SCHOOL DISTRICT ELECTIONS INFORMATION

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1 PUBLIC FINANCE Phoenix Public Finance Office 2325 E. Camelback Road, Suite 750 ~ Phoenix, AZ SCHOOL DISTRICT ELECTIONS INFORMATION Kyrene School District Citizens Budget Committee Michael LaVallee, Managing Director Direct mlavallee@stifel.com Randie Stein, Director Direct rstein@stifel.com

2 Election Results Lingo Pass Percent or Pass Rate Percent of the questions on the ballot approved by voters Yes Percent Percent of voters voting yes on a specific ballot question M&O Override School district override used for maintenance and operations purposes Authorized by State law, subject to statutory limitations and requirements DAA Override or Capital Override Technically District Additional Assistance override School district override used for capital purposes Authorized by State law, subject to statutory limitations and requirements Bond Election Authorizes issuance of bonds for capital purposes, up to stated maximum dollar amount Actual bond issuance requires Governing Board Resolution Authorized by State Constitution and State law, subject to limitations and requirements Page 1

3 2015 Overview Number of Questions M&O Override DAA (Capital) Override Bond Total Number Passed Number Failed Pass Percentage 69% 80% 88% 77% Page 2

4 2016 Overview Number of Questions M&O Override DAA (Capital) Override Bond Total Number Passed Number Failed Pass Percent 82% 100% 82% 84% Page 3

5 Maintenance & Operation Override Elections No. of Questions Passed Pass Rate % % % % % % % % % % % % % % Total to % Page 4

6 2016 M&O Override Election Observations Fewest number of M&O Override questions since Stifel began tracking in 2003 (Reminder: first combined M&O / SP Overrides were March 2010) November 2011 approvals are most ripe for 2016 ballot November 2011 only 13 M&O Overrides approved Over 80 M&O Overrides have been approved from 2012 through 2015 Highest pass rate percentage since before start of economic downturn Only 2003, 2004, 2005 had higher pass rates (all during four annual election date period) Page 5

7 Maintenance & Operation Override Elections No. of Questions Passed Pass Rate 2015 RESULTS Total % Continue % New % Increase % 2016 RESULTS Total % Continue % New % Increase % Page 6

8 District Additional Assistance Override Elections* No. of Questions Passed Pass Rate Annual Amount Approved Average Amount Approved % $12,736,000 $2,122, % $5,300,000 $2,650, % $40,175,939 $3,652, % $4,050,000 $2,025, % $21,351,348 $4,270, % $9,785,000 $3,261, % $4,600,000 $4,600, % $1,100,000 $550, % $12,708,000 $6,354, % $13,949,619 $1,992, % $14,509,610 $2,901, % $5,050,000 $1,683, % $24,450,600 $6,112, % $15,900,000 $3,180,000 *Only includes capital overrides funded with property taxes. Page 7

9 DAA (Capital) Override Election Observations Historically lowest pass rate of all school district property tax ballot questions Relatively few elections each year Dollar amount approved in 2015 higher than in 2016 Higher pass rate in odd years than in even (since 1999) 57% vs. 49% average 2015 and 2016 both record setting pass rate years (since 1999) Common threads in 2016 Technology Facility improvements / safety upgrades Page 8

10 Class B Bond Authorizations No. of Questions Passed Pass Rate Amount Approved % $403,010, % $753,585, % $1,133,955, % $1,227,255, % $496,610, % $356,615, % $280,130, % $513,080, % $733,880, % $622,510, % $275,695, % $587,550, % $937,065, % $1,097,230,000 Page 9

11 Class B Bond Authorizations Since 1999 No. of Questions Passed Pass Rate Total % % % % % Page 10

12 Bond Election Observations 2015 Observations Highest odd-year pass rate since 2009 Highest dollar authorization since Observations Number of bond questions Large number of questions compared to past 17 years Number of ballot questions greater in 2005 and 2006 Bond dollar amount Largest dollar request (records going back to 1999) Largest dollar approval since 2005 and 2006 Over $2 billion approved between 2015 and 2016 Page 11

13 2015 / 2016 Bond Election Observations Possible explanations for sizable bond activity SFB Deficiencies Correction Program was 15 years ago, replacement stuff could be nearing end of useful life Stuff with remaining useful life of 3 years in 2000 not replaced in Deficiencies Program Technology demands Ratio of devices to students Rapid evolution of new generations of equipment Connectivity speed, reliability and capacity Increased competition in K-12 space Heightened attention to safety and security SFB weakened new construction funding process On-going and deep cuts to annual formula funding for capital (and inflation funding) Heightened attention to K-12 funding Page 12

14 Summary Data *2003 data only. M&O Overrides ( ) No. of Questions Pass Rate DAA (Capital) Overrides ( ) No. of Questions Pass Rate Class B Bonds ( ) No. of Questions Pass Rate Total % % % Even % 51 49% % Odd % 65 57% % * 91% 21 48% 41 93% % 43 53% % % 36 47% 60 78% % 16 75% 54 85% % 5 80% 16 88% % 5 100% 22 82% Page 13

15 The Multiple Question Question (bonds and overrides) Year District Topic 1 Yes % Topic 2 Yes % 2016 Bagdad (Yavapai) M&O 70.7 Small School Lake Havasu (Mohave) Bond 55.5 M&O Sahuarita (Pima) DAA 52.8 Bond Scottsdale (Maricopa) Bond 58.5 DAA Catalina Foothills (Pima) Bond 61.1 DAA Gilbert (Maricopa) Bond 58.5 M&O Prescott (Yavapai) Bond 68.0 M&O Riverside (Maricopa) M&O 62.8 DAA Cave Creek (Maricopa) Repurpose 52.2 Bond Creighton (Maricopa) M&O 51.9 DAA Queen Creek (Maricopa) Bond 60.2 M&O Sahuarita (Pima) M&O 50.4 DAA Tuba City (Coconino) Bond 66.9 IA Bond Arlington (Maricopa) Bond 61.3 M&O Avondale (Maricopa) Bond 56.7 DAA Catalina Foothills (Pima) M&O 63.5 SP Fountain Hills (Maricopa) Bond 52.8 M&O Prescott (Yavapai) Bond 46.6 M&O Roosevelt (Maricopa) M&O 52.2 DAA Washington (Maricopa) M&O 53.7 DAA 49.9 Page 14

16 Underwriter Exclusion Disclosure Stifel, Nicolaus & Company, Incorporated ( Stifel ) has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC s Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement. Stifel is providing information and is declaring to the proposed municipal issuer that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm s-length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate. These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate. Page 15