Paradise Valley board approves proposed $483 million FY 2025–26 budget and schedules truth-in-taxation hearing

The Paradise Valley Unified School District Governing Board on June 5 approved the district's proposed fiscal year 2025–26 expenditure and revenue budget and scheduled a required truth-in-taxation public hearing for the June 19 meeting.

The proposed budget, presented by budget director Missus Berrigan, lists total budgets across funds at about $483,000,000 and includes an adjacent-ways levy of $1,075,000 to fund pavement and ingress/egress improvements adjacent to district properties. The board approved the proposed budget by unanimous voice vote of members present; a final adoption vote is set for the June 19 meeting, which is required before the July 15 statutory deadline.

The proposed levy will appear in the required newspaper notice for truth in taxation. The notice lists a $2.23 increase per $100,000 of assessed home value compared with a pre-1997 baseline of $0, but the district's presentation clarified that the change reflects a net decrease of about $2.12 compared with the current year adjacent-ways charge of $4.36 per $100,000; Berrigan said that equates to roughly 18 cents per month less on a $100,000 home.

Berrigan told the board the district is presenting the proposal without a finalized state budget because the Arizona Legislature had not concluded its session. That uncertainty affects assumptions such as the aggregate expenditure limit and state aid lines (including how Proposition 123/12/3 continuation may be recorded). The district's revenue assumptions include a per-pupil base level estimate rising from $5,013 to roughly $5,113.26 and a $50 increase in Classroom Site Fund per weighted pupil (from $792 to $842 per weighted ADM).

Board members asked for clarifications during the discussion. Tony Pantera asked whether the community education program still generates net revenue; Berrigan said community education contributes about $1 million toward district utilities but has tightened in recent years. Pantera also asked about the district's inclusion of a 1.3% inflation assumption for goods and services; Berrigan said that number reflects observed trends and differs from the CPI figure used for wage and compensation calculations.

Berrigan walked the board through major fund estimates the presentation lists, including maintenance and operation at about $253,000,000; Classroom Site Fund at about $33,000,000; federal reimbursements around $9,000,000 (noting that ESSER funds have largely been spent); unrestricted capital near $22,800,000; bond-building funds estimated at $72,000,000 to support a new school project; food services about $10,000,000; and other funds totaling roughly $28,000,000.

The presentation covered statutory and procedural requirements for truth in taxation notices, including the need to publish the amount and the date/time/location of the hearing and to notify the Property Tax Oversight Commission of the hearing and results. Berrigan said the public notice cost is about $500 each time the district publishes it.

The board voted to move forward with the proposed budget as presented; the public hearing and formal adoption roll-call vote will occur June 19. Berrigan told the board she will present a revised budget form in December if the state's treatment of certain funds (notably the continuation of Prop 123/12/3 funding) is finalized differently than assumed.

The board also heard the budget's transparency and accountability comparisons to charters and private schools and a reminder of district requirements: Arizona Auditor General audits, the SDER employee reporting, procurement rules and School Facilities Division minimum adequacy guidelines.

Minor procedural motions at the start of the meeting (adopting the agenda and consent items) passed unanimously by the members present. The board will reconvene June 19 to hold the truth-in-taxation hearing and adopt the final FY 2025–26 budget.