E L E C T I O N 1 7. Informational Pamphlet. Folleto Informativo. Kyrene Elementary School District No. 28 of Maricopa County, Arizona

(1)

E

L

E

C

T

I

O

N

’

1

7

Kyrene Elementary

School District No. 28

of Maricopa County, Arizona

SPECIAL ELECTION

November 7, 2017

Compiled and issued by STEVE WATSON,

Maricopa County School Superintendent (Spanish version begins on page 40)

Distrito Escolar Primario

Núm. 28 de Kyrene del

Condado de Maricopa, Arizona

ELECCIÓN ESPECIAL

El 7 de noviembre de 2017

Recopilado y publicado por STEVE WATSON,

Superintendente de Escuelas del Condado de Maricopa (La versión en español empieza en la página 40)

Folleto Informativo

Informational Pamphlet

(2)

(3)

TO THE VOTERS OF THE DISTRICT

On Tuesday, November 7, 2017, the voters of Kyrene Elementary School District No. 28 (“the District”) will have the opportunity to decide important ﬁscal matters for the District. First, you will be asked to authorize the issuance and sale of not to exceed $116,950,000 principal amount of ad valorem tax bonds of the District in the form of class B general obligation bonds and related matters. Your responsibility will be to indicate whether you believe authorization for the District to issue these bonds should be approved or should not be approved.

Next, you will have the opportunity to decide the level of expenditures in the District. Arizona law places restrictions on how much a school district may spend in each ﬁscal year without procuring explicit approval of the District’s voters in an election. Your responsibility will be to indicate whether you believe the District should operate within existing expenditure limitations or be allowed to exceed the limitation.

This information pamphlet has been prepared in order to provide voters with factual information regarding this special election. Please study the materials contained in this booklet carefully so you will be informed regarding your decisions on these issues.

Sincerely,

Steve Watson Maricopa County School Superintendent

(Information Pamphlet publication is mandated by Arizona Revised Statutes §§ 15-481, 15-491, 15-492 and 35-454. School districts are mandated to distribute information pamphlets to all households within the district in which a qualiﬁed elector resides.)

(4)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 BOND ELECTION

NOVEMBER 7, 2017

A STATEMENT FROM THE DISTRICT AS TO WHY THE SPECIAL BOND ELECTION HAS BEEN CALLED

The Governing Board of Kyrene Elementary School District has called this special bond election to provide for funding for safety, security and the upgrade of aging buildings.

The Kyrene School District utilizes bond funds to support implementation of the Capital Improvement Plan (CIP). The primary use of the bond proceeds is in supplying and upgrading transportation, technology equipment and accessories. It is important to understand that some of the systems and/or projects included in the CIP will go beyond their estimated life expectancy and be scheduled to later years. Conversely, some equipment will fail prematurely or facility conditions will warrant attention earlier than anticipated. For those reasons, the CIP is dynamic and reﬂects the current needs of the District.

The District reports annually to the Governing Board on the status of the CIP, which can be found at https://www.kyrene.org/Page/31327.

If approved, these bond funds will be used to address CIP projects as needed:

• Structural improvements • Instructional resources

• Student safety and security systems • Electrical and lighting systems • Communications systems • Energy management systems • Pupil Transportation

• Rooﬁng and skylight systems

• Heating, ventilation and air conditioning systems • Playgrounds and ﬁelds

• Shade structures • Flooring

• Plumbing systems • Parking lots • Bleachers

(5)

K Y R E N E E L E M E N T A R Y S C H O O L D IS T R IC T N O . 2 8 B O N D E L E C T IO N N O V E M B E R 7 , 2 0 1 7 3 UR MH FW HG 3 UR MH FW HG & R P E LQ HG 1 HW / LP LWH G ) LV FD O $ VV HV VH G 7 D[ ( VW LP DW HG 7 D[ 7 D[ < HD U 9 DO XH E 3 ULQ FL SD O ,Q WH UH VW F & RP EL QH G 5 DW H G 3 ULQ FL SD O ,Q WH UH VW H & RP EL QH G 5 DW H G & RP EL QH G 5 DW H G $ YH UD J H $ G G LW LR Q DO 7 D[ 5 DW H S HU $ VV HV VH G 9 DO X H D $ VV XP HV E RQ GV LV VX HG LQ WK UH H VH ULH V IU RP WK UR XJ K R U DV Q HH GH G IR U FD SL WD OL P SU RY HP HQ WV E ) LV FD O\ HD U LV D FW XD OD V UH SR UW HG E \ WK H $ UL] RQ D ' H SD UW P HQ WR I5 HY HQ XH ) LV FD O\ HD UV WK UR XJ K DV VX P H J UR Z WK 6 XE VH TX HQ W\ HD UV D VV XP H J UR Z WK $ OV R LQ FO XG HV 6 DO W5 LY HU 3 UR MH FW LQ OL HX Y DO XD WLR Q IR U ILV FD O\ HD U D QG IX WX UH \ HD UV D VV XP H QR J UR Z WK F ,Q WH UH VW LQ FO XG HV IH GH UD OV XE VL G\ S D\ P HQ WV UH GX FH G E\ WR E H UH FH LY HG G ) LV FD O\ HD U WD [ UD WH Z DV 7 KH E RQ G WD [ UD WH V DU H SH U R IQ HW D VV HV VH G YD OX DW LR Q IR U WD [L QJ S XU SR VH V DQ G G RH V QR WL QF OX GH H [F HV V FD VK L QW HU HV WH DU QL QJ V D UE LWU DJ H UH E DW H RU GH OLQ TX HQ WW D[ F RO OH FW LR QV LI DQ \ 6 XE VH TX HQ W\ HD UV D UH S UR MH FW HG WD [ UD WH V H ,Q WH UH VW LV H VW LP DW HG D W WR IR U DO OE RQ GV S UR SR VH G WR E H LV VX HG P ay m en t S ch ed u le f o r D is tr ic t' s O u ts ta n d in g B o n d s an d t h e P ro p o se d B o n d s 6 FK R R O, P S UR YH P HQ W % R Q G V WR E H ,V VX HG D % R Q G V & X UU HQ WO \ 2 X WV WD Q G LQ J

(6)

NOVEMBER 7, 2017 ESTIMATED TAX IMPACT

The following tables illustrate the estimated annual and monthly cost to taxpayers, including principal and interest, based on varying types of property, property values and assessed values. To determine your estimated tax increase, refer to your property tax statement which identiﬁes the speciﬁc assessed value of your property.

