001All in attendance or all in favor, say aye. Aye. All opposed, same sign. Motion passes 3-4, and I didn't hear the other two votes, so I would assume that they are abstaining at this point. We're in a second session. Okay, we are going to reconvene the regularly scheduled governing board meeting for June 24, 2025. We will stand for the Pledge of Allegiance and have a moment of silence. Thank you. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Next item of business would be D1 Superintendent's current events and summary. Mrs. Doring, you have the floor. Thank you. We have a short report this month. Starting off with staff celebrations of accomplishments, please help
002me congratulate the staff members for their many accomplishments this year. These accomplishments include associate, bachelor's, and master's degrees, as well as professional certifications and distinguished organizational positions. Crane School's new crew induction for 2526. New teacher induction will take place on Tuesday, July 15th at 8 a.m. at Crane Middle School in room 607. Board members are invited to this event to help welcome the incoming Crane crew for the 2526 school year. Please arrive 15 minutes prior to the start of the session and let Minnie know if you will be in attendance so that she can post it accordingly. Mr. President, members of the governing board, that's my report for this month. Thank you very much. Next item of business is D2 Superintendent's Update on Legislative or Government Actions or Other Governmental Actions. Mr. Ponder. Thank you,
003Mr. President. Members of the board, yes, an active week here at the legislature as we're hopefully starting to wind down and a lot of discussion about the budget. Give you a little bit of an idea. We're at day 163. Over 1,700 bills have been introduced. 140 of them have been vetoed. And then 220 of them have been signed by the governor, none of which have been a budget. So a lot of things happened. over the course of a past couple of days as well as over the weekend. So Friday the Senate met, they passed a budget, and then they, the original report was that they made a motion to adjourn sine die. However, later was discovered or determined that it was actually a notification to the House of their intent to adjourn sine die or
004that they're ready to adjourn. So they can always come back to the floor to address any bills that might take place at that time. Over the weekend, there was a little bit of a dispute by social media between the governor and House of Representatives and senators about the process, the budget. All of those types of things. And so the House came back earlier this week and they proposed a skinny budget, basically to allow services in the state to continue after July 1st. The governor was very transparent over the weekend that anything other than what the Senate had already signed on, she would veto. The House is meeting today. In fact, they're currently on break, but they are meeting today to review a number of bills. An emergency motion was passed for a lot of the
005budget bills, so not only in K-12, but the other areas of the state budget that would accelerate these due to an emergency clause and send them all the way to a third read. I don't know the status of those yet because they are on break, but that's kind of where we're at. Many speculate that we will have a budget by the end of the week, and I suspect that we would. We'd have to have one come Monday. Monday is June 30th, and then after that remains to be seen. So if I could talk a little bit about contingencies and what that might look like if we do not have a budget. It really means that the district would not receive the state aid apportionments that are entitled to them for the upcoming fiscal year. We
006would still get our share of what has been approved for FY25. There is a $200 million shortfall. And so the Arizona Department of Education indicated that they would only fund 60% of that shortfall. And then the rest was going to come through a supplemental appropriation part of the FY26 budget, which is in the Senate budget that they approved and passed over to the House. uh so there can be some of those nuances uh that are there the rollover uh payment that is due to the school district we would still continue to receive that because that was part of fy25 so initially there were some concerns about us not being able to compensate or yeah compensate staff or vendors the district has some flexibility assuming that we have the cash to be able to do that
007if not we can register warrants although the district has never done this we could issue what's called tans or tax anticipation notes essentially short-term debt saying we anticipate these taxes coming in from the public when taxes become due and in turn we'll give that money back to you plus interest. So those are some options. I question the legality that we have or the authorization that we even have to do that if there's not a state budget. And so legal teams from around the state are reviewing to see what options might be available to school districts, but many remain confident that we will have something at least by June 30. So having said that, later in today's meeting, I'll be presenting a budget, Jennifer and I will, that... is as current as we know, with some
