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Flagstaff Unified School District #1

Report on FY 2014 Budget, Historical Data on Budget/Tax Statistics and Tax Projections for FY 2014

KG:jd 8/06/2013

Soft CapitalTextbooks, Technology, Vehicles

State Funds & Local Primary Tax - 70% legislative cut FY11, 100% cut FY12,

58% cuts in FY13 and FY14

Flagstaff Unified School District

FY 2013

Budget Sources$85M

Voter Approved Override (M&O)Approved Mar 2010. Full Funding:

SY10-11 through SY14-15Renewal Date - Nov. 2014Local Secondary Tax

M&O uses

CAVIATVoter approved CTE programs M&O uses

Maintenance and OperationsIncludes Career Ladder & Desegregation

State Funds +Local Primary Tax

Unrestricted CapitalState Funds + Local Primary Tax58% reduced in FY13 & FY14M&O uses

M&O uses

Some M&O uses possible

Building RenewalUsed for building maintenance, repair, &

upkeep(Removed from Statutes in 2013)State Funds (legislative cut -

no funds for 4 years)

Voter Approved Capital Override$2.2M per year for five years:

SY08-09 through SY12-13 Override not renewedLocal Secondary Tax

Restricted

Restricted

Other Local Tax FundingAdjacent Ways

Voter Approved Bonds (Capital)

Bond Revenue & Debt ServiceNov . 2012 - $20.79M approvedLocal Secondary Tax

Restricted

Restricted

Miscellaneous Grants, Tax Credits

Includes district, school, program, classroom level grants

State ProjectsA variety of projects

Restricted

Restricted

Other Special Cash Accounts-Indirect, Civic Center, etc.

Used for General Operations - M&O Support

M&O uses

Targeted Federal ProjectsVarious Title Funds, IDEA

Restricted

One-time Federal FundsEducational Jobs Fund - FY11 &

FY12 (Retained M&O positions for two years)

Restricted

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Flagstaff Unified School District #1Comparison of Overall Budgets FY 2011, FY 2012, FY 2013 & FY 2014

Budget Area   FY 2011 Amt. FY 2012 Amt.   FY 2013 Amt. FY 2014 (Est.)

I. Total M&O Budget $67,800,000 $63,600,000 $61,200,000 $61,300,000

II. Vocational JTED Fund (596-Tchr cost only) 400,000 500,000 700,000 700,000

III. Prop 301 Funds 1,200,000 1,400,000 1,600,000 2,000,000

IV. Instructional Improvement Fund 400,000 400,000 400,000 450,000

V. Major Federal Grants 7,000,000 4,750,000 4,500,000 4,000,000

VI. Capital Outlay Budgets

A. Unrestricted Capital Outlay (610) 3,800,000 3,500,000 2,900,000 1,400,000

B. Capital Outlay Override (611) 2,700,000 2,200,000 900,000 840,000

C. Soft Capital (625) 800,000 200,000 350,000 0

VII. Adjacent Ways 900,000 790,000 750,000 750,000

Sub Total for General & Capital Outlay $85,000,000 $77,340,000 $73,300,000 $71,440,000

VIII. Debt Service 4,300,000 5,200,000 5,100,000 5,700,000

Grand Totals   $89,300,000   $82,540,000   $78,400,000 $77,140,000

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Flagstaff Unified School District #1History of State Equalization Aid to FUSD

Fiscal Year Amount of Aid % of Rev. Control Limit

2014 (not final) $ 7,600,000 15.8%

2013 $ 6,794,967 14.3%

2012 $ 9,992,795 20.1%

2011 $ 14,078,328 27.5%

2010 $ 22,637,098 40.6%

2009 $ 25,014,482 43.9%

2008 $ 27,790,677 48.3%

2007 $ 25,400,096 46.8%

2006 $ 23,375,382 46.1%

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2006 2007 2008 2009 2010 2011 2012 2013 2014

$23,375,38246.1%

$25,400,09646.8%

$27,790,67748.3%

$25,014,48243.9%

$22,637,09840.6%

$14,078,32827.5%

$9,992,79520.1%

$6,794,96714.3%

$7,600,00015.8%

Flagstaff Unified School District #1History of State Equalization Aid to FUSD

Note: The % figure = State Equalization Aid ÷ Revenue Control Limit (RCL)

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Flagstaff Unified School District # 1State Qualifying Tax Rate (QTR) History

for 10 Fiscal Years

Fiscal Year (FY) Qualifying Tax Rate (QTR)* Tax Rate Change % of Change2014 $4.3339 $0.3163 7.9%2013 $4.0176 $0.3452 9.4%2012 $3.6724 $0.5130 16.2%2011 $3.1594 $0.2142 7.3%2010 $2.9452 -$0.1984 -6.3%2009 $3.1436 -$0.2804 -8.2%2008 $3.4240 -$0.3348 -8.9%2007 $3.7588 -$0.0792 -2.1%2006 $3.8380 -$0.1564 -3.9%2005 $3.9944

*The QTR's are for FUSD and include Career Ladder, which ranges from $ 0.24 to $ 0.08 (2014) additional per year.