ESTIMATED AVERAGE ANNUAL BOND TAX RATE PER $100 OF ASSESSED VALUATION: $0.3663

RESIDENTIAL PROPERTY (Assessed at 10% of value) Value

for Tax Assessed Estimated Average Estimated Average Purposes (a) Value Annual Cost (b) Monthly Cost (b) $238,270 (c) $23,827 (c) $87.27 $7.27 100,000 10,000 36.63 3.05 The tax impact over the term of the bonds on an owner-occupied residence valued by the County Assessor at $250,000 is estimated to be $100 per year for 23 years, or $2,300 total cost. (d)

COMMERCIAL PROPERTY (Assessed at 18% of value) Value

for Tax Assessed Estimated Average Estimated Average Purposes (a) Value Annual Cost (b) Monthly Cost (b) $1,648,472 (c) $296,725 (c) $1,086.77 $90.56 1,000,000 180,000 659.26 54.94 The tax impact over the term of the bonds on commercial property valued by the County Assessor at $1,000,000 is estimated to be $719 per year for 23 years, or $16,537 total cost. (d)

AGRICULTURAL OR OTHER VACANT PROPERTY (Assessed at 15% of value)

Value

for Tax Assessed Estimated Average Estimated Average Purposes (a) Value Annual Cost (b) Monthly Cost (b) $74,973 (c) $11,246 (c) $41.19 $3.43 100,000 15,000 54.94 4.58 The tax impact over the term of the bonds on agricultural or other vacant property valued by the County Assessor at $100,000 is estimated to be $60 per year for 23 years, or $1,380 total cost. (d) (a) Value for tax purposes if the limited value of your property as it appears on your tax bill and does not necessarily represent the market value. This value cannot increase by more than 5% from the prior year if the property has not changed. For commercial property, only locally assessed property is subject to this limit.

(b) Cost based on the estimated average bond tax rate over the life of the bond issue and other ﬁnancing assumptions which are subject to change.

(c) Estimated average value of owner-occupied residential properties, commercial properties or agricultural or vacant properties, as applicable, within the Issuer as provided by the Arizona Department of Revenue. (d) Assumes the net assessed valuation of the property changes at the lesser of 5% or half the rate of

(7)

FINANCIAL INFORMATION

The Kyrene Elementary School District No. 28 (“District”) is requesting a bond authorization of $116,950,000. The District has a 2017/2018 constitutional debt limit of approximately $358,137,089 and has approximately $185,475,000 aggregate principal amount of general obligation debt outstanding.

ESTIMATED BOND ISSUE COST TO TAXPAYERS

If the November 7, 2017 bond election is successful, the District expects to sell bonds by means of a phased bonding program conducted over the next six years. The estimated costs of issuance associated with each sale of bonds is approximately $75,000. The interest rate borne by the bonds would be determined by market conditions that exist at the time of sale, but in no event would the maximum interest rate on the bonds exceed 10% per annum. Repayment of both principal and interest on the bonds would occur over a period of not to exceed twenty (20) years from their issuance. The estimated total cost of the proposed bond authorization, including principal and interest, is $202,293,375.

The bonds will be repaid from a levy of ad valorem property tax on all taxable property within the District.

(8)

K Y R E N E E L E M E N T A R Y S C H O O L D IS T R IC T N O . 2 8 B O N D E L E C T IO N N O V E M B E R 7 , 2 0 1 7 S T A T E O F A R IZ O N A S C H O O L F A C IL IT IE S B O A R D C A P IT A L P L A N E X E C U T IV E S U M M A R Y D is tr ic t: K y re n e E le m e n ta ry S c h o o l D is tr ic t C T D : 0 7 0 4 2 8 A .R .S . § § 1 5 -4 8 1 a n d 1 5 -4 9 1 p ro v id e t h a t th e i n fo rm a ti o n a l re p o rt p re p a re d b y t h e c o u n ty s c h o o l s u p e ri n te n d e n t p u rs u a n t to a n e le c ti o n t o e x c e e d d is tr ic t a d d it io n a l a s s is ta n c e f o r c a p it a l p u rp o s e s o r to i s s u e c la s s B b o n d s o r Im p a c t A id R e v e n u e b o n d s f o r a s c h o o l d is tr ic t c o n ta in a n e x e c u ti v e s u m m a ry o f th e d is tr ic t’ s m o s t re c e n t c a p it a l p la n a s s u b m it te d t o t h e A ri z o n a S c h o o l F a c ili ti e s B o a rd . T h e f o llo w in g e x e c u ti v e s u m m a ry c o n ta in s t h e d is tr ic t’ s N e w C o n s tr u c ti o n r e q u e s t a s s u b m it te d i n i ts S e p te m b e r 1 , 2 0 1 6 C a p it a l P la n , th e d is tr ic t re v is io n o f th a t p la n ( if a p p lic a b le ), a n d t h e N e w C o n s tr u c ti o n p ro je c ts c o n c e p tu a lly a p p ro v e d f o r th e d is tr ic t b y t h e S c h o o l F a c ili ti e s B o a rd a s o f J u n e 1 , 2 0 1 7 . S e p te m b e r, 2 0 1 6 D is tr ic t S u b m it ta l D is tr ic ts w e re r e q u ir e d t o s u b m it a 2 0 1 7 c a p it a l p la n t o t h e S c h o o l F a c ili ti e s B o a rd b y S e p te m b e r 1 , 2 0 1 6 i f th e d is tr ic t b e lie v e d t h a t a d d it io n a l s q u a re f o o ta g e w o u ld b e r e q u ir e d f o r s c h o o ls ( e x c lu s iv e o f d is tr ic t a d m in is tr a ti v e s p a c e ) b y t h e f a ll o f 2 0 2 0 , o r a d d it io n a l la n d f o r n e w s c h o o l fa c ili ti e s w o u ld b e r e q u ir e d b y t h e f a ll o f 2 0 2 6 . T h e r e q u ir e d i n fo rm a ti o n i n c lu d e d a d e s c ri p ti o n o f th e a d d it io n a l s q u a re f o o ta g e r e q u e s te d a n d e n ro llm e n t p ro je c ti o n s f o r th e d is tr ic t. F o llo w in g is a s u m m a ry o f th e a d d it io n a l s q u a re f o o ta g e r e q u e s te d b y t h e d is tr ic t. T h e a d d it io n a l s q u a re f o o ta g e i s s h o w n i n t h e y e a r in w h ic h t h e d is tr ic t re q u e s te d t h e a d d it io n a l s q u a re f o o ta g e t o o p e n . F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0 F Y 2 0 2 1 F Y 2 0 2 2 F Y 2 0 2 3 F Y 2 0 2 4 F Y 2 0 2 5 D is tr ic t d id n ot r eq u es t fu n d in g f or a d d it io n al s q u ar e fo ot ag e in t h e S ep te m b er 2 0 1 6 C ap it al P la n .