008assumptions and then other things that may change moving forward. So that's the biggest thing that we're waiting on. There are a number of other bills that have already been signed by the governor, some of which impact education. The effectiveness date of those that do not hold an emergency clause would be 90 days after they adjourn sine die, which is yet to be determined. So we'll have more information on that as it becomes available, but I'll pause for any questions. Those appropriations won't be made until after the school even begins. So the general appropriation bills are not subject to the general effectiveness date. They become effective on 7-1. So anything that relates to the budget would be 7-1, not, let's say, September or, at this point, October. On your tax one, the interest, the notes? I
009mean, I think anyone would advise you to stay away from that as much as possible. We're underfunded as it is, and then having to pay the interest on top of that is just crazy. Any questions from the board? Okay, thank you. Thank you, sir. Next item of business is E2 consideration, or excuse me, E1, oral reports on conferences, workshops, and visitations. Periodically, E1? E1. Right. School visitation. My E1 is oral reports and conferences. E1, is there a correction? Does everyone have E1? Okay. E1, oral reports on conferences, workshops, and school visitations. Periodically, members of the governing board attend various conferences, seminars, workshops. District schools and so forth and have information that they would like to share with the members. Is there anything that the board would like to expand on? And seeing none, we shall
010proceed to the next item of business. E2. Consideration to temporarily appoint governing board member to preside over the July 8, 2025 governing board meeting. Let me see. So I. The President and Governing Board will be unable to physically attend the proceedings of the Governing Board for the next regular meeting scheduled on July 8, 2025 at 1 p.m. Governing Board Policy 1-103 Governing Board Organization stipulates that the Governing Board Clerk will assume the duties of the President in the absence of the President. However, Mr. Colby will... only be able to attend the meeting remotely as well. This policy also states that, quote, in the absence of an elected officer of the board meeting, the board member's president at the meeting may designate a board member to assume the duties of the president for that meeting. Mr.
011Farrar and Ms. Toomey are expected to also be unavailable to attend the meeting in person. Given these circumstances, Mrs. Kelly Osborne will be the only individual able to preside over the meeting. It is recommended that Kelly Osborne be elected to temporary preside over the regularly scheduled meeting of the governing board on July 8, 2025, beginning at 1 PM. What is the pleasure of the board? To make a motion to do that. Second. Then properly moved and seconded to have Ms. Kelly Osborne preside over the governing board meeting on July 8, 2025 at 1 p.m. Any discussion? Seeing none, we shall proceed to vote. All in favor signify by saying aye. All opposed, same sign. Motion passes unanimously. Next item of business, consideration of adoption of proposed amended governing board policy. The Arizona School Risk Retention
012Trust, Inc. is proposing updates to its policy manual. One, conform to changes to federal regulations implemented to Title IX of the Educational Act, Title IX. And two, comply with the requirement of the receipt. of Title I funding under the Elementary and Secondary Innovation Act. You as the board members have the background on this in your guys' board docs. What is the pleasure of the board? I'll entertain a motion to accept consideration of adoption. So moved. It has been properly moved and seconded to... Approved consideration of adoption of proposed amended governing board policy 1-203. Is there any discussion? Seeing none, we shall proceed to vote. All in favor signify by saying aye. Aye. All opposed, same sign. Motion passes unanimously. Next item of business is F1, call to the public. consideration and discussion of comments and
013concerns from the public. Those wishing to address the governing board on items not on the agenda may do so at this time. Speakers are requested to hold their comments to three minutes. Individuals addressing the governing board may not yield any portion of their allotted time to any other individuals wishing to address the governing board. In accordance with the Arizona Open Meeting Law, board members may respond to criticism made by those who have addressed the board, may ask staff to review a matter, or may ask that the matter be put on a future agenda. However, board members shall not discuss or take legal action on matters raised during an open call to the public unless the matters are properly noticed for discussion and legal action. Seeing none, we shall proceed to the next. F2, acknowledgement of
014public request to speak. Anyone wishing to address the board on items on tonight's agenda may do so at this time or at the chair's discretion at the time the item appears on the agenda. Comments should be restricted to three minutes, not including board questions and comments and responses by the speaker. Individuals addressing the governing board may not yield any portion of their allotted time. to any other individual wishing to address the governing board. In accordance with the open meeting law, board members may respond to criticism made by those who have addressed the board, may ask the staff to review a matter, or may ask that the matter be put on a future agenda. However, board members shall not discuss or take legal actions on matters raised during an open call to the public unless the
