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Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
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, it to see the commentary.
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Ballot Measures-M
Section 7
M
Capistrano Unified School District, Classroom Repair and School Safety Measure
To upgrade neighborhood schools by repairing outdated classrooms; improving science, technology, engineering, and math labs; ensuring fire/drinking water safety; removing asbestos; replacing leaky roofs; upgrading safety/security; repairing, constructing, and equipping educational facilities to prepare students for college/vocational/military careers, shall School Facilities Improvement District #2 of the Capistrano Unified School District issue $889 million in bonds at legal interest rates, requiring an independent citizens' oversight committee, annual independent audits, no funds for administrator or teacher salaries/benefits, and all funds used locally?
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Ballot Measures-M 7
Section
Impartial Analysis
Capistrano Unified School District
Measure M
The California Constitution provides that school districts may issue general obligation bonds 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, with the approval of 55% of the voters of the district, voting at an election for that purpose. The California Constitution further provides that the bond measure must include a requirement that bond proceeds will be used only for the permitted purposes and other requirements designed to ensure accountability.
The Board of Trustees of the Capistrano Unified School District has proposed to the voters within the School Facilities Improvement District No. 2 of the Capistrano Unified School District ("SFID No. 2") that general obligation bonds be issued in an amount up to $889,000,000 and that ad valorem taxes be levied upon taxable property within the school district to repay the bonded indebtedness.
The measure provides that proceeds from the sale of the bonds will generally be used to renovate, repair, construct and upgrade school facilities within SFID No.2, including upgrading or constructing libraries, restrooms, music rooms and science rooms; improving technology infrastructure; repairing or replacing roofs, HVAC systems, and plumbing; and updating physical activity facilities, aquatic facilities and play areas. Bond proceeds may only be spent on the projects set forth in the measure.
The measure provides that a citizens' oversight committee will be established to ensure that bond proceeds are properly expended within SFID No. 2. In addition, annual performance and financial audits will be conducted. The measure also requires the Superintendent of the Capistrano Unified School District to submit a yearly report to the Board of Trustees as long as the proceeds of the bond remain unexpended. The measure further provides that bond proceeds will not be used for teacher or administrator salaries or other school operating expenses.
Approval of the measure does not guarantee that the proposed project or projects in SFID No.2 that are the subject of bonds under the measure will be funded beyond the local revenues generated by the measure. 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.
The Board of Trustees of the Capistrano Unified School District has called the election for the purpose of submitting the measure to the voters within the School Facilities Improvement District No. 2. If 55% of the voters within School Facilities Improvement District No. 2 of the Capistrano Unified School District voting on the measure vote "yes," the school district may proceed to sell the bonds and levy the related taxes as estimated in the tax rate statement. A "no" vote on this measure will disapprove the issuance of the bonds and the levy of the taxes for such bonded indebtedness.
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Ballot Measures-M 7
Section
Argument in Favor of Measure M
VOTE YES ON MEASURE M TO ENSURE SAFE, HEALTHY LEARNING ENVIRONMENTS FOR TODAY'S STUDENTS.
Capistrano Unified School District students have access to some of the best educational opportunities in the state, but our campuses have fallen behind. Measure M will modernize aging schools, upgrade campus safety, and help our students become competitive for 21st century careers.
Measure M requires tough taxpayer protections. Money generated by the measure can only be spent on repairs, facility upgrades, technology infrastructure, and replacing aging portables. No money from this measure can be used for administrators' or teachers' salaries or benefits, nor can it be taken away by the state for use elsewhere. Measure M requires an Independent Citizens' Oversight Committee and annual audits to ensure funds are spent as promised. Measure M meets the Orange County Taxpayers Association criteria for transparency, and includes a 3% reserve fund for ongoing maintenance.
Seventy percent of the district's classrooms were built over 20 years ago. Some were constructed in the 1940s, but even our newest schools need additional classroom buildings. Older campuses urgently need repairs to leaking roofs and broken plumbing, asbestos removal, fire and drinking water safety upgrades, replacement of deteriorating sewer and gas lines, electrical system repairs, air conditioning installation, new technology infrastructure, and improved access for the disabled. Our community's students deserve schools that meet today's standards for classroom quality and safety.