(9)

D is tr ic t h a s n o t b e e n c o n c e p tu a lly a p p ro v e d f o r a d d it io n a l s q u a re f o o ta g e b y t h e S c h o o l F a c ili ti e s B o a rd f o r th is t im e p e ri o d . R e v ie w e d a n d A p p ro v e d b y : D a te : /s / P a u l B a k a lis J u ly 7 , 2 0 1 7 E x e c u ti v e D ir e c to r N e w C o n s tr u c ti o n P ro je c ts C o n c e p tu a ll y A p p ro v e d b y t h e S c h o o l F a c il it ie s B o a rd a s o f J u n e 1 , 2 0 1 7 Id e n ti ﬁ e d b e lo w a re t h e n e w f a c ili ti e s c o n c e p tu a lly a p p ro v e d b y t h e S c h o o l F a c ili ti e s B o a rd a s o f J u n e 1 , 2 0 1 7 . T h e c o n c e p tu a l a p p ro v a l o f p ro je c ts d o e s n o t c o m m it f u n d in g , b u t d e m o n s tr a te s t h e p ro je c te d n e e d f o r n e w f a c ili ti e s b a s e d o n c u rr e n t d e m o g ra p h ic p ro je c ti o n s f o r th e d is tr ic t. T h e a d d it io n a l s q u a re f o o ta g e i s s h o w n i n t h e y e a r in w h ic h t h e S c h o o l F a c ili ti e s B o a rd p ro je c ts t h a t th e d is tr ic t w ill e x c e e d c a p a c it y a n d w ill b e e lig ib le f o r th e a d d it io n a l s q u a re f o o ta g e t o b e a w a rd e d . F u n d in g f o r n e w f a c ili ti e s b e c o m e s a v a ila b le i n t h e ﬁ s c a l y e a r fo llo w in g t h e a w a rd , s u b je c t to l e g is la ti v e a p p ro p ri a ti o n . F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0 F Y 2 0 2 1 F Y 2 0 2 2 F Y 2 0 2 3 F Y 2 0 2 4 F Y 2 0 2 5

(10)

PROPOSED CAPITAL IMPROVEMENTS

The following table presents the capital improvements expected to be paid from bond proceeds, the estimated cost of each capital improvement, the estimated average annual tax rate associated with each capital improvement and the estimated cost associated with each capital improvement for the owner of a single family home that is valued at $100,000:

Estimated Annual Estimated Cost to Owner of a Estimated Average Annual Home Valued at Proposed Capital Improvements Costs (a) Tax Rate (b) $100,000 (b)

Non-Administrative Purposes Construct (including new build), remodel,

renovate and improve school facilities, buildings and grounds and other school resources (including supplying and upgrading safety and security, technology,

furniture and equipment) $108,450,000 $0.3398 $33.98 Pupil transportation vehicles and white fleet

(including supplying and upgrading safety and security, transportation technology

and equipment) $4,000,000 $0.0125 $1.25

Subtotal of Non-Administrative

Capital Improvements $112,450,000 $0.3523 $35.23 Administrative Purposes

Construct, remodel, renovate and improve transportation and administrative facilities (including supplying and upgrading safety and security, technology, furniture and

equipment) $4,500,000 $0.0140 $1.40 Subtotal of Administrative

Capital Improvements $4,500,000 $0.0140 $1.40

TOTAL $116,950,000 $0.3663 $36.63 (a) Reflects estimates for construction or acquisition of such improvements, together with all necessary incidental

costs related thereto.

(b) The estimated average annual tax rate and estimated annual cost are based on the average annual tax rate over the life of the proposed bond issue and other financing assumptions which are subject to change.

(11)

ARGUMENTS FOR THE

Arguments represent the opinion of the Author(s)

Valley Interfaith Project (VIP) supports Kyrene School District No. 28 maintenance & operations override. By means of this pro statement we favor two overrides and a bond: First, a $12.8 million maintenance & override to expire in 2021, for employee/teacher compensation and other Instruction support programs; Second, a $6.8 million District Additional Assistance(DAA)Capital override to expire in 2018 for technology, instructional support, school buses, software and other services; and Third, maximum of $116.9 million bond authorization for facility maintenance and repairs, preschool expansion, and future instructional resources.

For the past 26 years Valley Interfaith Project (VIP) has advocated for selected community issues. We are a broad based, non partisan organization of of congregations, schools, unions and nonproﬁt associations dedicated to building sustainable social and economic change. Strong public schools beneﬁt all of us, whether we have school-aged children or not. For more than 10 years Arizona public schools have sustained harsh budget cuts. State per pupil funding is near the lowest in the nation.

Please vote “yes.”

Bob Klassen Board Member, VIP

I am the parent of a 7th grader at Pueblo Middle School and a 5th grader at Kyrene Traditional Academy. I work in school district finance in a nearby school district and see firsthand the negative financial impact charter schools have put on school districts. I’ve been part of re-purposing school buildings during the economic downturn and in aging communities. Now, more than ever, public school districts need to market themselves and be competitive. The way we’ve done business in the past is not going to attract parents of tomorrow. Parents are looking for new, shiny school buildings and innnovative ways of educating their children. Kyrene Elementary School District has the distinct advantage of having one of its own schools, Kyrene Traditional Academy-Sureno (KTA), earn National Blue Ribbon status, as well as the title of an A+ school and a Best of Chandler School. Right now, Kyrene is in the prime position to build onto

(12)

these prestigious honors and expand KTA to a K-8 school. In addition to the many titles it hold, KTA is in an ideal location...close to freeways, bordering several different cities and other school districts. Now’s the time for Kyrene to venture in a new direction!

Lara Weidinger Parent

Kyrene Traditional Academy is in the process of expanding to a K-8 school. The 6-8th students at KTA deserve to have an education that mirrors the middle school model yet with a traditional curriculum; this includes adequate classroom space for science and electives, a gymnasium and cafeteria. It is imperative that the students have the tools and facilities to promote a positive middle school environment. At this time, Kyrene cannot compete with neighboring schools and districts that have these facilities. We need a building that will surpass our competitors; one that will provide the tools necessary to foster an educational environment for middle students. KTA is an A+, Blue Ribbon school whose enrollment has almost doubled in 4 years and is expected to grow to 900+ students with this expansion. This alone proves that the education is top notch and there is a deﬁnite need for the expansion. The KTA community wants to keep their children here through 8th grade but we need the facilities in order to sustain the enrollment. I encourage you to look towards the future for our children and vote to pass the bond to assist with funding the complete expansion of Kyrene Traditional Academy.

Heather Lahr Director

Our family will vote Yes on the Kyrene overrides and bond. Our family chose this community because of excellent Kyrene schools. Arizona schools with community support for their bonds and overrides are best able to provide essential needs including school based support services, and essential building maintenance and improvement needs to ensure the safety of students. Quality schools increase property values and ensure a safe and strong community.