015matters are properly noticed for discussion and legal action. Ms. Encinas? Thank you. G1, the consent agenda, consideration of approval of consent agenda. The consent agenda conserves time by limiting the items of routine nature, which normally do not require deliberation on part of the governing board. The items will be accepted and approved in one action unless board member wishes to have an item separated from the consent agenda and specifically discussed. The vote or action on any item removed from the consent agenda will be taken separately. What is the pleasure of the board? I'll move to approve the consent agenda as is. Second. Is there a second? It has been properly moved and seconded to approve consideration of approval of consent agenda items. Any discussion? Seeing no one, we proceed to vote. All in favor signify by
016saying aye. Aye. All opposed? All opposed, same sign. Motion passes unanimously. Next item of business is way down here. H1, consideration of adoption of gifts from the public. Crane School Governing Board Procedure 3-106B. federal grants and other funds except the acceptance of gifts and donations requires that the gifts made to the district by individuals or organizations be reviewed and officially accepted by the Korean Governing Board. You all have that information. What is the pleasure of the board? We accept the gifts from the public that are listed. I'll second. Properly moved and seconded. Any discussion? I just think it's great that we're still getting some donations in July, June, July. Noted. Thank you. Any other discussion? Seeing none, we shall proceed to vote. All in favor of the motion signify by saying aye. Aye. All opposed?
017All opposed. Same sign. Motion passes unanimously. Next item of business, H2, consideration of adoption of revised exceptional student services preschool calendar for 2025-2026. The school district is required to have an exceptional student services or ESS preschool calendar for 2025-2026 school year and must be adopted by the governing board. What is the pleasure of the board? So move we accept the calendar as is. It has been properly moved and seconded. Any discussion? Shall proceed to vote. All in favor signify by saying aye. Aye. All opposed, same sign. Motion passes unanimously. Next item of business is I-1. Consideration of approval of superintendent's annual performance evaluation and determination of performance pay per employment contract. Annual performance evaluation of superintendent is required for Arizona revised statute ARS 15-503 and ARS 15-431A40 mandates performance pay for district superintendent. Ms. Osborne,
018could you address that, please? Sure. We need the scores and the percentages that we need. Yes. So we have evaluated the superintendent and given her a score of 84 points out of a total of 116. That gives her a total percentage of 72.4% and would result in a performance pay of $2,422.24. I will now take a motion to accept the consideration of the superintendent's annual performance evaluation. Move that we accept the evaluation as submitted. It's been properly moved and seconded. Any discussion? Seeing none, we shall proceed to vote. All in favor signify by saying aye. All opposed? All opposed, same sign. Motion passes unanimously. Next item of business, I-2, consideration of approval of assessment of liquidated damages for certified staff. Board approval is needed in order to authorize crane personnel. to assess a fee of
019$1,000 of liquidated damages per signed contract stipulated to certified staff that resigns without receiving prior board approval. You guys have the information on that case? What is the pleasure of the board? I move that we vote to accept the liquidation penalty. It's probably moved and seconded. Any discussion? I do think we've had some conversations about this. And I think while some people may say that it's not necessary to assess damages when somebody did communicate well with us, I also think it's important for us to be physically responsible. And it takes time and money to hire a new staff member. So I think as much as we appreciate when people do communicate with us, I do think it's also important as the board that we still assess damages for the sake of, you know. Our staff's
020time that they have to now devote to filling that. Absolutely. Any other discussion? Seeing none, we shall proceed to vote. All in favor signify by saying aye. Aye. All opposed, same sign. Motion passes unanimously. Next item of business, J1, the discussion and consideration of the publication of the proposed 2025-2026 Maintenance and Operations and Capital Outlay Expenditure Budget. and authorization of the public hearing to be held later than July 15, 2025. They turned the floor over to Mr. Ponder and the... Budget, non-budget, I guess. Thank you, President Moore, members of the board. Yes, we come to you today to propose the FY26 expenditure budget pursuant to ARS 15905A. As shared earlier, the state does not have an approved budget. So what we are presenting today is a... a budget and draft form or preliminary. They're presented
021on preliminary budget forms that are prepared by the Office of the Auditor General and the Arizona Department of Education. So this information will be shared with you on these preliminary forms in July when we have the adopted budget. That adopted budget will also be on these same preliminary forms regardless of what happens between now and then. Then following that, in the August or September timeline, pursuant to 5905Q, we would have until September 15th to be able to bring a revised expenditure budget to this governing body to capture anything that would happen within the legislative session. The reason why we can't do that in the interim is because the adopted budget should mirror the proposed budget because the public is commenting on this budget and if we make a change at the adopted budget we have