Each of the district's 53 schools will benefit from Measure M, with upgraded science, technology, and engineering labs; new and upgraded arts and music spaces; and improved safety.
Measure M is an investment in our children's future and our outstanding schools, which contribute to the local economy and improved property values. Please join parents, teachers, taxpayers and community leaders in voting
Yes on Measure M to keep our schools safe and successful!
www.YesonMCapistrano.com
s/ Amy Hanacek
President, Capistrano Unified School District Board of Trustees
s/ Mitch Kahn
Orange County Fire Captain
s/ David Hennings
Teacher, Shorecliffs Middle School
s/ Mike Darnold
Former District Governor Rotary International
s/ Kristi Clark
2016 Orange County High School Teacher of the Year
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Rebuttal to Argument in Favor of Measure M
Taxpayers have not finished paying back CUSD's existing bond millions remain unpaid! Now they want $889,000,000 more!
VOTE NO ON MEASURE M!
SECURED PROPERTY TAXES WOULD INCREASE:
UNSECURED PROPERTY TAXES WOULD INCREASE:
MILLIONS WOULD BE SPENT ON SALARIES AND CONSULTANTS.
THIS BOND WILL NOT REDUCE CLASS SIZES.
TAXPAYER PROTECTIONS ARE LACKING.
The Orange County Taxpayers Association remains "concerned about the size and scope of Measure M."
VOTE NO ON MEASURE M!
s/ Jim Reardon
Vice President, Capistrano Unified School District Board of Trustees
s/ Wayne A. Brown
Director, Government Relations, South Orange County Economic Coalition
s/ Tony Beall
Mayor, City of Rancho Santa Margarita
s/ Frank L. Ury
Mayor, City of Mission Viejo
s/ Laurie Davies
Mayor, City of Laguna Niguel
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Ballot Measures-M 7
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Argument Against Measure M
Orange County residents already are among the highest taxed in America Measure M seeks to increase our taxes by $889 Million ($1.8 BILLION with Interest)!
This bond measure is opposed by your trusted representatives:
Every Mayor in Every City located within Capistrano Unified School District also:
Here's why:
A bond works like a government credit card -- paying off that credit card requires the government to raise your taxes.
The increased taxes we'd be forced to pay would be IN ADDITION TO THE OTHER TAXES RESIDENTS ALREADY PAY, including:
Aren't we taxed enough already?
MEASURE M IS THE LARGEST BOND EVER PROPOSED by a school district in Orange County history!
What would this property tax increase likely mean for you?
South Orange County residents can't afford an $889,000,000.00 tax hike!
Just four years ago, California voters approved Proposition 30. The teachers' unions promised "billions in new funding for our schools" from Proposition 30. Proposition 30 raised income taxes and sales taxes. Measure M would now raise your property taxes. What tax will they raise next?
NO MORE TAXES -- tell education bureaucrats they need to live within their means (instead of relying upon over-burdened taxpayers to pay ever increasing taxes)!
VOTE NO ON MEASURE M!
s/ Tony Beall
Mayor, City of Rancho Santa Margarita
s/ Frank Ury
Mayor, City of Mission Viejo
s/ Laurie Davies
Mayor, City of Laguna Niguel
s/ Pam Patterson
Mayor, City of San Juan Capistrano
s/ Mike Munzing
Mayor, City of Aliso Viejo
Commentary Question Analysis Argument in Favor Rebuttal in Favor Argument Against Rebuttal Against Full Text Tax Rate
Rebuttal to Argument Against Measure M
Please don't be misled by opponents' deceptive claims. These career politicians are playing political games by intentionally withholding important facts.
Their real agenda has nothing to do with protecting taxpayers. Here are the facts the career politicians withheld from you.
Opponents criticize the size of the bond, but fail to tell you that Capistrano Unified School District is among the largest districts in California. The average homeowner will pay only about $13.75 per month for this bond, lower than similar districts.
Each of the district's 53 schools will benefit from Measure M with new restrooms and classroom buildings; upgraded science, technology, and engineering labs; new and upgraded arts and music spaces; and improved safety.
