District outlines use and timeline for overrides and $100M bond program; $26M remains
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Summary
Business services staff reviewed the district's M&O and DAA overrides and the status of Class B bond expenditures; about $26 million in bond funds remain and plans include auditorium and locker room renovations.
Business services staff updated the Tempe Union Governing Board on the district’s voter‑approved overrides and its Class B bond program during an informational presentation; no formal board action was taken on the override or bond schedules.
Mr. Carranza said the M&O (maintenance and operations) override approved by voters in November 2022 provides roughly 15% of the revenue control limit and generated about $13–$14 million per year. That override is set for seven years and steps down in years six and seven unless voters renew it; administration said it is tentatively planning a renewal campaign in 2027 to avoid the step‑down.
The district’s DAA override, also approved in November 2022, provides approximately $8.7 million per year for seven years through fiscal 2030, and administration said it tentatively plans to seek renewal in 2029. Mr. Carranza presented how the district has budgeted and spent DAA funds across the two voter‑defined categories (nonadministrative and administrative uses) and reported carryover balances roll forward year to year until expended.
On bonds, staff said voters authorized $100 million in Class B bonds in November 2022; the district sold the bonds in two phases ($51 million in 2023, the remainder in spring 2025). Through fiscal years 2023–26 the district has expended or obligated about $74 million, leaving roughly $26 million available. Planned remaining projects include auditorium renovations at Desert Vista and McClintock high schools, locker room improvements at Desert Vista and Corona del Sol, and remaining transportation facility upgrades.
Board members asked about bond ratings, cost variances and how the district prioritizes remaining work. Mr. Carranza said most projects have been completed within the original list, some procurements came in under budget, and the district will continue to pursue state Building Renewal Grants to stretch bond dollars. The presentation concluded with staff thanking voters and the facilities and project teams for completing multiple summer projects on time.
