Flagstaff Unified School District #1 (FUSD)
Business Office Answers to
Frequently Asked Questions about Bond Revenues
Q. What are the primary purposes for the bond money?
A.
The FUSD bond money will be dedicated to renovating and maintaining District
schools, with the goals of increasing safety, efficiency, and general support of District
programs, services and school activities.
In addition to refurbishing schools that are 25 to 70 years old, the proposed
renovations will increase energy efficiency and allow the District to install solar energy
that will generate significant general operating funds. The bond will also provide
much needed classroom and lab technology for a 21st century teaching and learning
environment. Better equipped science labs, foreign language labs, and vocational
technical labs are needed. General enhancement to technology and use of those
instructional resources in grades K-12 will develop student skills necessary for success
in today’s global marketplace and society
Q. Why a School Bond Election in November of 2012 rather than a Capital Override
Election?
A.
The bond program will provide FUSD the maximum flexibility in having funds available
for a variety of essential needs. The bond revenues will best fill the vacuum of the
several capital funds removed by the State in the past 5 years. The Building Renewal
Fund has been underfunded in FUSD by $22 million during the last six years, and no
funding provided for essential safety, deterioration, and inefficiency upgrades have
been available from State sources. The State has also cut the soft capital sources in the
past three years. These funds, used for basic instructional materials – textbooks,
technology, software – were completely eliminated in the 2011-12 school year. Yes,
FUSD received $0 in funding from the State for textbooks and technology this school
year.
The District is not asking voters to renew Capital Outlay Override Funds for school
year 2013-14; therefore, the amount of levy that will be applied against secondary
valuations in 2013-14 will be reduced from the 2012-2013 levy.
Q. What will the passage of this bond cost?
A.
There will be no increase to the total tax levy for the proposed Bond Election. Paying
back the bonds is scheduled to be amortized over a 15 year period. The District has
managed this long term debt very carefully; as a result, the payment of principal and
interest can be phased in without tax levy increases. Responsible stewardship of all
District finances has resulted in two major bond rating services giving FUSD an AA
rating ,which is a high rating for an AZ School District. These ratings will assist the
District in securing a low interest rate for the issued bonds.
It should also be noted that the renovation of older buildings and the energy efficiency
projects will result in substantial annual operating savings; therefore, these funds will
assist the District in maintaining classroom and program standards.
Q. Is there any benefit to homeowner values because of the proposed bond
program?
A.
Yes, very definitely. Surveys and research have shown that sound K-12 educational
offerings, and school facilities and equipment that provide a safe, pleasing
environment translate into higher property values in the neighborhoods that surround
those schools. Fixing our schools is a sound investment and will pay dividends to
home owners, businesses, and the entire community.
Q. How do citizens know that FUSD will spend funds wisely and responsibly?
A.
Flagstaff Unified School District has a proven record regarding responsible
stewardship of bond funds. The $53.1 million 2006 bond revenues were well planned
and utilized according to the commitments made to voters. The projects have been
completed on a timely basis, and overall bids have been under estimated costs. A
special report is made to the District’s Governing Board concerning the utilization of
these funds; and, a Citizens’ Bond Oversight Committee meets monthly to review
projects and costs, and oversees the entire bond program.
Q. Does the availability of these bond funds have any effect on programs and
services for students?
A.
Yes. Without these funds, many of the capital concerns will need to be accomplished
with general operating funds. This means a direct effect on money available to
maintain reasonable class sizes and provide special programs such as:
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Music
Art
Physical Education
Counseling
Library
Extra-Curricular Activities
Magnet and Extensive Advanced Placement Electives
Special Assistance (tutoring) that many students require at various
times in their learning process
The energy efficiency projects will provide a direct offset to the general operating costs
of the District. It is estimated that due to the efficiency systems or the energy
generating systems, the District could save between $500,000 to $800,000 annually in
operating costs.
Q. Why are Arizona school districts in the position of asking voters for so much
local support?
A.
Arizona has reduced funding to K-12 education by over $500 million in the last three
years, and ranks 49th in the nation in per pupil spending. Following is the summary of
reduced funding:
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No Building Renewal last four (4) years.
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Excess Utilities Provision totally removed for last four (4) years.
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Full Day Kindergarten funding eliminated last three (3) years.
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Soft capital substantially reduced in FY 2010 and FY 2012, and 100%
reduced for larger districts in FY 2012.
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Regular capital funding reduced 45% in FY 2012.
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No cost of operating increases allowed for regular costs during last
three (3) years.