Arizona has not restored needed funds to keep our Kyrene school buildings safely maintained, or to support lower class sizes and electives for a well rounded education. Kyrene has cut its budget to the bone. In spite of devastating state cuts, Kyrene schools have maintained their excellence because of continuing community support.

(13)

A loss of essential community supported bond and override funds would mean increased class sizes with a potential loss of up to 200 teachers, a loss of electives including music, art, PE and the ability of Kyrene to do more than teach core subjects. Without bond funds, we risk the safety of our students in aging buildings.

Please vote Yes for the Kyrene overrides and bond election to keep Kyrene strong.

Carolyn Brown and Brian Sager Ahwatukee residents

This fall, all of us who live in the Kyrene School District have the opportunity to continue our decades long tradition of ﬁnancially supporting quality public education, andvproviding safe and secure campuses for our children and their dedicated educators. We can make this commitment WITHOUT ANY INCREASES IN OUR TAXES.

After recently completing almost 10 years on the Kyrene Governing Board, I am now just a concerned citizen and voter. My years of board service to Kyrene allowed me to gain a deep understanding of public school ﬁnance, nationally, statewide and in Kyrene. I now ﬁnd myself both encouraged by Kyrene’s leadership and future and also concerned about the lack of state funding derailing a vision for Kyrene.

The Bond Reauthorization is needed at a time when state support is virtually non-existent to keep our aging school buildings safe and secure for students and staff. Beyond merely making minimal repairs and restorations, this funding also impacts the future availability of facilities for choice programs needed to keep Kyrene competitive in an increasingly complex education landscape.

I urge you to join me in strongly supporting Kyrene by voting YES on the Bond Reauthorization.

Ross l. Robb

Former Kyrene Governing Board Member

Reasons to vote “Yes” on Bond Reauthorization

1) A “YES” vote will allow for much needed repairs of schools. Kyrene schools are on average 30 years old.

(14)

2) A “YES” vote will allow for the expansion of Kyrene’s educational choices for families by physically expanding the Kyrene Traditional Academy to accommodate Pre-Kindergarten through 8th grade.

3) A “YES” vote will allow for the continuation of the current voter approved bond authorization. It will NOT increase our property tax.

So, please join me in voting “YES” on the Bond Reauthorization. Onnie Shekerjian

Former Vice Mayor City of Tempe

As a proud parent and community member, I realize that the education of our youth is the single most important thing we can do to ensure our community’s long term success. This fall, we have the opportunity to do something that will enable our students in the Kyrene School District, to have the tools they need to be successful.

Passage of the measure to reauthorize the Distrtict’s bond, which will provide continued funding to maintain the District’s 25 schools, which average 30 years of age. Bond funding will allow the District to continue with its Capital Improvement plan, which ensures that students have a safe learning environment.

Your support will allow the District to keep their commitment to a quality education system which will beneﬁt our students, residents, neighborhoods and enhances our quality of life, in Tempe, Chandler, Ahwatukee and Guadalupe.

Join me in voting yes! Robin Arredondo-Savage Vice Mayor, City of Tempe

As Mayor of Phoenix, I know that the strength of our public schools is directly connected to the successful future of our city. We need a renewed commitment to local schools that prepare the next generation for success. Students who are engaged in school at a young age are equipped with the basic reading, writing, and math skills that are necessary for academic and career success. Kyrene is providing many “choice programs” that enhance the strong learning environments like dual language, leadership

(15)

academies, an International Baccalaureate program and an arts integration program. This November, Kyrene Elementary School District voters will be asked to reauthorize a bond that will raise money to invest in maintaining and renovating school facilities and expanding on Kyrene’s vision for the future, including providing critical instructional resources. The bond is a ﬁrst step in ﬁlling the gap left by cuts at the state legislature and will help provide the appropriate learning environment that our kids need and deserve. Please join me in working to keep strong schools, strong communities and strong property values in Kyrene by voting “yes” on the Bond Reauthorization on November 7th.

Mayor Greg Stanton City of Phoenix

When you look at Kyrene Schools what do you see? A safe place for your child to earn a wonderful education? A place where your neighbor drops off their child every day? A place that helps secure your home values because you know families with children want to attend these schools and live in these neighborhoods? A resource to the community because this is where our future leaders are learning, living and playing? Yes it is all of those things and we are so grateful. What many people don’t see is that Kyrene is also a business. Kyrene requires capital, staff, support, technology and resources. If we want to continue to keep answering yes to the questions above then we as a community need to support Kyrene the business to in turn support our future leaders and home values.

We need to vote yes to continuing, not increasing or changing, but simply continuing our bond authorization. We need your “yes” vote on all three initiatives so we can create the future we want for our kids. Jose, Michelle and Christie are voting yes and ask you to do the same!

Keep Kyrene Strong Co-Chairs,

Michelle Hirsch Jose Leyba Christie Ellis

ARGUMENTS AGAINST THE

(16)

BALLOT FORMAT / SAMPLE BALLOT KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28

SPECIAL ELECTION NOVEMBER 7, 2017 COUNTY OF MARICOPA

STATE OF ARIZONA

QUESTION 1

Shall Kyrene Elementary School District No. 28 of Maricopa County, Arizona, be allowed to issue and sell general obligation bonds in the principal amount of not to exceed $116,950,000 to provide money for the following purposes:

● Constructing school buildings; ● Renovating school buildings; ● Purchasing pupil transportation vehicles; ● Acquiring by purchase or lease school lots; ● Improving school grounds, including adjacent ways thereto; ● Supplying school buildings with furniture, equipment and technology; ● Liquidating indebtedness incurred for the purposes set forth herein; ● Providing all utilities and other capital items necessary for the construction and renovation of school buildings and for improving school grounds; ● Paying all architectural, design, engineering, project and construction management and other costs incurred in connection with the purposes set forth above; and ● Paying all legal, financial and other costs in connection with issuance of the bonds? The bonds will bear interest at rates not exceeding 10% per year. Interest may be evidenced by separate certificates and will be paid on January 1 and July 1 each year until the bonds mature. The bonds, and any bonds issued to refund the District’s bonds, may be sold at prices that include premiums not greater than permitted by law. The bonds may be refunded by the issuance of refunding bonds of a weighted average maturity of less than 75% of the weighted average maturity of the bonds being refunded. Bonds will be in the denominations of $5,000 each or in multiples of $5,000 and will mature on the first day of July in years determined by the District’s governing board. The bonds shall mature over a period of not (i) less than 1 year (or a portion thereof) or (ii) more than 20 years from the date of their issuance. The issuance of these bonds will result in an annual levy of property taxes sufficient to pay the debt on the bonds. The capital improvements that are proposed to be funded through this bond issuance are to exceed the State standards and are in addition to monies provided by the State. Kyrene Elementary School District is proposing to issue Class B general obligation bonds totaling $116,950,000 to fund capital improvements over and above those funded by the State. Under the Students FIRST capital funding system, Kyrene Elementary School District is entitled to State monies for new construction and renovation of school buildings in accordance with State law. A “YES” VOTE SHALL AUTHORIZE THE KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 OF MARICOPA COUNTY, ARIZONA GOVERNING BODY TO ISSUE AND SELL $116,950,000 OF SCHOOL IMPROVEMENT BONDS OF THE DISTRICT TO BE REPAID WITH SECONDARY PROPERTY TAXES.