022to go through the public hearing process again. So I would just soon do that when the legislature has have everything completed. So Jennifer and I are going to spend a little bit of time going through the budget as best that we know with some assumptions as well as what we know for certain. And so what we do not have is an Arizona approved budget, but instead we have some assumptions that we've identified through the budget development process. And the first one was the 2% base level support increase that also includes transportation. That is in every budget that's been presented. That's in the governor's budget. That was in the Senate's budget. Even the budgets that were proposed by the House. All of those include a 2% inflationary adjustment, which is required pursuant to statute. So I
023have reasonable confidence that. that will take place. It also eliminates the one-time increase to the Group B weight for the free and reduced price lunch. That was something that, so I'll, let me backtrack a little bit. FY24, we saw an increase or an addition to the, I'll call it the FERPL or the free and reduced price lunch weight. In 25, the current year that we're in now or that we're ending, it was supposed to increase again. The legislature was concerned about the sustainability of that program, and so instead they gave us a one-time equivalent to what that increase should have been, knowing that in 26, that one-time money would be eliminated. When that took place, statute also dictated that in FY28, the FERPA weight would be restored to what it should be. So they needed
024a three-year grace period in order to bring things up to what it needed to be. Well, the Senate's budget includes providing this one-time... program again. Excuse you, Minnie. This one-time monies again for FY26. However, our budget doesn't include that because that is still being negotiated. So I do want to make that clear. The same type of provision was included for district additional assistance. It had a one-time bump. This budget that we're presenting does not include any of those. Should those things come through the legislative session, we will capture those through the subsequent budget revision in the August-September timeline. But I want to be transparent, this budget does not include that one-time money. It does include the district's prorated share of $75 million. So that was part of the original Proposition 123. And in FY26, the
025state's general fund was absorbing that. And so this budget does include the absorption of our share of the statewide $75 million. The state's general fund also absorbed the impact to the adjustments to the inflation pursuant to Proposition 123, which is about $300 million. So the state absorbed all of those types of things. What we know for sure, though, is that the classroom site fund increased by about 6.31% or $50 per pupil, going from $792 per student to $842. That one is for sure. That's a given. And this budget includes that. So some of the considerations that we have for 26, we know the increased cost of goods. So part of the inflationary dollars that we receive are to offset some of those things. I do want to remind this body that we are capped at
0262%. So the law says the lesser of the rate of inflation or 2%. And so even if inflation is 3, 3.5, it's currently trending at 2.4, we only get 2%. And so that was part of our compensation package that was brought before the governing board in April that was approved and included that 2% provision. We also included our estimate of the budget balance carry forward from 25 along with this and we've resourced. are allocations based off of current year funding. So anticipating what those losses might be. We'll talk a little bit more about the ADM, but that has been trending at about 2.5% a year over the last two years, this being the second year. And so this budget was developed with that. continuing to happen where we'd see an increase of 2.5% in our
027average daily membership. Should we perform better than that, we'll be able to capture that budget capacity. Should we perform worse than that, we would have to lean on contingencies or other cost-saving strategies in order to absorb that impact. Does continue Proposition 206 that will come effective January 26. Currently, like I said, inflation is trending at about 2.4%. So that would make minimum wage $15.05. This governing board approved the district's minimum wage at $15.15. So if that happens, the district would be able to stay a dime ahead of everyone else. Again, probably one of the biggest changes was the significant increase of the investment made to the base paid under classroom site fund, increasing that from $6,500 to $10,110, a nice round number that Lupe really liked. And then maintain the eligible staff member, the maximum
028that could be achieved through the performance pay at $4,890. So collectively, the total earning potential of a teacher is $15,000. We are seeing a decrease in the Arizona state retirement rate by 0.27% from a 12.27 to 12 for both the employee and the employer. And the alternate contribution rate is also falling from 10.19 to 9.75. As shared as part of our budget process that we went through for our compensation package, we are already aware of a 6% increase to our health benefit coverage. The district is absorbing that piece. However, if somebody had dependent care or they buy up to Plan B, they would see those adjustments there too. And of course, our planned and potential capital projects that are ongoing. ADM and enrollment history. This is a 10-year outlook, really looking back from 2014-15 to...
