TITLE SIXTEEN

APPENDIX

Education Charters and Agreements

CHAPTER 99

VERGENNES UNION ELEMENTARY SCHOOL DISTRICT

#44

2006 Adoption Note.

1988 Vergennes, Panton and Waltham each voted yes to the following article and final report.

ARTICLE 1

Shall the Vergennes Elementary School, Incorporated/Panton School/Waltham School District, which the State Board of Education has found necessary to include in the proposed Union School District, join with the school districts of Panton and Waltham/ Vergennes Elementary School, Incorporated District, which the State Board of education has found necessary to include in the proposed union school district, for the purpose of forming an Elementary Union School District, as provided in Title 16, Vermont Statutes Annotated, upon the following conditions and agreements.

(a) Class of schools. The Union School District shall operate and manage an elementary school offering instruction in grades Kindergarten through six.

(b) Board of School Directors The Elementary School District Board representation shall see proportioned to the population of each member district and shall be one board member for every 1,000 people in a given district based on the most recent census. The 1980 Census showed the following population:  Panton, 537; Vergennes, 2,273; and Waltham, 394. The representation shall be subject to reapportionment following each decennial census. The initial representation shall be as follows:  Vergennes, 3; Panton, 1; and Waltham, 1.

(c) Apportionment of expenses. Capital and operating expenses of the Union Elementary School District, including payments under Paragraph 8a of the final report, shall be allocated between member districts on a per student basis, using the enrollment of legal students who are residents of the member districts as of October 15 of the preceding year. Such capital and operating expenses shall be separately stated in each annual assessment. Enrollment, as used herein, means legal students who should be attending grades kindergarten through six at public expense.

(d) Assumption of debts and ownership of school property. The Union School District shall assume the indebtedness of member districts, acquire the school properties of member districts, and pay for them, all as specified in the final report. In order to facilitate the formation of the union school district, the voters of Vergennes shall authorize the Vergennes Prudential Committee to permit the purchase of the Vergennes Elementary School by the Union School of the Vergennes Elementary School by the Union School District for the amount of $1,694,400.00, plus $151,250.00 which is Vergennes' equity in the new addition, and to extend equity credit to Panton and Waltham school districts as set forth in the final report with the result that the share of the Town of Waltham School District shall be all equity credit, and the share of the Town of Panton School District shall be equity credit plus approximately $110,000.00 to be paid without interest, approximately $15,000.00 per year for the first two years, and approximately $10,000.00 per year for the eight years thereafter. The exact figures shall be computed as set forth in the final report.

(e) Final Report. The provisions of the final report approved by the State Board of Education on the 15th day of August, 1988, which is on file in both the city Clerk's office and School District Clerk's office, shall govern the Union District.

Final Report

1. The School Districts necessary to establish the Union Elementary School District are Vergennes, Panton and Waltham. This would include all of the Panton students now attending the Addison School.

2. No additional districts are considered advisable, due to the size of the proposed facility.

3. The Union Elementary School District will continue to operate at the same level as the present Vergennes Elementary School, Kindergarten through 6.

4. No new schools are to be constructed.

5.a. At first, transportation could continue to be handled by each community. Studies will be initiated to determine whether transportation could be handled through a more economical, larger district organization.

b. The teaching staff will be basically the Vergennes Elementary School staff plus additional staff as needed. The teaching staff will continue to be employed under contract with the Addison Northwest District.

c. The curriculum, as presently offered by the Vergennes Elementary School, will be expanded to meet the needs of new educational programs.

d. The Union shall be responsible for all required special education students residing in the member districts.

6. The Union Elementary School District shall assume all the rights and liabilities of the Vergennes Prudential Committee relating to the Vergennes Elementary School building except the bonded indebtedness for the 1987 addition.

7. The Union Elementary School District will acquire the Vergennes Elementary School, including the new, 1987 addition. As of June 30, 1989, the financial status of the Vergennes Elementary School is expected to be as shown below:

Pre 1987 Elementary School

Appraised value $1,694,400, no Capital Debt

1987        Addition to Elementary School

Total bonded indebtedness  $820,000

Amount retired by 6/30/89   $151,250

Net indebtedness, 6/30/89  $668,750

*Estimated

The debt-free part of the Vergennes Elementary School, pre 1987 addition, will be purchased by the Union Elementary School District from the Vergennes Prudential Committee for cash. Each member district will pay a share of the cost, based on their projected student attendance in the Union School, projected as of June, 1989. This will be a paper transaction of 51,634,400, based on the Benton appraisal. The following example shows a set of figures based on June, 1988 best estimates.

(a) A payment of $1,694,400 to the Prudential Committee of Vergennes, from the Union Elementary School District.

(b) A payment from the Prudential Committee of Vergennes, to the Union Elementary School District of $1,694,400. This will be shown as Union buy-in costs, divided as shown, and based on June, 1988 best estimates, would be as follows.

1,172,524.3                 or 69.2 %         from          Vergennes

136,384                       or 11 %            from          Waltham

335,491.2                    or 19.8 %         from          Panton

1,694,400.0                 TOTAL

The Waltham share will be equity credit, based on the pre 1987 Waltham student attendance of 11.1% at the Vergennes Elementary School. This shall not exceed their buy-in cost to enter the Union.

The Panton share will be made up of $233,657.76 in equity credit, based on pre 1987 Panton student attendance of 13.79%, at Vergennes, and a $101,833.44 loan to Panton from the Prudential Committee of Vergennes. This loan to be repaid over a ten-year period with no interest.

