Tempe Elementary board approves $40 million bond sale, orders $196.5 million bond election for November

The Tempe Elementary School District Governing Board voted Wednesday to approve the sale of $40,000,000 from the voter-authorized 2022 school improvement bond and to call a special bond election in November asking voters to authorize an additional $196,500,000 in bonds.

Board President Ewers and district staff said the funds will pay for energy-efficiency projects, electric buses and initial work on large rebuilds including the Curry and Connolly projects. Chief financial officer Eric Thompson told the board the Curry and Connolly work is likely to total about $150 million, and that the newly approved $40 million sale is one step in a staggered financing plan approved by voters in 2022.

District financial advisor Megan Berg of Stifel presented tax-rate modeling showing the district plans to amortize a proposed 2025 authorization over multiple sales to limit year-to-year increases. Using the scenario presented, the district estimated an average annual tax-rate impact for the proposed $196.5 million authorization of about $0.491 per $100 of limited assessed value, which the district translated to roughly $88.54 per year for the district's average limited-value home ($180,336), or about $7.38 per month.

Thompson said spacing bond sales reduces interest costs compared with selling the full authorized amount immediately, explaining the district sold $35 million in December, is selling $40 million now and anticipates additional sales later this year. Berg said the district would target capping the bond portion of the tax rate near $1.32 under the proposed amortization schedule, extending amortization to keep annual payments manageable.

Board members asked how the proposed tax impact compares with other East Valley districts and what would happen if voters reject the authorization. Berg said the district's proposed package is comparable to recent large elections in nearby districts and that a no vote would delay building refreshes and large remodels (for example, planned work at Carbonati and Rover) because available bond proceeds would be exhausted by the energy, bus and Curry/Connolly work the district expects to complete.

The board approved two separate motions: one authorizing the issuance and sale of $40,000,000 from the 2022 authorization and a second adopting a resolution to order a special bond election in November 2025 for a proposed $196,500,000 authorization and to authorize the chief financial officer to take related steps under the Internal Revenue Code. Both measures passed by voice votes.

Next steps outlined by district staff include adopting formal ballot language and preparing a voter information pamphlet required by statute; the board must pass the election resolution in early June to meet county deadlines, staff said.

Action details recorded in the meeting minutes indicate the board voted in favor of both items; the motions passed and the district will proceed with scheduling and election preparations.