001I call order special government meeting. Mr. Santa Cruz, can you please lead us in the pledge? I pledge allegiance to the flag and creation. Roll call. Governing board president, Miss Patricia Himenez, present. Governing board me Governing board vice president, Miss Maria Guzman, present. Governing board member, Mr. Rudy Santa Cruz, present. Governing board member, Miss Maria Hernandez, is not present. Governing board member Mr. Harry Garwolf here. Next, approval of May 22nd, 2025 special governing board meeting with executive session agenda. Is there a motion? So move. Is there a second? Second. Call for the vote. Okay. Motion carries. Next approval of May 15th, 2025 regular government and board meeting minutes. Is there a motion? Is there a second? Second. Any discussion changes hearing? None. Call for the vote. Okay. Motion carries. Next, new business information and discussion
002action. New bond proposal presentation. Mr. Jim Serban, chief financial officer. Randy, oh my gosh, Stain. Stain, I'm sorry. Stain uh with Stainfield. Stainfield Nicholas Company, James Gil, Gus Rosenfeld, Paul Dulan, Primary Consulting LLC. Information and discussion. So, James, Mr. Madame President, members of the board, we have three distinguished guests today that uh specialize in elections for school public school districts. Um Randy Stein has um prepared a presentation. Um do you want to go through that presentation this point? Okay. Our IT people over there will give you a hand. So, you can either use the clicker or you can use the keeper, whichever you prefers. Thank you. Members of the governing board, the presentation is uh designed to speak to you about two items that are on your agenda. One is the call of an election
003for a a bond election for November of 2025. The second one is the call for a maintenance and operation override election also for November of 2025. Um, again, my name is Randy Stein. My company is Stifl Nicholas. We work with a lot of school districts uh in the state. Uh, our primary line of business is in underwriting uh bonds once an election once an election has authorized the sale of such. As part of our services, we do work with school districts in preparation for elections and assistance with the various calculations that are required in statute. So, as we begin this conversation, we always start with a bit of a history and a look at property taxes and property values in a school district. Why we do that is both of these types of elections are
004ultimately uh authorization to access the the property tax base. A bond would be issued and then paid back by your property tax payers over time and an a maintenance and operation override or an M override. The same situation that is access to the property tax base every year. So what you're looking at is about a decade history of the property values in this school district. You will note that there are two property values that are in use by the assessor. The bigger blue bar is this the uh full cash assessed value of the property. Uh you can see that is growing substantially faster than the red bar which is the limited assessed value of property in the district. The reason they grow at different rates is because the constitution actually limits how each individual property
005in the district can grow for limited property value purposes. There is no such limitation on the full cash assessed value. Most notably, the red bar, the limited assessed value is what all of us as taxpayers, what we are taxed on for property tax purposes. They use the larger full cash assessed value to determine bonding capacity. Both of which we will get back to in just a few slides. This is a snapshot of the types of property that are in this school district. You will note um the majority of the property is in the commercial and industrial class. It's just about 65%. The residential property is about 33% of the district. And then you see small pieces of other property and agricultural and vacant land in the urban areas. This is not uncommon that the agricultural
006and vacant land piece is so small for obvious reasons. We look around, we see buildings. Uh this district is relatively heavy on on compared to an average with respect to commercial and and industrial property versus residential property. and then tax rates going back over time. This is not an unusual graph uh at all for a school district tax rate. You're seeing both the combination of the primary property taxes, that's the lighter color bar, and then the darker bar, which is the secondary property taxes. The secondary property taxes are accessed for bonds and overrides, whereas the primary property taxes are accessed for the regular school funding formula. Um, and why I say this is not uncommon is because during this time period, property values uh overall have been edging up. As property values edge up, it
007is not uncommon to see the tax rates edging down. I will call your attention to that bizarre uh beige chunk that you see in both uh uh what is that fiscal 19 and then the current fiscal year. The legislature has been um tinkering, let's use that word, tinkering with how to appropriately characterize the tax levy that is authorized for desegregation expenses. For most of history, that has been part of the primary property tax. Um it was switched in 2019. The courts came back and said, "No, you're wrong." So it switched back to the primary property tax and now there is an ultimate ruling just recently uh and starting in 2015 it is no longer part of the primary it is now part of the secondary property tax and that's so that stands out on that
