Chandler Unified School District pondering timing of a bond, override election

Ken Sainmanaging Editor, East Valley Tribune (Mesa, Ariz.)
·3 min read

Jan. 1—Chandler Unified School District is starting the process of determining whether to seek a new bond and budget override and when to put it on the ballot.

The district's Governing Board on Dec. 13 authorized the sale of the remaining $92.25 million from the $290.25 million bond voters approved a little more than four years ago.

Lana Berry, the district's chief financial officer, told the board at that that meeting, "Currently, we have projects right now that are outstanding for about $52 million. We only have $18 million, approximately, in cash."

She said the district faces future needs of about $61.25 million.

Bond money is used for capital improvements, which includes buying items such as buses and making structural improvements to schools.

"You've ordered buses," she told the board. "We have purchase orders outstanding for that. We have multiple renovations, fire panel, flooring, HVAC projects. Our largest project overall would be Galveston Elementary (rebuild)."

The district's technology budget is $30 million per year and part of the bond money helps fund that.

Berry said it's also important to save some of the money, if possible.

"Our board will be making the decision in June if you want to call for 2024 bond election," Berry said.

"If the board does not decide to call for that, we do need some money left ... to be able to take care of emergencies or problems."

School boards traditionally set an election a year before the previous override authorization expires. In Chandler Unified's case, the current authorization expires in 2025.

That way, if voters reject authorizing the district to spend 15% over what the state Constitution permits, officials could try again the next year before having to make budget cuts.

Voters in Gilbert Public Schools, Mesa Public Schools and Queen Creek Unified rejected bond and override elections in 2023, though the majority of about 18 districts in the county seeking one of those measures — or both — won voter approval.

At least one CUSD board member, Joel Wirth, worried that Chandler voters may do the same when the district calls for a vote.

Randie Stein of Stifel Public Finance said the district can ask for up to $905 million in a new bond election under state law. Stifel, the bank that handles the districts bond sales, said that figure does not include the new bond sale in the works.

That amount is determined by multiplying the net full cash assessed valuation of properties in the district by 20%, then subtracting the outstanding bond debt.

Districts usually try to keep the amount they borrow low so that the rate property owners are paying in taxes does not change drastically, so even though Chandler Unified could borrow over $900 million, it is unlikely to ask for that much.

CUSD has a Triple-A bond rating, meaning the district will pay the lowest interest rates on the money borrowed. Stein noticed a trend in the Chandler area.

"All these rates are edging down over time as your property value is increasing," she said.

Stein said the district currently has about $45 million in outstanding debt on previous bond sales.