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ALTERNATIVE CAPITAL FUNDING SOURCES Advisory Committee reviews and analyzes the district’s needs.
e committee reports to the Governing Board in May or June,
CONTINUED FROM PAGE 21 a er which the board calls for an election and determines the

federal impact aid, Medicaid reimbursement, and desegregation amount. During June through August, the investment bank and
funds. legal counsel work with the district on nal language for a voter
Bonds are good for 10 years a er approval in an election, and are pamphlet, Bowler noted.
generally repaid in 20 years. Capital override funds are available for “Remember, the election actually starts in the rst week of
seven scal years a er an election. e limit for lease-purchase is October, when early ballots are mailed out,” he said.
15 years. Funds from the School Facilities Board do not require an LaVallee said a district should notify Maricopa County o cials
election and are approved for a speci c project. of the intent to conduct an election no later than June, but some of
Bowler reviewed the success rate for bond and override elections the other counties are more exible with their deadlines.
dating back to the Great Recession and earlier. In the ve years a er Optimal nancing requires three basic elements: the district’s
the recession, from 2009 to 2013, 51 percent of M&O overrides nancial objectives, including the project need, timing and size
passed; 47 percent of capital overrides passed, and 78 percent of and whether there is board and public support; a credit and legal
bond elections were approved. ose were the worst years since the analysis, taking into consideration a levy or tax limit capacity
1999-2003 period. constraints and credit rating; and the nancial options, including
Whereas, in 2017, which Bowler called “a very good year,” the bond or lease purchase, private or public offering, maturity
approval rates were 81 percent for M&O overrides, 100 percent for structure and prepayment provisions.
three capital overrides, and 87 percent for bonds. e goal is to have a team e ort, LaVallee said, including a
Before the recession, even numbered years were better for bond lending institution, lawyers, the superintendent and Governing
elections, while overrides fared better in odd years. But LaVallee Board to come up with nancing strategy. “Nothing is done in a
said there currently appears to be no di erence between even and vacuum,” he said. “We want to hear the challenges you’re facing.”
odd years. Demographic reports are important, indicating how many new
If your district is preparing for a bond issue in this year’s students will be coming to the district.
November election, Bowler recommended getting started as
soon as possible. Normally, from March to May the Election CONTINUED ON PAGE 23

22 THE EDGE SUMMER 2018

THE EDGE |