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NCTC Analysis

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We are quite willing to show our numbers and analysis.
Below you will find a PDF and Excel version of a spreadsheet we did to analyze the NCTC Bond.  We will also include a spreadsheet summarizing NCTC's cash position and their actual documents so you can see it for the last 14 months with your own eyes.
We also want to explain how a bank with NCTC deposits that uses them to buy the $14.8 Million bond could make the $592,000 in interest profit the first year.  NCTC estimates the bond will pay 5% interest and the bank pays 1% interest on their CD.  NCTC financial statements show that is what First State Bank is paying NCTC on a CD, (they are only paying .04% interest on the remainder of their deposits). The bank is making 4% interest when using NCTC deposits to buy the NCTC Bond or any other bond paying 5% interest.  (5% Interest from the bond - 1% on the CD = 4% profit). If you multiply the $14.8 Million bond by 4%, you get $592,000, the interest spread that could be earned if the bond is sold and FSB keeps the NCTC deposits paying from .04 - 1% interest.  If they are able to use .04% money to buy the bond, then they make even more.

A recent Letter to the Editor said we would need to raise NCTC Tuition from $2,350/yr. to $7,300 a year if we asked Out-of-County students to pay their fair share.  That would be an increase of $4,950.  We believe if NCTC was willing to build a reasonable building, the cost would be about $1200/student/yr., maybe less.  If they build the Showcase building they are asking for, the cost per student once they achieve the 30% growth they are projecting to 400 students would be $2,055/student/yr.  See the Spreadsheet below.  We will make it available in Adobe PDF and Excel so those who don't have Excel can view it.

Click here to view the PDF Version of our Analysis of the NCTC Bond and impact on student tuition.

Click here to see the actual Excel spreadsheet with the above analysis of the NCTC Bond

That Letter also talked about all the tourism dollars those students bring here.  It also mentioned that the majority, 65% were on financial aid as a primary reason it wouldn't be right to raise their tuition. If 65% of those students are on financial aid, (mostly federal Pell Grants), how much spare cash do they have to spend on food and shopping?  Not a lot unless they are getting a big federal government handout. How many of those fast food establishments are locally owned.  Chances are most of the money spent there, or at least the profit is leaving Gainesville vs. being reinvested.
I didn't apply for or receive financial aid when I went to school  I did receive merit based scholarships based on academic achievement.   When I was going to college, I lived in an old studio apartment with a Murphy bed.  I didn't have money for shopping or fast food.  I primarily ate canned beans, corn and beef liver as beef liver was one of the cheapest meat cuts available at the time.  Liver was not my favorite food at home but it provided nutrition and I graduated without owing any money for college. 

A 25 year bond FOR $14.800,000 @ 5% interest will cost a lot of interest over time.  The interest totals about 11.452 Million, ($11,452,000).  That brings the total bond cost to $26.25+ Million to the taxpayers.  Why should we be paying this when NCTC has $25.1 Million in the bank?
Below are links to an Excel amortization spreadsheet showing the total cost of the bond over 25 years.  If you have Excel and download the Excel version, you can change the loan amount to confirm the numbers we calculated in the analysis above.

Click to see bond amortization in a PDF file

Click here to open the NCTC Bond Amortization Excel file. You can change the bond amount, rate or years if you want to do some what-ifs.

Below are links to a PDF version of a spreadsheet showing NCTC Cash on Hand and Reserves as designated by the NCTC Board for August 2012 - September 2013, the latest available.  There is no legal designation as to what the Reserves can be used for.  They are usually used for capital building projects and only require 4 votes of the board to be spent.  The only funds that are restricted are the Debt Service, the MJ Cox Estate and the Scholarship Funds, totalling just over $1,950,000.  The Debt Service covers the next bond payments due which are often required to be reserved by the bond contract.  They seem to stay pretty much the same from month to month with minor variances.
Below the spreadsheet link is a link to the actual Statement of Funds from NCTC's web site covering the past 14 months.  A few were missing from the NCTC web site but they never skipped two months.  Since each has a starting and ending balance, we could easily determine the ending balance for the months the statements were missing.  See them for yourself.  You don't have to take our word for any of this. 
If you want to see them on the NCTC Web Site, click on "Board of Regents" on the bottom of their web page and then click on Agendas.  Most Agendas will have a Financial Report that is a web link.  If you click that link, it should display a financial report for the previous month.  They can range from 4-11 pages.  We extracted the Statement of Funds page since that was the most germane and to keep the summary file small for downloads but feel free to look at them all.  In the small print, you'll see the interest rates paid by First State Bank on various deposits and the CD.  

Click here to see a one page summary of NCTC's Cash on Hand and designated Reserves for Aug 2012 - Sept 2013

Click this to See the NCTC Documents they call "Statement of Funds" showing Cash on Hand and Reserves for months August 2012 - September 2013

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Pol. Ad paid for by, Steve Gaylord, Treasurer