The Union Elementary School District will also pay the Vergennes Prudential Committee $151,250 to cover the retired part of the bonded indebtedness of the 1987 addition. This will be a paper transaction of $151,250. The following example shows a set of figures based on June, 1988 best estimates.

(c) A payment of $151,250 from the Union Elementary School District to the Vergennes Prudential Committee.

(d) A payment from the Vergennes Prudential Committee to the Union Elementary School District of $151,250. This will be shown as Union buy-in costs, divided as shown, and based on June, 1988 best estimates, would be as follows:

104,655           or 69.2 %         from          Vergennes

16,637.5          or 11 %            from          Waltham

29,947.5          or 19.8 %         from          Panton

151,250           TOTAL

The Waltham share will be equity credit based on the Waltham student attendance of 11% at Vergennes during the period that part of the 1987 addition debt was retired. The attendance figures will be finalized in June, 1989.

The Panton share will be made up of $20,872.50 in equity credit, based on Panton student attendance of 13.8% at Vergennes during the period that part of the debt on the 1987 addition was retired, and a $9,075 loan to Panton from the Prudential Committee of Vergennes. The attendance figures will be finalized in June, 1989. This loan to be repaid over a two-year period with no interest.

The pre-1987 Vergennes Elementary School attendance figures are 5 year averages. The projected 1987 to 1989 and Union attendance figures are June, 1988, best estimates. Firm figures, very close to those quoted, will be available in June, 1989 for use in the final financial transactions.

The Vergennes Prudential committee shall convey the Vergennes Elementary School including the 1987 addition, its contents and 14 acres of grounds to the Union Elementary School District. The 14 acres of grounds are described on a plat filed in the Vergennes City Hall. interest in these premises shall be transferred by deed, creating a fee interest which is subject to condition upon the first to occur of the dissolution of the Union Elementary School District, or the failure of the Union Elementary School District to make payments required under Paragraph 8. At that time the Vergennes Prudential Committee shall have the right to enter and reclaim the premises, without any action in the nature of a foreclosure or otherwise. In the event that the Union Elementary School District is dissolved, the Vergennes Prudential Committee shall pay to the towns of Panton and Waltham, amounts equal to their contributions to the Union Elementary School District Capital payment under Paragraph 8. No interest shall be included in the payment. In the event that the Union Elementary School District is dissolved, any outstanding loans from the Vergennes Prudential Committee will be considered due and payable.

8. Capital and operating expenses of the Union Elementary School District, including payments under Paragraph 8a, shall be allocated between member districts on a per pupil basis, using the enrollment of legal students who are residents of the member districts as of October 15 of the preceding year. such capital and operating shall be separately stated in each annual assessment. "Enrollment", for purposes of this Agreement, means legal students who should be attending grades kindergarten through public expense.

a. In order to pay existing debt obligations, indebtedness defined in Paragraph 7, the Union Elementary School District shall make capital payments to the Vergennes Prudential Committee on or before November 1 of each year from 1990 through 2006 in an amount equal to the obligation of the Vergennes Prudential Committee due to its bondholders on the following December 1 under its 1986 series bonds issued through the Vermont Municipal Bond Bank. The Vergennes Prudential Committee shall retain its existing obligations under these bonds.

b. If the Union Elementary School District should sell or otherwise dispose of the elementary school, payments will be made to the Vergennes Prudential Committee, Panton School District and Waltham School District, after first paying to the Vergennes Prudential Committee an amount equal to any remaining principal on its 1986 series bonds issued by the Vermont Municipal Bond Bank. The amount distributed to the Vergennes Prudential Committee shall be $1,694.40, the 1987 appraised value of the original elementary school with equity credit to Panton and Waltham rescinded, plus capital payments made to the Union District under this Agreement. Payments to Panton and Waltham will include only capital payments made to the Union District. Upon that sale or disposition, the reversionary interest of the Vergennes Prudential Committee shall be extinguished.

9. The Elementary School District Board representation shall be proportioned to the population of each member district. One Board member for every 1000 people in a given district based on the most recent census. The 1980 Census showed the following population:  Panton  537, Vergennes  2,273 and Waltham 394. The representation shall be subject to reapportionment following each decennial census. The initial representation shall be as follows:

Vergennes  3 members; Panton  1 member; Waltham 1 member. Annually, one member shall be elected Chair by the Board and shall be a non-voting member, except when necessary to break a tie.

10. The terms of office of the Union Elementary School District Board members shall be as follows:

The City of Vergennes will have 3 board members who will serve three year terms upon the establishment of the following schedule.

The Towns of Panton and Waltham shall each have 1 Board member who will serve three year terms upon the establishment of the following schedule:

1988                                                           1 Vergennes (1 yr. Term)

1 Panton                      1 Vergennes (2 yr. Term)

1 Waltham                  1 Vergennes (3 yr. Term)

1989    0 Panton     0 Waltham                   1 Vergennes (3 yr. Term)

1990    1 Panton     0 Waltham                   1 Vergennes (3 yr. Term)

1991    0 Panton     1 Waltham                   1 Vergennes (3 yr. Term)

11. The Union Elementary School District proposal shall be submitted to the voters of the City of Vergennes and the Towns of Waltham and Panton on November 8, 1988.

12. The Union Elementary School District shall be named by the Union Board following suggestions from the students after approval of the Union Elementary School District.