Fountain Hills board adopts 2023–24 budget after removing 'adjacent ways' language

The Fountain Hills Unified School District governing board adopted its 2023–24 budget on a motion that removed language referencing an "adjacent ways" levy, after a public hearing and extended discussion about reserves and one-time state aid.

At a public hearing the board paused its regular business to hear a presentation from the district finance presenter, Tyler, who described the adopted budget and recent legislative changes. Tyler said the district’s maintenance and operations budget is just over $11,000,000 and detailed legislative shifts: a 2% inflation increase that amounts to about $152,912 for Fountain Hills; a reclassification of results-based funding into base support that the presenter estimated would add roughly $70,000 to the district’s base; $44,000 in district additional assistance (DAA) capital funds; and a one-time state aid supplement estimated at about $337,000. He also said the district carried forward roughly $544,000 (just under 5% of the budget), within typical contingency guidelines.

Board members questioned whether the figures reflected all encumbrances and asked staff to provide an updated breakdown of reserves (capital reserve, CTE reserve, and maintenance & operations contingency). The presenter said several capital donations — including about $427,000 toward the high school football field — reduced capital needs and that some library and playground contract pricing remained pending.

After the discussion the board voted to adopt the budget. At the meeting a trustee moved to amend and approve the budget without the "adjacent ways" language; the amendment passed and the budget was approved consistent with that change.

What happens next: staff agreed to return with updated encumbrance and reserve numbers at a future meeting so trustees can track consolidation project costs and any changes to encumbered purchases. The district also will finalize contractor pricing for the library and other capital items before August updates.

Sources: presentation and discussion during the public hearing on the adopted 2023–24 budget, including staff comments about legislative changes, reserve balances and stated donation amounts.