WHAT IS A SCHOOL DISTRICT BOND?
The simplest way to think of a bond is like a mortgage. Bonds can only be used for real property that will be useful for years and years, much like a home. Bond funds are not used for supplies or salaries. The difference between a home mortgage and a government bond sale is the number of 'notes' being held. Most homes will have one or two mortgage notes. Government bonds are sold in specific values over specific time periods. People can buy them just like bank CDs (certificates of deposit) for short or long terms and different interest rates. The taxes raised go to pay the note and the interest when it comes due. These payments are called, "debt service."
WHAT IS BONDING CAPACITY?
The Arizona Legislature sets limits on the amount of Bonds that can be issued, or sold, by a school district (depending on its type). The limit is based upon the total value of the property in the school district boundaries. Districts with very valuable properties have high limits and districts without a lot of valuable property have lower limits. Even if voters would approve more bonds or taxes, school districts cannot sell more than the legal capacity allowed by law.
Even with the debt service from the last bond sales, the Littleton Elementary District still has almost 15 million dollars in bond capacity. Because of current economic conditions the Governing Board elected to ask voters for authorization to sell only half of that amount. This means that some important projects not covered by the State Facilities Board could not be funded. Keeping the list of projects small will allow the District to service the debt on both the old and new bond programs at a tax rate similar to recent years. In this way the Board did not add any extra tax-rate hardship to home owners during these challenging economic times.
WHY DO A BOND ELECTION NOW?
The Governing Board recognizes that these are trying financial times for many families. That is why they lowered the other secondary tax rates as much as possible and reduced the amount of the bond referral. The projects in the reduced package represent only one-half of the District's capacity. The election is important because the changing economic conditions will mean that this may be the last time the Board can call for an election for several years - if not now, then it may be too late for the district's next school. That delay would mean serious over-crowding in all of the schools before the State was ready to provide another school building.
WHAT DID THE GOVERNING BOARD DO?
The Governing Board heard from Stone and Youngberg at the April 14th meeting that the District will be affected by a reduction in assessed valuation that could last for a period of years. The Governing Board requested a listing of essential projects that would be funded through a future Bond offering. A Bond committee was formed which developed a list of projects that it felt were essential to the operation of facilities for the near future. The amount for the bond was decreased to $7.6 million dollars to fund what the committee felt were essential projects district-wide.
ON JUNE 9, 2009, THE GOVERNING BOARD ADOPTED A RESOLUTION ORDERING AND CALLING A SPECIAL BOND ELECTION TO BE HELD IN AND FOR LITTLETON ELEMENTARY SCHOOL DISTRICT NO. 65 ON NOVEMBER 3, 2009.
WHAT IS THE BOARD’S BOND ELECTION STATEMENT?
The Littleton Elementary School District Governing Board is calling for a Bond Election to provide funding for a variety of needs that are not adequately provided for by the State. These needs include: land for schools, facilities renovations, school site improvements and transportation and instructional equipment.
The District has been fast growing and depends on State funding for the construction of new schools, but the state does not provide funding for comprehensive facilities or the land that is currently required. The State funding formula is not adequate to meet our community expectations.
The Governing Board and the community have historically supported outstanding academic programs and facilities for our children. The bond election is necessary in order to improve our students overall educational experiences. Please vote Yes to support quality education as it is the best investment in our future, and our children’s future.
The historic bond Tax Rate has been $0.77 per $100 of assessed valuation. The new bond has been structured so that the current $0.77 tax rate will cover both the new bond issue and the current debt service. Thus, the bond tax rate is not expected to increase above $0.77 if the bonds are approved.
WHAT IS IN THE 2009 BOND PROGRAM?
Littleton Elementary School District #65 is requesting approval to sell Class-B bonds in the amount of $7.6 million dollars to be used in the following ways:
A-4.0 million dollars -LAND ACQUISITION & SITE IMPROVEMENTS
Land for new school, site improvements and field renovations at all schools, and associated costs.
B-3.3 million dollars - SCHOOL CONSTRUCTION & RENOVATION
Renovation and re-roofing of buildings, classroom space, restrooms, storage, special systems, flooring, tile, millwork, other necessary school building components, and associated costs.
C-0.3 million dollars - BUSES
District-wide school bus fleet modernization.
WHAT WAS THE RESOLUTION?
The needs and best interests of Littleton Elementary School District No. 65 of Maricopa County, Arizona (the "district"), will be served by the issuance and sale of school improvement bonds of said district; and
The laws of the state of Arizona require that an election be held prior to engaging in certain actions, including the issuance and sale of said bonds; and
The governing board will (a) order that a special bond election be held in and for this district on November 3, 2009; and (b) order preparation and mailing of the notice, informational report, publicity pamphlet and sample ballot for the election; and
The district expects to make expenditures in connection with the proposed projects to be acquired and/or constructed with the proceeds of such proposed bonds.
THE GOVERNING BOARD OF LITTLETON ELEMENTARY SCHOOL DISTRICT NO. 65 OF MARICOPA COUNTY, ARIZONA, RESOLVES:
· Order Of Election
A special bond election is hereby ordered to be held in and for this District on November 3, 2009
· Notice Of Election
Notice of the special bond election is ordered to be given by causing the Informational Report to be mailed to the residences of qualified electors of the District within the time period set forth in the applicable sections of the Arizona Revised Statutes. The District is authorized and directed to cause the Informational Report to be prepared and mailed as required.
· Publicity Pamphlet
The District is directed to mail to each household in the District in which a qualified elector resides, a publicity pamphlet.
· Early Voting
Early voting will be permitted at said election in accordance with the provisions of Arizona Revised Statutes.
· Voting Rights Act
In order to comply with the Voting Rights Act of 1965, as amended, the following proceedings pertaining to this election will be translated into Spanish, to-wit: ballot, Pamphlet, all early voting materials and all instructions at the polls.
· Polling Places
For purposes of this election, the election precincts will be Collier Elementary School, Quentin Elementary School, and Estrella Vista Elementary School. The polls will open at 6:00 a.m. and will close at 7:00 p.m. The District's special bond election may be consolidated with any election to be conducted on November 3, 2009 by any overlapping jurisdiction.
· Canvass
The Maricopa County Elections Director or the Maricopa County Board of Supervisors is requested and authorized to canvass the returns of the special bond election within twenty (20) days of the election.
WHAT IS STUDENTS FIRST?
In 1998, the Arizona State Legislature passed, and the State Governor approved, Senate Bill (SB110 I), a revised version of Students FIRST (Fair and Immediate Resources for Students Today). Students FIRST follow constitutional requirements by setting adequacy standards for school buildings and assigned the School Facilities Board, a state-level board, to develop a detailed standard. The goal of the Students FIRST Legislation is to provide enough funding to bring existing facilities up to adequate standards and maintain all capital facilities at adequate levels, however the Arizona Legislature has failed to provide the necessary funding for several years.
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