Consultant: Fountain Hills enrollment up, $2M at risk under state aggregate limit; consolidation drives capital plan

A budget consultant presented the board with the district's first look at revised FY23 numbers and early FY24 projections, highlighting a modest uptick in enrollment and capital planning tied to a proposed consolidation.

Chad Gorb, Chief Professionals Consulting, said Fountain Hills added 31.5 average daily membership (ADM), roughly a 3% increase over last year. That increase and adjustments to carry-forward balances yield a revised FY23 general budget limit and inform an estimated FY24 baseline. Gorb said the district is projecting a proposed FY24 general budget limit in the range of $11,000,000 and an estimated capital budget that depends heavily on consolidation progress.

"Fountain Hills has approximately $2,000,000 at risk if the legislature does not pass an exemption by two-thirds vote," Gorb told the board, referencing the state's aggregate expenditure limit and pending legislation the district is monitoring. He also noted an estimated consolidation budget of $2,500,000 and that the district had about $700,000 in usual annual state capital allocation, with a capital budget gap driven by consolidation plans.

Board members discussed timing for subsequent budget reviews: a second review scheduled Feb. 22, tentative approval on March 8 to allow issuing employee contracts, and additional presentations on benefits in April. Administration said contingency planning includes careful timing on consolidation spending and tracking impact aid receipts.

The presentation was informational; no final budget adoption occurred at this meeting.