A “NO” VOTE SHALL NOT AUTHORIZE THE KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 OF MARICOPA COUNTY, ARIZONA GOVERNING BODY TO ISSUE AND SELL SUCH BONDS OF THE DISTRICT.

BOND APPROVAL, YES BOND APPROVAL, NO

(17)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 15% MAINTENANCE AND OPERATION

BUDGET OVERRIDE ELECTION NOVEMBER 7, 2017

A STATEMENT AS TO WHY THE 15% MAINTENANCE AND OPERATION BUDGET OVERRIDE ELECTION HAS BEEN CALLED

The Governing Board of the District has called a special budget override election to be held on November 7, 2017 to request voter authorization to exceed the Maintenance and Operation Budget by 15% of the revenue control limit to fund existing programs, such budget override to be in effect for a period of seven years. The increase authorized by this election shall be funded from a levy of taxes on the taxable property within the District. The proposed override is a continuation of the existing 15% override.

The District currently has a 15% maintenance and operation override in place that was previously approved in 2013. The proposed override continues the existing override. With voter approval to continue the override, it is estimated that the total amount of the override for ﬁscal year 2018/2019 will be $12,880,435. The District’s current 15% budget override is required by law to be reduced by one-third in each of ﬁscal years 2019/2020 and 2020/2021, terminating on June 30, 2021. The estimated secondary tax rate needed to fund the full override is $0.6380 per $100 of net assessed valuation for secondary tax purposes. The estimated secondary tax rate for the proposed override is approximately equal to the existing secondary tax rate for the current override, as this override will maintain programs that have been in place with prior year’s override approvals.

The estimated cost to an owner of a home with a limited property value of $238,270 (the average value of a home in the District) would be approximately $152 per year.

The 15% Maintenance and Operations budget override would continue funding for programs currently serving District students. This override supports the District’s efforts to help maintain present levels of service in all Maintenance and Operation programs to include during the ﬁrst year the budget override will be in effect:

• Teacher compensation, including a shift to a salary schedule • Assists in management of class sizes within established ranges • Elementary and middle school instructional programs (specials such

as art, PE, music and exploratories, such as Spanish and choir) • K-3 reading and math intervention programs

• School-based support services such as library, health assistants, speech and hearing services

(18)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 15% MAINTENANCE AND OPERATION

FREQUENTLY ASKED QUESTIONS

What is the purpose of the override?

It allows the Kyrene School District to maintain its Revenue Control Limit (RCL) override at a 15% level. This continues the existing 15% Maintenance and Operations Override previously approved by voters in 2013. This funding supports:

• Teacher salaries

• Assists in maintenance of class sizes within District-established ranges by grade level

• Continuation of elementary grade “specials”—art, music and physical education

• Continuation of middle school exploratories such as art, choir, orchestra, STEM, foreign language, performing and culinary arts • School-based student support services and interventions Does this renewal require an additional tax increase?

No. This renews the existing override last renewed in 2013. Overrides in Arizona must be renewed every ﬁve years or they begin a two-year phase down with a complete elimination after the seventh year if not renewed. The existing override is scheduled to be phased out in 2019/2020 and reduced to -0-% in 2021/2022 unless renewed by the voters.

As a homeowner, is this an increase to what I currently pay? No. Since this is a continuation of the current override, the tax rate will not increase, subject to the value of property within the District.

What is the amount of the proposed override? Approximately $12.8 million per year.

How do I know the money will be spent as indicated?

Arizona law is very speciﬁc in how school districts can spend the money they receive. The Kyrene School District has an override currently in place, and continuation of the override will allow Kyrene to maintain support for needed programs. The expenditures of the override are presented to the Governing Board and audited annually.

Will new programs be added if the override passes?

No. The passage of the override allows programs currently being funded by this revenue source to continue. Without the passage of the override, programs would be changed, reduced, or eliminated.

(19)

How much does the override cost me as a homeowner?

For the ﬁrst year, the tax rate associated with the override is estimated to be $0.6380. For a home with limited property value of $238,270, the cost will be approximately $152 per year. This is not a new tax. It is a continuation of the existing override approved by voters in November 2013.

Do all schools in Kyrene benefit from these dollars?

(20)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28

15% MAINTENANCE AND OPERATION BUDGET OVERRIDE ELECTION NOVEMBER 7, 2017

ASSESSED VALUATION AND ESTIMATED AMOUNTS OF SECONDARY TAXES PER A.R.S. § 15-481(B)

Total amount of the current year’s (2017/2018) aggregate budget $126,120,713 Total amount of the proposed 2018/2019 aggregate budget with

voter approval of both overrides (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget with

voter approval of 15% M&O override only (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget with

voter approval of DAA override only (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget

without voter approval of either override (1) $126,751,317 Estimated revenues to fund 15% M&O budget override $12,880,435 District’s Current Net Assessed Valuation for Secondary

Property Tax Purposes (2) $2,019,020,406 Estimated Tax Rate per $100 of Net Assessed Valuation for

Secondary Property Tax Purposes to fund 15% M&O budget override $0.6380 Pursuant to A.R.S. § 15-481(B)(11): The net assessed valuation and the estimated amount of the secondary property taxes to fund the increase, if the proposed 2018/2019 budget is adopted, for each of the following will be:

Limited Estimated Estimated Estimated Property Assessment Net Assessed Override Annual Tax Value Ratio Valuation (3) Tax Rate (4) Amount (a) An owner-occupied residence whose

assessed valuation is the average assessed valuation of property classified as class three

for the current year in the school district. $238,270 10% $23,827 $0.6380 $152.02 (b) An owner-occupied residence whose

assessed valuation is one-half of the assessed valuation of the residence set forth

in paragraph (a) above. 119,135 10% 11,914 0.6380 76.01 (c) An owner-occupied residence whose

assessed valuation is twice the assessed valuation of the residence set forth in

paragraph (a) above. 476,540 10% 47,654 0.6380 304.03 (d) A business whose assessed valuation is

the average of the assessed valuation of property classified as class one for the

current year in the school district. 1,648,472 18% 296,725 0.6380 1,893.11 (1) The 15% maintenance and operation override authorization is a continuation of the existing 15% maintenance and operation

override authorized by the voters on November 5, 2013. If the override is not approved, the existing 15% maintenance and operation override will continue to phase out by reducing one-third in fiscal year 2019/2020 and fiscal year 2020/2021. The proposed and alternate 2018/2019 budgets represent the District’s best estimate based on various assumptions relating to student growth and other factors affecting revenues and expenditures. The alternate budget will be adopted by the District’s Governing Board if the override is not approved by the qualified electors of the District voting at the election. In adopting such alternate budget, the Governing Board shall follow the procedures prescribed in A.R.S. Section 15-905 for adopting a budget that does not include any proposed increases not approved at an election.

