
(650,000)
Total Net Estimated Additional Expenses
$ 3,129,008
Total Estimated Additional Revenue
$ 5,317,783
Summary
• We have the opportunity to significantly improve our
programs and greatly enhance our facilities, which
history shows should greatly benefit the city as a whole
• There are issues that would have to be addressed to
make this positive in both the short-term and long-term
• With the funds available today, a Pelham City School
Board should have some, but minimal additional money
to improve programs focused on our specific needs
• With the money that would be available via an additional
1-cent sales tax (putting us even with our neighbors),
we would have the opportunity to significantly enhance
our facilities and programs helping to change how we
compete for residents and businesses
• Many people talk about our issues, but overlook the
interdependencies between issues
• We have to decide if we want the status quo or if an
economic turnaround is an important objective
Discussion, Questions and Feedback