The Creighton Elementary School District Governing Board voted to approve the district’s Annual Financial Report (AFR) for fiscal year 2024‑25 at the Oct. 21 meeting and received an update on bond expenditures, the capital override and the upcoming m&O override renewal timeline.

Why it matters: The AFR is a statutory filing that summarizes district revenues, expenditures and fund balances. Board approval allows the district to upload the AFR to the Arizona Department of Education. Staff also presented planned use of bond proceeds from the 2024 voter‑approved $85 million authorization (first sale: $30 million in May 2025) and described the capital override and m&O override timelines that will affect future budgets.

Key financial points presented: The district’s recommended budget balance carryforward target is 20% of prior‑year expenditures (a conservative reserve recommended by the fiscal stewardship committee). For FY24/25, the district closed close to a 19% carryforward (about $300,000 below the 20% recommendation) due to several factors, staff said, including one‑time payouts for long‑tenured employee leave balances, planned capital spending and increased staff wage adjustments.

Staff highlighted that federal spending decreased significantly after ESSER funds sunset; capital spending rose due to planned multi‑year projects; and administrative costs increased modestly because of staffing additions and one‑time costs tied to turnover and new principals. The presentation noted that administrative spending remains lower than many peer districts.

Bond and override details: The board received a breakdown of the first $30 million bond sale proceeds (planned uses highlighted by staff included solar financing, safety and security projects, building/site improvements, furniture, technology and $10 million for Biltmore preconstruction costs). Staff said they expect to spend approximately 85% of the first bond sale proceeds within three years. Capital override funds (voter‑approved in 2020) and district additional assistance (approximately $2 million annually) were reviewed; staff said the 2026 plan is to seek renewal of the m&O override before projected reductions begin in FY28–30.

Votes and motions: A motion to approve the Annual Financial Report for FY24/25 passed; the board conducted a roll‑call voice vote with trustees indicating approval. The consent agenda (items a–k) was also approved earlier in the meeting by voice vote.

What’s next: AFR will be uploaded to the Arizona Department of Education after board approval. Staff will track ADM (average daily membership) trends and report back with December and May budget revisions; planned capital projects and the bond schedule will be implemented as funds are spent.