bond and override election for november 2019 · bond and override election for november 2019 school...
TRANSCRIPT
Bond and Override Election for
November 2019
School Community Forums
Fall, 2019
Today’s Discussion
A. $100 Million Bond – Question 1
1. The Need
2. Taxpayer Impact
3. Sustainable Bond Program Model
B. 15% M&O Override – Question 2
1. Override History
2. The Need
3. Taxpayer Impact & Comparison to Peers
2
$100 M Bond Request
The Need
District Priorities for the Bond
A. Enhance Physical Safety and Security
B. Provide Safe Curricular & Extra-Curricular Programming
Spaces – Performing Arts, Stadiums, Athletic Venues
C. Reinvest in Facilities & Classroom Spaces Considering Cost Saving
Opportunities (Energy Controls, LED Lighting)
D. Upgrade/Enhance Technology Equipment to Include AV to Meet
Academic Program Requirements
E. Continue Transportation Vehicle & Equipment Replacements 4
2019 Preliminary Bond Projected
Spend Estimates (in Millions)
6
$10.00
$5.60
$60.98
$19.42
$4.00
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
Security Camera System & Other SecurityComponents*
Performing Arts/Athletic Venue Upgrades,Additions
Facility Reinvestment
Technology Infrastructure & Equipment*
Student TransportationVehicles/Equipment*
Facility Reinvestment &
Upgrades
Budget Item Cost
Enhance and Protect School Learning Environments: Roofs, HVAC, Athletic &
Performing Arts Venues, Flooring, Restrooms$ 46.38 M
Enhance Health & Physical Safety: External Fencing, Bus Lane Improvements,
Kitchen Serving Line Replacement14.60 M
Add or Upgrade Performing Arts/Athletic Facilities at GPS High Schools 5.60 M
TOTAL $ 66.58 M
7
Technology Plan Details
Budget Item Cost
Device and Technology Infrastructure Upgrades to Include Switches, Routers,
Wiring, computer equipment and WAPs*10.00 M
Classroom Audio Visual Configuration & Implementation Project 9.42 M
TOTAL $ 19.42 M
* Wireless Access Points
8
$100 M Bond
Tax Rate Impact
$0 Increase to Taxes
10
The long term strategy for meeting Gilbert Public
Schools ongoing facility and equipment capital
reinvestment includes the concept of filling in debt
service as existing debt service is paid off. The
result is a sustainable model providing resources
when they are needed without increasing the tax
payer cost.
GILBERT UNIFIED SCHOOL DISTRICT NO. 41 OF MARICOPA COUNTY, ARIZONA | 11
15% Override & $100 M Bond (0% AV Growth)
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Gilbert Public SchoolsActual and Projected Debt Service and Tax Rates
(With $100M Bond Election and 15% M&O Override;Assumes 0% Growth Rate for Assessed Value)
Debt Service as of 7/1/2019 Project 2015, Series D
Project of 2019, Series A Project of 2019, Series B
Secondary Tax Rate for DS Secondary Tax Rate for DS & Override
15% M&O Override
The Need
M&O Override History
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Current 10% Override
fully funded through FY
2021
• Generates about $ 20 M
annually
13
Why Increase Override to 15%
- District Priorities
A. Reduce Class Size
B. Attract and Retain the Highest Quality Teachers and
Staff
C. Increase Social-Emotional Supports for GPS Students
15
Costs to Reduce Class Size
16
For every one student decrease in class size District-wide,
the cost is about $1.2 M. Total allocation to be $2.0 M.
FY 2020 Average Teacher Salary = $78,700 (Fully Loaded Cost - Includes Payroll Benefits and Health Insurance Costs)
$2.0 M provides about 25 additional teachers.
These 25 Teachers additional teachers will be deployed where
needed most.
Additional 5% Override
Budget $10.52 M
Budget Item Cost
Attract & Retain the Highest Quality Teachers and Staff $ 6.87 M
Increase Social Emotional Supports for GPS Students K-12 1.65 M
Allocation for Class Size Reduction 2.00 M
TOTAL Additional 5% Override Needs $ 10.52 M
The existing M&O Override will continue to maintain class sizes, maintain existing
programs at schools and maintain existing levels of compensation17
FY 2018 Per Pupil Revenues(From Auditor General’s Spending Report)
18
Funded $1,095
less than peer
districts and
$1,151 less than
State average
Spending in the Classroom(Year over Year Comparison)
2018 graph based upon original AFR submitted in October of 2018
Information obtained from the Auditor General School District Spending Report
20172018
2018
19
15% Override
Tax Rate Impact
Residential Tax Increase with
15% Override in Place
21
Residential
Limited
Property Value
(LPV)
10%
Override
15%
Override
Annual
Difference
Monthly
Difference
$ 100,000 $ 98.97 $146.46 $ 47.49 $ 4.00
*206,125 204.00 301.89 97.89 8.16
300,000 296.91 439.38 142.47 11.87
*Average LPV Home in Gilbert Public Schools Boundaries and Assessment Ratio at 10%. Average Full Cash
Value (FCV) is about $259,000 and Average Market Value is about $350,000.
*Source: Draft Ballot Informational Pamphlet
Commercial Tax Increase with
15% Override in Place
22
Commercial
Limited
Property Value
(LPV)
10%
Override
15%
Override
Annual
Difference
Monthly
Difference
843,896* 1,503.37 2,224.75 721.38 60.12
*Average LPV within Gilbert Public Schools Boundaries & Assessment Ratio at 18%
Source: Draft Ballot Informational Pamphlet
Est. Tax Rates with 15% Override
& $100 M Bond Thru 2028
23
Total
Aggregate
Tax Secondary
Year Tax Rate
2019 $ 2.10
2020 1.97
2021 2.59
2022 2.59
2023 2.39
2024 2.39
2025 2.39
2026 2.39
2027 2.39
2028 2.39
Tax Rate History & Other
Considerations
Tax Rate History
25
0.000
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Primary Secondary TOTAL
Tax Rate History
26
Tax Rate
Elements
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021*
Primary 5.260 4.862 4.306 4.010 3.866 ??
Secondary 1.200 2.076 2.118 2.100 2.037 2.517
TOTAL 6.460 6.938 6.424 6.110 5.903
Qualifying 4.195 4.159 4.047 3.936 3.791 ??
* First year 15% override is in place.
FY 2019 Comparison of GPS
Tax Rate to Peer Districts
27
School District Primary
Tax Rate
Secondary
Tax Rate
Total
Tax Rate
Queen Creek USD #95 4.228 3.386 7.614
Mesa USD #4 4.099 3.127 7.216
Higley USD #60 3.995 3.216 7.211
Chandler USD #80 4.012 2.653 6.665
Gilbert USD #41 4.010 2.095 6.105
FY 2019 Comparison of GPS
Tax Rate to Peer Districts
28
4.228 4.099 3.995 4.012 4.01
3.3863.127 3.216
2.653
2.095
7.614 7.216 7.2116.665
6.105
0
1
2
3
4
5
6
7
8
Queen Creek USD#95
Mesa USD #4 Higley USD #60 Chandler USD #80 Gilbert USD #41
Primary Tax Rate Secondary Tax Rate Total Tax Rate