The Fountain Hills Unified School District Governing Board met last Wednesday, April 27, for a work study session. The Board discussed its budget and attempted to clarify issues concerning the potential sale of FHUSD property.

Earlier this year on Feb. 23, the Board was informed that it did not have District Additional Assistance Override money coming to FHUSD for next school year. Interim Superintendent Dr. Patrick Sweeney mentioned in his summary of current events that Catherine King, Director of Finance for FHUSD, had worked tirelessly to fix an error from December 2014, and because of King’s efforts, the District will receive $700,000 in DAA funding next year.

Sweeney said that no one involved when the error was made in 2014 is still with the district, and the Board was careful to mention that their needs weren’t solved by this funding. Later in the meeting, the Board reviewed the Gordian report from last October. Gordian is a national leader in construction cost analytics, and according to their report, FHUSD needs $27.9 million over the next 10 years to maintain all of its buildings.

The Board pointed out the $27.9 million estimate does not account for improvements, only maintenance costs.

The Board brought up Gordian in its discussion of potential land sale. The Board heard and responded to public comments regarding land earlier in the meeting, and Sweeney provided a PowerPoint presentation to clarify details about each property.

As part of their discussion on land, Board members also considered a bond as a potential source of capital funding. Sweeney said the District needs funding, whether its from a bond or land sale. Either way, Sweeney’s first slide said the Board needs to make a decision by June 11, because they have to inform the county at least 150 days before the election on Nov. 4.

By 5 p.m. on August 12, in the resolution calling for a special election, the district would have to include information “for” and “against” the item to the Maricopa County Superintendent. The cost to put items on the ballot will also be less for FHUSD this year because of midterm elections. More items on the ballot means more of the cost is shared.

Sweeney’s next slides stated that the District is not a realtor or developer, and the resolution would only be to sell the land. The Board would not be required to sell after receiving approval, but approval would allow them that opportunity. The District also has no plans or intent to rezone the properties, which have been zoned residential since the town’s incorporation in 1990.

The FHUSD school Board has considered selling the three properties before, and Sweeney referred back to a 2016 professional land evaluation to clarify the estimates of what the land could be used for.

The property on 15680 N. Aspen is approximately 20.2 acres and currently zoned R1-35 single-family residential. If all the land was usable, a maximum of 24 homes could be built, but the 2016 estimate was only 16 to 18 buildable lots.

The land at 12055 N. Arroyo Vista Dr. is approximately 18.5 acres and is zoned R1-18 single-family residential. If all available space was used, 31 homes could be built, but the 2016 estimate was 19 to 21 buildable lots.

The land at 15515 E. El Lago Blvd. is the largest of the three, at approximately 35.1 acres. The El Lago property has been at the forefront of public comments opposing the potential sale and is currently zoned R1-10 single-family residential. If every lot were usable, a maximum of 155 homes could be built, but the 2016 estimate said only 45 to 47 lots were buildable.

The Facility Use Committee met for a fifth time the day before the Board meeting. Sweeney reported that consolidation is still an affordable path for FHUSD to take, however, there will be high costs to renovate buildings to meet kindergarten and pre-k standards that FHUSD is currently not in position to afford.

The Board discussed a high likelihood of adding an additional work study session between their next two business meetings on Tuesday, May 10, at 6:30 p.m. and Wednesday, June 1, at 6:30 p.m. to continue discussing possible sources of income. The Board also asked Sweeney to prepare a framework for a bond sale to discuss and consider at a later meeting.

The Board is required by law to publish notice of a public meeting at least 24 hours before a meeting starts. The Board publishes agendas and public notices on the district website, fountainhillsschools.org, under the “meeting files” section of “Governing Board.”