Elk Grove Unified Schools: Vote Yes on Measure M Bonds - Sacramento County - 2016 general Election
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  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Commentary on Measure M

Are you sure you want vote to support this extravagant measure? It has no accountability.

This campaign was designed by . We figured out just the right words to get you to you to open up your checkbook.

We'd also like to introduce you to our partners -- bond lawyers, brokers, wealthy investors, architects, management firms, construction companies, and trade unions. We all stand to make a ton of money on these bonds. Our profits come right off the top, before a penny is actually spent on improving the facilities.

We're not just doing it for the money. We like to show off our work in Architectural Digest and other places where the rich and famous congregate.

Remember, we've taken a lot of risk. We gave money to get your governing board members elected, so they'd be sure to remember us when we came around for a hand-out later.

It's just business-as-usual, here in sunny Corruptifornia.

Please don't read the fine print. That's just put in by the lawyers to make what we're going to do to for you legal.

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Measure M Question

EXHIBIT B

BOND MEASURE
for
ELK GROVE UNIFIED SCHOOL DISTRICT

(Abbreviated Form)*

"To repair and modernize classrooms, fix deteriorating roofs, plumbing, and HVAC systems, improve student safety and campus security, construct and upgrade additional classrooms, labs, career technical education facilities and instructional technology to support student achievement in math, science, arts and skilled trades and keep up with growth and relieve overcrowding shall the Elk Grove Unified School District issue $476,000,000 in bonds to be spent only on specified projects, with independent citizen oversight and no money for administrator salaries?"

BONDS – YES

BONDS – NO

* Limited to 75 words pursuant to California Elections Code section 13247.

B-1

"Approval of Measure M does not guarantee that the proposed project or projects in the Elk Grove Unified School District that are the subject of bonds under Measure M will be funded beyond the local revenues generated by Measure M. The school district's proposal for the project or projects may assume the receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure." Ed. Code §15122.5

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Impartial Analysis for Measure M

IMPARTIAL ANALYSIS OF MEASURE M

(ELK GROVE UNIFIED SCHOOL DISTRICT – SCHOOL BOND MEASURE)

Prepared by County Counsel

Measure M, if approved by the voters, would allow the Elk Grove Unified School District ("District") to incur bonded indebtedness up to a maximum amount of $476,000,000. The proceeds from the issuance and sale of such general obligation bonds could only be used for the construction, reconstruction, rehabilitation or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities.

No funds derived from bond sales may be used for general school operating expenses, including administrator and teacher salaries, or for any purpose or project other than those expressly stated in the measure. Measure M lists the school facility improvement projects within the District intended to be financed by bond sales.

To assure that funds are spent only as specified in the measure, Measure M requires: 1) the appointment of a citizen's oversight committee and 2) completion of annual independent performance and financial audits.

If Measure M is passed, the actual dates of sale and the amount of bonds sold would be governed by the District based on the need for construction funds and other factors. If Measure M is approved, the tax rates necessary for payment of principal and interest on any bonds sold will be largely dictated by the timing of the bond sales, the amount sold at a given sale, market interest rates at the time of each sale (although in no event greater than the maximum bond interest rate allowed by law), as well as actual assessed valuation of taxable property in the District over the term of repayment.

Passage of Measure M requires approval by fifty-five percent of the voters voting thereon.

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Argument in Favor of Measure M

County of Sacramento www.elections.saccounty.net
Ballot Type 001 Page 7

ARGUMENT IN FAVOR OF MEASURE M

Vote Yes on Measure M to protect and improve the quality of education that Elk Grove Unified School District provides local students.

Elk Grove Unified School District schools have successfully educated generations of local children, but many of our schools are more than forty years old. While the District has done a good job maintaining our local schools over the years, necessary repairs and renovations are beyond the point of general maintenance. Unlike most other schools in California,

Elk Grove Unified School District has never asked voters for general obligation bond money to improve local schools.

We need to give our students a competitive edge. Measure M is the result of years of careful planning and will authorize a prudent plan for schools and help retain the very best teachers.

Measure M will make improvements at every school in the District. It will make our schools safer; it will repair aging infrastructure and update classroom instructional technology for improved student learning in subjects like science, math, technology, and career technical education courses. To review the detailed plan for Measure M go to http://www.egusd. net/discover_egusd/Departments/fap.cfm.

All Measure M funds stay local, benefi tting only local schools. Measure M also qualifi es our community to receive state matching funds, without Measure M, state matching funds will be lost to other districts.

Taxpayer protections are required. Measure M is for school facility improvements only. Funds cannot be spent on salaries or pensions. Independent Citizens' Oversight, mandatory audits and public reports will ensure funds are spent properly.

Whether you have children in school or not, protecting our local schools makes sense. Good schools protect and increase property values, keep our community safe and strong, and create a skilled workforce.

