Commentary on Measure K

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 K Question

SCHOOL
WATERFORD UNIFIED SCHOOL DISTRICT
MEASURE K

To upgrade/acquire career technical education classrooms; renovate/repair aging classrooms; replace leaking pipes; repair or replace 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.; and update fire/life safety systems at Richard M. Moon Primary, Waterford Junior, Lucille Whitehead Intermediate, Waterford High and other district facilities, shall Waterford Unified School District be authorized to issue $10.65 million of bonds with rates below legal limits, 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., no funds for administrator salaries or taken by the State and NO increase in existing tax rates?

Bonds-Yes
Bonds-No

Impartial Analysis for Measure K

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IMPARTIAL ANALYSIS BY COUNTY COUNSEL
BOND MEASURE K

Upon approval of 55% of the votes cast by voters on this measure, California law permits Waterford Unified School District ("District") to issue and sell general obligation bonds to be paid by ad valorem taxes placed on proper ty within District, for purpose of construction, reconstruction, rehabilitation, replacement, and acquiring of school facilities and equipping of school facilities etc.

The Board of Trustees of District proposes issuing and selling bonds in an amount up to $10,650,000. The bonds interest rates and maturity dates will not exceed the legal maximums. If the measure is approved, District will be authorized to increase the ad valorem taxes on property located within District boundaries to pay the bond principal, interest and associated costs for specifically listed projects. The projects include upgrading and acquiring career technical education classrooms; renovating and repairing aging classrooms; replacing leaking pipes; repairing or replacing roofs; and updating fire and life safety systems at listed schools and other district facilities. See the "Bond Project List" in the measure for further details.

Proceeds may not be used for other purposes such as teacher or administrator salaries, or school operating expenses. Based on the final costs of each project, allocation of bond proceeds may be affected, and certain listed projects may be delayed or may not be completed.

District's best estimate for the tax rate to be levied to fund the bond issue is $60.00 per $100,000 of assessed valuation, during the first fiscal year after the sale of the first series bonds (2022-2023) and during the first fiscal year after the sale of the last series of bonds (2022-2023). District's best estimate of the highest tax rate required to be levied is $60.00 per $100,000 of assessed valuation in fiscal year 2022-2023. The amount of tax levied may be higher than the estimate if funds due for payment of interest and principal on the bonds exceed the best estimate of the tax rate.

The measure requires District to take steps to account for the use of the proceeds from the sale of the bonds as required by the California Constitution and Education Code. Expenditure of bond revenues will be actively reviewed by an independent citizens' oversight committee and annual independent performance and financial audits will be conducted to assure the funds are spent only for the purposes included in the measure.

A "yes" vote is a vote to authorize Waterford Unified School District to issue and sell bonds in an amount up to $10,650,000 for the purposes listed in the "Bond Project List" and levy the related taxes.

A "no" vote is a vote against authorizing Waterford Unified School District to issue the bonds.

Submitted by County Counsel per Election Code section 9500.

/s/ Deirdre McGrath, Deputy County Counsel, County of Stanislaus

Argument in Favor of Measure K

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ARGUMENT IN FAVOR OF MEASURE K

Please Vote YES on Measure K!

Waterford's schools – Waterford Pre-school, Richard M. Moon Primary, Lucile Whitehead Intermediate, Waterford Junior High, Waterford High and Sentinel High – are among our community's most valuable assets. Measure K will let us maintain and improve our community's schools WITH NO INCREASE IN EXISTING TAX RATES.THREE 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.

Measure K will improve our schools by:

• • Providing a Career Technical Education center, industrial shop classrooms and science labs
• • Repairing and replacing deteriorating plumbing and sewer systems
• • Replacing leaky roofs
• • Upgrading fire safety systems for increased student safety
• • Renovating and equipping portable classrooms
• • Repairing outdated heating and air-conditioning systems

Measure K will protect taxpayers by:

• • Making Waterford schools eligible for state matching funds
• • Prohibiting funds from going to administrators' salaries, pensions or benefits
• • Requiring independent citizen oversight
• • Imposing tough legal safeguardsCriticalTough? Really? Where are they in the language of the measure? You won't find any. It's all hype to get you to vote Yes. requiring all monies to be spent on our local schools
• • Prohibiting the state taking bond money from Waterford and spending it in other districts
• • NOT INCREASING EXISTING TAX RATES

Vote YES to help turn out well-educated, well-rounded leaders of tomorrow.
Vote YES to bring 21st Century state-of-the-art education facilities to our children.
Vote YES to protect taxpayers with independent financial auditsCriticalThis is the biggest joke of all. The joke's on you, if you vote for this measure. When the language of the measure let's the District spend the money on anything it wants, how does anyone, let alone a hand-picked, friendly oversight committee, look at any project and realistically say that the voters didn't approve it. The same goes for the auditors (accountants) who earn hundreds of thousands of dollars in easy money by doing white-wash audits, all at your expense..
Vote YES for safer schools.
Vote YES to enhance property values and home prices by improving neighborhood schools.