008graph and then uh we like to show you a measure of bonding capacity I mentioned before that it was the the taller line can't even remember which color it was now uh the taller line that is the full cash assessed value. That's the basis for determining bonding capacity. So in this school district uh the uh net full cash value is approximately uh $486 million. The statute allows you bonding capacity that is 10% of that number. You see approximately uh $ 48.6 million as the calculation base. We would then subtract out any bonds that you currently had outstanding. The answer to that is zero. So the available bonding capacity is approximately $48.5 million. That changes every year when property value is reassessed. The other thing that I will point out for um your information is that
009bonding capacity is tested at the time bonds are issued. I'm not suggesting this, but it does not prevent a school district for having an election for an amount of bonds that is greater than the current bonding capacity because districts can grow into their bonding capacity as the property is revalued every year or as bonds are paid off over time. Certainly not suggesting it, but the test point is not at the time of calling for the election. The test point is at the time when bonds are actually issued. Calling for an election authorization from the voters does not mean bonds are issued. It would require subsequent action by a school district governing board. Um any questions so far? Should I take a breath? No, you could continue. We could ask questions at the end. Great. Thank
010you. Thank you. Okay. And then we have prepared for you uh we're speaking specifically now about uh the bond election. We have prepared for you five different scenarios. This is a summary and comparison of those five scenarios. There is a lot of pages that will then be similar for each scenario. I will just walk you through one of them briefly and uh the pages that follow will will uh have the same pattern here. So to the left we've got um a $5 million scenario. Uh and that would uh if those bonds were sold that would be $5 million available to the district for those projects. It would be paid off over that six-year period with an average tax rate of 51 cents. The next scenario is 7.5 million with a 76 cent uh average tax
011rate. Following along, moving to the right, ultimately scenario five, the largest scenario on this page, is a $24 million authorization that would be paid back again over the same time period with a $244 tax rate each year. And I will show you in a second what that means. So each of these, and again, I'm just showing you scenario one. the these pages mirror going into the going farther into the deck. Uh the statute in column three does specify how we are permitted to expect your property value to grow for purposes of the voter information pamphlet. So that is the property value growth rate that you are seeing in column three. Uh the debt service is paid off with principal and interest payments. uh we are assuming a 6 and a half% interest rate for this
012would be for purposes of the voter information pamphlet. We don't guarantee that. We don't guarantee that that that is a maximum. That seems to be a reasonable estimate given the circumstances at that this time. If your voters did approve a bond authorization in November of 2025, you would not be issuing bonds for approximately a year. I have no I have no real sense as I stand here tonight what the level of interest rates in the country will even be a year from now let alone translating that to your own situation. So there are a lot of variables we are doing what is a reasonable estimate and you can see that in column seven that identifies uh that ultimately identifies the estimated tax rate for each of the years. the first year uh that the tax
013rate would be in place if again bonds were issued approximately a year from now would be fiscal year 2627. We uh would then include in the voter information pamphlet a table such as this to identify the impact on various types of property owners as well as at various levels. I will talk more about this in a minute, but the uh average home value for tax purposes, again, not not what the full cash value is named by the assessor or what somebody thinks they could sell their house for, but the average value of a residential property in this district for tax purposes is approximately $70,000. Uh for scenario one, again, this was the $5 million scenario with a 51 cent average tax rate. That is an estimated average cost for the average taxpayer at right around
014$36. I can uh I can show you that that changes substantially. Let me just show you on scenario four, the $20 million version. Uh this is a tax rate of just over $2 per year. So for the average homeowner, $70,000 again, but the tax rate is different. And this is an average annual cost of approximately $143 per year. So that's how these tables work. They're exactly the same for each scenario. I'm certainly glad to show you additional ones, but again, um this is the summary page just pulling together each of those average annual tax rates. Moving now to the maintenance and operation override information. So, state law. Um, we're going to just um hold on because it's it's on the next agenda item. Let me just have if you guys have any questions. Does the
015board have any questions just on the bond because our next item is going to be on maintenance and operations. So, right now just on the bond if you have any questions. Okay. Yeah. Just just a quick question. When when we're looking at the secondary with the increase of 51 cents, that would be on top of what we're already paying on secondary. Correct. So, and I know that that rate um somebody remind me what that rate is today. Anybody think Jim, we we spoke about this last time. So, so this is the history of the school district property tax rates and the secondary rate um for fiscal 25 is looks like right at $2.50. 50 cents. That's for the secondary, correct? Yes. Yeah. Okay. And then to to that question, this is um and this is