Join teachers, parents, business and community leaders and residents to support quality schools and improved education of local children. Vote YES on Measure M for safe, quality schools.

www.CitizensforExcellentEGUSDSchools.com

s/Bobbie Singh-Allen
President, Elk Grove Unified School District Board of Education

s/Elizabeth Pinkerton
Historian and Writer, 58 year Elk Grove Unified School District Resident

s/Michael Zehnder
Retired Battalion Chief, Cosumnes Community Services District, 62 year Elk Grove Unified School District Resident

s/David Herburger
Chairman of the Board, Elk Grove Chamber of Commerce, and Publisher, Elk Grove Citizen

s/Tim Smith
District, County, and State Teacher of the Year, Elk Grove Education Association Member

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Rebuttal to Argument in Favor of Measure M

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE M

Elk Grove Unified has modernized and renovated every school over 40 years of age within the past 20 years so it's a bit misleading to suggest that we have schools in the district over 40. But of course, all our schools will eventually need another update and they all need maintenance and care. Measure M just goes about it the wrong way. It gives no priority or preference to aging schools that need the funds the most. 24 schools constructed in the last 15 years made the list to receive funds. Certainly these schools don't need the money as much as some of the older schools in the district.

We took a look at the link provided by the proponents of Measure M and found this disclaimer at the bottom of each fact sheet for every school: "Approval of Measure M does not guarantee all needed improvements will be completed due to the unpredictable nature of construction costs and the uncertainty of State and developer mitigation funding sources." If those that support this Measure don't have certainty in its success to achieve what it sets out to achieve, why should the voters?

County of Sacramento www.elections.saccounty.net
Ballot Type 001 Page 8

As the proponents of Measure M point out, Elk Grove Unified has never had a general obligation bond and yet, we've always managed to fi nd the money to maintain our schools. We have other sources of funding that don't require another tax increase. Citizens already pay hundreds of dollars in taxes each year. When will it be enough?

s/Susan Mason
Veteran

s/Barbara Sloan
Homeowner

s/Ronald Krieg
Plumber

s/Jeremy Christiansen
Civil Engineer

s/Carl Brickey
Taxpayer

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Argument Against Measure M

ARGUMENT AGAINST MEASURE M

Two parts make up the bulk of Measure M: new taxes and new debt. Measure M would raise property taxes by $38 per $100,000 of assessed value. For a $300,000 home, that's over $100 dollars in new taxes.

Now homeowners already pay hundreds of dollars in taxes and in fees each year and while it's true that the district could legally raise the tax rate even more, to $60 per $100,000 of assessed value, that's little relief to taxpayers and property owners. Telling someone struggling to make ends meet that things could get worse rarely provides any comfort. And with the economy slow and sluggish, raising taxes now would create more harm than benefi t.

Measure M also sinks the district into $476 million of debt. Currently, Elk Grove Unified has no general obligation debt. Zero. The district would go from no debt (in terms of general obligation bonds) to $476 million in the red. The interest on this debt would take 35 years to pay off raising the ultimate cost of Measure M to over $1 billion. That's over $1 billion that our children's children will be paying off.

Unfortunately, the measure lacks a good structure as well. It doesn't give priority to aging schools who need the funds the most. If we need to help older schools meet the same standards as newer schools, don't we need to direct the money specifi cally to them? Measure M fails to do so.

In conclusion, we can meet the district's facility needs and have met them in the past without resorting to a bond. Elk Grove Unified has never ever had a general obligation bond and we don't need one now. We can meet our needs with the money we already pay.

We urge you to vote No on Measure M.

s/Nikita Kostyuk

Candidate for Elk Grove Unified School Board

s/Katy Grimes

President, Sacramento Taxpayers Association

s/Daniel Gougherty

Editor, ElkGroveNews.net

s/Val Bedrik

Business Owner

s/Scott Young

Teacher

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Rebuttal to Argument Against Measure M

REBUTTAL TO ARGUMENT AGAINST MEASURE M

Measure M's opponents fail to rely on facts. Don't be deceived by their politically motivated and intentionally misleading statements. Measure M is a critical investment in our children, community, and local schools aimed at protecting property values, increased student achievement and improved teaching and learning.

County of Sacramento www.elections.saccounty.net
Ballot Type 001 Page 9

Here are the facts:

Fact: Measure M is the product of a transparent two-year process that included community members, parents, teachers, leaders, and voters in developing the priorities. Measure M is supported by a 562 page Facilities Master Plan that catalogs the needs and work to be performed at every school in the District. Read the detailed plan at http://www.egusd.net.

Fact: Elk Grove Unified School District has never asked local residents to support a general obligation bond (most Districts in the state have multiple bonds). Measure M is fi scally prudent, must be spent locally, and subject to oversight from an independent citizen's oversight committee. Without Measure M, Elk Grove Unified School District cannot qualify for millions of dollars in State matching funds which will be lost to neighboring districts.

Fact: Many of our schools are over 40 years old. Basic repairs such as fi xing leaky roofs, upgrading plumbing and sewer systems, upgrading heating and air systems are needed across the District. Measure M will dramatically improve campus and student safety and modernize our aging schools.

