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NCTC has called their third bond election since 2011.  This one is substantially less @ $14.8 Million and is focused on Health Sciences and what we call blue collar Vocational Training.  We agree these should be high priority focus areas for NCTC.  
 
We don't agree that they should be built at a cost of $257/SF.  We think $150/SF should build a very nice two story building.
 
We further question why when NCTC has more than $25 Million in the BANK including more than $10 Million in Reserves, why they think the taxpayers need to pay the full cost of a $14.8 Million facilities upgrade through a tax bond.  Why don't they use their own money first? Reserves are normally used for facilities projects.
 
Perhaps Mr. Morris and the banks like it since they are paying .04% interest on NCTC deposits and 1% on a NCTC CD per NCTC's financial statements, (see link below).  Per NCTC's estimate taxpayers are expected to pay 5% interest on the bonds.  Wouldn't that be a great deal for a bank to buy NCTC's bonds @ 5% interest using NCTC funds on deposit that they are paying .04% to 1% interest?  That sounds like a profit of up to 12,500% if my math is correct.  We estimate a local bank that has NCTC's deposit contract could make $592,000 or more on that spread in just the first year of a $14.8 Million bond.  Anyone know a banker that would like to take that deal??
 
Thirdly we question why Cooke County Taxpayers should pay 100% of the cost when we only have one in ten Health Science Graduates and one in six students overall in Health Sciences in Gainesville, per NCTC reports.  Why shouldn't the students coming from Denton and other counties contribute something to the cost of the facility improvements?
 
Fourth, we question why we are spending almost $12 Million, ($11,585,000), on a building that will service about 300 students.  That translates into almost $40,000/student.  Perhaps the thought expressed that the space is unaffordable to the large majority of out-of-county students if they paid their fair share in increased tuition, reflects that it is priced too high and needs to be lowered to keep it affordable.
 
Fifth, in looking at the plans, we are looking at six classrooms, 7 labs + 2 computer labs and a simulation center totaling a little under 21,000 SF.  Even if that needs to be $257/SF, why does the other 24,000 SF need to be that expensive for offices, conference rooms and a student lounge?  If you divide the cost by 15 rooms, (classrooms and labs including the simulation center), we are looking at $772,000 per learning room.  That seems awful high.
 
We do agree that  it would be good to add to the vocational training center and while we don't have numbers, we believe a significant majority of students are from Cooke County.  While we might want to examine the cost a little, it is lower than Health Sciences per SF.  We wish that NCTC had given the citizens to vote on it separately vs. make it an all-or-nothing bond election.
 
Below is a link to the latest NCTC Financial Reports we downloaded from their web site.  We will provide just the page that shows the amount of funds on hand, page 3 of the report.  We will also provide a link to the NCTC web site to see the full report.
 

Link to NCTC Statement of Funds 9-30-13 showing more than $25 Million, ($25,000,000) in the Bank

Link to NCTC Web Site for 9-30-13 Financials

NCTC Nursing Graduates 2012 - 2013 Report provided by NCTC, Dr. Hadlock

NCTC Nursing Enrollments 2013 - Report provided by NCTC, Dr. Hadlock

NCTC Overall Fall 2013 Enrollments from NCTC Web site. (Content is the same as NCTC web site but we compressed the file to load faster.)

Below is a presentation that summarizes the original NCTC Bond issues and copies of some past Letters to the Editor.

Here a few charts on the first NCTC Bond

These are NCTC's summary enrollment charts for Fall 2010 and Spring 2011.

The students on the NCTC enrollment charts listed as In-District are either from Cooke County or Graham. To get to a total of Cooke County students, I subtracted the Graham Campus In-District students from the total In-District students.  These charts came from the NCTC web site under Board of Regents.  They are unchanged other than I combined two separate pages into one file.

This is a larger report showing NCTC enrollment trends by campus. These are directly from NCTC's web site under Board of Regents. This is 15 pages so it may take a little while to download.

This three page report is from the NCTC Board Meeting where they voted to call the Nov 2013 Bond Election.

This chart was provided by NCTC for the Spring Bond Election.  We haven't seen NCTC provide an update for the Fall Bond Election, the costs may be slightly lower although from what we've seen, they have moved around a little.

This is the Spring 2011 one page report from Southwest Securities I obtained from NCTC showing estimated bond payments and tax rates.

NCTC has lowered the estimated tax rate from more than $7 per month to $6 per month or less for the November election.  We couldn't figure out how they did this since they are using the same interest rates in their projections and the bond amount wasn't lowered that much.   Upon asking the college, they sent a new document estimating tax rates.  To get a 17% reduction in the estimated tax rate, they assumed a certified tax base of $3 billion up from $2.625 billion in early 2011.  There are a couple problems with that estimate.

Please see the link below for more discussion of these discrepancies.

Click to see our analysis of the tax impacts of the NCTC Bond

Latest NCTC estimate on bond payments and tax rates from Southwest Securities

NCTC Polling Locations

The links below are Letters to the Editor that appeared in local papers.

Letter to Publisher of the Gainesville Register

Letter to the Editor published by the Lindsay Letter

Letter to the Weekly News of Cooke County with key questions to ask about the NCTC Bond

Gainesville Register article on how much NCTC Taxes will go up


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Pol. Ad paid for by www.cookecitizens.org, Steve Gaylord, Treasurer