Overview
Proposition 3 was approved November 7, 2023 with 66.3% voter approval. Prop 3 restructured the district's tax rate, transferring 54 cents of the debt service levy to the capital projects levy over a two-year period, with no increase in the total tax rate.
Prop 3 achieves fiscal responsibility objectives of the district’s strategic plan, providing dedicated annual funding for safety, technology, and facilities needs throughout the district. This allows proactive long-term planning and reduces district's reliance on bond issues and related interest costs.
Capital Projects Fund Transfer Process
| Tax Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Levy | $3.1307 | $3.1226 | $3.1216 |
| Capital Projects Levy | $0.0800 | $0.4400 | $0.6200 |
| Debt Service Levy | $0.6800 | $0.3200 | $0.1400 |
| Total | $3.8907 | $3.8826 | $3.8816 |
The Prop 3 tax levy transfer was a two-year process, with $0.36 transferring from the Debt Service levy to the Capital Projects levy in tax year 2024, and $0.18 transferring from the Debt Service levy to the Capital Projects levy in tax year 2025.
As these transfers were included in the tax rates established by the Board of Education, there was no increase in the total tax rate.
Financial Recap
Proposition 3 revenues and expenditures are captured in a separate Capital Projects sub-fund (Fund 430) to allow for budgeting and reporting of these resources.
Pages 158-167 of the district's 2025-2026 Annual Budget Book provide a great deal of information about our capital planning process and specific budget details.
Proposition 3 revenues are budgeted to be fully expended on Prop 3 projects. However, the timing of payment for summer projects results in funds being carried over beyond the June 30 fiscal year end. This ending fund balance does not represent a reserve.
| Line Item | FY 2024-25 Actual | FY 2025-26 Updated Budget |
|---|---|---|
| Local property tax | $18,938,005 | $30,344,060 |
| Interest and other | $347,076 | $218,230 |
| Total Revenue | $19,285,081 | $30,562,290 |
| Project Expenditures | $13,360,859 | $36,442,780 |
| Changes in fund balance | $5,924,222 | ($5,880,490) |
| Beginning fund balance | $0 | $5,924,222 |
| Ending fund balance | $5,924,222 | $43,732 |
Capital Projects Fund Project Summary for 2026
| Project | Amount ($) |
|---|---|
| Capital Repairs | $2,073,311.00 |
| Equipment & Furniture | $810,265.00 |
| Vehicle & Bus Acquisition | $2,725,000.00 |
| Project | Amount |
|---|---|
| Door Access & Controls | $1,000,000.00 |
| Radios | $400,000.00 |
| Cameras | $500,000.00 |
| Safety Alert Consultant | $150,000.00 |
| Project | Amount |
|---|---|
| Student Devices | $2,294,128.00 |
| Staff Devices | $800,000.00 |
| Technology Infrastructure | $759,944.00 |
| Classroom Technology | $2,098,400.00 |
| Project | Amount |
|---|---|
| HVAC | $10,900,000.00 |
| Roofing Restoration | $5,000,000.00 |
| Hard Surface Paving | $2,000,000.00 |
| Flooring | $200,000.00 |
| Playgrounds | $1,000,000.00 |
| ADA Compliance | $750,000.00 |
| Plumbing | $700,000.00 |
| Restroom Refresh | $200,000.00 |
| Bleacher Systems | $120,000.00 |
| Athletic Facilities | $225,000.00 |
| White Fleet Refresh | $500,000.00 |
| Equipment Refresh | $400,000.00 |
Future Considerations
- Allocations across Safety and Security/Technology/Facilities may change as district priorities and immediate needs change.
- Facilities needs above and beyond cycle maintenance may still require bond funding.
- Much of the work will continue to be behind the scenes.
- Results of the recent demographic study and student population projections will inform capital planning decisions and priorities.
- Future Prop 3 tax rates and collection rates are expected to be impacted by the Hancock Amendment and the senior citizen tax freeze, as well as potential legislative changes.