Commentary on Measure R

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

This campaign was designed by a member of the school bonds cartel. 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.

When you see highlighting in the documents below, hover overCriticalExample commentary. it to see the commentary.

Measure R Question

Without increasing existing property tax ratesTHREE PINOCCHIOS!Technically, this is true, but it's INTENTIONALLY DECEPTIVE. If you're like most voters, you don't know what "property tax rates" refers to. This means that the district has a scheme, using Capital Appreciation Bonds (CABs), to borrow money now, deferring payments until some future date when all the borrowed money plus interest will come due and raise tax rates much more, usually finishing off with huge balloon payments., shall the East Whittier City School District issue $70 million in bonds at legal interest rates to make essential upgrades to aging schools including repairing or replacing leaky roofsCriticalIs it a coincidence that every district in the state has "leaky roofs"? You might even ask if leaky roofs actually exist? If they do, why haven't they been repaired yet. Are they reported on the School Accountability Report Card? If not, then you're being lied to. According to the school bond cartel's professional marketing study, claiming "leaky roofs" translates directly into yes votes from voters who are made to feel guilty about it., doors, windows, outdated plumbing, heating, air conditioning and electrical systems, and improve student safety and school security systems, including lighting, smoke alarms, fencing and emergency communications, with independent citizen oversightCriticalIndependent? Really? The staff selects the committee. The Board rubber-stamps it. The Board can remove anyone who questions anything that the money is used for. You can be certain that there won't be anyone on the committee who isn't a cheerleader for spending your money on architectural marvels, like the Taj Mahal. and audits to ensure all money benefits and improves local schools?

Bonds - Yes Bonds - No

Impartial Analysis for Measure R

PR-004890-3 LA 393-064

IMPARTIAL ANALYSIS OF MEASURE R

By Mary C. Wickham, County Counsel

Approval of Measure R ("Measure") would authorize the Board of Trustees ("Board") of the East Whittier City School District ("District"), which placed the Measure on the ballot by Resolution No. 13-15/16, to issue general obligation bonds in an amount not to exceed $70,000,000.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including, but not limited to, renovating, repairing, and upgrading schools to improve health, safety, and maintenance; repairing or replacing roofs, walls, ceilings, and floors, including improving insulation and weatherproofing; replacing or repairing older water systems, sewer systems, and heating, ventilation and air-conditioning systems with building code compliant and energy-efficient systems; upgrading fire alarm systems, smoke detectors, and sprinklers, and repairing, replacing, or installing fire safety equipment; upgrading or replacing security and safety systems, including existing window systems and doors, doorframes, and hardware; and installing additional electrical service capacity or repairing currently overloaded electrical systems in connection with projects specified above.

Proceeds from the sale of the bonds shall be used only for purposes specified in the Measure, and not for any other purpose, including teacher and school administrator salaries or pensions or other operating expenses.

The Board shall cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for the projects identified in the Measure. The Board shall cause the appointment of an independent Citizens' Oversight Committee in accordance with Education Code section 15278, no later than 60 days after the Board enters the election results in its minutes. The purpose of the Citizens' Oversight Committee shall be to inform the public concerning the expenditures of bond revenues. The District shall create an account into which bond proceeds shall be deposited and shall comply with the reporting requirements of Government Code section 53410.

According to the District's Tax Rate Statement, the best estimate of the highest tax rate required to fund the bonds, based on estimated assessed valuations available when the District filed its Tax Rate Statement, or on a projection based on experience within the District and other demonstrable factors, is $30 per $100,000 of the assessed value of taxable property, which is projected to be the same in every fiscal year that the bonds remain outstanding.

This Measure requires a fifty-five percent (55%) vote for passage.

Argument in Favor of Measure R

PR-004890-4 LA 393-065

ARGUMENT IN FAVOR OF MEASURE R

East Whittier City School District

East Whittier City Schools Health, Safety, and Security Bond

Measures R and Z are on the ballot to repair and renovate the elementary and middle schools in our community. Both are important and neither will raise tax rates for homeowners beyond what they are currently paying.

Measure R is about one thing: Improving the quality of our local schools.

While there have been significant improvements in the quality of our schools over the past few years, the fact remains that our schools are old, classrooms are inadequate, and electrical systems are outdated. Schools built years ago need significant updating.

Measure R will:

• – Repair or replace leaky roofs, old rusty plumbing, and outdated air-conditioning systems;
• – Improve student safety and campus security systems, including security lighting, emergency communications systems, smoke detectors, fire alarms, and sprinklers;
• – Repair and renovate outdated classrooms and school facilities.