Twenty years ago, Waterford voters overwhelmingly passed a bond to build a high quality high school in our community. Let's continue the great work.

Your YES vote on Measure K will take each of our schools to a higher level of excellence, for the benefit of all.

To provide for better schools and safer classrooms, improve student achievement, save taxpayer dollars and protect property values, please join business leaders, teachers, parents, grandparents and neighbors in voting YES on Measure K.

Argument Against Measure K

ARGUMENT AGAINST MEASURE K

None Filed

Full Text of Measure K

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FULL TEXT OF MEASURE K

To upgrade/acquire career technical education classrooms; renovate/repair aging classrooms; replace leaking pipes; repair or replace roofs; and update fire/life safety systems at Richard M. Moon Primary, Waterford Junior, Lucille Whitehead Intermediate, Waterford High and other district facilities, shall Waterford Unified School District be authorized to issue $10.65 million of bonds with rates below legal limits, independent citizen oversight, no funds for administrator salaries or taken by the State and NO increase in existing tax rates?

Bonds—Yes Bonds—No

BOND AUTHORIZATION

By approval of this proposition by at least 55 percent of the registered voters voting on the measure, the Waterford Unified School District (the "District") will be authorized to issue and sell bonds of up to $10,650,000 in aggregated principal at interest rates not in excess of the legal limit and to provide financing for the specific projects listed in the Bond Project List described below, subject to all the accountability requirements specified below.

The Bonds may be issued under the provisions of the California Education Code (starting at Section 15100), under the provisions of the California Government Code (starting at Section 53506), or under any other provision of law authorizing the issuance of general obligation bonds by school districts. The Bonds may be issued in series by the District from time to time, and each series of Bonds shall mature within the legal limitations set forth in the applicable law under which the Bonds are issued.

FINANCING PLAN

The District intends to use the Bonds to modernize, replace, renovate, construct, acquire and rebuild the District facilities on the Bond Project List.

All Bonds will be sold as current interest bonds and the use of capital appreciation bonds will not be permitted. No series of Bonds will be issued if such issuance would cause the tax rate levied to pay debt service on all of the outstanding Bonds to exceed $60 per year per $100,000 of taxable property, based on projections made by the District at the time of issuance of such series of Bonds.

ACCOUNTABILITY REQUIREMENTS

The provisions in this section are specifically included in this proposition in order that the voters and taxpayers in the District may be assured that their money will be spent wisely. Expenditures to address specific facility needs of the District will be in compliance with the requirements of Article XIIIA, Section 1(b)(3), of the State Constitution and the Strict Accountability in Local School Construction Bonds Act of 2000 (codified at Education Code Sections 15264 and following).

Evaluation of Needs. The Board of Trustees of the District (the "Board of Trustees") has identified detailed facility needs of the District and has determined which projects to finance from a local bond at this time. The Board of Trustees hereby certifies that it has evaluated safety, class size reduction, enrollment growth, and information technology needs in developing the Bond Project List shown below.

Independent Citizens' Oversight Committee. The Board of Trustees shall establish an Independent Citizens' Oversight Committee under Education Code Section 15278 and following to ensure that bond proceeds are expended only on the school facilities projects listed below. The committee will be established within 60 days of the date when the results of the election appear in the minutes of the Board of Trustees.

Performance Audits. The Board of Trustees shall conduct 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 below.

Financial Audits. The Board of Trustees shall conduct 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 below.

Annual Report. The Director of Fiscal Services of the District will cause an annual report to be filed with the Board of Trustees, the first report to be filed not later than one year after the issuance of the first series of the bonds, which report will contain pertinent information regarding the amount of funds collected and expended, as well as the status of the projects listed in this measure, as required by applicable California law.

Expenditure of Bond Proceeds. The proceeds from the sale of the District's bonds will be used only for the purposes specified in this measure, and not for any other purpose. Such proceeds will be deposited into a Project Fund to be held by the Stanislaus County Treasurer, as required by the California Education Code.

FURTHER SPECIFICATIONS

No Administrator Salaries. Proceeds from the sale of bonds authorized by this proposition shall be used only for the school facilities projects on the Bond Project List below, and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

BOND PROJECT LIST

Scope of Projects. The Bond Project List shown below is a part of the ballot measure and must be reproduced in any official document required to contain the full statement of the bond measure.

Bond proceeds will be expended to modernize, replace, renovate, construct, acquire and rebuild the District's facilities as described in the following list.