029what we just ended in the 24-25 school year. You could see that projecting it or we fell 2.26% in enrollment and 2.85% in ADM. I'll remind you all the difference between those is really how kindergarten students are calculated. So while they are a full person, we're only receive half ADM for them. So if we receive full credit for a kindergarten student, we would see those lines more closely related to one another. But you can see the significant impact happened during COVID. Our district, like many other districts, has not fully, and charters for that matter, has not fully recovered from the impact, the loss of enrollment related to COVID-19. And you can see that was a significant drop that we've experienced. Taking a look at the five-year average, that change has been a little over 2%
030decline in enrollment and almost 2% in ADM over the last five years. You can see that the steady decrease from 2023, 24, and 25, that's that sharp line, about 2.5% a year. So we've seen a steeper decline. in average daily membership and in enrollment over the last two years, which is why we put the most weight on those two years when we were establishing what our budget would be for FY26. I will turn it over to Jennifer now. Good evening. So this slide here shows our maintenance and operations budget. So this breaks down salaries and benefits, purchase services, supplies, others, and utilities. So it compares our May revised budget, which we just went over last month, and then our current proposed budget for the new school year. Overall, there is a $3.3 million decrease. The
031majority right now is under purchase services, but this is just an estimate of what we think for them. the following school year, but it will probably more than likely be adjusted as the year goes on. This shows just a pie chart of the same information just to show you that salaries and benefits is 90% of the budget. It used to be about 85-ish percent, and now it's up to 90% of our total budget. And then purchase services at 5%, utilities at 4%, and supply and other at 1%. Unrestricted capital, this kind of the same layout. So capital leases, textbooks, instructional materials, short-term non-instructional software, furniture equipment technology, and other. Overall, this was a decrease of about $716,000. Right now, there is not a budget in the short-term non-instructional software, but that will be revised at
032a later time to include some of the expenses for 26. I have a question real quick for one of the two of you. Is that where the curriculum, some of the software needed for curriculum, is that coming out of this budget? It could carry over. So we made the purchase in 25. If the products aren't received by June 30, we would roll those purchase orders into the next school year. But we also get to move that budget capacity forward as well. So we're not double spending, if that makes sense. But the $750,000 we spent in 25 and it's not here, that $750,000 rolls into 26, and then that expense would happen there. Okay. Sorry. And then this is just a pie chart again of the capital expenses. The majority is under furniture, equipment, technology, and
033other. 16% under capital leases and then five under textbooks, instructional material. Question? Yes. What are some of our capital leases? So those are, that is our MacBooks and iPads. I'm sorry? The MacBooks and iPads. Oh, a lot of that payment is, is there under that category? I thought that was under equipment. I thought that would have been under equipment technology, but okay. Yeah. So Classroom Site Fund, like Dale mentioned, our overall total budget is over $11 million. The increase of base pay from $6,500 to $10,110 per teacher. The performance pay portion of that, the maximum a teacher can receive is $4,890, and that's dependent on the teacher effectiveness rating and the professional development hours that they submit. Right now... The performance plan, 70% of teachers that participate in this, they will meet, and this will
034be reviewed in August of this next school year, and that plan will be approved in September or October for the fiscal year 26. Again, all class site funding must go to teacher compensation. Other staff aren't able to receive that, but according to the Attorney General opinion, any individual that has a valid teacher certificate and completes at least 50% of their day providing instruction to students can qualify for this. And just a chart to show you the increase. This is one area that we do see an increase from 2002 to 2026 is from $241 to $842. Instructional Improvement Fund or Indian Gaming. Our total budget here is a little over $1.2 million. We estimate an increase or additional revenue of $368,000 for the fiscal year 26 with a carryover of $841,000 from fiscal year 25. This