016a sample property tax bill for your school district um for fiscal year 25. Uh just to put it in context, um school districts are not the only jurisdiction in the state that has access to the property tax base. Uh and there is a lot of education items on the property tax base. That is by design. That is how our system is set up that a lot of education is funded through the property tax. You can see uh residents of the Isaac Elementary School District are also residents of Phoenix Union High School District. And so those Phoenix Union taxes also apply. They are also residents of the Maricopa County Community College District. And you can see that is also included as well as being um in the city of Phoenix in Maricopa County and all of
017these special districts that we all live in, the special healthc care district, the flood control district, the library district. So just to give you a little context, um in this case, this is a tax bill that's approximately $15.60. that varies all across the state, but to just give you a little bit of context of the overall um property tax situation for a taxpayer. Okay, very good. Yeah, because I one of my questions was going to be about, you know, hypothetically on a $400,000 home and additional, but you've already got that in there, so I could and I'll I'll back up to to this slide. I I told you that the the average value home right now in the district for tax purposes is that $70,000 number. But to just uh make the point that $70,000
018for tax purposes is very different from the full cash value of that same house. What I've done here is found three houses in your district with a limited property value close to 70,000. Um, you can see each of them have a an assessor's full cash value um either $200,000 or greater. And then I have a very scientific method of using Zillow um to do a sort of a what is market value? What could I sell my house for? And you can see in each of these cases that is multiples of that property value for tax purposes. This is not always the case. This happens to be the case in a lot of parts of Arizona right now because of the runup in the real estate market over the past 6, seven, eight years. This will
019not always be the case. If I had a picture of this in, you know, about 2012, all of these numbers would be on top of each other. Not the case right now. And just, you know, to make that point, what you think you can sell your house for is not the value that it is taxed at. Okay. Thank you. Any further questions? I have a couple of questions. Um, so what are the specific needs or projects that would be funded at each bond? For example, I know that the main goal, well, my main goal is to get out of debt and pay Talis in high school. So, if we would do 20 million, how are we going to present it to the community? What are we going to say specifically? Or I know that's that's
020something that we need to present and and is that feasible? Is that if if we do the bond, is that which fund is that going to go into that it's going to help us pay our debt? And members of the board, I think I will leave that question to Mr. Kenny, Mr. Serbin. the proceeds from the sale of a bond go into a separate fund by itself. Um the proceeds of that would obviously be defined in the voter pamphlet which we've um discussed at various times. It it can be used to make payments um towards the debt to Talison Union. It can also be used to fund something that comes up as an emergency situation um to um uh fix for instance a repair of a building if the SFB does not have the funds
021or does not do it. Um and it also can be used to um uh make other uh payments it if necessary regarding the uh debt surrounding the district uh over expenditure of the uh capital fund the unrestricted capital. So it provides the district a source of of cash to do several different things if needed. Um, on the other hand, the goal would be at some point in time to pay down the debt to Talison Union is probably the most primary because that too will be is a short-term uh payoff period with a balloon. And then how long um with the bond how long what was the long term? How many years again? What I mean whatever we is it whatever we decide in the in the dollar amount. For example, if we decide to do
022a $20 million, how long is the long term to pay out that debt of that bond? Uh, members of the board, that's actually a bit of a complicated uh question in this situation. State law does permit school districts a maximum of 20 years to repay their bonds. State law also requires that um items characterized as furniture, technology, and equipment would need need to be paid off. Uh the wording is a little bit quirky, but it's within six years, I think, is the best way to say it. The language is is is five years after a certain date. So, but be prior to that sixth anniversary, we have um we have put this together assuming that these bonds would be paid off um in the shortterm framework. uh because they would they could essentially be used
023to uh cover reimburse furniture, technology, and equipment items that were previously paid for uh with cash out of various funds. So, but we we have conservatively assumed um that the the bond dollars would be associated with those short-term items which would require the shorter term uh payoff. And then in our surrounding area and their districts, have we had any bonds? Which districts have any bonds and have they passed? Can you guys name me of any? Wherever's Phoenix Union, Roosevelt, Phoenix Elementary, Phoenix Union. Yeah, there's there are quite a few districts. Correct. All those elections there are So you made a key point. What what is successful? What do they do to make it successful? Because I know we're in a different situation. It's a tougher situation and we have to present to the committee. Okay.