(2) Current net assessed valuation for secondary property tax purposes is the 2017/2018 preliminary value provided by the Arizona Department of Revenue and includes SRP valuation.

(3) Estimated by Arizona Department of Revenue based on preliminary 2017/2018 net assessed valuation. (4) Per $100 of net assessed valuation for secondary property tax purposes.

(21)

ARGUMENTS FOR THE

MAINTENANCE AND OPERATION BUDGET OVERRIDE ELECTION

Arguments represent the opinion of the Author(s)

Statement of the Kyrene Governing Board in support of Maintenance and Operation Budget Override:

The Kyrene Governing Board unanimously urges the community to Keep Kyrene Strong and approve continuation of the existing 15% Maintenance and Operations (M&O) budget override.

Revenue from M&O is our primary source of funding for teacher compensation. This governing board has made teacher compensation a priority, and we have worked hard to adopt a long term strategy for increasing teacher salaries. Continuation of our existing M&O budget override will allow us to honor this commitment to our teachers.

In addition to supporting teacher compensation, continuation of our existing M&O budget override will allow us to manage class size across grade levels. It will also allow us to continue to provide our students with the opportunity to explore art, music, physical education, STEM, foreign language, performing and culinary arts, through the electives and exploratories offered in elementary and middle school.

We take our ﬁduciary responsibility to the taxpayers of Kyrene very seriously, and would not recommend continuation of the M&O budget override if it were not critical to maintain the high quality of education that is the hallmark of Kyrene schools. Join us in Keeping Kyrene Strong.

Kyrene Governing Board

Valley Interfaith Project (VIP) supports Kyrene School District No. 28 maintenance & operations override. By means of this pro statement we favor two overrides and a bond: First, a $12.8 million maintenance & override to expire in 2021, for employee/teacher compensation and other instruction support programs; Second, a $6.8 million District Additional Assistance(DAA)Capital override to expire in 2018 for technology, instructional support, school buses, software and other services; and Third, maximum of $116.9 million bond authorization for facility maintenance and repairs, preschool expansion, and future instructional resources.

(22)

selected community issues. We are a broad based, non partisan organization of of congregations, schools, unions and nonproﬁt associations dedicated to building sustainable social and economic change. Strong public schools beneﬁt all of us, whether we have school-aged children or not. For more than 10 years Arizona public schools have sustained harsh budget cuts. State per pupil funding is near the lowest in the nation.

Please vote “yes.” Bob Klassen Board Member, VIP

The Kyrene Education Association supports quality public education for all children.

The proposals on the ballot will work together to keep our students safe, bulidings secure and help Kyrene continue its reputation of excelling schools.

Passing the bond and overrides would CONTINUE funding for:

* Elementary instructional programs including art, music, library and physical education

* Middle school instructional programs including academic and exploratory opportunities

* Reduced class sizes in all grades, with an emphasis given to primary grades

* Pre-K - 8 reading and mathematics intervention programs

For the past several years the State Legislature has not adequately funded public education. Passing to maintain the M&O override, captial override and bond will help make up for some of the funding required by law and the Arizona Constitution, that has been absent in the Kyene budget. There will be NO TAX INCREASE for the continuation of the bond and overrides. Please support the Kyrene Community with quality public schools by voting YES for the M&O Budget Override, YES for the Capital Override and YES to the Bond.

Kyrene Education Association

(23)

This fall, all of us who live in Kyrene can continue our decades long community tradition of ﬁnancially supporting quality public education and choice programs for our children and we can make this important decision WITHOUT ANY INCREASES IN OUR TAXES.

After recently completing almost 10 years on the Kyrene Governing Board, I am now just a concerned citizen and voter, much like you. My years of board service to Kyrene allowed me to gain a deep understanding of public school operations and ﬁnance, statewide and in Kyrene. I now ﬁnd myself both encouraged by Kyrene’s leadership and future and also concerned about lack of funding derailing a vision for Kyrene and its students that relies on continued funding.

The Maintenance and Operations Override is keenly needed to keep class sizes at optimal levels, to keep Kyrene educator salaries competitive, to provide school based support services and student-focused interventions and to offer choice programs. We want to always attract and retain the best and brightest educators to Kyrene so that we can continue to produce the best and brightest Kyrene graduates.

I urge you to join me in strongly supporting Kyrene by voting YES on the Maintenance & Operations Override.

Ross Robb

Former Kyrene Governing Board Member

Reasons to vote “YES” on the Maintenance and Operations Override: 1) Our current voter approved override expires soon. It funds the

salaries of 200 teachers. A “YES” Vote allows the districts to continue to pay those teachers. A “NO” vote will result in teacher layoffs, resulting in an increase number of students per class and endanger programs such as art, music and P.E.

2) Kyrene schools have 13 schools that have earned an A+ from the state and are increasing their educational choices by offering a wide range of environments in which students can learn. A “YES” vote will allow these designations and choices to continue.

3) Voting “YES” will NOT increase our property tax but will merely allow for the continuation of the current voter approved override.

Onnie Shekerjian Former Vice Mayor City of Tempe

(24)

As a proud parent and community member, I realize that the education of our youth is the single most important thing we can do to ensure our community’s long term success. This fall, we have the opportunity to do something that will enable our students in the Kyrene School District, to have the tools they need to be successful.

Passage of the measure to continue the current Maintenance and Operations budget override, maintains the existing tax rate, and will provide continued funding for something very important–teacher salaries. Your support will allow the District to keep their commitment to a quality education system which will beneﬁt our students, residents, neighborhoods and enhances our quality of life, in Tempe, Chandler, Ahwatukee and Guadalupe.

