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Election Scenarios Estimated Tax Rate Impact

Election Scenarios Estimated Tax Rate Impact . Current M & O Override Current Capital Outlay Override Possible Future Bond. Scenarios. Scenario 1 No Revote of M&O Override Scenario 2 Revote M&O Override at 10% - Nov. 2014 ($18M) for ’15/16 - ’19/20

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Election Scenarios Estimated Tax Rate Impact

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  1. Election ScenariosEstimated Tax Rate Impact Current M & O Override Current Capital Outlay Override Possible Future Bond

  2. Scenarios • Scenario 1 No Revote of M&O Override • Scenario 2 Revote M&O Override at 10% - Nov. 2014 ($18M) for ’15/16 - ’19/20 • Scenario 3 No Revote of Capital Outlay Override • Scenario 4 Revote Capital Outlay Override • Scenario 5 Revote M&O Override at 10% - Nov. 2014 – Discontinue Capital Override – Vote Bond Nov. 15, 2015 to Replace Capital for ’16/17

  3. Scenario Pros & Cons ProsCons Scenario 1 No M&O Revote Decreases Tax Rate M&O Budget Reduction of $6M Scenario 2 Revote 10% M&O NO Projected Tax Rate Inc. Override if C.O. Override Expires No $6M Budget Reduction $12M Budget Increase Preserves Programs Scenario 3 No. C.O. Override Reduces Tax Rate Loss of Majority Capital Exp. Plan Scenario 4 Revote C.O. Override Retain Capital Exp. Plan Tax Rate Reduction Not Available for M&O Scenario 5 Revote M&O, Replaces All Projected Capital No C.O. Override – Outlay Plans + No Increase in Vote Bond (Nov.15) Total Tax Rate (See Exhibit A) Pros for Scenario 2 Reduces M&O Expense for Bus Repairs

  4. Schedule for Scenario 5 if Chosen M & O Override Renewal Election June 10, 2014 Approve Resolution for M & O Override (10%) Renewal (See Schedule from Maricopa Co. – Exh. B) Nov. 4, 2014 Election Day (M & O Override Only) Dec. 2014 Board Reviews Proposed Process for ’15/16 M & O and Capital Outlay Budget Preparation

  5. Possible Bond Election(Replaces Capital Outlay Override) Jan.-Feb. 2015 List of Capital Needs Developed Mar.-Apr. 2015 Stakeholder Review and Input Process May 2015 Governing Bd. Review of Capital Outlay Recommendations June 2015 Approve Resolution Calling for Bond Election Nov. 2015 Election Jan. 2016 Bond Sale Feb. 2016 Funds Available for Phase I Capital Expenditures

  6. Summary 1) M&O Override Renewal of 10% is offset by eliminating Capital Outlay Override – No Tax Rate Increase. 2) Funding provided by Capital Outlay Override replaced with bond funding over next 10 years with No Tax Rate Increase. Result 3) Avoids future cuts to M&O and adds back approximately $12M for program increases. 4) Allows continuation of capital outlay funding with increased funding ($30M) above Capital Outlay Override for technology, maintenance, bus purchase, etc.

  7. Time Frame Implementations

  8. Estimated Total Tax Rates

  9. Current Tax Rates (13/14) • Chandler 6.46 • Gilbert 7.13 (6.98 Est. 14/15) • Mesa 7.45 • Higley 7.71 • Queen Creek 8.16

  10. Exhibit A

  11. Exhibit B

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