024Okay. you want him to address that now? That's great. Sure. I mean, this this is a 20-year history of the uh bond and override elections in this school district. Two things to point out. You've only had M override elections, but you have been largely very successful. Yeah. And and I would add with that I guess just for the record my name is Paul Yulan primary consultants. Uh I've been a part of if not all most of those elections for the M override as well as other elections in the district. And so when you look at your surrounding neighbors, uh if you look at at least from uh 1317 and 2021, those were all elections at Phoenix Union also had issues on the ballot. So voters were not coming out just to vote for you. They
025also had Phoenix Union Phoenix Union on that ballot. So when you look at surrounding districts, I think, you know, part of it is the district is, you know, it's two sides to that coin. The district does its job. Meaning kids come to school every day and kids go home every day and they're safe and you're teaching kids and their opportunities and their community. you have community facilities that are used by the community and that there's a goodwill with the community that they understand um you know that that investment has a payoff maybe not today but or tomorrow but as future generations come through the schools. The second part of that is having a campaign in place to go out and promote um why the bond or the override or bond and override or land sale
026is an important to the district and to the community and what that means to the taxpayer and what that means to your parents and your staff. So that takes time and personnel and money to go out and communicate that. Now um Isaac has an existing pack in place. Uh it is dormant in the sense that there is no money but that is the legal entity to go out and advocate on behalf a bond or an override or whether whatever is issue that is on the ballot that the governing board h has put there. But really it's two sides. It's the district doing its job and then the campaign going out and promoting saying vote yes or this is why this bond or override or bond and override are important to you and to the district.
027And I might point out to the board pack stands for political action committee which is a separate arm um and not related at any way shape or form with the district. Okay. Well, I'm not. So, for now, thank you very much. So, now we'll move on to the next item, maintenance and operation override renewal. Mr. James Surman, chief financial officer, Randy Stein, Steamfeld, um, and Nicholas and Company. James Gale, Gus Rosenfeld, Paul Yulan, primary consultants. Mr. Servin, the district currently has an M override of 15% of the revenue control limit. That works out to be uh real close to $5 million a year. And that $5 million a year provides a tremendous amount of of money that the state does not provide districts. That money is used for everything from classroom teachers to maintenance to
028um supplies uh professional development, repairs of of items, maintenance of the bus transportation. The money itself has has pretty much unlimited maintenance and operation uses and without that that would be a loss of a tremendous loss to the district. That said, we are actually going out uh technically two years early um because what happens in the last two years of an MO override is it begins to phase out at 33% per year. So we are going out this if we go out this year u and it passes that just extends it extends the c the m override over a period of seven years. If it does not pass this election we would still have one more election that we could go back out to the voters and after that the district would begin to lose
02933% of the $5 million a year. So, it's it's better to be proactive in these times than it is to sit back and wait till the last minute, which would be next November to uh attempt for an override. And this is the situation on the uh current maintenance and operation override. You're currently in year three, fiscal 25, as Mr. Serban indicated, it is approximately $5 million. Fiscal year 26 will not change. Uh the question is what will happen in fiscal year 27? Uh fiscal year 27 of your current override will not phase down. It will be year five. If your override election is successful in November of 25, it would revert to year 1. And you can see if that election is not successful by uh November of 26 in fiscal year 28, year six
030of your current override phases down that 33% to about 3.2 million from the 5.9 million. If it is successful in November 25, you can see that it stays at approximately that $5 million level for the next five years. What would happen during the phase out period since there is no alternative income to uh make up for that loss going down to 3 million? What would happen would be the district would have to face another series of uh re uh reduction in staff. And in other words, there would be non-renewals um which would have a significant impact on the on the district and not upon our students. Um, we have already reviewed this. The only other I think piece of information, uh, I guess two other pieces of information for you. Just a general sense of