Whenever specific items are included in the following list, they are presented to provide an example and are not intended to limit the generality of the broader description of the types of authorized projects.CriticalThis really takes the cake. How is any of this "a list of the specific school facilities projects to be funded" as required by the California Constitution? It's not. It authorizes the district to spend the money on whatever it wants, whenever it wants, wherever it wants.

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Such projects shall include but shall not be limited to:

RICHARD M. MOON PRIMARY SCHOOL

• • Repair/replace old and deteriorating plumbing and sewer systems
• • Repair, upgrade and equip classrooms and educational facilities including replacement of corroded classroom walls and ceilings and worn classroom flooring
• • Renovate and repair outdated restrooms including the replacement of toilets, sinks, urinals, and plumbing fixtures
• • Construct/renovate multi-purpose building for kitchen, cafeteria and other facilities
• • Construct/renovate facilities to provide for adequate library space
• • Upgrade/replace outdated heating, ventilation, and air-conditioning (HVAC) systems
• • Repair, renovate and equip portable classrooms
• • Replace outdated portable classrooms with new classrooms as necessary
• • Install energy efficient lighting fixtures
• • Construct/renovate age appropriate play structures
• • Replace old windows with new energy efficient windows
• • Repair/replace deteriorating roofs

WATERFORD JUNIOR HIGH SCHOOL

• • Convert, renovate and equip existing classrooms into Career Technical Education (CTE)/science labs
• • Construct and modernize multi-purpose room/gymnasium
• • Construct/install outdoor eating and shade structure areas
• • Construct new computer and technology lab
• • Repair/upgrade athletic track and playing fields
• • Repair/replace deteriorating roofs
• • Upgrade/replace outdated heating, ventilation, and air-conditioning (HVAC) systems
• • Install energy efficient lighting fixtures
• • Replace worn classroom flooring
• • Replace old windows with new energy efficient windows
• • Renovate and repair outdated restrooms including the replacement of toilets, sinks, urinals, and plumbing fixtures
• • Make handicap accessibility (ADA) upgrades and improvements
• • Asphalt paving of the existing unpaved fire lanes for increased safety
• • Repair/replace fencing around perimeter of school for increased student safety
• • Repair/replace outdated sewage and irrigation systems
• • Replace and relocate fire alarm control panel for increased student safety

WATERFORD CHILD DEVELOPMENT

• • Repair and rehabilitate portable classrooms
• • Construct/renovate aging play structures

LUCILLE WHITEHEAD INTERMEDIATE SCHOOL

• • Acquire or construct new classrooms as needed
• • Construct/install outdoor eating and shade structures

SENTINEL HIGH SCHOOL

• • Repair and rehabilitate portable classrooms

WATERFORD HIGH SCHOOL

• • Construct and equip Career Technical and Industrial Shops
• • Construct, renovate or acquire all-weather track with water drainage system and outdoor lighting for tennis courts and athletic fields
• • Construct/install food service facility and outdoor eating and shade structures
• • Construct/renovate multi-purpose building to provide space for educational programs and additional restrooms
• • Construct/renovate gymnasium building to provide space for educational programs

Projects Subject to Available Funding. The foregoing list of projects is subject to the availability of adequate funding to the District. Approval of the bond measure does not guarantee that the proposed projects in the District that are the subject of bonds under the measure will be funded beyond the local revenues generated by the bond measure. The District's proposal for the 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.

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Measure K Tax Rate Statement

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TAX RATE STATEMENT FOR MEASURE K

An election will be held in the Waterford Unified School District (the "District") on November 8, 2016, to authorize the sale of up to $10,650,000 in bonds of the District to continue improving the quality of education in local schools of the District. Specifically, bond proceeds shall be utilized for the purposes of modernizing, replacing, renovating, constructing, acquiring and rebuilding school facilities in the District.

If the bonds are authorized and sold, debt service thereon will be payable 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.

1. The best estimate of the tax 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 $0.06 per $100 ($60 per $100,000) of assessed valuation in fiscal year 2022 - 2023.

2. The best estimate of the tax 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 $0.06 per $100 ($60 per $100,000) of assessed valuation in fiscal year 2022 - 2023.

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 $0.06 per $100 ($60 per $100,000) of assessed valuation in fiscal years 2022 - 2023.

4. The best estimate of the average tax rate which would be required to be levied to fund this bond issue during the life of the bonds, based on estimated assessed valuations available at the time of filing of this statement, is $0.06 per $100 ($60 per $100,000) of assessed valuation.

5. The best estimate of the total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold is $23,524,018.

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable property on the County's 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.

Attention of all voters is directed to the fact that the foregoing information is based upon the District's projections and estimates only, which are not binding upon the District. The actual 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 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, including the legal limitations on bonds approved by a 55% vote. 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: June 10, 2016

/s/ Don Davis, Superintendent
Waterford Unified School District