035includes a $300 stipend for teachers that's paid out in November or December timeline. And then included in this is our CAP program, the Korean Alternative Placement Program. We have a teacher and a instructional aide that's funded out of this as well. And then unlike some of the other funds, this is a cash-controlled fund, so we can only spend this account once we've received funds, not just based off the budget capacity. And then indirect costs, we have a total of $1.1 million here. And then under this budget, we have three FTEs funded here, computer specialists, benefits specialists, and our grant writer community relations position. Some of the other funds noted is our federal and state program. So this is an estimate based off about 85% of what we anticipate coming in at 5.5, almost 5.6 million.
036The district additional assistance override. This was the 2018 property tax, secondary tax rate initiative that was passed. The extracurricular activity tax credit, 153. This is an estimate based off of the sphere 25. Ending balance is a rollover for that budget. Food service, about $6 million. This is what we anticipate to be an actual budget. Debt services, the $2.4 million. And this is the bond, the principal and interest payments for our bond. payments, which are made in July and January of fiscal year 26. And then our gifts and donations budget. This is an estimate. And the majority of this, there is gifts and donations, but a lot of this is the Gowan Innovation Lab. That will be rolled over to continue payment on that. This is projected. That's not what we have on hand. Some are
037actual and then some are estimates based off taking a look at historical information plus our budget balance that's in there now. What might we expect next year? So we're looking at what we already have and what we may get. Correct. The combination of both. Yes. So some of the other initiatives that this budget would take a look at, obviously, we're going to... I'm sorry. I do have a couple of questions real quick. On the Indian gaming money, if all of that is supposed to be for... For salaries and wages, why is there like a carry forward? Only 50% can be used for teacher compensation. The balance is for at-risk programs or what they call improvement funds, which is why we use that to fund the crane alternative placement program. So CAP is funded through the
038other half. So it does grow a balance every year. We did make an adjustment a couple of years ago. More than that. We increased from $300 to $400, and in doing so, we were unable to sustain that because the tribal gaming went down, those funds went down, and because we can only spend 50% of what's there for teacher compensation, we adjusted that downward to $300. And then the tobacco money is gone. Really no more. Okay. Thank you. So taking a look at some of our other initiatives that we're working towards, we're continuing the district additional assistance override that is currently in place. That's really just maintaining the lockdown systems that we have now, in addition to the cameras that are in place, making the final payment. So as Jennifer mentioned, the wireless technology that we
039have is a lease structure. It's a three-year lease structure. We're making the final payment of that. Following that, we are able to retain those devices and then we resell them. And in doing so, we capture that revenue to offset ongoing costs and then reinvest that into other initiatives that may be needed. For example, most recently, we used the sale of those to reinvest into our wireless technology. So that was installed 2014, so about 10 years old. We used the proceeds from that revenue to offset that cost. The governing board did approve the November 2025 election for the renewal of the district additional assistance override that was called in May. The $10 million general obligation bond, so the last of our authorization from the November 2023 ballot, those were sold in March and are working towards
040the security entrances that are happening within our campuses now. Those are expected to be completed by the end of July. We already invested in the exterior with riot and ballistic rated laminates and then exterior weatherization projects currently at Ronald Reagan and Mesquite and then Pueblo, Gary Knox, Valley Herald. and one more HLS thank you those are on tap for next summer so we have those planned out all the projects are expected to be completed prior to the start of school pursuant to statute we are required to provide the governing board and the public with information on the progress of all the bond projects that has to be done between September 1st and October 31st so that will be forthcoming likely after the completion of the annual financial report when we have all that information done,