Fact: Whether you have children in school or not, quality schools increase property values, keep our community safe and create a skilled workforce.

Join the thousands of teachers, parents, business and community leaders who support Measure M. Vote YES for safe, quality schools.

www.CitizensforExcellentEGUSDSchools.com

s/Nancy Chaires Espinoza
Elk Grove Unified School Board Member, City of Elk Grove Planning Commissioner (former)

s/Roy Herburger
President/Owner, Elk Grove Citizen, 57 year Elk Grove Unified School District Resident

s/John Shook
Business Owner, President Elk Grove Regional Scholarship Foundation

s/Kay Albiani
Los Rios Community College District Board Member, 66 year Elk Grove Unified School District Resident

s/Mark Jansson
Man of the Year, Elk Grove Citizen, Elk Grove Food Bank Board Member and Past Chair

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Full Text of Measure M

5

EXHIBIT A

FULL TEXT OF BOND MEASURE

for

ELK GROVE UNIFIED SCHOOL DISTRICT

INTRODUCTION

The Elk Grove Unified School District serves a vast community, serving the Cities of Elk Grove, Rancho Cordova, and Sacramento as well as the County of Sacramento, with a student population of approximately 62,000 in over 60 schools, including 40 elementary schools, nine middle schools, nine high schools, three continuation schools, one independent study program, one charter school, and an adult career training center. The District has a significant number of aging schools, the oldest of which was built in 1935, 15 are over 45 years old, and 37 are over 20 years old. The average age of the District's school buildings is 22 years old, which marks an age in which school buildings require significant upgrades such as learning environment improvements, building systems require long term maintenance and/or replacement, and in some cases older buildings, especially portables, require replacement. Specifically the District has 520 portable classrooms, 385 of which are over 20 years old exceeding the life expectancy of these "temporary" buildings. The District's existing school facilities require significant improvements and renovation as well as long term maintenance in order to provide 21st century learning environments that will meet current and future standards. At the same time the District faces significant growth challenges to adequately house all of its current and future students. There are nearly 90,000 new homes currently in planning stages, nearly 20,000 of which are projected to be built in the next 10 years, which will increase the District's student population by not less than 14,000 students over the same period. A long term solution is needed to address these issues.

The State of California requires a local match, funded primarily through local, general obligation bonds, for school districts wishing to pursue matching state funds for the upgrade or replacement of school buildings and facilities. The millions of dollars potentially available through the State match allows local taxpayers to benefit from the tax dollars they already pay to the State of California.

It is imperative that our students are housed in safe schools. In addition, our students would benefit from complete, comprehensive, and efficient schools. We need to act locally to build and provide safe and modern schools to ensure our students have the educational opportunities they deserve and to be college- and career-ready.

A-1

BONDS

To repair and modernize classrooms, fix deteriorating roofs, plumbing, and HVAC systems, improve student safety and campus security, construct and upgrade additional classrooms, labs, career technical education facilities and instructional technology to support student achievement in math, science, arts and skilled trades and keep up with growth and relieve overcrowding shall the Elk Grove Unified School District issue $476,000,000 in bonds to be spent only on specified projects, with independent citizen oversight and no money for administrator salaries?

SCHOOL FACILITIES PROJECTS TO BE FUNDED FROM BOND PROCEEDS

As required by the California Constitution, the proceeds from the sale of the bonds will be used only for the purposes authorized under Article XIIIA of the California Constitution, including construction, reconstruction, rehabilitation, or replacement of school facilities, furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, as specifically set forth in this Exhibit A, and costs incident thereto, and not for any other purpose, including salaries and other routine school operating expenses. when performing work on or to the bond projects.

The following list describes the specific projects the District proposes to finance with proceeds of the bonds. The scope of specific projects, the order of construction, and their completion is contingent on final project costs not withstanding uncontrollable circumstances such as unforeseen cost escalation and/or market conditions, and the availability of needed funds including but not limited to State school facilities funding. Further, projects on the project list are of the type that issuing the authorized general obligation bonds as stated will not cause the State to reduce any financial hardship contribution that would otherwise be available to the District had these bonds not been authorized, issued, and or expended for their stated purpose.

These projects may include participation in the State Facility Program's Joint-Use Program to gain matching funds for teacher education, multi-purpose rooms, gymnasiums, libraries, childcare, and other qualifying Joint-Use facilities. With respect to such joint-use projects, the bond funds authorized by this Measure may be used to pay all of the local share needed to qualify the projects for special State matching funds under the State Facility Program's Joint-Use Program requirements.