Capistrano Unified School District can be one of the top districts in the country, but it won't happen with its current aging and overcrowded facilities. Vote for our community's students. Vote to maintain and enhance your property values. Please join parents, taxpayers and community leaders in voting YES on Measure M.
www.YesonMCapistrano.com
s/ Steve Litchfield
Executive Vice President, Microsemi Corp.
Member, Board of Directors, Discovery Science Center
s/ Ellen Gravitt
President, Capistrano Unified Council of PTAs
s/ Mike Darnold
Past District Gov. Rotary International
s/ Mitch Kahn
Orange County Fire Captain
s/ Dr. Thomas A. Parham
Psychologist/Educator/University Vice-Chancellor
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Ballot Measures-M
Section 7
Full Text of Measure M
Capistrano Unified School District
By approval of this measure by at least fifty-five percent (55%) of the registered voters voting thereon, School Facilities Improvement District No. 2 ("SFID No. 2") of the Capistrano Unified School District shall be authorized to issue and sell bonds of up to $889 million in aggregate principal amount to provide financing for the specific school facilities projects located within SFID No. 2 and listed below in the Bond Project List, subject to all of the accountability safeguards specified herein.
KEY FINDINGS
The Capistrano Unified School District is committed to continuing a strong, high-quality educational program for the students in all of its local public schools and to attracting and retaining quality staff by providing safe and secure schools that are equipped to support changing educational needs, methods and standards.
Through this process, the Capistrano Unified School District Board of Trustees determined that the District's schools located within SFID No. 2 require repairs and upgrades, including updates to facilities to meet current health, safety, fire, and earthquake standards. Specifically, as further described in the Bond Project List, the Board of Trustees desires in summary to:
ACCOUNTABILITY MEASURES
The provisions in this section are included in this proposition in order that the voters and taxpayers of the District may be assured that their money will be spent to address specific facilities needs of the District, all in compliance with the requirements of Article XIII A, section 1(b)(3) of the State Constitution, and the Strict Accountability in Local School Construction Bonds Act of 2000 (codified at Section 15264 et seq. of the California Education Code).
Evaluation of Needs. The Board of Trustees has evaluated the facilities needs of the District, and has identified projects to finance from a local bond measure at this time. As required by law, the Board of Trustees has certified that it has evaluated safety, class size reduction and information technology needs in developing the Bond Project List.
Independent Citizens' Oversight Committee. The Board of Trustees shall establish an independent Citizens' Oversight Committee in accordance with Education Code sections 15278-15282 and applicable Board policy, to ensure bond proceeds are expended only for the school facilities projects listed in the Bond Project List. The committee shall be established within sixty (60) days of the date when the Board of Trustees enters the results of the election in its official minutes.
School Facilities and Finance Advisory Committee. The Superintendent shall establish a School Facilities and Finance Advisory Committee as an administrative advisory committee in accordance with Board Policy 1220, to provide input, advice and recommendations on topics pertaining to school facilities and finance, including the implementation of the general obligation bond program. The committee is planned to include regional representation from school families throughout the District. The details for committee membership, representation, terms, appointment and similar details shall be determined by the Superintendent.
School Family Regional Committees. The Superintendent shall also establish school family regional committees by high school boundary, with representation from each school within the high school boundary, local stakeholder groups and organizations. The regional committees shall collaborate with the School Facilities and Finance Advisory Committee to provide input, advice and recommendations on school facilities and finance within their particular high school boundary. The details for committee membership, representation, terms, appointment and similar details shall be determined by the Superintendent.
Annual Performance Audit. The Board of Trustees shall conduct or cause to be conducted an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects described in the Bond Project List.
Annual Financial Audit. The Board of Trustees shall conduct or cause to be conducted an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects described in the Bond Project List.
Annual Report to Board. Upon approval of this measure and the sale of any bonds approved, the Board of Trustees shall take actions necessary to establish an account in which proceeds of the sale of bonds will be deposited. As long as any proceeds of the bonds remain unexpended, the Superintendent shall cause a report to be filed with the Board of Trustees no later than January 1 of each year, commencing on the first January 1 after bonds have been issued and proceeds spent, stating (1) the amount of bond proceeds received and expended in the past fiscal year, and (2) the status of any project funded or to be funded from bond proceeds. The report may be incorporated into the annual budget, annual financial report, or other appropriate routine report to the Board.