031the election timeline. Um, you're working with the the election council for firm of Gus Rosenfeld. uh they are very dedicated to keeping districts that they're working with um on the timeline. I always think about the election timeline by starting at the election date. The bottom date you see there, November 4th, 2025 is the election day. There are a couple statutory requirements. Early voting starts 27 days before election day and the county is required to mail voter information pamphlets 35 days before the election day. Everything pretty much everything you see above that are deadlines that are just designed to get the county to be able to make those last three dates. So, I kind of tell you county is king. This is no time to be arguing with the county or fudging on deadlines. They've put
032out a calendar and it is our job to help you stick with that. Um the county has a lot of work to do and they're just trying to get it done. There's there's nothing else going on. They're just trying to meet those statutory requirements. And then just to reiterate the the the responsibilities of the governing board. Um you have resolutions in front of you tonight to place these questions on the ballot. That is a responsibility of the governing board. The district administration cannot do that on its own. If in fact a bond is authorized, it's placed on the ballot and your voters say yes to it in on November 4th of 2025. Whenever bonds are issued, that again is an action is uh requires governing board action. So just because the voters say yes does
033not mean that bonds are issued. that would uh mean that it is eligible to come back to the governing board to authorize the issuance of those bonds. The other part that the governing board plays in this process is through your annual budgeting process. Um, part of that cycle is to set the property tax rates to recognize identify the property tax rates associated with maintenance and operation overrides as well as with any uh bond debt service obligation that is outstanding. But that in fact is the function of the governing board. Pretty much everything else visav preparation of the voter pamphlet in the resolutions is delegated to your administration. With that, I'm certainly happy to answer any questions. Does the board have any questions on the override? Just uh Mr. Garwell. Yes, M Stein. Uh just for
034the record, I know that, you know, we've had a uh maintenance and operation override for a number of years and going forward it gets on the ballot, let's say, you know, God willing, it passes, right? It doesn't impact the secondary because it's already there, right? It'll it'll still say remain the same. Um generally the answer to that question is yes. It does not remain identical absolutely identical every year but yes that is already um part of your property tax uh bill. You can see it there. Isaac overrides and and yes it is approximately the same tax rate. Again it's calculated calculated every year. The amount of the override changes some. The property value changes some. We do the math and it is what it is. Okay. No, that's good because you know when we're talking
035about the bond, that's an additional uh interest that's going to be paid on that. Yes. The district does not currently have bonds outstanding. Correct. Okay. Yeah. Because I know that's some of the questions that are coming from the community. You know, how's that going to impact my uh my tax rate? Right. And the best I could explain to them is right now you don't have any, you know, tax burden on there because we don't have a bond. However, if it if it does come to fruition, you will have an additional tax rate on the secondary part of it. And so, you know, they they have to be aware of that. Okay. Thank you. Okay. Thank you. I would I would like to point out to the board that the the M override is based on
036revenue control limit which is calculated by number of students. So if the district is stable, that also means pretty much that the amount of of tax remains even closer to being consistent. If as a the if the students start leaving the district, the M override amount goes down, so will the amount of tax effect. Um and if it goes up, we have more students. That would increase the amount of the override dollars coming into the budget, which would also have an impact upon property taxes as well. Can you explain how much or how much is this going to cost the district? There's I believe there's a slide in it, but it's roughly the right now we're we're collecting uh just under $5 million for the ML override. Uh Madame President, members of the board, Jim
037Gil with Gus Rosenfeld. Uh tonight uh here is your election council, a role I've served in since uh I think going back to 2007. Um just a couple of points I'd like to make. Uh the board member asked about the uh how it's presented to the voters in terms of uh tax rate. Um, one thing I wanted to call your attention to, exhibit A of the, uh, override, the M override election resolution, uh, is the ballot, the form of the ballot, and we get to say on the ballot, we get to use the hopeful, uh, phrase, a helpful phrase, budget override continuation. So, you notice we're not saying increase that goes to the point that we're just continuing the existing M at 15%. So, again, budget override continuation. It's exhibit A to the uh M
038election resolution. Uh if you waited and the M started phasing down the existing one, then all of a sudden we're using the word increase. We have to use the word increase on the bond ballot, but on the M we can say continuation, which we've found is pretty helpful and the voters understand that. Um in terms of your company on this ballot, you may know Phoenix Union has already called two overrides to continue their existing capital and M overrides. So, we'll be sharing the ballot once again with Phoenix Union. Seems to have worked out for this district in the past, but I just point that out in case you weren't aware. And then, um, just to follow up on the points that Mr. Paul Yulan was making in terms of the separation from the board and
