Arizona Republic du lieu suivant : Phoenix, Arizona • Page 239

200H32 YELL 10 SOUTHWEST VALLEY SCHOOLS 5 THE SOUTHWEST VALLEY REPUBLIC WEDNESDAY, OCTOBER 25, 2006 10 school districts ask for help Bonds, overrides sought to keep up with needs as SW Valley booms By Tony Lombardo TONY. Ten school districts in the Southwest Valley will try for a bond or override election on Nov. 7. Given the area's growth, districts are likely to continue seeking voter-approved funds to help cover costs especially to supplement new schools, said Judy ardson, vice president of public finance for Stone Youngberg LLC in Phoenix. Richardson works with school officials as a financial adviser, assisting them with upcoming bond and override issues.

So what exactly is a bond? And what's an override? And how is this going to impact taxes? Richardson sums it up below. Question: Why should I care about school issues on the ballot? Answer: Most people, if you own your own home, realize that your home value is somewhat impacted by the quality of schools. When voting, you have to evaluate what the district is asking for. How does a bond differ from an override? In an override you're not borrowing money. You're asking voters for permission to levy a tax and to spend it.

With bonds you get the money up front and then pay it back over time. With an override you don't get the money all at once you get a fixed amount each year. Bonds can be used for capital projects related to construction and school bus purchases only. Overrides can be used for broader uses such as covering teacher salaries or buying equipment. What is the cost of voting yes? Look in the voter pamphlet, mailed to every household with a registered voter.

The district will provide an "average annual tax rate" for a bond. This number is an estimate of the annual cost for a bond. For an override, you will be given the first-year tax rate. For either type of election, multiply the rate by 100 for each $100,000 value of your home. My school district says the bond issue will not increase the tax rate.

Does that mean I won't pay any new taxes? It's not that there's no tax impact, it's just that it's not an increase over the current tax rate. Most school districts try to keep the current tax rate level or have the least possible increase. As my property value goes up, what happens to the taxes? That depends on a number of factors. In most cases the tax rate will go down when property values go up, but if your property value goes up a lot, more than other values in your district, your taxes could increase. The state provides money for school construction and land purchases through the Arizona School Board.

So why are Facilities Glossary of terms Bond a promise made by a school district to repay money, with interest, received from investors. For a school district, bond money may be used for capital projects such as new construction, renovations, land purchasing or the purchase of school buses. Bond election a request for voter approval to issue bonds and approval to levy a tax to repay them. Override "pay as you go" tax money levied by a school district. This money is not borrowed like a bond, but is collected directly from taxpayers.

There are three types of overrides used by school districts: Capital, maintenance and operations, and K-3. Capital override used for capital purchases that can include computers, furnishings and furniture. It can also be used for building and land. Maintenance and operations override used to supplement operational costs such as teacher salaries or heating and cooling bills. K-3 override funds specifically PHOTOS BY JOHN REPUBLIC Luis Gomez, 14, demonstrates a wireless laptop at Verrado High School.

Agua Fria High School District is asking voters to approve an override that will help buy the latest technology. Southwest Valley school district elections Here are highlights of Nov. 7 school district elections. Capital outlay budget overrides are per year for seven years. Agua Fria Union: Capital outlay budget override, $3.6 million.

Buckeye Union: Bond, $129 million. Fowler Elementary: Bond, $27 million. Litchfield Elementary: Bond, $30.5 million. Littleton Elementary: Bond, $15.8 million. Palo Verde Elementary: Bond, $3 million.

Pendergast Elementary: Bond, $50.7 million. Capital outlay budget override, $2.175 million. Saddle Mountain Unified: K-3 budget override, $452,000 for first year. Tolleson Elementary: Bond, $22.15 million. Union Elementary: Bond, $10.4 million.

schools turning to taxpayers? They could want a school to be more energy efficient or a better-quality product so it's easier to maintain. They could also want amenities such as gyms and ball fields. The district is not going to get everything from the state that it would want. The second reason would be because the state operates on a formula for when a district qualifies for a new school. Sometimes these formulas don't work out because they are based on the space available in a school district as a whole.

If a district has a school in an older neighborhood that is not full, but is growing rapidly several miles away, the district may not qualify for a new school for until the old school is full. Why would a district ask for renovations, Shelby Decker, 15, (left) joins in a reading enhancement program at Verrado High. something the state also pays for? The state gives districts money to maintain buildings or fix them. It's called "building renewal." It's a formula-based program and the state has not fully funded the formula, so a lot of districts are asking for money for renovations because they believe the state funding does not meet their needs. A lawsuit has been filed claiming that this underfunding of the building renewal is unconstitutional.

Are more schools turning to bond issues and overrides? The trend is up. The state formulas have not kept pace with construction costs. Districts cannot build the same school now that they built seven years ago. Many districts feel like they have to get some money to supplement state funding in order to keep their schools equal. Where can I get more information? The Arizona Department of Education has a Web site with basic information about school districts (www.ade.az.gov).

The best thing to do is to go to the district with questions. Reach the reporter at (602) 444-4138. for grades kindergarten through third. In the past, it's often been used to implement full-day kindergarten. Override election voter approval to levy a tax needed to fund the override for a limited number of years Source: Judy Richardson, vice president public finance, Stone Youngberg LLC.