BOND PROJECT LIST
This Bond Project List, which is an integral part of this proposition, describes the specific projects the District proposes to finance with proceeds of the bonds.
Proceeds from the sale of bonds authorized by this measure shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities as described on the Bond Project List, including the furnishing and equipping of said school facilities, or the acquisition or lease of real property for said school facilities, and not for any other purpose, including teacher and administrator salaries or benefits, and other school operating
Ballot Measures-M
Section 7 expenses.
In order to meet all identified facility needs, the District intends to complete projects using a combination of funding sources. These sources may include District funds, development impact fees, state funds (if available), and other available funds. While the District is eligible to receive Statematching funds and intends to aggressively pursue State funding that becomes available, approval of the measure does not guarantee that all of the proposed projects will be funded beyond the local revenues generated by the measure. Some of the projects listed on the Bond Project List may require state matching funds, and in the absence of such funding, the District may not be able to complete some of the projects.
The primary types of facilities projects to be funded by the bond measure, guided by the Facilities Master Plan, the Board-adopted facilities minimum standards, and community input, include, without limitation, the following:
Notwithstanding the capital facilities priorities, projects on the Bond Project List may be completed at any and all school sites and facilities within SFID No. 2 where such project is determined by the Board to be necessary, and projects are authorized to be performed at each and all of the District's schools and sites within SFID No. 2 to benefit school campuses and educational programs, including charter schools, that may be operating on such campuses, including without limitation (in alphabetical order):
Ballot Measures-M
Section 7
Additional sites may include the locations of student and educational support services, such as student transportation, food service, maintenance and operations facilities, excluding the Education Center (District Office).
Plans for specific projects at specific schools additionally include the following:
REPAIRS / UPGRADES / IMPROVEMENTS
A large number of aging school facilities require varying degrees of updates to infrastructure and utility systems, repair or replace leaky roofs, and comprehensive facility modernization. The level of renovation/modernization required at each campus depends upon the age and condition of the existing facility.
FIRE SAFETY / ADA / SECURITY / IMPROVEMENTS
Update fire/life/safety systems and improve ADA accessibility and security at all school sites. Modernize security systems, emergency communication systems, door hardware and perimeter fencing. Retrofit older school buildings for earthquake safety. Remove hazardous materials from school sites.
Ballot Measures-M
Section 7
21st CENTURY LEARNING / SUSTAINABLE ENVIRONMENT FACILITIES IMPROVEMENTS
Renovate existing classrooms to support a 21st century learning environment. Classrooms shall be configured for flexibility, wireless technology, and capability to promote project-based learning and a collaborative learning environment.
REPLACEMENT OF AGING MODULAR CLASSROOMS
The District has a large number of aging modular classrooms that need to be demolished. These older buildings will be replaced with permanent construction or new modular classrooms.
EXPANSION & ADDITION OF NEW FACILITIES
Equity of facilities needs to be addressed to offer a comparable educational experience for all students throughout the District. There is a greater need for facility expansions and additions at the older campuses.
Ballot Measures-M
Section 7
MISCELLANEOUS IMPROVEMENTS
Additional site and building improvements will be required at all campuses depending upon the scope of work defined and discovery revealed during the construction document phase of each project.
Listed projects, repairs, improvements, rehabilitation projects and upgrades will be completed only as feasible, and the listing of projects does not imply a particular prioritization among such improvements. Listed projects may be completed at any and all District schools, sites and education buildings where such project is determined necessary. Decisions regarding the scope, final size and location, timing, prioritization or other facets of project implementation will be made solely by the Board of Trustees by subsequent action, with input from the School Facilities and Finance Committee and School Family Regional Committees of the District. Where terms such as "renovate," "upgrade," and "improve" are used in the Bond Project List, the Board of Trustees shall determine the best method for accomplishing the project's objective. For any listed project involving renovation or modernization of a building or the major portion of a building, the District may proceed with new replacement construction instead (including any necessary demolition), if the District determines that replacement and new construction is more practical than renovation, considering the building's age, condition, expected remaining life, comparative cost, and other relevant factors. In addition, where feasible, projects may be completed in partnership with other agencies on a joint use basis using bond proceeds.