039the pack, the pack is a separate entity as you all know. Uh, the board's primary obligation, as Miss Stein mentioned, is to call the election and then delegate to district staff to work with me and Randy on the voter information pamphlet. The voter information pamphlet is the primary means, the official means of getting information out to the voters in terms of understanding why you've called either one of these elections, what what it's going to cost them, and what the proceeds are going to be used for. That's the voter information pamphlet. Every household in the district with a registered elector will get that. Um, lots of districts choose to go above and beyond the v voter information pamphlet. They'll do supplemental election information. We can do that here. Uh, frequently asked questions, things of that nature,
040but all of that stuff, it's all factual and neutral. We're not persuading the voters with any of this stuff. Any of the any district generated information, whether it's the pamphlet or other documents, it's all factual and neutral. So, we're in compliance with state law. If the pack wants to do other things to promote the election, that's on their dime, uh, using their time and resources, not the district's resources. Having said all of that, the board members, district staff can do what they want to do on their own time. Again, not using district resources. So they can work with the pack, for the pack, beyond the pack, but you're not using district email addresses, district cell phones, uh district vehicles, district admin time, none of that if you're promoting the election. So just just keep that
041in mind if it's there's a lot of gray area here. I try to keep it black and white, but I know there's a lot of gray area. I always get questions uh from districts about what's permitted. So, if those questions come up, if you choose to call the election, either one, um just feel feel free to reach out to me and I can objectively analyze the uh proposed action to see whether it which you know which side it falls on, whether it's advocating or not and whether we could dial it back or not. So, just kind of keep that in mind. Um are there any particular questions uh with regards to the resolution in front of you? Is there any It's kind of our boilerplate resolution. If you were on the board uh four years
042ago, you saw the same M override resolution. Again, it delegates to district staff to work with me. Uh it it approves the uh uh it it delegates the authority uh to enter into a uh an IGA with the county. We call it a menu of services. The county, as as Randy mentioned, county is king. They're running the election for you. We all work closely with them. We have a good relationship. In fact, we'll do 20 plus uh elections with Maricopa County this year. So, we know their deadlines. we stick to them. We know how they work. Um the resolution also has the ballot I've mentioned as well as some election notices. Uh one other point I'll make uh on the override side, we'll come back to the board if you if you call the election
043and we'll ask for your up to 200word prostatement. So you'll get the opportunity as a board to craft a pro statement. It'll be the first pro statement in the pamphlet. Members of the public may do so as well, but you'll get the first one. That's on the M side. On the bond side, you cannot do a pro statement. We're not going to ask you for one. It's not allowed. So, it's it's kind of a quirk in the statute, but we'll come back for the M by uh I think the deadline is August 8th or August 9th. So, I have a quick question just for clarification. So, we're going to be attend going into executive session to discuss the dollar amount, correct? That we want to go for the bond, Clyde? Well, yeah. It's that's And
044then after that, we come back and it's it says possible action. We we vote on it, whatever we decide on. Yes. Uh yeah, the the bond ballot in front of the board now has blanks for uh the dollar amount and the associated tax rates. So, yes, we can discuss that. Okay. So, so Madam President, just a point of clarification. I know we said that, you know, u we have a pro statement on the M uh renewal, right? override and on the bond we're, you know, it's going to be pretty much neutral. Um, but if you're in opposition of it, there nothing that precludes you from writing your own statements. Correct. Good point. Uh, yes. Uh, individual board members may submit their own pro statements for, in fact, either uh it's a little confusing, I think,
045if you do one for the override because the board has already done one, but certainly for the bond, you can do that again not using district resources. Yeah. So, it could be an argument for or an argument in in opposition. Sure. But that's typically how you see it, you know, on all the ballots that come out, right? Right. Um, some districts, uh, they don't get many, uh, pro statements. Um, they might just get the board's pro statement. So, uh, it probably makes sense. Uh, we also see elected officials will occasionally, uh, throw a pro statement in there, the mayor, uh, uh, legislator, uh, someone who has a particular interest in the district. We, we see that, and I think that can be helpful. Well, the goal is to have a positive statement, not a negative.