Join me in voting yes! Robin Arredondo-Savage Vice Mayor, City of Tempe

Our public schools need your support now more than ever. You can help by voting yes in the Kyrene Maintenance and Operations Override Election. Kyrene has made a commitment to its students to provide the best possible compensation structure to their teachers which will attract and keep the strong pillars of our education system. 13 Kyrene schools have earned the prestigious A+ School of Excellence designation from the Arizona Education Foundation. This would not be possible without the exceptional teachers to lead the way. If this override does not pass Kyrene faces cutting 200 teachers and an increase in class size. It will put music, art and physical education at risk and it will jeopardize the instructional supports for students and school based support services like library, speech and health assistants. Kyrene has earned its excellent reputation by the involvement of its strong community and now is the time for you, the Kyrene community, to support this Maintenance and Operations Budget Override by voting “yes” on November 7th.

Mayor Greg Stanton City of Phoenix

I’m the parent of a 7th grader at Pueblo Middle School and a 5th grader at Kyrene Traditional Academy (KTA). I work in school district finance in a nearby school district, seeing firsthand the negative financial impact

(25)

charter schools have put on school districts. I’ve been part of re-purposing school buildings during the economic downturn and in aging communities. Now, more than ever, districts need to market themselves and be competitive. The way we’ve done business in the past isn’t going to attract parents of tomorrow. Parents are looking for new, shiny school buildings and innnovative ways of educating their children. Kyrene has the distinct advantage of having one of its own schools, KTA-Sureno, earn National Blue Ribbon status, as well as the title of an A+ school and a Best of Chandler School. Right now, it’s in the prime position to build onto these prestigious honors and expand KTA to a K-8 school. In addition to the many titles it hold, it’s in an ideal location...close to freeways, bordering several cities and school districts. If there was ever a time for Kyrene to venture in a new direction and attract new families, students and funding, the time is now!

Lara Weidinger Parent

When you look at Kyrene Schools what do you see? A safe place for your child to earn a wonderful education? A place that helps secure your home values because you know families with children want to attend these schools and live in these neighborhoods? Yes it is all of those things. What many people don’t see is that Kyrene is also a business. Kyrene requires capital, staff, support, and technology. If we want to continue to keep answering yes to the questions above then we as a community need to support Kyrene the business to in turn support our future leaders and home values.

We need to vote yes to continuing. We need to vote yes to our teacher’s salaries’ being competitive. We need to vote yes to keep our classroom sizes down.. We need to vote yes to staying current with technology. We need to vote yes to keep our schools in good repair. We need to vote yes to keeping our property values high and continuing to appreciate. We are voting YES to all three initiatives so we can create the future we want for our leaders.

Keep Kyrene Strong Co-Chairs,

Michelle Hirsch Jose Leyba Christie Ellis

As your state representative, I support our schools as integral to the success of our local businesses and neighborhoods. Our community has a long history of support for high quality education. It is the foundation for

(26)

our economy, our quality of life, and our property values. “Finding something affordable in a good school district… tops the list of home buyer priorities,” said Javier Vivas, manager of economic research, Realtor.com. (July 2017)

State funding for classrooms was cut badly 10 years ago and the funding gap is still over $1000 per student. Teachers’ pay is the worst in the nation. Our state legislature has clobbered DAA (capital) funding to a small fraction of adequacy. The DAA override is essential to keep computers running in classrooms. Without technology and good teachers our students will be unprepared for the jobs of tomorrow, affecting our economy badly.

Your Yes vote will help Kyrene schools stay competitive to retain and attract good teachers, and provide an education that supports better jobs for everybody. Your Yes vote will continue current funding for DAA and M&O. It is not a new tax. Please vote YES for your Kyrene schools! State Representative Mitzi Epstein

ARGUMENTS AGAINST THE

MAINTENANCE AND OPERATION BUDGET OVERRIDE ELECTION

(27)

BALLOT FORMAT / SAMPLE BALLOT KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28

SPECIAL ELECTION NOVEMBER 7, 2017 COUNTY OF MARICOPA

STATE OF ARIZONA

QUESTION 2

Shall the Governing Board of Kyrene Elementary School District No. 28 of Maricopa County, Arizona, adopt a General Maintenance and Operation Budget that includes an amount that exceeds the revenue control limit specified by statute by fifteen percent for fiscal year 2018/2019 and for six subsequent years as described below? The fiscal year 2018/2019 budget override authority represents a continuation of the existing budget override authority which is scheduled to phase down by one-third for fiscal year 2019/2020 if the voters do not approve the override.

The amount of the proposed continuation of the budget increase of the proposed budget over the alternate budget for fiscal year 2018/2019 is $-0-. In fiscal years 2018/2019 through 2022/2023 the amount of the proposed increase will be fifteen percent of the District’s revenue control limit in each of such years, as provided in Section 15-481(P) of the Arizona Revised Statutes. In fiscal years 2023/2024 and 2024/2025, the amount of the proposed increase will be ten percent and five percent, respectively, of the District’s revenue control limit in each of such years, as provided in Section 15-481(P) of the Arizona Revised Statutes.

Any budget increase continuation authorized by this election shall be entirely funded by a levy of taxes on the taxable property in this school district for the year for which adopted and for six subsequent years, shall not be realized from monies furnished by the State and shall not be subject to the limitation on taxes speciﬁed in Article IX, Section 18, Constitution of Arizona. Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district’s budget would require an estimated continuation of a tax rate of $0.6380 per one hundred dollars of assessed valuation used for secondary property tax purposes and is in addition to the school district’s tax rate that will be levied to fund the school district’s revenue control limit allowed by law.

BUDGET OVERRIDE CONTINUATION, YES BUDGET OVERRIDE CONTINUATION, NO

(28)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 DISTRICT ADDITIONAL ASSISTANCE

A STATEMENT FROM THE DISTRICT AS TO WHY THE DISTRICT ADDITIONAL ASSISTANCE BUDGET

OVERRIDE ELECTION HAS BEEN CALLED

The District seeks authority to exceed the “district additional assistance” budget limit speciﬁed by the lesser of $6,834,000 or 10% of the Revenue Control Limit (RCL) per year for capital purposes. The continuation of this District Additional Assistance (Capital) Override will be in effect for a period of seven years. Any budget increase authorized by this election shall be entirely funded by the District from a levy of taxes on the taxable property within the District.

A District Additional Assistance Override will support classroom and operational technology and peripherals.

Technology has become an important instructional tool in our classrooms. Whether it be to facilitate student research, in the development of classroom projects and presentations, or as a means of student engagement—it is an integral part of learning for the future. The required state assessment of student achievement, AzMERIT is administered electronically, and the state has a goal of 100% compliance among districts. Returning to a paper test is not an option. DAA/Capital Outlay budget override funds are used for these and other essential technology needs, including support for student safety and security, student transportation needs as well as the maintenance and upkeep of ﬂeet vehicles.

FREQUENTLY ASKED QUESTIONS

Why is the Kyrene School District seeking voter support for the District Additional Assistance Override?

