Maricopa Unified board approves up to $43M in school improvement bonds; underwriter outlines tax impact

The Maricopa Unified School District Governing Board voted unanimously to authorize the issuance and sale of school improvement bonds not to exceed $43,000,000, a measure officials said will fund multiple construction projects and aim to keep the district's bond tax rate near $0.79 per $100 of assessed value.

The action followed a presentation by Mike LaValle of Stifel Public Finance, who reviewed the district's assessed-value growth, bonding capacity and projected interest costs. LaValle told the board the district received February property-value estimates showing roughly 9.6% year-over-year growth in the net limited assessed value and said the district's 10-year average growth for that measure is about 8.46%.

"Our goal is to try to maintain the property tax rate around $0.79," LaValle said, adding that the district's voter-authorized bond limit remains $70,000,000 and that current bonding-capacity estimates are substantially higher than that. He estimated the principal amount for the first sale at approximately $42,750,000 and used a placeholder interest rate of 4.75% for pricing, saying the district would try to lock rates as soon as market conditions allow.

Why it matters: Board members and staff said the timing is intended to provide funds for projects that must start in the coming months, including site work for a K–8 Sorrento project and early planning and spending for a Maricopa High School workforce development project. District staff and the underwriter told the board they structured the sale and projected schedules to layer new debt on an existing declining debt schedule so the bond tax rate can be held near levels promised in the voter pamphlet.

Key details from the presentation and board discussion: - LaValle described two valuation measures: net full cash assessed value (used for bonding capacity) and net limited assessed value (used to calculate tax rates). The district's February estimate shows about 9.61% growth in the net limited assessed value for the upcoming fiscal year. - The district's estimated bonding capacity after final certification was presented as roughly $220,000,000; the voter-authorized limit remains $70,000,000. - The proposed first sale was estimated at $42,750,000 in principal with a maximum 20-year repayment period for school districts in Arizona. LaValle said funds should be spent in accordance with federal regulations (roughly 85% of amounts spent within three years for the amounts drawn down in a given sale) and that the district would monitor spending timelines. - Interest-rate planning: LaValle used 4.75% as a conservative placeholder and said the district hoped to lock in a rate below that when it goes to market. He identified two potential weeks to enter the market and lock rates: the week of April 28 or May 5, with an expected funds delivery in mid-May.

Board members asked about the risks of waiting, the district's capacity to run multiple projects concurrently, and whether higher-than-expected rates would require pausing the sale. District staff said the projects cannot be delayed without affecting schedules, that the district has selected experienced external partners and has internal capacity to manage multiple projects, and that refunding at a later date is an option if rates fall materially.

Vote: The motion to authorize the issuance and sale of school improvement bonds carried unanimously: Shontay Rothschild, Ben Owens, Caroline Lopez, Patty Cutre and Robert Downey voted aye. The board recorded the resolution as Agenda Item 7B.

What happens next: District staff and the underwriter will proceed with rating-agency calls and market timing, and will return to close the sale and deliver funds in accordance with the resolution. The district also discussed options to refund bonds later if market conditions improve.

Ending: Board members and staff framed the action as a means to keep construction timelines on track while trying to honor the tax-rate estimate provided to voters.