Public Hearing Presentation Pursuant to A.R.S. §15-491.K and A.R.S. §15-481.Y September 26, 2018

15% Maintenance and Operation (M&O) Override (2015) Voter Approved Bonds (2013)

In accordance with ARS 15-481 Y. Each school district that currently increases its budget pursuant to this section is required to hold a public meeting each year between September 1 and October 31 at which an update of the programs or capital improvements financed through the override is discussed and at which the public is permitted an opportunity to comment. State statue requires the district to hold a public meeting to share w/our community how we utilized our 15% M&O Override during the 17-18 school year.

MAINTENANCE AND OPERATION OVERRIDE (2015) The renewal of the 15% Maintenance and Operations Budget Override provided funding for programs currently serving District students. The 2015 Override supports the District's efforts to help maintain present levels of service in all Maintenance and Operations programs. Over the next 5 years the 15% override will be expended in these categories: Increase Teacher Compensation Maintaining and Improve Elementary Specials Provide Staffing to Reduce Average Class Sizes Support Gifted, SPED & All Day Kindergarten Provide Education Resources to Classrooms

Maintenance and Operations Override (2015) Budgeted Override Amounts: FY 2017-2018 FY 2018-2019 $ 9,432,157 10,455,345 M&O Override Categories: Actual Exp.: Estimated: Increase Teacher Compensation 1,165,130 2,136,604 Maintain and Improve Elementary Specials 669,049 522,767 Provide Staffing to Reduce Average Class Sizes 4,765,561 2,547,391 Support Gifted, SPED & All Day Kindergarten 2,225,132 3,555,000 Provide Education Resources to Classrooms 850,021 1,693,583 Totals 9,674,893 Example of some of the items reinstated and additional resources now available. Increase in the number of teaching staff (FTEs) Maintain all day kindergarten 2.0% salary increase for all staff and small salary increase each year if funding is available Implemented Longevity Stipends Additional resources for classrooms Some salary increases due to market analysis Sustained Art, Music, Band and PE Adopted a new curriculum (phased process) Reinstated additional money for Subs Reinstated lunch aides Reinstated Bus Route OVERAGE WAS COVERED BY THE DO M&O BUDGET

In accordance with ARS 15-491 K. Each school district that issues bonds under this section is required to hold a public meeting each year between September 1 and October 31, until the bond proceeds are spent, at which an update of the progress of capital improvements financed through bonding is discussed and at which the public is permitted an opportunity to comment.

2013 Bond Funds 2013 Bond Funds Recap Total Bonds Sold FY2014 $ 25,795,000 Total Bonds Sold FY2015 19,000,000 Total Bonds Sold FY2016 25,785,000 Voter Approved 2013 Bond 70,580,000

2013 Bond Funds Our voter phamplet included the following projects. Proposed Capital Improvements Approved Expenditures Cost of Balance Estimated as of Bond Remaining Costs 6/30/2018 Issuance FY2019 New School Construction $ 30,000,000 18,890,158 110,392 10,999,450 New Building for Existing School Site 5,000,000 4,117,300 16,441 866,259 Land for New Schools 7,000,000 2,346,698 23,488 4,629,814 Technology Upgrades and Improvements 9,584,456 (2,607,944) Maintenance, Repair and Improvements at Existing Schools 14,080,000 13,754,771 46,975 278,254 Pupil Transportation 4,000,000 3,080,019 14,093 905,888 Administration Technology Upgrades and Improvements 2,500,000 1,772,027 11,126 716,847 Administration Transportation Support Facility 1,000,000 1,236 998,764 Totals 70,580,000 53,545,429 247,238 16,787,333 Our voter phamplet included the following projects. Example of the some bond expenditures Building some additional classrooms for W.F.H.S., Cor, HHS, PwerR, Sos. Repair and Maintenance of existing schools (painting, new flooring, fence repairs, etc…) Purchased two Marques (Power Ranch and Chaparral) Purchased some Buses Technology Refresh Plan Current debt ratio is approximately 23-24% and ARS Statue limits to 30% of the assessed valuation. The district is currently working with Stiefel, our financial advisors to determine our long range plan because we will need to go back to our voters for assistance since the state does not provide enough funding to meet our capital needs.

Coronado Elementary New Marquee

Gateway Pointe Elementary SFB 5K

Higley High School Field Bond Funds – 10K

Higley Traditional Academy Bond Library Remodel

San Tan Elementary New Marquee Arizona Commercial Signs - 17 K from bond

Williams Field High Bond Funds: 3 million 16 Additional classroom Increased campus capacity to 2500 students

New Turf Gateway Elementary & Williams Field High

FY18/19 Proposed Capital Projects Weatherization and enhancement projects at Coronado and San Tan Elementary (shared expense between School Facilities Board (SFB) and District Bond/Capital monies). Fence paintings and lighting updates (various locations using District Bond/Capital monies). Other capital projects to be determined.

Planning For The Future District is developing a webpage to display bond and override projects “Your Dollars At Work”. November 2019 election: District will be asking our community to approve the continuation of the 15% Maintenance and Operation (M&O) Override. Potentially asking our community to approve a Capital Override to meet District’s increasing capital needs.

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