2020 M&O Override Continuation and Critical Needs Bond

  • What is the difference between an override and a bond and why do they require voter approval?

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    When the funding provided by the state is not enough to meet the needs of all students, the state allows school districts to ask for local support through bonds and overrides. This requires Governing Board approval to place the initiative on the ballot for community approval by vote in an election.

     

    Maintenance and Operations Overrides are used to provide additional funding to support people and programs. School districts may ask for an increase of up to 15 percent of their revenue control limit for a term of seven years from local secondary property taxes. Many districts ask voters to approve a renewal in year four or five of an override to maintain a consistent level of funding. If not renewed, the override amount decreases the school district’s budget by 1/3 in the sixth year, 2/3 in the seventh year, and the funds from the override would be fully eliminated in year eight.

     

    Bonds authorizations are similar to a borrowing threshold that is authorized by the voters and allows a district to sell bonds in incremental amounts up to that threshold to purchase capital items and/or make capital improvements to existing facilities, such as school building renovations or the purchasing of school buses. The funding can only be used to fund projects that have a useful life longer than five years. They are repaid over a set period of time from local secondary property taxes, and the district must provide the community with information on how the dollars are spent, which are currently outlined on our district’s website. Funds from a bond cannot be used for employee compensation.

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  • Does Peoria Unified currently have an override in place and what does it fund?

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    Like most school districts in the state, the Peoria Unified School District has an M&O override in place, which has been approved by voters since 1996. The override currently in place funds employees in our schools such as school nurses, and assistant principals, as well as programs, such as physical education, arts education, reading and gifted programs, all-day kindergarten, athletics, and extracurricular activities. It is also used to provide teacher and staff compensation and helps maintain class sizes to a standard set forth by our Governing Board. 

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  • If an override is already in place, why is there an override on the November 3, 2020 ballot?

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    The current override expires in 2020 and will begin to phase out in FY 2022 if not renewed by the voters on November 3, 2020.

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  • If the continuation of the override is approved, how will taxes be affected?

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    The maintenance and operations override on the November ballot is a continuation of funding that is currently in place. If approved, the override continuation will result in an estimated average annual tax rate of $1.4486 per $100 of limited assessed valuation for residential property owners. (Note: overrides are funded from a levy of ad valorem taxes on all taxable property, or limited assessed valuation within the Peoria Unified School District, which is different from the value listed on Zillow or Redfin.) 

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  • What will happen if the critical needs bond is not approved?

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    If the critical needs bond does not pass, Peoria Unified School District will not be able to provide all of the required maintenance and facility updates that are needed at our school and operational facilities.  In addition, student and staff technology needs will not be made and aging school buses will not be replaced.

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  • What amount is the Peoria Unified School District asking for? How will it impact taxes?

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    The total critical needs bond is for $125,255,000. If approved, the secondary property tax rate is expected to remain at or below $1.48, which means the tax rate will not increase.   

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  • How can I calculate my property taxes?

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    To calculate your property taxes, a community member needs the limited property value of their property. Note: This is not the current fair market value of a home that can be found on Zillow or Redfin but rather the Limited Property Value as calculated by the Maricopa County Assessor. This amount can be located on the Property Notice of Valuation that is mailed each year from the Maricopa County Assessor or online by visiting the Maricopa County Assessor website. 

     

    For additional financial information on the Peoria Unified School District, visit our Bonds and Overrides page. The example valuation below is a home that has an approximate fair market value of $450,000, if it were to be listed for sale on the open market. Example tax calculation based on Example valuation: Limited Property Value: $288,977 X .10 = $28,897.70 Then divide $28,897.70 BY 100 = $288.97 X $2.9267 = $845.75 ESTIMATED SECONDARY PROPERTY TAX PER YEAR.

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  • Property Notice of Valuation sample for a house with a LPV of 288, 977