As the clock ticks down to the November election, the Auga Fria High School District started planning for its bond listed on the upcoming ballot. The $138 million bond will go towards funding workforce development, critical repairs and improvements at the five campuses that have buildings more than 60-years-old hosting students, staff and faculty daily.
In Arizona, school bonds provide funding to educational institutions bonds are a form of debt that allows districts to raise money for significant projects and enhancements.
When a school district needs funds for construction, renovation or significant repairs, it can propose a bond issue to the school district’s voters. This proposal outlines the intended use of the funds, which might include building new classrooms, upgrading technology, or improving safety features. If voters approve the bond measure, the district distributes bonds to investors who borrow money that will be repaid over time with added interest.
The approval process for school bonds begins with a proposal by the district’s governing board. This proposal is then presented to the community, often accompanied by informational meetings and materials that detail the necessity and benefits of the bond. The final decision is made through a public vote, held during an election. Once approved, the district sells the bonds to investors, who are essentially lending money to the district. In return, the district agrees to make regular interest payments and repay the principal amount over a long period of time. These payments are funded through property taxes levied on local residents.
The proposed AFHSD bond is structured not to exceed 75 cents per $100 of assessed home value. The estimated average tax for the total proposed bond is $14.84 monthly per average household, which will not increase the tax rate.
The first uses of the district bond money, if the bond passes in November, are loosely planned to go towards replacement or repairs to aging systems like air conditioning, roofs and parking lots, adding technology infrastructure enhancements and providing more student transportation. Things like updating Millennium High School’s oldest buildings and building another pool in-district were mentioned. The funds will also support training, school security measures and workplace development.
Visit aguafria.org/bond for more information.