February 8, 2011

Study session

Chief Financial Officer Hector Encinas reported that the state is proposing to cut capital funds, and districts are being forced to look to their own taxpayers to fund facility needs. In addition, School Facilities Board funding has been reduced over the past five years. The District is looking at options available to fund capital needs. There are two options: bonds approved through an election, and a capital outlay override also approved through election. Mr. Encinas said the district wants to minimize the impact of additional taxes on taxpayers – a capital outlay override would generate an additional tax approximately the same as the Maintenance & Operations (M&O) override. It would add $1.59 per $100 of assessed valuation to the secondary property tax. A bond could be phased in as existing bonds are paid off, to keep the bond tax rate at the current level so that taxpayers would not see an increase.

Currently, the owner of a home valued at $100,000 pays $1.38 per $100 of assessed valuation - approximately $138/year - to repay existing bond debt, which will be paid off by June 2015. The average homeowner also pays $1.59 per $100 (approximately $159/year) for a seven-year budget override that was approved in 2007 and will begin to phase out in 2012-13 if not reauthorized by voters.

Bryan Lundberg of Stone & Youngberg presented an overview of capital funding, elections and property tax implications.

Bonds are sold by the district to investors, and the proceeds are used to fund capital expenses. The principal and interest are repaid to the investors through secondary property taxes.

While a capital outlay override can pay for any capital item, bonds can be used for new construction, renovations, buses, and technology. Bonds can’t be used for books. A disadvantage of a capital outlay override is that it is very hard to pass – less than half of capital outlay override elections pass. A capital outlay override would increase the taxes paid by taxpayers and is limited to seven years; an advantage is that there is no interest or issuance cost.  Bonds can be sold in phases over 10 years with flexibility in relation to the market and can be paid back in 20 years. There are issuance and interest costs with bonds.

An election can only be held in November (previously, elections were allowed in May). The election date would be November 8, with early voting beginning October 13. The Governing Board can decide to have an all-mail-in election or have it held at polling places. The cost for an election is about $95,000; an election is already slated to fill the vacant Board seat. The Governing Board will make a decision by June 10 on whether or not to call for a bond election in November.

For 2012, 62% of secondary taxes in the Sunnyside District will be paid by commercial property owners, 25% by residential property owners, and 14% by others (renters). Residential property is taxed at 10% of value; commercial property is taxed at 21% of its value.

The district could sell up to $88 million in bonds, of which $28 million could provide funding for technology for 10 years. A second special study session is scheduled for March 9, 2011 at 5:30 p.m. to  discuss the November 8, 2011 M&O override election and further discuss the district’s capital needs.

Regular meeting

The Governing Board honored the district’s counselors, and read a proclamation from Mayor Bob Walkup in recognition of National School Counseling Week April 7-13.

Superintendent’s Report (see PowerPoint)

• Sunnyside is one of the “5 School Districts Reinvented” featured in the Winter 2011 edition of Scholastic Administrator Magazine.
• Tucson Mayor Bob Walkup issued a proclamation in recognition of National School Counseling Week, February 7 – 11, 2011.
• A reception to honor Governing Board’s receiving the Lou Ella Kleinz Award of Excellence and the Magna Award will be held Wednesday, Feb. 23, 2011, 5:30 p.m. at Los Portales, 2615 S. 6th Ave.
• Sunnyside High wrestling coach Bobby DeBerry has been named a finalist for the National High School Athletic Coaches Association 2011 National Coach of the Year Awards. He will be honored at the National Awards Banquet in Grand Rapids, Michigan, June 22, 2011.
• On January 27, tech rallies were held at each of the high schools for eighth-graders who are currently on track to earn netbook computers through the 8th-Grade Digital Scholars program. 
• On Monday, January 31, fifth-grade students and their families gathered at Desert View High School to celebrate Phase II of Digital Explorers—the one-to-one computing initiative which assigns approximately 1,400 netbook computers to every fifth-grade student in the Sunnyside District. Netbooks are being distributed to students of Craycroft, Elvira, Esperanza, Los Niños, Los Ranchitos, Rivera and Santa Clara elementary schools.
• Before netbooks were deployed to fifth-grade students, Parent Orientations were held the evening before to share information with families on Internet safety and guidelines for using netbooks. Parents and students also signed contracts for netbook use.
• Dr. Isquierdo thanked the Netbook Deployment team for an outstanding job with the organization, distribution and set-up of student netbook computers. 
• The District Parent Council Volleyball Tournament will take place Saturday, March 5, 2011 at Desert View. Play begins at 9 a.m.

General functions
The Board approved:

• Rescheduling the March 22 regular board meeting  to March 29.
• Rescheduling the English Language Development study session from Feb. 22 to March 29, at 5:30 p.m.
• Rescheduling a special study session from March 8 to Wednesday, March 9 for the purpose of further discussing the need for a November 2011 M&O override reauthorization and possible bond election.

Update on Novus
Javier Baca, executive director of information technologies, presented a change in the Board agenda  –“Call to the Audience” will allow comments on topics not on the meeting’s agenda, and then “Acknowledgment of Public Request to Speak” will provide the public the opportunity to address the Board on items that are on the agenda. This is being implemented to encourage the public to address the Board regarding topics on the agenda. It will be implemented Feb. 22.

K-8 Literacy plan
Steve Holmes, assistant superintendent for curriculum and instruction, reported that the District has developed a comprehensive K-8 Literacy Plan that includes a detailed three-tiered approach to instruction.  It allows for teachers to provide high-quality instruction and interventions matched to student need. It also provides teachers with the ability to monitor progress frequently in order to make decisions about instruction. This is an effort to create a strategic design across the 13 elementary schools.

Implementation of the K-8 Literacy Plan will begin next school year. It will have a Walk to Read component, which groups students by reading ability. Mr. Holmes said there will be an aligned intervention curriculum, and that literacy and language acquisition will be developed simultaneously. There will be more focus on getting students to read at grade level by third grade. The Literacy Plan requires looking at data and how students are assessed, with differentiated small group instruction based on students’ instructional level s. Walk to Read groups students within or across grades in order to provide explicit, intensive teaching that supports students at their reading level. This approach will enable schools to effectively address the wide range in reading levels. Groups will be dynamic, to change in response to assessment and student need.

Project Graduation: The Digital Advantage celebration event venue
Assistant Superintendent Steve Holmes presented options for this year’s Digital Advantage celebration. It is being proposed to combine the ninth-grade celebration with the Digital Scholars event for upperclassmen. Presented were the two options of having the combined celebration at the University of Arizona’s Centennial Hall, or as two events at Desert View and Sunnyside high schools. The Board approved holding two events at the high schools in order to have the opportunity to  showcase  the high school campuses and initiatives, invest resources in the schools’ auditoriums, and make the celebrations more personal.