Tempe Elementary CFO briefs board on status of 2016 and 2022 bonds and voter-approved overrides

Chief Financial Officer Eric Thompson presented the annual report on voter-approved bonds and overrides to the Tempe Elementary School District governing board, explaining how the district has spent bond proceeds and how override revenues are allocated.

Thompson told the board the 2016 bond, a $165,000,000 authorization, has been nearly fully spent with about $4,000,000 remaining for critical maintenance projects such as HVAC and roofing. The district completed rebuilds and renovations in three phases, including Moseley — described in the presentation as the largest project from that bond.

The 2022 bond totals $196,500,000. Thompson said the district has sold about $75,000,000 of that authorization so far and that the largest planned use of the 2022 bond is the Curry Conley build, estimated in the presentation at roughly $150,000,000 from bond proceeds. He said another major portion of the 2022 bond — about $39,000,000 — is earmarked for energy-saving projects such as solar, water conservation and lighting upgrades; those projects are expected to receive rebates that will reduce net cost.

Thompson emphasized the effect of construction inflation on planned work. "If you look at it, 45% inflation since 2020 on construction for Arizona schools," he said. Using Moseley as an example, Thompson said what cost about $54,000,000 previously would cost near $80,000,000 at today's prices.

Thompson also summarized voter-approved overrides. The capital (DAA) override increased from $5,000,000 to $7,000,000 annually beginning with the 2024 increase; the district will receive $7,000,000 per year for seven years, or $49,000,000 total. He said much of the capital override is going to technology: software licenses, hardware and network improvements. "If you've been to a school with the Wi‑Fi down and Internet down, they're having a bad day," Thompson said, explaining the network investment.

The maintenance-and-operations override (M&O) provides roughly 15% of the revenue control limit — about $10.5 million per year — and primarily funds salaries and programs (for example, full‑day kindergarten, counselors, and music programs). Thompson explained the M&O override is fully funded for the first five years, then steps down by roughly one‑third in year six and further in years seven and eight unless voters renew it. He noted the latest date to renew without a funding dip is the November 2029 election.

Board members praised the transparency and asked clarifying questions. Board member Windsor asked whether the $39,000,000 energy‑savings figure includes grants and rebates; Thompson replied that the $39,000,000 is the gross bond cost and that the district will receive rebates that reduce the net cost. Board member Miller confirmed the DAA capital override does not step down during its seven‑year term.

Thompson said the district posts these bond and override reports on its website for public review and that additional historical presentations are available.

The board did not take action on the presentation; it was an informational update required by state rules on voter‑approved funding and provided to increase transparency about how voter dollars are being spent.