046I mean, why would you want something negative? We want this to pass. So, you want positive statements. Any anybody else? Okay. Thank you. Thank you. Okay. Next. Um, is there a motion to approve the whole consent agenda? Okay. Is there a second? Second. Call for the vote. to go. Okay. Motion carries. Next is um regular governing board meeting. Next meeting will be held 5:00 p.m. Thursday, June 12th at the Isaac Elementary uh boardroom here located at 3348 West McDow Road. Now we need a motion a motion for possible action to convene into executive session pursuant to ARS 384 4310383 discussion for consultation for legal advice with the attorney of public body regard governing um regarding the bond and the override renewal and legal issues and the board member legal duties responsibilities and and policy. Is
047there a motion? Is there a second? Second. Okay. Call for the vote. Oh, sorry. Motion carries. I got carried away. Thank you. We're not done yet. I'm approval to end executive session and recommen. Is there a motion? Is there a second? Second. Call for the vote. Okay, motion carries. Next is possible action to consider, discuss, amend, or desire and if deemed advisable to abduct a resolution ordering and calling a special bond election to be held and for the district and authorizing the chief financial officer to comply with certain sections of the Internal Revenue Code. Is there a motion? So move. Is there a second? Second. Okay. Any questions from the board? Madam President, just Mr. Garwell. Yeah. just some uh clarification because I know these are some of the questions and uh out in the
048community and I'm glad that we got some clarification. Um, so the purpose of the bond that we're looking at, can somebody explain that to make sure that the community understands, you know, why we're going after this bond and how we're able to do that. Once uh I can speak to that. Uh Madame President, members of the board, uh this is a fairly unusual bond. Um if the voters approve it, uh it the primary purpose would be uh paying off an existing lease obligation that was used to fund uh capital expenditures that were previously made. Uh normally when you issue a bond, you're issuing bond for bonds for uh upcoming capital expenditures. In this case, the capital expenditures have already been purchased uh by the by the district by prior administration, by prior boards. So now
049we're uh putting before you a bond election uh where if successful, the bonds would then be used to reimburse, I'm sorry, to pay off an existing lease obligation and uh reimburse the district for prior capital expenditures. Okay. Okay. So, that would just relieve our obligation and then we start to get Isaac Middle School in part. In part, it depending on the amount. We haven't yet decided, the board hasn't decided on the amount of the bond election, but uh it it could pay off the entire obligation. It could pay off a portion. Okay. I just want to make sure we understand that, you know, this is a something that is um in the preview of running a bond, right? And it's for capital expenditures that have already been expended, right? And so now we're just going
050to try to go back and try to alleviate that aspect of it. Right. Clean that up. Okay. All right. Thank you. Absolutely. Um so in this um item the amount that I think would be um reasonable would be 10 million. Is this is this is the item that we could right kind of give you a number. Correct. Yes. Yeah. But we need uh uh best case, we leave here tonight with the board approving the bond election resolution with an amount assigned so we don't have to come back to the board uh for that. So that amount uh if if you approve if you approve it at $10 million, that's the amount that will appear on the bond ballot, the various election materials. That's what we'll submit to the to the to to the county on
051on the board's behalf, uh the election resolution, and it won't change. Um it'll it'll be fixed at $10 million or whatever amount you decide on. And and just for clarification for the community, it's um something that you know based on the recommendations are also our receiver and yourself. Um because of the situation that we're in if we go to a higher amount um we don't know even though we you know based on our situation and I think that would be um kind of like we mentioned the main thing is to pay at least some of our debt to Talis in high school. Uh correct. Does the board have any questions or any anything on on the dollar amount? Madam President, Mr. Well, I'm just I'm a little concerned about double digits just because we've not