A-2

PROJECT LIST

Bond proceeds will be expended on the renovation, upgrade, expansion, acquisition, construction, reconstruction, rehabilitation, and/or replacement of school facilities of the Elk Grove Unified School District in order to provide 21st century learning environments, located or to be located in the Elk Grove Unified School District, including at the following schools, support sites and properties:

Elementary Schools (In Order of Age)

Pleasant Grove1950Barbara Comstock Morse1995
Florin1953Maeola R. Beitzel1996
Franklin1955Elitha Donner1997
Sierra Enterprise1955Arthur C. Butler1998
Anna Kirchgater1956Joseph Sims1999
Samuel Kennedy1963Raymond Case2000
James A. McKee1963Stone Lake2000
David Reese1965Irene B. West2002
Charles E. Mack1966Robert J. Fite2002
Herman Leimbach1972Elliott Ranch2002
Florence Markofer1980Edna Batey2003
Ellen Feickert1981Arlene Hein2004
Prairie1981Roy Herburger2004
Union House1988Arnold Adreani2005
Isabelle Jackson1988Helen Castello2005
John Reith1989Carroll2006
John Ehrhardt1991Sunrise2007
Mary Tsukamoto1992Cosumnes River2009
Elk Grove1993C.W. Dillard2015
Foulks Ranch1993Marion Mix2015

Middle Schools (In Order of Age)

  Joseph Kerr1935
Toby Johnson2002James Rutter1966
Edward Harris, Jr.2004Samuel Jackman1991
Katherine L. Albiani2005Harriet G. Eddy1994
Elizabeth Pinkerton2008T.R. Smedberg1997

A-3

High Schools (In Order of Age)

Elk Grove1964Franklin2002
Valley1977Monterey Trail2004
Florin1989Pleasant Grove2005
Laguna Creek1994Cosumnes Oaks2008
Sheldon1997

Alternative Education Schools (In Order of Age)

William Daylor1958Las Flores1988
Jessie Baker1964Virtual Academy1988
Adult & Community Ed.1970Calvine1991
Rio Cazadero1978Elk Grove Charter School2009

District Support Sites

Grounds Department
8800 Elk Grove Blvd.
Elk Grove, CA 95624

Student Support Center
8431 Gerber Road
Sacramento, CA 95828

Robert L. Trigg Education Center and Annexes
9510 Elk Grove-Florin Road
Elk Grove, CA 95624

The Board of Education hereby certifies that it has evaluated the safety, class-size reduction, and information technology needs of the District in developing this list of school facilities projects.

PROJECT SCOPE

The project scope summarized on the following list represents the description of improvements to be financed with bond proceeds. The specific examples included on this list are not intended to limit the generality of the broader types of projects described and authorized by this measure. The types of projects authorized are:

  • Modernize, renovate, reconstruct, repair and/or upgrade classrooms, aging science labs, buildings, and equipment to provide 21st century learning environments in order to meet current and future standards and support academic and career pathways necessary to prepare students to compete in a global economy;
  • Construction, expansion, replacement or repair, with respect to roofing, heating and air conditioning systems, storm and water drainage systems, security systems, plumbing, insulation, electrical systems and wiring, safety and security, and lighting systems to ensure the health and safety of students;
  • Improve student safety and security by constructing, expanding, replacing and/or repairing intrusion systems, lighting, fencing, gates, communications systems, cameras, surveillance systems, and classroom door locks;
  • A-4

  • Construct, reconstruct, repair, renovate and/or expand classrooms and existing facilities to accommodate new or expanded academies, including career technical education and college and career pathways;
  • Upgrade technology infrastructure and electrical service capacity and distribution, to relieve overloaded electrical systems and to improve instructional technology in the classroom for improved student learning, including new and maintained data and communications equipment and improvements; upgraded electrical capacity and technology infrastructure including fiber-optics and wireless internet access, improved telephone, data, video, and communications systems;
  • Create and equip quality classrooms, labs, libraries and community-use areas equally across district schools;
  • Reconstruct, repair, renovate, and/or expand deteriorating restrooms;
  • Upgrade fire alarm systems, including fire safety equipment and sprinklers to ensure student safety;
  • Make school site safety improvements to include repairing or replacing sidewalks, concrete and asphalt surfaces, including parking areas, service areas, and pick-up and drop-off areas, as well as core campus areas such as quads and hard courts;
  • Build, renovate and equip special education facilities to ensure that students' unique academic, social or physical needs can be met;
  • Upgrade accessibility to comply with the Americans with Disabilities Act;
  • Install energy efficient systems including but not limited to dual-pane windows, cool roofs, LED lighting, efficient heating and air conditioning systems, solar tube skylights and other natural daylighting systems, and potentially photovoltaic panels (in the event they are deemed economically viable in our utility service region) in order to reduce costs and protect the quality of instruction in core subjects like reading, math, science, and technology;
  • Make health and safety renovations to include the removal and/or mitigation of hazardous materials;
  • Modernize, renovate, reconstruct, repair or replace portable classrooms with permanent classrooms;
  • Improve access to schools by parents, visitors, and the community;
  • Make interior and exterior improvements including upgrades to infrastructure and major building systems; replace water, sewer, plumbing, irrigation systems; repaint facilities; renovate and improve athletic fields/facilities, playfields landscaped areas, and community-use areas; and
  • Construct facilities that qualify for State funds, as a joint-use-project potentially with the City of Elk Grove, City of Rancho Cordova, City of Sacramento, County of Sacramento, Cosumnes Community Services District, Los Rios Community College District, California State University, University of California, or other eligible agencies or non-profit agencies for joint-use school facilities.
  • The construction of new schools, classrooms and support sites to include new land acquisition, necessary furnishings, equipment, technology, and installation of site infrastructure, as needed to accommodate continued growth in student population and provide additional learning facilities for an anticipated minimum 14,000 additional students, including career technical educational facilities.