041which has to be brought before the governing board by October 15th. So both of those items will likely be on the October agenda. And then we continue to seek building renewal grant dollars. I believe we have about $1.1 million that we've received to date from the SFD regarding a number of different projects. They range from small motors to large HVAC. Jennifer is primarily the one who tracks all of those and actually makes those requests to the Arizona Department of Administration, working closely with Ozzie and the facilities team. to identify what those needs are. We're currently seeking a grant opportunity to address some additional security measures throughout the district too. So those are initiatives we continue to focus on trying to find areas where we're not just consistently looking at our local taxpayer resources to meet
042our needs, but those outside, which may be constitutionally required to do and others that may be grant funded. So the total expenditure by fund, a little over $97 million. Again, some of these are estimates, others are actual. I'll put that in air quotes, given that we don't actually have a fully adopted state budget. You can see how that's broken up. So about 45% of all the funds that we estimate or project are in maintenance and operation. And as Jennifer said, about 90% of those are in staff. And so you see how those funnel through the classroom site fund being the next highest category at almost 12%. followed by unrestricted capital at almost nine. I'm sorry, bond building at nine and then unrestricted capital at almost nine as well. Assessed valuation, this actually ends up being
043great news. We can see what that trend is from year to year. So from last year to this year, assessed value of property within the district increased by 5%. You see what that change has been over the last five years. It's been 21% increase and an average of 5.11%. And that really comes in. when we take a look at setting that secondary tax rate on bonds and the override. So as Randy Stein came to present a couple of months ago, and then again last month before the call for the election, shared the impact that valuations have when we're projecting what that tax impact will be on our constituency. primary and secondary tax rate. Here's a little bit of the history plus what we are estimating that to be. We'll have that number more closely at
044the end of July. We'll have that narrowed in because that will really tell us what cash balances we also have. This is brought before the County Board of Supervisors at the third Monday of August. And so that's when they will actually set our taxes. The district does have significant input in. setting those rates as well. A lot of it is based on math, to be fair. Here's what our needs are. Here's what the formula says that we're entitled to and, you know, make up the difference. We'll share that our district receives about 89% of our equalization funding from the state and about 11% comes from local property tax owner just to meet our basic state aid needs. So what's next? Public hearing final budget adoption July 8th. We will work on the FY25 year-end closing.
045Again, the annual financial report is due by October 15th. Then we begin completing all the other necessary reports, the comprehensive annual financial report, single audit reporting package, the USFR compliance questionnaire. All of those things are done by December 31st and filed by March 31st of each year. Jennifer and Rosie work on the PAFR, the Popular Annual Financial Report. That goes to the residents in spring following when all of our financial documents are due to be submitted by March 31st, which is why that timing is there. Again, we anticipate bringing a budget revision back to you all before September 15th. That could be August or September, but law does mandate that that be done by September 15th so that we can align with law. And then following that, typical revision dates of December 15th and May
04615th of FY26. With that, I will stand for any questions. I have one real quick question. The retirement contribution reduction from the state, is that like a budget cut type thing? Or is that, how did that come about? So it's not so. So the Arizona State Retirement System is independent of the state. And so that reduction is really based off of their assets, what they have reporting based on what they need to satisfy existing pensions and future pensions. And so based on the actuarial study, they've determined that they need to set rates at 12 percent instead of 12.27 percent in order to achieve the same amount of. resources that they need to maintain. So it could be possible that where they have investments performed better than what they had speculated. And so they're able to
047capture those resources. But why would you want to reduce your contribution? Is that just because people, I mean, we're just trying to make it easier on take-home pay? It's all, again, based on the actuarial. So instead of it going up and really 12% is relatively high compared to what it used to be 20 years ago is like 6% and 7%. And so it's more about how those assets are managed and they don't want to put more on the entity or the individual than what's necessary to ensure that the pool is appropriately invested. Okay. Any other questions for Mrs. Bosch or Mr. Ponder? So, Mr. President, we just ask that the recommended action be followed and that the governing board set the public hearing and when the adopted budget would be available. Thank you, sir. Thank
