Fountain Hills Unified School District officials feel the time is ripe to ask voters for a renewal of existing budget money in addition to some extra “new” bond money.

FHUSD currently has three overrides in place – money that is above and beyond standard budgets that must be authorized by voters.

They include a maintenance and operation override, a grade K-3 override (money can only be used in those grades) and a capital override.

Overrides are approved by voters for a period not to exceed seven years, and the district is entering its fourth year on the overrides.

Current M&O overrides are being used to maintain salaries, benefits, attract and retain staff, provide professional development, fund full-day kindergarten, additional “para” educators to assist K-3 students in core subject areas and lowering teacher/student classroom ratios.

The first-year phase out of the two overrides will begin in fiscal year 2015-16, resulting in an initial loss of more than $411,000 to FHUSD.

Superintendent Tom Lawrence told the School Board June 12 that per-pupil spending by the state has declined from 2008 to 2013, resulting in a loss of $1 million to FHUSD in that time.

Federal sequestration cuts also will cost the district about $32,000.

Other state reductions in soft capital and unrestricted capital for districts has impacted the M&O budget, Lawrence said.

Lawrence and his advisory committee ultimately recommended the School Board combine two separate override issues into one question on the ballot to help simplify the issue for voters.

The two overrides combined into one question add up to a percentage (13) of a budget override that equates to the existing tax rate.

In other words, Lawrence stressed it will be important to emphasize to voters that the overrides, if renewed, will simply continue the existing tax rate and not increase it.

The overrides were approved in 2009. If the combined question fails this fall, the board can bring it back to voters in 2014 and still not lose any funding.

The capital override was approved in 2007 and pays for technology, textbooks and other capital expenses.

Capital overrides don’t gradually phase out, however, so FHUSD will continue to receive full funding through 2014-15.

The board could ask for a capital override renewal on the ballot in November 2014.

Bond question

Voters last approved a $12 million bond authorization for FHUSD in 2007. All of that has been spent except for $40,000.

That bond was used for renovations and additions to school buildings, improvements to school sites and athletic facilities, buses and building the FHUSD Learning Center.

Lawrence outlined a rationale for recommending another $8 million in bonds:

*Limited or no funding from the state for building repairs for the past several years.

*Building renovations for student safety.

*Update technology infrastructure.

*Extend the useful life of district buildings.

*Protect the community’s investment.

*Aging facilities – McDowell Mountain is 27 years old, the Middle School is 11 years old, FHHS is 21 years old and the transportation facility is 25 years old.

The money would be used for student safety, renovations and additions, technology, energy efficiencies and new buses and other vehicles.

Bond consultants for the district project that $4 million in bonds would be sold in 2014 and the other $4 million in 2015. They estimate the interest rates would be 4 and 4.5 percent, respectively.

The tax impact over the term of the bonds on a home valued by the county assessor at $250,000 is estimated to be $34.22 per year for 21 years.

The tax rate is estimated to jump an average of nearly 13 cents per $100 of secondary assessed valuation.