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.