Measure Z is a companion measure that will provide funds for technology upgrades to classrooms and improvements to gymnasiums, science labs, and locker rooms.

Every penny from Measures R and Z will stay in our community and cannot be taken away by the state. All schools in the district will benefit and receive their share of essential improvements.

Measures R and Z require a clear system of accountability, including a Citizens' Oversight Committee, and independent audits to ensure the money is spent properly. By law, no money from either measure can be used for administrators' salaries.

All funds will stay in our community and passage of Measures R and Z, will qualify our schools for millions of dollars in state matching money when it becomes available, that would otherwise go to other school districts and other communities.

(Continued on next page)
PR-004890-5 LA 393-066
ARGUMENT IN FAVOR OF MEASURE R (Continued)

Please join us in voting Yes on Measures R and Z.

Argument Against Measure R

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

Full Text of Measure R

PR-004896-8 LA 393-061

FULL TEXT OF BALLOT MEASURE R

The following is the full proposition presented to the voters by the East Whittier City School District.

"Without increasing existing property tax rates, shall the East Whittier City School District issue $70 million in bonds at legal interest rates to make essential upgrades to aging schools including repairing or replacing leaky roofs, doors, windows, outdated plumbing, heating, air conditioning and electrical systems, and improve student safety and school security systems, including lighting, smoke alarms, fencing and emergency communications, with independent citizen oversight and audits to ensure all money benefits and improves local schools?"

PROJECT LIST

• – The Board of Education of the East Whittier City School District evaluated the District's urgent and critical facility needs, including safety issues, class size, class size reduction, and computer and information technology, in developing the scope of projects to be funded. The District conducted a facilities evaluation and received public input and review in developing this Project List. The Board concluded that if these needs are not addressed now, the problems will only become more pressing.
• – School Renovation, Repair and Upgrade Projects For Health, Safety and Maintenance
• – Repair or replace roofs, walls/ceilings, and floors, including improving insulation and weather proofing.
• – Replace or repair older water systems, sewer systems, heating, ventilation and air-conditioning systems with building code compliant, energy-efficient systems.
• – Upgrade fire alarm systems, smoke detectors and sprinklers, and repair, replace or install fire safety equipment.
• – Upgrade or replace security and safety systems, including existing window systems and doors, doorframes and hardware.
• – Install additional electrical service capacity or repair currently overloaded electrical systems in connection with the above projects.

The listed projects will be completed as neededCriticalYou see? None of these repairs are current needs. They may be needed in the future, though. After years and years of neglect, any facility will fall into disrepair.. Each projectCriticalHere it comes. This is the kitchen sink paragraph. Ask an English teacher to diagram every sentence. See if any two people can agree on what all this gibberish means. It's here so that just in case the District left something out, this covers it, no matter what the District wants to do. is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expensesCriticalTraining is an operating expense, specifically prohibited by the California Constitution. What will it train staff to do? How to open a door? How to turn on the lights? This is just another way to move operating costs from the general fund to the bonds and use the money saved to pay salaries, benefits, and pensions. and a customary contingency for unforeseen design and construction costs. In addition to the listed projects stated above, the Project List also includes the acquisition of a variety of instructional, maintenance and operational equipment, the reduction or retirement of outstanding lease obligationsCriticalLeases are OPERATING expenses explicitly prohibited by the Constitution Article XIII-A Section 1(b)(3)(A) (Proposition 39). "not for any other purpose, including teacher and administrator salaries and other school operating expenses." and interim or (Continued on next page)
PR-004890-1 LA 393-062
FULL TEXT OF BALLOT MEASURE R (Continued) bridge funding incurred to advance fund projects from the Project List; installation of signage and fencing; payment of the costs of preparation of all facility planning, facility studies, assessment reviews, facility master plan preparation and updatesCriticalFacilities master plans are required by law, whether or not there is a bond. These are OPERATING expenses explicitly prohibited by the Constitution Article XIII-A Section 1(b)(3)(A) (Proposition 39). "not for any other purpose, including teacher and administrator salaries and other school operating expenses.", environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated District activities caused by construction projects. In addition to the projects listed above, the repair and renovation of each of the existing school facilities may include, but not be limited to, some or all of the following: repair and replace heating/boiler, plumbing, gas, water/sewer, drainage and ventilation systems; renovate student and staff restrooms; acquire land and facilities for educational and administrative purposes; repair and replace worn-out roofs, windows, walls, doors, doorframes and drinking fountains; improve school facilities for disability access; install or upgrade wiring and electrical systems; repair and replace fire alarms, emergency communications, intercoms, and security systems; resurface or replace hard courts, asphalt, turf and drainage/irrigation systems and campus landscaping; enhance fire and maintenance access roads; interior and exterior painting and floor covering; or replace; construct various forms of storage and support spaces; repair, upgrade or install interior and exterior lighting systems; improve handicapped accessibility; replace outdated security fences and security systems. The allocation of bond proceeds will be affected by the final costs of each project. The District may not be able to complete some of the projects listed above. The budget for each project is an estimate and may be affected by factors beyond the District's control. Some projects throughout the District, such as gyms, fields and performing arts facilities, may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. The final cost of each project will be determined as plans and construction documents are finalized, construction bids are received, construction contracts are awarded and projects are completed. The allocation of bond proceeds may be affected by the District's receipt of State matching funds and the final costs of each project. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses. Necessary site preparation/restoration or geological stabilization may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property.

