Here is an explanation of the terms used for the calculation:
Includes the funds that are regulated by the State's Per Pupil Equalization Formula:
Maintenance and Operations (M&O) - The District's operating fund primarily used for Salaries and Benefits.
Capital Outlay (Unrestricted Capital) - The District's capital fund primarily used for equipment, vehicles and building repairs.
Soft Capital - The District's capital fund that focuses on items with a shorter life span, such as furniture, textbooks and library books.
It also includes Adjacent Ways which is a fund that is used to ensure the safe ingress and egress from school. Simply put, it can be used for sidewalks or roads, such as the bus lanes, that are used to enter and exit the school.
The District works on a fiscal year that runs from July 1 through June 30. The District may order some supplies or equipment that arrive on June 30. They won't necessarily have a check cut and ready to hand to the vendor when they make the delivery; however, it should still be paid for with that year's funds. This is why the District is given an encumbrance period of 60 days to pay for bills that are outstanding. This line item includes the cash balance that the District had on June 30 minus any bills that were outstanding and are expected to be paid in the next 60 days (encumbered).
Anticipated State Aid Payment
The State's Per Pupil Equalization Formula not only determines how much each District will receive based on their number of students; it also determines how much of that funding must come from Local Property Taxes and how much the State will provide. The formula is explained in detail in the two School Finance Training modules posted on the Kyrene YouTube. This item reflects the amount of funding expected to be received from the State.
Overrides are Local Initiatives that provide additional funding in order to allow a District to go from average to exceptional. They are included in the District's Budget but are taxed on the Secondary Tax Rate. Therefore, they have to be backed out on the calculation under District's Budget.
Primary Assessed Valuation
This is the total taxable (limited value) amount for all of the property in the District. Simply put, if you were chipping in on ordering pizza, the items above would let you know how much the pizza costs and this item would let you know how many people are chipping in. Once you divide the costs by people then you know the amount (rate) that everyone needs to chip in.
Now that you know the terms here is the calculation:
|2011 Primary (Limited) Tax Rate Calculation|
|Anticipated State Aid Payment||-||$42,716,776|
|Overrides (taxed on Secondary)||-||$19,472,806|
|Total Primary Assessed Valuation||/||$2,100,568,666|
|Primary Tax Rate (Multiplied by 100)||=||2.0500|