June 28, 2011

Regular meeting

Recognition
The Governing Board recognized Robert Jaramillo for his 14 years of service to the Sunnyside community as a member of the Board. Mr. Jaramillo is resigning in order to serve as an Air Force JROTC instructor at Desert View High School.

Superintendent’s Report
Superintendent Dr. Manuel Isquierdo presented his report to the Board (see PDF).

• Summer commencement ceremonies will take place Thursday, June 30, 2011, 6:30 p.m. in the Sierra Middle School auditorium.
• Approximately 30 community members attended a town hall held June 22 in the Sunnyside High library to discuss the proposed bond election.
• Larry Martinez, a Sunnyside High School, Pima Community College and Northern Arizona University track star and a former teacher and coach in the Sunnyside District, was inducted into the 2011 Pima County Sports Hall of Fame. Mr. Martinez is a member of the Sunnyside Foundation Board of Directors.
• The Sunnyside Foundation is one of the educational organizations that will receive 100% of the proceeds from discount offers on a new website, www.Bargainsthatbenefit.com.

Highlights of Consent Agenda
Michael Fester, academic interventionist for Sierra Middle School, will be assistant principal at Sierra beginning in the 2011-12 school year.
Gabriel Maraga has been appointed the head varsity baseball coach for Sunnyside High School.

The Community Food Bank will hold a bi-monthly Farm Stand in the Summit View Elementary School parking lot to provide local residents the opportunity to purchase locally grown organic produce. Dates for the Farm Stand are Aug. 12 and 26, Sept. 9 and 23, Oct. 14 and 28, from 8:30 to 10:30 a.m.

The Board approved the award of a Request for Proposal to Education 2020 to provide web-based and online learning curriculum. It is anticipated the district will have 150 licenses for various online learning programs; Education 2020 will also provide professional development.

Gifts and donations:
$480 to Esperanza Elementary from the Arizona State Council Knights of Columbus for Ms. Linneen’s MD class.
$560 to Esperanza Elementary from Mrs. John Montano for the John Montano Memorial Fund for afterschool activities.

Highlights of General Functions Agenda
Proposed 2011-12 budget
Chief Financial Officer Hector Encinas presented the 2011-12 budget for approval by the Board. The 2011-12 budget includes a Maintenance & Operations (M&O) 10% override of $7.9 million and is the fifth and final year of the 10% authorization. Without new voter approval on Nov. 8, 2011, the override will reduce to $5.3 million for 2012-13.

The M&O budget of $86.2 million is reduced by $2.7 million from 2010-11. Soft Capital is reduced from almost $882,000 in 2010-11 to $49,000 in 2011-12. Unrestricted Capital Outlay is down from $3.5 million in 2010-11 to $1 million 2011-12.

The budget will be presented to the Governing Board July 12 for adoption. The Board approved the proposed 2011-12 budget. 

Resolution calling for bond election Nov. 8, 2011
Mr. Encinas said that the district has been exploring the possibility of a November 2011 bond election for more than a year and, in fact, initially addressed the possibility more than two years ago. Because of economic conditions, district administration did not consider proposing a bond until the drastic budget cuts passed by the State Legislature in April 2011:

• Public school districts’ Soft Capital Outlay budgets are reduced by 99% - $3.6 million for SUSD.
• Unrestricted Capital Outlay budgets are reduced by 44% - $1.8 million for SUSD.
• There is no School Facilities Board (SFB) funding for new school construction for 2011-12.
• There has been no SFB funding for Building Renewal since 2007-08 – a loss to SUSD of about $16 million.

Because current and previous SUSD Governing Boards have been fiscally conservative, the district’s debt service and interest on voter-approved bonds issued prior to 2002 will be paid off by July 2015.

Mr. Encinas said that it is the commitment of the board and district that the amount of taxes collected in future years not exceed the amount currently collected.

The proposed bond was discussed with employees at all SUSD schools and departments, with employee representatives from every school in the Inside Track group, with district leadership/administrators, with a volunteer Bond Advisory Committee, and in a public Town Hall meeting. The proposed bond is for $88 million: $28 million to continue and expand the district’s technology initiative and to improve safety and security, $10 million to improve athletic facilities, $6 million to purchase new school busses, $12 million to construct a new magnet fine arts school, and $32 million to remodel/renovate/expand existing facilities.

Representatives of employee groups and community members from the Bond Advisory Committee spoke as part of the presentation and in Call to the Audience. Community members supported the need for a bond; a suggestion was voiced in favor of a reduced total amount for the bond.

The total amount must be specified in the resolution.  The district does not have to sell the total amount authorized if interest conditions are not favorable, but cannot sell more bonds than the total specified in the resolution. Mr. Encinas said that he and the superintendent are committed to keeping the tax levy below the current $8 million per year.

The June 28 meeting is the last date the Governing Board can call for an election in November.

The Governing Board voted 4-0 to call for a special election November 8, 2011 to request voter authorization to sell bonds not to exceed $88 million.

Resolution calling for 10% M&O override election on Nov. 8, 2011
As a result of a change in legislation, override elections can only be held in November. Previously, they could be held in March or May. Unless voters authorize a new override in November 2011, the current override of approximately $8 million per year will be reduced by $2.6 million in 2012-13, another $2.6 million in 2013-14 and another $2.6 million in 2014-15. A new 10% override would continue the current tax rate of $1.58 per $100 of assessed valuation.

Community members and employees supported a new 10% override but not all supported a 15% override, which is now allowable. A 15% override would increase secondary property taxes.

The Governing Board voted 4-0 to call for a 10% Maintenance & Operations override election on Nov. 8, 2011.

Executive session
Following executive session, the Governing Board approved the appointment of Stephen Ybarra as interim principal of Sunnyside High School. Mr. Ybarra retired as principal of Carl Hayden Community High School in the Phoenix Union High School District.