Each project is assumed to include its share of costs of bond issuance, architectural, engineering, and similar planning costs, construction management, bond project staff and consultants, , new bond-funded equipment and systems, and a customary contingency for unforeseen design and construction costs. In addition to the projects listed above, the Bond Project List also includes payment of the costs of preparation of all facilities planning and project implementation studies, feasibility and assessment reviews, master planning, environmental studies, permit and inspection fees, and temporary housing and relocation costs for dislocated programs or activities caused or necessitated by construction projects.
The final cost of each project will be determined as plans are finalized and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Necessary site preparation/grading/restoration may occur in connection with new construction, modernization, renovation or remodeling, including ingress and egress, removing, replacing or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, leases, licenses, or rights of way to the property.
ADDITIONAL SPECIFICATIONS
No Administrator or Teacher Salaries or Benefits. Proceeds from the sale of Bonds authorized by this proposition shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities on the Bond Project List, including the furnishing and equipping of said school facilities, or the acquisition or lease of real property for said school facilities, and not for any other purpose, including administrator and teacher salaries and benefits, and other school operating expenses, consistent with legal requirements.
Single Purpose. All of the purposes enumerated in this proposition shall be united and voted upon as one single proposition, pursuant to Section 15100 of the California Education Code, and all the enumerated purposes shall constitute the specific single purpose of the bonds and proceeds of the bonds shall be spent only for such purpose.
Other Terms of the Bonds. The bonds may be issued and sold in several series, and in accordance with a financing plan determined by the Board of Trustees pursuant to requirements of law. When sold, the bonds shall bear interest at an annual rate not exceeding the statutory maximum and with a maximum term not exceeding the statutory maximum, provided that the weighted average maturity of bonds sold will not exceed one hundred twenty percent (120%) of the average useful life of the projects being financed or as otherwise provided by state or federal tax law. The District will not seek any reimbursement for any expenditures incurred prior to the election and bond issuance.
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Ballot Measures-M 7
Section
Tax Rate Statement
Capistrano Unified School District
Measure M
An election will be held within the boundaries of School Facilities Improvement District No. 2 of the Capistrano Unified School District ("School District") on November 8, 2016 to authorize the sale of up to $889,000,000 in bonds to finance facilities as described in the proposition. If the bonds are approved, the School District expects to sell the bonds in multiple series. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property located within the School District. The following information is provided in compliance with Sections 9400- 9404 of the California Elections Code.
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 estimated assessed valuations available at the time of filing of this statement, is 4.18 cents per $100 ($41.81 per $100,000) of assessed valuation in 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 estimated assessed valuations available at the time of filing of this statement, is 4.29 cents per $100 ($42.93 per $100,000) of assessed valuation in 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 estimated assessed valuations available at the time of filing of this statement, is 4.29 cents per $100 ($42.99 per $100,000) of assessed valuation in fiscal year 2032-33.
4. The best estimate of total debt service, including principal and interest, which would be required to be repaid if all the bonds are issued and sold is $1,839,767,626. This estimate results in a debt service to principal ratio of 2.07 to 1, which is nearly half of the maximum allowed by State law. The estimate is based on assumptions regarding future interest rates and the term, timing, structure, and amount of each bond issue.
Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County of Orange official tax rolls, not on the property's market value. Property owners should consult their own property tax bills to determine their property's assessed value and any applicable tax exemptions.
The foregoing information is based upon the District's projections and estimates, which are not binding upon the District. The actual tax rates, debt service 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 interest rates at the time of sale, and actual assessed valuations over the term of the bonds. The dates of sale and the amount of bonds sold at any given time will be determined by the District based on the need for construction 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 each sale. Actual future assessed valuation 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.
Dated: August 10, 2016
s/ Kirsten Vital
Superintendent
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