052ran a bond in this uh this community for a very very long time. And I think, you know, um it could eventually end up might, you know, being a negative connotation just because right now in the process of developing trust back in our community, you know, so if we came in at a lower number, let's say 7 million, you know, and then two or three years down the road or next year, right, we could still run for another bond. Is that correct? Oh yeah. I mean, you could you could potentially do a bond election every year. We don't see that, but yes, uh there's no nothing that would prohibit you from doing so other than the voters getting tired. Uh but uh it might I suggest um what we have seen when districts are just
053on the cusp of of a larger number, say 50 million or 100 million, we often see, so in your case, instead of 10 million, we might see 9 and a half million. I mean, it could be any number, but we'd see something just kind of shy of the bigger number uh is a pretty common strategy. So, instead of 200 million, you do 199 or 198. We we see that quite often. So, just just to think about 7 million, you might be leaving a little more on the table, but uh again, that's your decision. I have a question for Paul. Come over here, Paul. I know that Paul and I worked um many years on overwrites and thank God we've been very successful. Um my question to you have you done any like we talked about
054numbers polling from the area any you know so madam chair members of the board I have not you know I have not pulled in Isaac um in a a couple years or specifically this election cycle for an override or or a bond um your community when you you know when Miss Ty when when Randy showed the elections results have and very supportive of of the school district. Obviously, we're at we're in a in a different situation right now, but um you know, generally your community has been very supportive. This is obviously a very unique situation. There aren't a lot of comparisons that I can look at across the state and say here's what here's what's happened. Any questions further for Paul? So, um, just to for clarification, I can make the motion for the resolution
055adding the dollar amount. Correct. Correct. Okay. So, do I have a motion for the resolution for the bond with the $10 million? So, there a second. Second. Okay. Call for the vote. Okay, motion carries. Next is uh to consider, discuss, and amend if desired and deemed adi advisable to adopt the resolution order and calling for a special maintenance and operation budget override election, excuse me, to be held in in the district declaring the deadline of submitting arguments for and against the election to the Maropa County School Superintendent as as of August 8th, 2025 at 5:00 PM. Is there a motion? Is there a second? Second. Any questions, discussion? Madam President, Mr. Garwell, Ju just to point out and and and we've been very successful with the uh overrides for a number of years. So, I
056don't think that this is really a burden on the community. I think that, you know, they're very supportive for us to do this because it's essentially another $5 million that we have in the bank. And I think our community been very, very supportive of that. So, I don't have any um doubts, if I could say that, that our community would support this because they've been doing it for a very long time and they understand even more so today how important that is. So, I just wanted to put it out there that, you know, we've had a lot of good success with our community over the the last 10 years, if I remember correctly, or maybe more. And so, you know, I'm uh I'm a very uh strong support for the the override. Thank you. And
057just just a quick thing, I want to thank the teachers for being here cuz I know you've been part of the success of the override. So, thank you very much. You've been there for us and I know this is um some tough times and I'm very um hopeful and and I know by talking to the community how we talked about how we're going to present this and this is where it takes all of us to work together. This is where it takes all of us to go out there and talk to the community and be positive. I think this is the time that we all need to be united and and going out there. Um because I'm going to be one of those people knocking on those doors for the community so we could continue
058moving forward. If there's no um discussion, call for the vote. Okay, motion carries. Next is adjournment of the meeting. If there's no objections, meeting adjourned. Thank you.