Paradise Valley board approves proposed FY2025-26 budget, schedules final adoption hearing

The Paradise Valley Unified School District Governing Board on Thursday approved a proposed $483 million fiscal year 2025-26 expenditure and revenue budget and scheduled the statutorily required public hearing and final adoption roll-call vote for June 19.

Board members voted to approve the proposed budget after a presentation by Chief Financial Officer/Chief Business Officer (presenter) Melissa Barrigan, who reviewed revenue assumptions, expenditure factors and property-tax estimates that will be finalized after the state budget is set. The board’s action adopted the proposed budget for the public-notice and truth-in-taxation process; the district must adopt its final budget before July 15.

Why it matters: The proposed budget establishes the district’s spending plan and the figures to be published in the public notice required for the one-time adjacent-ways levy. Barrigan said the levy to support adjacent-ways projects totals $1,075,000 and represents about 0.22% of the district’s budget; the budget presentation showed an overall decrease in the combined tax rate relative to the current year.

Barrigan walked the board through key assumptions used to build the proposal: an “average daily membership” (ADM) estimate set slightly higher than expected to preserve override capacity; an estimated 2% increase in the state base per-pupil funding (from $5,013 to an estimated $5,113.26); an estimated classroom-site-fund increase of $50 per weighted ADM (moving from $792 to $842 per weighted ADM); modest inflation assumptions for goods and services (1.3%); a projected 5% increase in utility costs; and a 10% increase in medical costs covered by a district medical prepay balance. Barrigan also noted that federal ESSER funds have largely concluded and federal grant totals will be lower compared with last year.

On property taxes and truth in taxation, Barrigan said county officials calculate the actual tax rates but the district provides the numbers. The presentation showed the primary tax rate (covering maintenance and operations and district additional assistance) is estimated to fall to about $3.14 per $100,000 of assessed value and the secondary rate (voter-approved overrides and bonds) to about $1.76 per $100 of assessed value, for an overall net drop of about $0.4041 per $100,000 assessed value. The required public notice for the adjacent-ways levy shows a $2.23 increase on a $100,000-assessed-value home compared with a historical baseline of $0; Barrigan emphasized the comparison can be misleading and explained the current-year adjacent-ways charge was $4.36 per $100,000, so the change represents a decrease of about $2.12 relative to the current year — roughly $0.18 per month on a $100,000 home.

Board members asked about specific line items: Mr. Tony Pantera asked whether Community Education still contributes revenue (Barrigan said it contributes roughly $1 million toward utilities) and questioned the low inflation assumption for goods and services; Barrigan explained the 1.3% figure reflects the district’s observed cost trends rather than the broader CPI measure. Ms. Wani asked clarifying questions about truth-in-taxation rules and whether adjacent-ways has any state funding (Barrigan replied it does not).

The board moved to approve the proposed budget for required publication and hearing in accordance with the district’s statutory obligations; Mrs. Sandra Christiansen made the motion and the board adopted it unanimously. The presentation materials show the district’s maintenance and operations budget is proposed near $253 million, the classroom site fund at roughly $33 million, an unrestricted capital budget at about $22.8 million and bond building at $72 million (driven by a new school project). Barrigan said a page for Prop 123 funding was omitted from the temporary auditor forms used because the state budget was not yet final, and she expects staff will add that line during the customary budget revision cycle.

Looking ahead: The Governing Board will hold the truth-in-taxation hearing and adopt the final budget at its June 19 meeting; staff will publish the required notice in a newspaper of general circulation and notify the Property Tax Oversight Commission of the hearing and vote.

The vote: Motion to approve the proposed fiscal year 2025-26 expenditure and revenue budget as presented — moved by Mrs. Sandra Christiansen; motion passed unanimously (yes: 5, no: 0, abstain: 0; one board member absent).