bond and override election for november 2019 · bond and override election for november 2019 school...

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