Fountain Hills USD board hears land valuations, directs staff to prepare $20 million bond language

The Fountain Hills Unified School board reviewed updated broker valuations of district-owned parcels and directed staff to work with financial and legal advisers to prepare language for a potential $20 million bond measure to appear on a future ballot.

Board Member 2 presented a Nathan and Associates broker opinion of value for three district sites and described the ranges the consultant provided: the Hawk site was estimated at $1.4 million to $1.62 million for 10–12 viable lots; the Aspen site at $2.8 million to $3.15 million; and the El Lago site, the most discussed parcel, at $5.6 million to $6.075 million with a broker estimate of 40–45 buildable lots. "They estimate the value of that site to be between 5.6 and and $6,075,000," Board Member 2 said. Combined, the broker opinion produced a range of about $9.8 million to $10.845 million for the parcels as they stand.

Board members emphasized that the valuation is a broker opinion and that zoning and topography could materially affect feasible development. Board Member 2 noted a likely notation error in the consultant materials listing zoning as "R18" when district records show "R10," and said the consultant was contacted to confirm any valuation impact. Trustees also stressed that bond proceeds are legally limited: they may reduce indebtedness, purchase school sites, or pay for capital improvements but cannot be used for staffing or salaries.

Financial adviser Stifel presented multiple scenarios showing a continuation of the district's current assessed-rate contribution (23¢ per $100 of assessed valuation) could support various bond sizes without increasing the tax rate. Board Member 2 illustrated residential tax impacts under the different scenarios, noting, for example, estimated annual impacts for a $250,000 assessed residential valuation in the $10 million and $20 million scenarios. "So you see a, decrease in the overall rate tax rate, here for our patrons," Board Member 2 said while describing the modeled schedules.

Trustees referenced a Gordian facilities report estimating total facility needs at about $27.9 million, with "priority urgent" repairs roughly $14 million to $15 million, figures they said factored into the bond-size discussion. Several trustees and members of the facilities advisory committee described pressing capital needs—roofs, HVAC replacements, bathroom renovations and security upgrades—that a bond could address, and discussed how consolidation planning would intersect with those projects.

Consultants and trustees advised sequencing ballot measures carefully. Board Member 2 relayed consultant Paul Yulin's recommendation not to mix a bond, district additional assistance (DAA)/override, and a land-sale proposal on the same measure to avoid voter fatigue. "Don't mix the bond and the land sale on the same validation," Board Member 2 relayed from consultant advice.

The board stopped short of taking a formal action in the discussion section (board members noted they could not vote in the information-and-discussion portion of the meeting). Trustees asked staff and advisers to draft resolution language, voter pamphlet content and sample timeline for consideration at the next meeting; Board Member 2 said Stifel and counsel would prepare the specific ballot language and related materials. A motion to adjourn carried later in the meeting.

Next steps: staff will draft the bond resolution and sample voter materials for board review at the next business meeting, and trustees signaled general support for preparing a $20 million bond DAA resolution while reserving final judgment until formal action is scheduled.