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.53.9944 3.8380 3.7588

3.42403.1436

2.94523.1594

3.67244.0176

4.3339

Flagstaff Unified School District #1State Qualifying Tax Rate History FY 2005 - 2014

Qualifying Tax Rate (QTR)*

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Flagstaff Unified School District #1District Property Tax Rates 2003-2014

for 12 Fiscal Years

Fiscal Year Primary Tax Secondary Tax Total

2014-Est. $3.99 $1.20 $5.19

2013 $3.66 $1.21 $4.87

2012 $3.73 $1.21 $4.942011 $3.63 $1.05 $4.682010 $3.14 $0.74 $3.882009 $3.61 $1.22 $4.832008 $3.48 $1.29 $4.772007 $4.40 $1.50 $5.902006 $4.30 $1.78 $6.082005 $3.98 $1.74 $5.722004 $4.85 $1.52 $6.372003 $5.98 $1.44 $7.42

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00 $7.42

$6.37

$5.72$6.08 $5.90

$4.77 $4.83

$3.88

$4.68$4.94 $4.87

$5.19

Primary Tax Secondary Tax Total

Flagstaff Unified School District #1District Property Taxes 2003 - 2014

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Flagstaff Unified School District #1Assessed ValuationsLast 10 Fiscal Years

Fiscal Year Primary Assessed Valuation % of Change Secondary Assessed

Valuation % of Change

2014 $1,035,897,607 -13.7% $1,034,382,290 -13.8%

2013 $1,200,840,727 -2.8% $1,200,403,857 -4.1%

2012 $1,234,921,625 -6.7% $1,251,920,817 -10.8%

2011 $1,324,013,712 4.7% $1,403,781,932 -5.0%

2010 $1,264,349,893 10.0% $1,478,020,701 4.5%

2009 $1,149,388,300 12.3% $1,414,083,728 19.7%

2008 $1,023,399,943 11.2% $1,181,358,094 19.3%

2007 $920,184,229 8.9% $989,865,179 12.3%

2006 $845,202,755 8.5% $881,539,456 8.3%

2005 $779,039,895   $813,853,273  

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Flagstaff Unified School District #1Tax Rate Projections - Primary & Secondary - for

August 2013 Levy (FY 2014)

Tax RateCategories

FY 2013Tax Rates

FY 2014-ProjectedTax Rates

ProjectedDifferences

Primary Tax Rates: Maintenance & Operation $3.6182 $3.9803 +$0.3621 Unrestricted C.O. $0.0000 $0.0000 +$0.0000 Soft Capital $0.0000 $0.0000 $0.0000 Adjacent Ways $0.0459 $0.0096 -($0.0363)Total Primary Tax Rate 3.6641* $3.9899 +$0.3258

Secondary Tax Rates: Overrides $0.7959 $0.7061 -($0.0898) Debt Service $0.4112 $0.4979 +$0.0867

Total Secondary Tax Rate $1.2071 $1.2040 -$0.0031

Totals for FUSD Primary &Secondary Tax Rates $4.8712 $5.1939 +$0.3227

*Homeowners who have a primary residence elsewhere in Arizona lost the homeowner's rebate for taxes in FY 2013. The affidavit sent out to second homeowners required that they select a primary residence, so many of these owners may have seen an increase in their property taxes of up to $600.

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Comparison of FUSD TAXES for FY 2012, FY 2013 and FY 2014 Projected Taxes

$200,000 HouseFY 2012

$200,000 HouseFY 2013

$200,000 HouseFY 2014

FUSD Tax TypeTax

Rate Taxes Tax

Rate Taxes Tax

Rate Taxes

FUSD Primary Tax $3.73 $746.00 $3.66 $732.00 $3.99 $798.00

FUSD Secondary Tax $1.21 $242.00 $1.21 $242.00 $1.20 $240.00

Total Rates and Taxes $4.94 $988.00 $4.87 $974.00 $5.19 $1,038.00

If House Decreased in Value: From FY 2012 to FY 2013 From FY 2013 to FY 2014

If House Decreased in Value… 5% 2013 Taxes for FUSD $925 2014 Taxes for FUSD $986

If House Decreased in Value… 10% 2013 Taxes for FUSD $877 2014 Taxes for FUSD $934

If House Decreased in Value… 15% 2013 Taxes for FUSD $828 2014 Taxes for FUSD $882

*School Districts are limited by State government to a regulated budget capacity/spending authority. Budget capacity is supported by cash from State aid and property taxes. Cash balances are important in setting each year's levy.