(Continued on next page)
PR-004890-2 LA 393-063
FULL TEXT OF BALLOT MEASURE R (Continued)

Bond proceeds shall only be expended for the specific purposes identified herein. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

FISCAL ACCOUNTABILITY: IN ACCORDANCE WITH EDUCATION CODE SECTION 15272, THE BOARD OF EDUCATION WILL APPOINT A CITIZENS' OVERSIGHT COMMITTEE AND CONDUCT ANNUAL INDEPENDENT AUDITS TO ASSURE THAT FUNDS ARE SPENT ONLY ON DISTRICT PROJECTS AND FOR NO OTHER PURPOSE. THE EXPENDITURE OF BOND MONEY ON THESE PROJECTS IS SUBJECT TO STRINGENT FINANCIAL ACCOUNTABILITY REQUIREMENTS. BY LAW, PERFORMANCE AND FINANCIAL AUDITS WILL BE PERFORMED ANNUALLY, AND ALL BOND EXPENDITURES WILL BE MONITORED BY AN INDEPENDENT CITIZENS' OVERSIGHT COMMITTEE TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS' OVERSIGHT COMMITTEE.

NO ADMINISTRATOR SALARIES: PROCEEDS FROM THE SALE OF THE BONDS AUTHORIZED BY THIS PROPOSITION SHALL BE USED ONLY FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, OR REPLACEMENT OF SCHOOL FACILITIES, INCLUDING THE FURNISHING AND EQUIPPING OF SCHOOL FACILITIES, AND NOT FOR ANY OTHER PURPOSE, INCLUDING TEACHER AND SCHOOL ADMINISTRATOR SALARIES AND OTHER OPERATING EXPENSES.

Measure R Tax Rate Statement

PR-004890-6 LA 393-067

TAX RATE STATEMENT - MEASURE R

An election will be held in East Whittier City School District (the "District") on November 8, 2016 for the purpose of submitting to the electors of the District the question of issuing bonds of the District in the principal amount of $70 million. If such bonds are authorized and sold, the principal thereof and interest thereon will be payable from the proceeds of taxes levied on the taxable property in the District. The following information regarding tax rates is given to comply with Section 9401 of the California Elections Code. This 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 assessed valuations of taxable property in the District, and assuming the entire debt service on the bonds will be paid through property taxation:

1. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the first sale of the bonds, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $0.030 per $100 ($30.00 per $100,000) of assessed valuation of all property to be taxed for the year 2017-18.

2. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the last sale of the bonds and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $0.030 per $100 ($30.00 per $100,000) of assessed valuation of all property to be taxed and the year 2025-26.

3. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $0.030 per $100 ($30.00 per $100,000) of assessed valuation of all property to be taxed, which is projected to be the same in every fiscal year that the bonds remain outstanding.

4. The best estimate from official sources 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 $140 million.

Attention of voters is directed to the fact that the foregoing information is based upon projections and estimates. The actual timing of sales of the bonds and the amount to be sold at any time will be governed by the needs of the District and other factors. The actual interest rates at which the bonds will be sold, which will (Continued on next page)
PR-004890-7 LA 393-068
TAX RATE STATEMENT - MEASURE R (Continued) not exceed the maximum permitted by law, will depend upon the bond market at the time of sale. The actual assessed valuations in future years will depend upon the value of property within the District as determined in the assessment and the equalization process. Therefore, the actual tax rates and the years in which those tax rates will be applicable may vary from those presently estimated and stated above.

MARY BRANCA
Superintendent
East Whittier City School District