Commentary on Measure Z

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 Z 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 $24 million in bonds at legal interest rates, to modernize classrooms, science labs and computer systems for science, math and technology instruction, replace aging portables, renovate the aging middle school gymnasiums and locker rooms, and improve accessibility for disabled students, 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 benefit and improves local schools?

Bonds - Yes Bonds - No

Impartial Analysis for Measure Z

PR-004891-3 LA 393-072

IMPARTIAL ANALYSIS OF MEASURE Z

By Mary C. Wickham, County Counsel

Approval of Measure Z ("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. 14-15/16, to issue general obligation bonds in an amount not to exceed $24,000,000.

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; modernizing and renovating outdated classrooms, science laboratories, and other school facilities; improving student access to computers and modern technology, including upgrading network infrastructure; renovating and improving athletic and recreational facilities, including middle school gymnasiums and locker rooms; and painting interior school facilities.

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 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 expenditure 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.

The bonds shall be issued pursuant to Education Code section 15264 et seq., or Government Code section 53506, and the maximum rate of interest on any bond shall not exceed the maximum rate allowed by law. 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 $10 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 Z

PR-004891-4 LA 393-073

ARGUMENT IN FAVOR OF MEASURE Z

East Whittier City School District

East Whittier City Schools Technology, Science Labs and Facility Improvement Bond

Two measures are on the ballot to repair and renovate the East Whittier elementary and middle schools. Both deserve your support.

Measure R will provide the basic health and safety upgrades that are critically needed for these 50 year old schools.

Measure Z is a companion measure for projects that are needed that Measure R cannot cover.

Measure Z will:

• – Upgrade classrooms, science labs, and computer systems to keep pace with technology;
• – Update instructional technology in the classroom for improved student learning in subjects like reading, math, science, and technology;
• – Provide funds to repair deteriorating gymnasiums and locker rooms at the middle schools;
• – Replace or repair aging portable classrooms.

If we want our children to succeed in high school, college, and careers, they must be skilled in the use of 21st Century technologies and have a solid background in science, math, engineering and technology. This measure will provide technological upgrades to our schools to make this possible.

Whether or not you have school-age children, protecting the quality of our schools is a wise investment. Measures R and Z will improve the quality of our schools and the value of our homes.

All money raised by Measures R and Z will stay in our community to benefit local children. No money can be taken by the State or used for other purposes. None of the money will be used to pay for salaries or administrators.

Measures R and Z will protect the health, safety and security of local children and will NOT increase the tax rate homeowners currently pay.

(Continued on next page)
PR-004891-5 LA 393-074
ARGUMENT IN FAVOR OF MEASURE Z (Continued)

Safe, quality schools protect property values.

Please vote Yes on Measures R and Z.

Argument Against Measure Z

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

Full Text of Measure Z

PR-004890-8 LA 393-069

FULL TEXT OF BALLOT MEASURE Z

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 $24 million in bonds at legal interest rates, to modernize classrooms, science labs and computer systems for science, math and technology instruction, replace aging portables, renovate the aging middle school gymnasiums and locker rooms, and improve accessibility for disabled students, 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
• – Modernize and renovate outdated classrooms, science laboratories and other school facilities.
• – Improve student access to computers and modern technology, including network infrastructure.
• – Renovate and improve athletic and recreational facilities, including middle school gymnasiums and locker rooms.
• – Painting interior school facilities.

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 expenses 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 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.", (Continued on next page)
PR-004891-1 LA 393-070
FULL TEXT OF BALLOT MEASURE Z (Continued) 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: acquire land and facilities for educational and administrative purposes; improve outdoor learning spaces and shade structures; improve school facilities for disability access; install or upgrade wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; upgrade or construct classroom and support facilities, including administrative, physical education, warehousing, wood shop, cafeteria, multi-purpose rooms, classrooms, auditorium, science building, media centers and maintenance yards; replace portable classrooms; resurface or replace hard courts, asphalt, turf and drainage/irrigation systems and campus landscaping; improve or expand parking and traffic circulation flow; interior and exterior painting and floor covering; or replace; construct various forms of storage and support spaces; upgrade classrooms; repair, upgrade or install interior and exterior lighting systems; improve or construct gymnasium, locker rooms and restrooms lockers; The upgrading of technology infrastructure includes, but is not limited to, servers, switches, routers, network security/firewall, wireless technology systems and other miscellaneous equipment. 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, 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-004891-2 LA 393-071
FULL TEXT OF BALLOT MEASURE Z (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 Z Tax Rate Statement

PR-004891-6 LA 393-075

TAX RATE STATEMENT - MEASURE Z

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 $24 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 $0.010 per $100 ($10.00 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 $0.010 per $100 ($10.00 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 $0.010 per $100 ($10.00 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 $48 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-004891-7 LA 393-076
TAX RATE STATEMENT - MEASURE Z (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