PUBLIC FINANCE Phoenix Public Finance Office 2325 E. Camelback Road, Suite 750 ~ Phoenix, AZ 85016 602-794-4000 www.stifel.com/institutional/public-finance SCHOOL DISTRICT ELECTIONS INFORMATION Kyrene School District Citizens Budget Committee Michael LaVallee, Managing Director Direct 602.794.4008 mlavallee@stifel.com Randie Stein, Director Direct 602.794.4002 rstein@stifel.com
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
2015 Overview Number of Questions M&O Override DAA (Capital) Override Bond Total 26 5 16 47 Number Passed 18 4 14 36 Number Failed 8 1 2 11 Pass Percentage 69% 80% 88% 77% Page 2
2016 Overview Number of Questions M&O Override DAA (Capital) Override Bond Total 22 5 22 49 Number Passed 18 5 18 41 Number Failed 4 0 4 8 Pass Percent 82% 100% 82% 84% Page 3
Maintenance & Operation Override Elections No. of Questions Passed Pass Rate 2003 53 48 91% 2004 35 29 83% 2005 57 53 93% 2006 31 21 68% 2007 77 52 68% 2008 53 42 79% 2009 71 39 55% 2010 49 28 57% 2011 31 13 42% 2012 38 13 34% 2013 46 28 61% 2014 36 24 67% 2015 26 18 69% 2016 22 18 82% Total to 2016 625 426 68% Page 4
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
Maintenance & Operation Override Elections No. of Questions Passed Pass Rate 2015 RESULTS Total 26 18 69% Continue 9 8 89% New 8 3 38% Increase 9 7 78% 2016 RESULTS Total 21 17 81% Continue 12 11 92% New 6 3 50% Increase 3 3 100% Page 6
District Additional Assistance Override Elections* No. of Questions Passed Pass Rate Annual Amount Approved Average Amount Approved 2003 11 6 55% $12,736,000 $2,122,667 2004 5 2 40% $5,300,000 $2,650,000 2005 14 11 79% $40,175,939 $3,652,358 2006 9 2 22% $4,050,000 $2,025,000 2007 11 5 45% $21,351,348 $4,270,270 2008 4 3 75% $9,785,000 $3,261,667 2009 4 1 25% $4,600,000 $4,600,000 2010 7 2 29% $1,100,000 $550,000 2011 6 2 33% $12,708,000 $6,354,000 2012 11 7 64% $13,949,619 $1,992,803 2013 8 5 63% $14,509,610 $2,901,922 2014 6 3 50% $5,050,000 $1,683,333 2015 5 4 80% $24,450,600 $6,112,650 2016 5 5 100% $15,900,000 $3,180,000 *Only includes capital overrides funded with property taxes. Page 7
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
Class B Bond Authorizations No. of Questions Passed Pass Rate Amount Approved 2003 9 8 89% $403,010,000 2004 17 17 100% $753,585,000 2005 28 25 89% $1,133,955,000 2006 27 27 100% $1,227,255,000 2007 16 13 81% $496,610,000 2008 12 12 100% $356,615,000 2009 13 12 92% $280,130,000 2010 13 10 77% $513,080,000 2011 14 10 71% $733,880,000 2012 9 8 89% $622,510,000 2013 11 7 64% $275,695,000 2014 16 14 88% $587,550,000 2015 16 14 88% $937,065,000 2016 22 18 82% $1,097,230,000 Page 9
Class B Bond Authorizations Since 1999 No. of Questions Passed Pass Rate Total 255 225 88% 1999-2003 41 38 93% 2004-2008 100 94 94% 2009-2013 60 47 78% 2014-2016 54 46 85% Page 10
Bond Election Observations 2015 Observations Highest odd-year pass rate since 2009 Highest dollar authorization since 2006 2016 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
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
Summary Data *2003 data only. M&O Overrides (2003-2016) No. of Questions Pass Rate DAA (Capital) Overrides (1999-2016) No. of Questions Pass Rate Class B Bonds (1999-2016) No. of Questions Pass Rate Total 625 68% 116 53% 255 88% Even 264 66% 51 49% 133 92% Odd 361 70% 65 57% 122 84% 1999-2003 53* 91% 21 48% 41 93% 2004-2008 253 78% 43 53% 100 94% 2009-2013 235 51% 36 47% 60 78% 2014-2016 84 71% 16 75% 54 85% 2015 26 69% 5 80% 16 88% 2016 22 82% 5 100% 22 82% Page 13
The Multiple Question Question (bonds and overrides) Year District Topic 1 Yes % Topic 2 Yes % 2016 Bagdad (Yavapai) M&O 70.7 Small School 71.9 2016 Lake Havasu (Mohave) Bond 55.5 M&O 50.6 2016 Sahuarita (Pima) DAA 52.8 Bond 57.9 2016 Scottsdale (Maricopa) Bond 58.5 DAA 56.6 2015 Catalina Foothills (Pima) Bond 61.1 DAA 59.6 2015 Gilbert (Maricopa) Bond 58.5 M&O 54.6 2015 Prescott (Yavapai) Bond 68.0 M&O 62.7 2015 Riverside (Maricopa) M&O 62.8 DAA 62.3 2014 Cave Creek (Maricopa) Repurpose 52.2 Bond 53.0 2014 Creighton (Maricopa) M&O 51.9 DAA 51.1 2014 Queen Creek (Maricopa) Bond 60.2 M&O 46.4 2014 Sahuarita (Pima) M&O 50.4 DAA 48.9 2014 Tuba City (Coconino) Bond 66.9 IA Bond 62.9 2013 Arlington (Maricopa) Bond 61.3 M&O 54.5 2013 Avondale (Maricopa) Bond 56.7 DAA 50.2 2013 Catalina Foothills (Pima) M&O 63.5 SP 64.8 2013 Fountain Hills (Maricopa) Bond 52.8 M&O 53.5 2013 Prescott (Yavapai) Bond 46.6 M&O 42.5 2013 Roosevelt (Maricopa) M&O 52.2 DAA 51.4 2013 Washington (Maricopa) M&O 53.7 DAA 49.9 Page 14
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