1. Prepared for District Governing Board May, 2015

2. * Mission & Ends * County Demographics * County Jobs, College Programs & Completions * Enrollments * Cost Efficient * Cost Effective * Revenue Assumptions * Expense Assumptions: Fixed Costs

3. * Debt: GO, Revenue * Plant: PM, Unplanned, Equipment, FFE, CIP * Facility Condition Index * Capital Investment Equity * Campus Master Plan * Original & Updated Data * Slow to 14 years * Evolving: Add Sedona Center and Building L * Move PV Center and property sales to Phase 3

4. * Budgeting Process part of Strategic Planning * Revenues * State: Flat * T&F * Transparent, Price-competitive, & Accessible * DGB Approved 4% * Property Tax: * First in 3 years * Matches 9 of 10 districts * 2%

5. * Preliminary Budget: * Funds, Accounts, Programs, Instructional Divisions * 2% Property Tax to fund Critical New Initiatives * Aligns with Ends and Strategic Plan * Sources of Risks vs. Contingencies * AZ Property Taxes * Fiscal Stewardship

7. * >$4M Revenue Risks: * Prop 301 * Aviation * State M&O * State STEM * Enrollments * Uncollectable Property Tax * SB1476 * Expenditure Limit * K-12 Funding * Contingencies $1.3M

8. SB1476: 1% Cap Overview If the effective tax rate is greater than $10, the state reduces the school district rate through an additional payment until the total effective rate is $10 pursuant to A.R.S. § 15-972(E) Example Using the effective rates to the left: A home has an assessed value of $100,000 The rate reduction under the 1% cap is $2.20 The state will pay an additional $220 to the school district The new “effective” school district rate is $0.50 JurisdictionAdopted Primary Effective Primary After 1% County$3.00 City$3.00 CCD$3.00 State$0.50 School Dist.$4.00$2.70$0.50 Total$13.50$12.20$10.00 NOTE: All figures are used for the example only and do not reflect actual rates or tax burdens

9. * CIP Project Narrative * Project Detail of Preventative Maintenance * Budget by Account: FY15 v. FY16 * Instructional Budget by Division and Location * Budget by Campus/ Center