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Public Hearing Truth in Taxation Notice of Tax Increase

Adoption of Fiscal Year 2018 Proposed Budget

Governing Board Meeting June 14, 2017

Presenter: David Bea, Ph.D.

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Truth in Taxation Notice of Tax Increase

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Fiscal Year 2018 Budget Calendar December 2016

Fiscal Year 2018-2020 Budget Scenarios developed by ELT

Fiscal Year 2018-2020 Budget Scenarios feedback at a Governing Board study session

January 2017 Fiscal Year 2018-2020 Budget Outlook presentations at numerous College locations

Fiscal Year 2018-2020 Budget Scenarios presented to the Finance and Audit Committee

February 2017 Fiscal Year 2018 Budget Outlook and Tuition presented to student leaders

Property tax levy letter was received from Pima County

March 2017

Fiscal Year 2018 Budget Outlook presented to the community Fiscal Year 2018 Budget Outlook and Tuition presented to the Finance and Audit Committee

Employee benefits contracts for Fiscal Year 2018 were presented to the Governing Board and approved

Academic Year 2017-2018 tuition and fees presented to the Governing Board

Fiscal Year 2018 Budget Outlook presented to the community

Fiscal Year 2018 Budget Update and Tuition and budget model presented at a Governing Board study session

Academic Year 2017-2018 tuition and fees approved by the Governing Board

Fiscal Year 2018 Capital Budget and Projects approved by the Governing Board

Fiscal Year 2018 Budget Outlook and Property taxes presented to the Finance and Audit Committee

April 2017

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Fiscal Year 2018 Budget Calendar (continued)

May 2017

Fiscal Year 2018 Budget Overview presented to the Executive Leadership Team

Proposed Fiscal Year 2018 preliminary budget, tax rate, and tax levy with a request for approval to allow publication according to statutory guidelines are presented to the Governing Board

Proposed Fiscal Year 2018 budget and 'Truth in Taxation Notice of Tax Increase' (if necessary) are published and a press release is distributed as required by Arizona Revised Statutes

Proposed Fiscal Year 2018 budget and 'Truth in Taxation Notice of Tax Increase' (if necessary) are published as required for a second time as required by Arizona Revised Statutes

A Public Hearing is scheduled on the proposed budget, property tax rates, and levies

A Special Meeting is scheduled to vote on the budget and property tax levies and rates. A roll call vote to levy the proposed property tax and vote to approve the proposed budget occurs

The documents are transmitted to the Property Tax Oversight Commission as required by Arizona Revised Statutes

June 2017

July 2017 Fiscal Year 2018 budget is implemented on July 1

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Proposed Fiscal Year 2018 Tax Rates for All Arizona CCs (Rates Per $100 Net Assessed Valuation. Combined rates are shown.)

$3.50

$3.0768 $3.00

$2.6210 $2.5429

$2.3735 $2.50

$1.9828 $1.8067 $2.00

$1.4096 $1.3890 $1.3430 $1.50

$1.00

$0.6121 $0.50

$0.00 Graham* Yuma/La Pinal Cochise Yavapai Navajo Maricopa Pima Mohave Coconino *FY17 Paz

Primary Tax Rate Secondary Tax Rate

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PCC Primary, Secondary, and Combined Tax

Rates (Fiscal Years 2000-2018*)

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018*

Primary Property Tax Rate 1.1626 1.1709 1.1455 1.1530 1.1358 1.1143 1.0930 1.0570 1.0191 0.9787 0.9356 0.9755 1.0846 1.1484 1.2746 1.3344 1.3689 1.3733 1.3890

Secondary Property Tax Rate 0.2070 0.3865 0.4015 0.3803 0.3526 0.2285 0.2184 0.1945 0.1654 0.1502 0.1414 0.1093 0.0248 0.0257 0.0187 0.0000 0.0000 0.0000 0.0000