A-5

If it is established that relocation and/or reconstruction is a fiscally prudent and/or more practical approach than a modernization or renovation of an existing facility or campus, this bond measure authorizes land acquisition, relocation and reconstruction, and all costs relating thereto, for said reasons deemed in the best interest of the District by the Board of Education.

The order in which school facilities projects are listed above does not suggest an order of priority. Project priorities will be determined by the Board of Education. Approval of the bond measure does not guarantee that all of the identified projects within this Bond Project List will be funded due to the unpredictable nature of construction costs and other unknown future factors. Completion of all projects may be subject to consistent State funding, appropriate developer mitigation, remaining Community Facilities District revenues, and other sources included but not limited to those types and amounts identified in the 2015 Facilities Master Plan. The issuance of bonds pursuant to this measure depends in part on market conditions as well as the assessed valuation of properties in the District.

The Board of Education hereby certifies that it has evaluated the safety, class-size reduction, and information technology needs of the District in developing this list of school facilities projects.

ACCOUNTABILITY MEASURES

If the bonds are approved, the Board of Education will implement the following accountability measures in accordance with State law:

  1. (a) Use the bond proceeds only for the purposes authorized under Article XIIIA of the California Constitution, including construction, reconstruction, rehabilitation, or replacement of school facilities, furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities and related uses, as specifically set forth in this Exhibit A, and costs incident thereto, and not for any other purpose, including salaries and other routine school operating expenses;
  2. (b) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in this Exhibit A;
  3. (c) Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for school facilities projects and uses listed in this Exhibit A; and
  4. (d) Establish and appoint members to an independent citizens' oversight committee to ensure the bonds are used only for the projects and uses listed in this Exhibit A.

A-6

STATE MATCHING FUNDS

California Education Code section 15122.5 requires the following statement to be included in this sample ballot:

"Approval of this bond measure does not guarantee that the proposed projects in the Elk Grove Unified School District that are the subject of bonds under this measure will be funded beyond the local revenues generated by this bond measure. The school district's proposal for certain of the projects assumes the receipt of matching state funds, which are subject to appropriation by the Legislature or approval of a statewide bond measure."

ANNUAL TAX AMOUNT, RATE, AND DURATION

The bonds shall bear interest at an annual rate not exceeding the statutory maximum. The maturity of the bonds shall not exceed the maximum term allowed by law at the time of issuance (currently 25 years if issued under Education Code section 15140, or 40 years if issued under Government Code section 53508, so long as the bonds are not capital appreciation bonds ("CABs," which CABs are limited to 25 years)). Accordingly, as further set forth in the tax rate statement, the ad valorem tax will be levied at such rates and for so long as may be required to meet the debt service needs of the bonds proposed to be issued, including such bonds that may be issued to refund any approved bonds.

A-7

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Measure M Tax Rate Statement

County of Sacramento www.elections.saccounty.net
Ballot Type 001 Page 6

TAX RATE STATEMENT

REGARDING PROPOSED
$476,000,000
ELK GROVE UNIFIED SCHOOL DISTRICT
GENERAL OBLIGATION BONDS

An election will be held in the Elk Grove Unified School District (the "District") on November 8, 2016, to authorize the sale of up to $476,000,000 in bonds of the District to finance school facilities as described in the measure. If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400-9404 of the Elections Code of the State of California. Such information is based upon the best estimates and projections presently available from official sources, upon experience within the District, and other demonstrable factors. Based upon the foregoing and projections of the District's assessed valuation, the following information is provided:

1. The best estimate of the tax rate which would be required to be levied to fund this bond issue during the first fiscal year after the sale of the first series of bonds, based on a projection of assessed valuations available at the time of filing of this statement, is 3.8˘ per $100 of assessed valuation (or $38 per $100,000 of assessed value) for fiscal year 2017-18.

2. The best estimate of the tax rate which would be required to be levied to fund this bond issue during the first fiscal year after the sale of the last series of bonds, based on a projection of assessed valuations available at the time of filing of this statement, is 3.8˘ per $100 of assessed valuation (or $38 per $100,000 of assessed value) for fiscal year 2025-26.

3. The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing of this statement, is 3.8˘ per $100 of assessed valuation (or $38 per $100,000 of assessed value), which is projected to be the same in every fiscal year that the bonds remain outstanding.

4. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is approximately $974,404,182. The total debt service to principal ratio of the estimated debt service is 2.05 to 1.

Voters should note the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County's official tax rolls, not on the property's market value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills and tax advisors to determine their property's assessed value and any applicable tax exemptions.

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which are not binding upon the District. The actual debt service, the tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The date of sale and the amount of bonds sold at any given time will be determined by the District based on the need for project funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of sale. Actual future assessed valuations will depend upon the amount and value of taxable property within the District as determined by the County Assessor in the annual assessment and the equalization process.

s/Robert Pierce
Deputy Superintendent, Business Services and Facilities
Elk Grove Unified School District

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Measure M Agenda Description

Agenda of August 1, 2016 (complete item)

C.XIII. Action Items
C.XIII.1. Adopt Resolution to Support Placing a Local School Bond on the November 2016 Ballot
Speaker:
Robert Pierce
Recommended Motion:
The Board of Education is requested to adopt Resolution No. 1, 2016-17 to support the placement of a local school bond on the November 2016 ballot.

Rationale:

The Elk Grove Unified School District serves a vast community, serving the Cities of Elk Grove, Rancho Cordova, and Sacramento as well as the County of Sacramento, with a student population of approximately 62,000 in over 60 schools, including 40 elementary schools, nine middle schools, nine high schools, three continuation schools, one independent study program, one charter school, and an adult career training center.  The District has a significant number of aging schools, the oldest of which was built in 1935, 15 are over 45 years old, and 37 are over 20 years old.  The average age of the District’s school buildings is 22 years old, which marks an age at which school buildings require significant upgrades such as learning environment improvements, building systems require long term maintenance and/or replacement, and in some cases older buildings, especially portables, require replacement.  Specifically the District has 520 portable classrooms, 385 of which are over 20 years old exceeding the life expectancy of these “temporary” buildings.  The District’s existing school facilities require significant improvements and renovation as well as long term maintenance in order to provide 21st century learning environments that will meet current and future standards.  At the same time the District faces significant growth challenges to adequately house all of its current and future students. There are nearly 90,000 new homes currently in planning stages, nearly 20,000 of which are projected to be built in the next 10 years, which will increase the District’s student population by not less than 14,000 students over the same period.  A long term solution is needed to address these issues.

 

The State of California requires a local match, funded primarily through local, general obligation bonds, for school districts wishing to pursue matching State funds for the upgrade or replacement of school buildings and facilities. The millions of dollars potentially available through the State match allows local taxpayers to benefit from the tax dollars they already pay to the State of California.

 

It is imperative that our students are housed in safe schools.  In addition, our students will benefit from complete, comprehensive, modern, and efficient schools. We need to act locally to build and provide safe and modern schools to ensure our students have the educational opportunities they deserve.

 

On July 12, 2016, Administration presented a detailed report outlining the development of the District’s Facilities Master Plan and identified needs of nearly $1.7 billion, potential bond size and structuring to help meet the identified needs over the next decade, and the ongoing development and outreach regarding a proposed bond.  The Board is requested to adopt Resolution No. 1, 2016-17 to support the placement of a local school bond on the November 2016 ballot.


 
Financial Impact:
Upon adoption Staff will immediately deliver the resolution to the Sacramento County Voter Registration and Elections Department.

Attachments:
Presentation
Resolution No. 1

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Measure M Resolution

BEFORE THE BOARD OF EDUCATION OF THE
ELK GROVE UNIFIED SCHOOL DISTRICT

RESOLUTION NO. 1 , 2016-17

RESOLUTION ORDERING AN ELECTION TO AUTHORIZE THE
ISSUANCE OF SCHOOL BONDS, ESTABLISHING SPECIFICATIONS
OF THE ELECTION ORDER, AND REQUESTING CONSOLIDATION
WITH ANY OTHER ELECTIONS OCCURRING ON NOVEMBER 8, 2016

WHEREAS, in the judgment of the Board of Education (the "Board") of the Elk Grove Unified School District (the "District"), it is advisable to call an election to submit to the electors of the District the question of whether the bonds of the District shall be issued and sold for the purpose of raising money for the improvement, upgrade, and renovation of the District's existing schools and the acquisition and construction of additional classrooms and school facilities; and

WHEREAS, the District has a strong and very successful tradition of outstanding school facilities, a testament to a continued commitment to provide exceptional learning environments, which are critical for high quality learning and instruction; and

WHEREAS, involving extensive stakeholder and community engagement, and developed and published entirely by District staff, the District has adopted a Facilities Master Plan 2015-2025 Update ("FMP"), representing the most comprehensive and significant facilities master plan in the history of the District; and

WHEREAS, the FMP identified the current and future needs to improve, modernize, and maintain our existing schools, and the resources necessary to preserve and maintain the District's capital assets and provide additional facilities to accommodate future projected enrollment growth, including a General Obligation Bond measure to meet the substantial facility needs over the next decade and beyond; and

