Statement of Why a Bond is Necessary
The Cave Creek Unified School District educates approximately 5200 students, has one million square feet of buildings, and two hundred thirty six acres of land. The district has not passed a bond election since 2014.
This bond would provide needed funds to upgrade technology for students and classrooms, refresh school facilities, purchase 21st century furniture and equipment, make sports facility improvements, purchase school buses, and make repairs and renovations intended to maintain a safe student environment that is conducive to learning.
The capital improvements covered by this bond election are part of a capital plan developed with the participation of a District Excellence Committee composed of parents, community members, school leaders, and employees. After needs were compiled, in conjunction with facility experts, the committee reviewed the assessment and then recommended a bond election to the Governing Board.
Through this capital plan, all school sites will have projects completed that benefit students with an improved learning environment. In addition, well-maintained and attractive schools will have a positive impact on increasing home property value for taxpayers.
The district will use money generated by the sale of bonds to:
● purchase instructional technology and STEM learning materials
● address school safety and security upgrades
● repair and renovate school buildings
● provide furniture and equipment for collaborative 21st Century learning spaces in
● purchase school buses
● upgrade athletic facilities
● pay off energy contract debt
Of the $40 million bond, the district will spend approximately $4.8 million on technology hardware and software and approximately $1 million on safety and security. $3 million will pay for sports facility upgrades. Approximately $27.4 million would pay for building repairs, school and classroom furniture, HVAC upgrades and building renovations. This amount also includes approximately $11 million to pay off solar and energy saving projects debt that will allow the district to reallocate approximately $800,000 to the Maintenance and Operations budget to support programs for students. The remaining $3.8 million would pay for pupil transportation vehicles.
These capital funds will maintain the District’s aging facilities amid significant cuts in state capital funding. Starting with the 2008-09 school year, the state significantly reduced funding for the capital needs of school districts. While the state has begun to re-fund capital, funding levels are based on amounts set by the Students FIRST law in 1998, and the State eliminated other
funding sources intended for major renovation and preventive maintenance of buildings. If the bond issue is not approved, the District will move operating funds to Capital to pay for critical repairs, school buses, renovations, furniture, technology, and equipment. Cuts in operations could come from increasing class sizes; reducing or eliminating programs; and/or reducing staff and school supplies.
PLAN OF FINANCE: If the Bond Election is successful, it is anticipated that the District would issue the total amount of the Bonds by the means of bond sales in two phases, conducted through 2025. The interest rate to be borne by the Bonds would be determined by the market conditions that prevail at the time of sale, but in no event would the Bonds be sold at an interest
rate greater than 8% per annum. Average annual interest on the bonds is assumed herein at 4.5% for purposes of estimating tax impact. Repayment of both principal of and interest on the Bonds would occur over a period of not to exceed 15 years. If authorized and all sold, the Bonds would be repaid from a levy of ad valorem taxes on all taxable property within the District. It is estimated that the Bonds would require an estimated average annual secondary tax rate increase of $0.1684 per $100 of assessed valuation over the estimated 15 year life of the bond program.
CURRENT OUTSTANDING GENERAL OBLIGATION DEBT AND CONSTITUTIONAL DEBT LIMITATION: The District currently has $27,205,000 aggregate principal amount of ad valorem tax debt outstanding. The constitutional debt limit of the District is $812,875,388, being thirty percent (30%) of the net assessed full cash value of the taxable property in the District