Combined Primary + Secondary Tax Rates 1.3696 1.5574 1.5470 1.5333 1.4884 1.3428 1.3114 1.2515 1.1845 1.1289 1.0770 1.0848 1.1094 1.1741 1.2933 1.3344 1.3689 1.3733 1.3890

1.3696 Proposed 1.3890*

0.0000

0.2500

0.5000

0.7500

1.0000

1.2500

1.5000

1.7500

* proposed

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Truth in Taxation

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Primary Property Tax Levy Detail Proposed

FY 2017 FY 2018

Levy Neutral FY 2018

Proposed

Net Taxable Value Current Year ($100s) $ 78,166,998 $ 80,749,577 $ 80,749,577

Overall Change in Valuation 2.58% 3.30% 3.30%

Change from New Property 1.89% 1.43% 1.43%

Estimated Primary Tax Rate Authorization (per $100 net assessed valuation) $ 1.3733 $ 1.3484 $ 1.3890

Primary Tax Levy $ 107,346,737 $ 108,882,730 $ 112,161,162

Change from previous fiscal year $ 1,535,993 $ 4,814,425

Truth in Taxation Levy Increase $ 3,278,432

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Questions?

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Adoption of Fiscal Year 2018

Proposed Budget

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FY 2017-2018 Proposed Budget Summary $246.1 million (all funds, in $ millions)

FY 2017 Proposed FY 2018 Change

General Fund $ 153.2 $ 153.1 -$ 0.1

Restricted Fund 58.3 53.0 -5.3

Capital Fund 19.1 17.0 -2.1

Designated Fund 14.0 15.4 1.4

Auxiliary Fund 2.5 2.3 -0.2

Debt Fund 0.7 5.3 4.6

Total Resources $ 247.8 $ 246.1 -$ 1.7

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FY 2018 Revenue Summary Tuition and Fees

$3.00 increase to in-state resident tuition, from $78.50 per unit to $81.50 per unit New $75.00 per/semester fee for international students

Property Tax Primary

Growth of 1.43% ($1.5 million) Max Levy Increase of 3.01% ($3.3 million)

Secondary $0.00

State-Based Funding $0.00 - Operating State Aid $0.00 - STEM and Workforce programs State Aid

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FY 2017-2018 Proposed Budget By Fund, $ 246.1 million (all funds, in $ millions)

Debt Fund $5.3 Designated Fund Auxiliary Fund 2% $15.4 $2.3

6% 1%

Capital Fund $17.0

7% General Fund

$153.1 Restricted Fund 62%

$53.0 22%

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FY 2018 Budget Expenditure Priorities Employee Benefits: No increase or decrease expected Contractual Obligations: $1.4 million increase Wages: Proposed 2.0% increase to salaries and wages Compensation and Classification Study, Marketing Campaign: $1.0

million increase Debt Service

Lease Financing: $1.7 million increase for IT and various capital project equipment

Implementation of the Educational and Facilities Master Plans: $3.6 million increase for debt service (based on $45.0 million in revenuebonds)

Operational/Position Reductions Closure of Existing Vacant Positions: $6.3 million decrease

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FY 2017-2018 Proposed Budget Expenditures, $246.1 million (all funds, in $ millions)

Additional Compensation-Faculty, $1.5, 1%

Adjunct Faculty, $11.7, 5%

Classified Staff, $50.4, 21%

Current Fixed Charges, $1.6, 1%

Student Employment, $0.5, 0% Contractual Services, $18.0, 7%

Administrative Personnel, $6.5, 3%

Faculty, $22.9, 9%

Other Compensation, $5.0, 2%

Fringe Benefits, $30.2, 12% Travel, $3.4, 1% Communications and Utilities, $6.0, 2%

Supplies and Materials, $9.3, 4%

Other Expenditures, $6.9, 3%

Student Financial Aid, $34.6, 14%

Capital Equipment, $23.1, 9%

Contingency and Reserves, $14.5, 6%

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