WHEREAS, schools, classrooms, and facilities within the District are aging and in need of expansion, replacement or repair, with respect to roofing, heating and air conditioning systems, storm and water drainage systems, security systems, plumbing, insulation, electrical systems and wiring, safety and security, and lighting systems, or upgrading to ensure the health and safety of pupils, staff and community and to provide for adequate housing for the District's pupils; and

WHEREAS, schools and facilities within the District are in need of renovation, reconstruction, and repair with respect to aging classrooms, labs, performing arts venues, physical education facilities, and other instructional and support facilities in order to provide 1 21 st century learning environments that will meet current and future standards, support academic and career pathways, and reinforce learning and teaching; and

WHEREAS, antiquated facilities systems throughout the schools are both ineffective and costly to operate and need to be updated; and

WHEREAS, District schools need technology infrastructure and tools to meet curricular requirements and prepare and equip students to compete and succeed in the global economy; and

WHEREAS, the District projects the need for 10-12 new schools and additional classrooms in order to relieve existing overcrowding and accommodate a projected increase of not less than 14,000 pupils over the next 10 years due to ongoing residential development; and

WHEREAS, excellent schools and classrooms benefit the District's ability to recruit and retain the best and brightest teachers, administrators, and support staff; and

WHEREAS, excellent schools, classrooms and services will keep our vast community vital by continuing to attract young families; and

WHEREAS, without a local school bond, the District will lose the opportunity to receive state matching funds which will then be awarded to other school districts; and

WHEREAS, as a result of the approval of Proposition 39 on November 7, 2000, Article XIIIA, Section 1, paragraph (b) of the California Constitution ("Article XIIIA") provides an exception to the limit on ad valorem property taxes on real property for bonded indebtedness incurred by a school district that has been approved by fifty-five percent (55%) of the voters of the District voting on the proposition; and

WHEREAS, pursuant to California Education Code section 15264 et seq. (the "Act"), this Board is specifically authorized, upon approval by two-thirds (2/3) of the Board, to submit to the electorate of the District the question of whether bonds of the District shall be issued and sold for specified purposes, upon a fifty-five percent (55%) vote of the electorate in favor on the question, pursuant to paragraph (3) of said subdivision (b) of Section 1 of Article XIIIA and subdivision (b) of Section 18 of Article XVI of the California Constitution; and

WHEREAS, pursuant to California Election Code section 10403, et seq., it is appropriate for the Board to request consolidation of the election with any and all other elections to be held on Tuesday, November 8, 2016, and to request the election officials of Sacramento County (the "County") to perform certain election services for the District.

2

NOW, THEREFORE, THE BOARD OF EDUCATION OF THE ELK GROVE UNIFIED SCHOOL DISTRICT HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS:

1. Call for Election. The Board hereby orders an election and submits to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in the principal amount not to exceed $476,000,000 for the purpose of raising money for the improvement, upgrade, renovation, and replacement of the District's existing schools, facilities, and improvements, and the acquisition and construction of additional schools, facilities, and improvements, and paying costs incident thereto, as set forth more fully in a ballot proposition approved pursuant to Section 3 below. This Resolution constitutes the order of the District to call such election.

2. Election Date. The date of the election shall be November 8, 2016, and the election shall be held solely within the boundaries of the District.

3. Purpose of Election; Ballot Proposition. The purpose of the election shall be for the voters of the District to vote on a proposition, a full copy of which is attached hereto as Exhibit A, containing the question of whether the District shall issue the Bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of section 15272 of the Act. As required by California Elections Code section 13247, the abbreviated form of the measure to appear on the ballot is attached hereto as Exhibit B. The District's Superintendent (or his/her designee) is hereby authorized and directed to make any changes to the text of the proposition or its abbreviated form as required to comply with the intent of this Resolution, the requirements of elections officials, and requirements of law.

4. Authority for Election. The authority for ordering the election is contained in California Education Code section 15264, et seq. and Article XIIIA, Section 1, paragraph (b), subsection (3) of the California Constitution. The authority for the specification of this election order is contained in California Education Code section 5322.

5. School Facilities Projects. A list of the specific school facilities projects and uses to be funded from the proceeds of the bonds is set forth in Exhibit A. As required by Article XIIIA, the Board hereby certifies that it has evaluated safety, class-size reduction, and information technology needs of the District in developing the list of school facilities projects and uses set forth in Exhibit A.

6. Covenants of the Board Upon Approval of the Bonds by the Electorate. As required by Article XIIIA and section 15272 of the Act, if fifty-five percent (55%) of the voters of the District voting on the measure approve of the bonds, the Board shall:

  1. (a) Use the bond proceeds only for the purposes authorized under Article XIIIA, including construction, reconstruction, rehabilitation, or replacement of school facilities, furnishing and equipping of school facilities, and the acquisition or lease of real property for school facilities, as specifically set forth in Exhibit A, and costs 3 incident thereto, and not for any other purpose, including salaries and other routine school operating expenses;
  2. (b) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in Exhibit A;
  3. (c) Conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of those proceeds have been expended for school facilities projects and uses listed in Exhibit A; and
  4. (d) Establish and appoint members to an independent citizens' oversight committee in accordance with sections 15278, 15280, and 15282 of the Act.