In 2005 and 2011, the Kyrene community supported a Capital (or District Additional Assistance) Override. This request is to continue this existing override which the primary purpose is to support the instructional technology program and transportation needs.

Will the approval of this District Additional Assistance increase my secondary tax rate?

No, the District Additional Assistance Override is a continuation of an existing Capital Override and will not increase the secondary tax rate, subject to the value of property within the District.

(29)

Where can I find information about how District Additional Assistance Override funds are used?

The District reports annually to the Governing Board on the status of its Capital Improvement Plan or CIP (last presented on October 25, 2016). The purpose of the CIP is to monitor and analyze long-term capital and facility needs in support of the District’s commitment to student excellence and achievement.

The Kyrene CIP is available online at http://www.kyrene.org/Page/759. How much of this District Additional Assistance Override will support technology programs and how much will support the transportation? Approximately 98% of the District Additional Assistance Override will support the instructional technology program. This includes:

• Instructional technology equipment such as laptops, tables, smartboards

• Procurement and maintenance of major software and licenses • School/student safety items such as cameras and security systems • Customer services such as Parent and Student/Vue (an online system with information about grades, assignments, health records, etc.), online payment systems, communications and phone systems Approximately 2% of the District Additional Assistance Override will support transportation needs. This includes:

• Maintenance of student transportation vehicles

• Safety and security technology systems for student transportation vehicles

• Maintenance of white ﬂeet

If approved, how many years will this district additional assistance override be in effect?

State statute allows school districts to maintain a voter-approved District Additional Assistance Override for 7 years.

How much will the District Additional Assistance Override cost me, as a homeowner?

Based on a home with a limited property value of $238,270, the estimated average annual cost of continuation of the district additional assistance override would be $80.65.

(30)

DISTRICT ADDITIONAL ASSISTANCE BUDGET OVERRIDE ELECTION NOVEMBER 7, 2017

EXECUTIVE SUMMARY OF DISTRICT’S CAPITAL PLAN

Please See Executive Summary of District’s Capital Plan in Bond Information, Pages 8 and 9.

(31)

PROPOSED CAPITAL IMPROVEMENTS

The following table presents the capital improvements expected to be paid from the increase in the district additional assistance budget, the estimated cost of each capital improvement, the estimated tax rate associated with each capital improvement and the estimated cost of each capital improvement for the owner of a single family home that is valued at $80,000:

Estimated Annual Annual Tax Rate Cost to Owner of Estimated Associated with a Home Valued Proposed Capital Improvements Costs (a) Improvement (b) at $80,000

Non-Administrative Purposes

Instructional materials and technology $4,850,000 $0.2403 $19.23

Software systems improvements, upgrades and peripherals (keyboards,

cases, chargers, parts, carts) 750,000 0.0371 2.97

Subtotal of Non-Administrative

Capital Improvements $5,600,000 $0.2775 $22.20 Administrative Purposes

Technology and software system

improvements, upgrades and peripherals $675,000 $0.0334 $2.68

Computer network equipment 400,000 0.0198 1.58

Maintenance Vehicles and Equipment 159,000 0.0079 0.63 Subtotal of Administrative

Capital Improvements $1,234,000 $0.0611 $4.89

TOTAL $6,834,000 $0.3385 $27.09 (a) Proposed annual costs reflect the average annual cost. The actual annual expenditures for any proposed capital

improvement expended in any year may vary from the annual average cost but the total amount expended from override funds for all proposed capital improvements in any year will not exceed $6,834,000 for fiscal year 2018/2019 and the six fiscal years thereafter; provided, however, the district additional assistance budget override amount is limited to 10% of the revenue control limit for the respective year (plus any unexpended monies from prior years). (b) Associated annual tax rates are stated as per $100 of net assessed value and reflect the tax rate necessary to pay the costs of each proposed capital improvement based on the estimated 2017/2018 net assessed valuation for secondary property tax purposes. The actual tax rate associated with any proposed capital improvement may vary from year to year, but the total annual tax rate for the override for all proposed capital improvements for fiscal year 2018/2019 will not exceed a rate necessary to produce $6,834,000 and for the six fiscal years thereafter; provided, however, the district additional assistance budget override amount is limited to 10% of the revenue control limit for each year.

(32)

ASSESSED VALUATION AND ESTIMATED AMOUNTS OF SECONDARY TAXES PER A.R.S. § 15-481(B)

Total amount of the current year’s (2017/2018) aggregate budget $126,120,713 Total amount of the proposed 2018/2019 aggregate budget

with voter approval of both overrides (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget

with voter approval of 15% M&O override only (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget

with voter approval of DAA override only (1) $126,751,317 Total amount of the proposed 2018/2019 aggregate budget

without voter approval of either override (1) $126,751,317 Estimated revenues to fund DAA budget override $6,834,000 District’s Current Net Assessed Valuation for Secondary

Property Tax Purposes (2) $2,019,020,406 Estimated Tax Rate per $100 of Net Assessed Valuation for

Secondary Property Tax Purposes to fund DAA budget override $0.3385

Pursuant to A.R.S. § 15-481(B)(11): The net assessed valuation and the

estimated amount of the secondary property taxes to fund the increase, if the proposed 2018-2019 budget is adopted, for each of the following will be:

Limited Estimated Estimated Estimated Property Assessment Net Assessed Override Annual Tax Value Ratio Valuation (3) Tax Rate (4) Amount (a) An owner-occupied residence whose

assessed valuation is the average assessed valuation of property classified as class three

for the current year in the school district. $238,270 10% $23,827 $0.3385 $80.65 (b) An owner-occupied residence whose

assessed valuation is one-half of the assessed valuation of the residence set forth

in paragraph (a) above. 119,135 10% 11,914 0.3385 40.33 (c) An owner-occupied residence whose

assessed valuation is twice the assessed valuation of the residence set forth in

paragraph (a) above. 476,540 10% 47,654 0.3385 161.31 (d) A business whose assessed valuation is

the average of the assessed valuation of property classified as class one for the

current year in the school district. 1,648,472 18% 296,725 0.3385 1,004.41 (1) The proposed 2018/2019 aggregate and alternate aggregate budgets represent the District’s best estimate based on various

assumptions relating to student growth and other factors affecting revenues and expenditures. The alternate budget will be adopted if the override is not approved. In adopting such alternate budget, the Governing Board shall follow the procedures prescribed in A.R.S. Section 15-905 for adopting a budget that does not include any proposed increases not approved at an election.

(2) Current net assessed valuation for secondary property tax purposes is the 2017/2018 preliminary value provided by the Arizona Department of Revenue and includes SRP valuation.

(3) Estimated by Arizona Department of Revenue based on preliminary 2017/2018 net assessed valuation. (4) Per $100 of net assessed valuation for secondary property tax purposes.