048you. So, I'm trying to get my laptop back going. The recommended action is for the governing board to move and consider and... Wait, let me read this. Move the governing board consider and... if deemed advisable, to approve the statement of support for the November 4th- Mr. Moore, I'm sorry, item J1. I think you're reading J2. Oh, J1, I'm sorry. It is recommended that the governing board approve the publication of the proposed 2025-2026 budget summary and hearing notice and authorize a public hearing to be held at the regular governing board meeting on July 8, 2025. That's the recommended action. What's the pleasure of the board? So moved. Recommended action has been moved. Has it been seconded? It's been moved and seconded. Any discussion? Seeing no one, shall I proceed to vote? All in favor signify by
049saying aye. All opposed, same as signed. Motion passes unanimously. Next item of business is J2. Consideration. Consider, discuss, amend if desired and if deemed. If deemed advisable to adopt a resolution approving the governing board's argument in support of the special district additional assistance override election. Mr. Ponder, would you like to comment on that? Yes. So this is pursuant to statute. The governing board is required to submit a statement in support of the district additional assistance override that would be included in the voter information pamphlet. Like other arguments that would be submitted, it can be no longer than 200 words. A draft statement has been provided for the board's consideration. And so we would just need to ensure that whatever this board decides to be the appropriate direction, that it does not exceed 200 words. A
050resolution would be forthcoming that would also need to be executed following the action of this body to ensure that we are meeting the timeline so that the voter information pamphlet can be delivered to every home in the district. prior to the election. Ladies and gentlemen of the board, there's been a draft that's been written up. Who wrote that? It was AI. No, I'm just joking. I wrote that, yes, sir. Thank you. Mr. Ponder wrote that. He's pretty good. Should have been a lawyer. Anyways. I will say it was hard to keep it at 200 words. I know. Okay, so what is the pleasure of the board? Dale about trying to lower the reading level since we know not all of the members of our district are at the same reading level. So he sent me
051a sample. Does this have to do with the lower reading level? I think we will lose a lot of professionalism, unfortunately, with the other language. I was reading to try to see if there's any areas where we can. So I would imagine different reading levels probably won't read it anyway. So my motion would be that we accept Dale's version as proposed. Okay, so it's been properly moved. Is there a second? There's been a second. Now I'll open it up for discussion. So if you want to discuss, you can. The only thing I just had like the last line. of the other version slightly better. And if we could combine them, I think that would sound a little bit better. So what we have is your support is essential to meeting the current future needs for
052our students and sure they have access to safe, modern and effective learning environments. The lower reading level version was your support helps make sure our students have safe schools and the tools they need to learn and grow. Mostly I actually just like that this emphasizes learning and safety is compiled differently in the way this reads. Yes. Okay. So I guess. I can try to propose a different motion. Well, I mean, you'd have to amend the motion. So if you want to amend it to where you pick a different one in lieu of the, well, I think we'd have to vote on this one and we'd have to vote it down and then you can make a motion. And let me also remind, as if the board does decide to edit, we just have to make
053sure that we don't go over the 200. So being cognizant. That's correct. So the motion on the floor right now is to. approve it as is. So you have that on the motion. You can vote it down. Okay. And then if you want to make another motion, you can do so. That's where I stand. Is there any other discussion? Okay. Seeing none, we shall proceed to vote. All in favor signify by saying aye. Aye. All opposed, same sign. Okay. Motion passes. Four in favor. I'm sorry. Okay. Four in favor and one in opposition. We shall take on the... Let me see here. Is it time for me to move to adjourn? Yes. K-1. Consideration to adjourn the meeting. Move. Move to adjourn. All in favor say aye. Aye. All opposed, same sign. Motion passes. Unanimous.
054We are adjourned.