7. Delivery of this Resolution. The Clerk of this Board is hereby authorized and directed to send or hand deliver a copy of this Resolution to the County Superintendent of Schools and the County Registrar of Voters by no later than August 12, 2016.

8. Declaration of Official Intent. The District hereby declares its official intent, subject to the further approval of this Board, to use up to the maximum amount permitted by law of the proceeds of the proposed bonds to reimburse itself for payments it has made for any eligible costs of the projects and uses listed in Exhibit A. It is intended that this Resolution shall, among other things, constitute a declaration of "official intent" within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code of 1986, as amended.

9. Ballot Arguments; Tax Rate Statement. Any and all members of this Board are hereby authorized to act as an author of any ballot argument prepared in connection with the election, including a rebuttal argument. The Superintendent, President of the Board, or their designees, are hereby authorized to execute any Tax Rate Statement or other document and to perform all acts necessary to place the bond measure on the ballot.

10. Consolidation of Election; Election Services. The County Registrar of Voters and the County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on November 8, 2016 within the District. Pursuant to section 5303 of the Education Code and section 10002 of the Elections Code, the County Board of Supervisors is requested to permit the County Registrar of Voters, and other appropriate officials of the County, to render all services necessary in connection with the bond election including, but not limited to, publication of a Formal Notice of School Bond Election pursuant to Education Code 5363 and related law (the proposed form of which is attached hereto as Exhibit C), the mailing of the sample ballot and tax rate statement (described in section 9401 of the Elections Code), the opportunity to submit ballot arguments in connection with the bond election, the canvassing and certification of the returns of the election, and other ballot requirements pursuant to Elections Code section 15123, for which services the District agrees to reimburse the County as required by law. 4

11. Severability. If any section, subsection, phrase or clause of this Resolution, or its application to any person or circumstance, is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Resolution, or their application to any other person or circumstance. The Board declares that it would have adopted this Resolution and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, sentences, phrases or clauses, or their application to any person or circumstance, shall be declared invalid.

12. Effective Date. This Resolution shall take effect immediately upon its adoption.

* * * * * * * * * * * * * * * * * * * *

PASSED AND ADOPTED on August 1, 2016, by the following vote:

AYES: _________________

NOES: _________________

ABSTENTIONS: _________________

ABSENT: _________________

By: ____________________________________
President, Board of Education
of the Elk Grove Unified School District

ATTEST:

By: ____________________________________
Clerk, Board of Education
of the Elk Grove Unified School District

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

Measure M Notice of Election

EXHIBIT C

FORMAL NOTICE OF SCHOOL BOND ELECTION

NOTICE IS HEREBY GIVEN to the qualified electors of the Elk Grove Unified School District of Sacramento County, California, that in accordance with the provisions of the Education Code of the State of California, an election will be held on November 8, 2016 within the District, at which election the following measure shall be submitted to the qualified electors of the District and voted upon:

"To repair and modernize classrooms, fix deteriorating roofs, plumbing, and HVAC systems, improve student safety and campus security, construct and upgrade additional classrooms, labs, career technical education facilities and instructional technology to support student achievement in math, science, arts and skilled trades and keep up with growth and relieve overcrowding shall the Elk Grove Unified School District issue $476,000,000 in bonds to be spent only on specified projects, with independent citizen oversight and no money for administrator salaries?"

Bonds - Yes Bonds - No"

The bonds shall bear interest at an annual rate not exceeding the statutory maximum. The maturity of the bonds shall not exceed the maximum term allowed by law at the time of issuance (currently 25 years if issued under Education Code section 15140, or 40 years if issued under Government Code section 53508, so long as the bonds are not capital appreciation bonds ("CABs," which CABs are limited to 25 years)). Accordingly, as further set forth in the tax rate statement, the ad valorem tax will be levied at such rates and for so long as may be required to meet the debt service needs of the bonds proposed to be issued, including such bonds that may be issued to refund any approved bonds.

All of the purposes enumerated in the foregoing measure shall be united and voted upon as one single measure, with precincts, places of holding the elections and officers appointed to conduct the elections to be the same as those provided for the statewide presidential general election to be held on November 8, 2016 under the Notice of Election published ________.

This election has been called pursuant to a Resolution of the Board of Education of the Elk Grove Unified School District, adopted on August 1, 2016. The Elections Official of the County of Sacramento hereby gives formal notice of the election in accordance with the provisions of Education Code Section 15120.

IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of ___________, 2016.

Registrar of Voters
Sacramento County, California

C-1

  Commentary    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution    Notice  

 


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