Commentary on Measure E

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 E Question

To improve educational quality; upgrade/renovate/construct classrooms, restrooms and facilities; repair/replace leaky roofs; upgrade outdated electrical and plumbing/sewer systems; make health/safety/handicapped accessibility improvements; shall Enterprise Elementary School District issue $26,000,000 of bonds at legal rates, levy an estimated 3 cents/$100 of assessed value, raising an average $1,540,000 annually while bonds are outstanding, have an independent citizens' oversight committee, NO money for administrative salaries, with funding that cannot be taken by the state?

Impartial Analysis for Measure E

General Election · November 6, 2018 · 29
Local Ballot Measure: E

Impartial Analysis of Measure E

This analysis of the general obligation bond measure for the Enterprise Elementary School District ("District"), Measure E, is provided in accordance with Elections Code sections 9500, et seq. The electors entitled to vote on the measure are those residing within the District's boundaries.

Section 1 of Article XIIIA and section 18 of Article XVI of the California Constitution and Education Code sections 15264, et seq. authorize school districts to adopt a proposal, subject to the approval of the District's voters, to issue general obligation bonds for specific school district purposes. The District adopted such a proposal and is submitting it to the District electors for their consideration.

If 55% of the qualified electors voting on Measure E vote for approval, the District would be authorized to issue bonds in the principal amount not to exceed $26,000,000 and to levy ad valorem taxes on taxable property within the District to pay for the bonded indebtedness plus interest. The bonds may be issued and sold in several series and may mature in 40 years or such shorter period as determined by the District Board in accordance with applicable law. The interest rate on the bonds would not exceed the statutory limit.

The projects to be financed by the bonds may include: 1) repairing, renovating, upgrading, or replacing infrastructure as described in the full text of the measure (the "Full Text"); 2) making technological, safety, and security improvements; 3) acquiring instructional, maintenance and operational equipment, including the reduction or retirement of outstanding lease obligations and interim funding incurred to advance fund projects from the list enumerated in the Full Text; 4) repair, replace, or upgrade paved surfaces, heating and ventilation systems, and plumbing and sewer systems; 5) costs and work necessary or incidental to the projects; and 6) other projects 30 · General Election · November 6, 2018
Local Ballot Measure: E listed in the Full Text. The proceeds will not be used for any purpose not identified in the measure, including teacher or administrator salaries or be taken by the state. The District's Board of Trustees shall establish a citizen's oversight committee to ensure that the proceeds of the bonds are spent only on the specific projects and the specific school sites identified in Measure E.

According to the tax rate statement submitted by the District, the best estimate of the maximum ad valorem tax which would be levied on taxable real property to repay the bonds over their term is $30.00 per year per $100,000 of assessed value. These calculations are estimates only and are not binding upon the District.

If Measure E is not approved by 55% of the qualified electors voting on the measure, the District will not be authorized to issue bonds for the aforementioned purposes.

A "yes" vote is to authorize the issuance of the bonds.

A "no" vote is against authorizing the issuance of the bonds.

Rubin E. Cruse, Jr.
County Counsel

By:
/s/ James R. Ross
Assistant County Counsel

Argument in Favor of Measure E

Argument for Measure E

Our schools are the most important assets in our community and should be our number one priority. From higher achieving students, to training for future jobs, to greater neighborhood safety, quality schools make a difference. We have an opportunity to maintain the quality of our local elementary schools without increasing our taxes by voting YES on Measure E.

Although neighborhood schools have been well maintained over the years with some major recent renovations, our schools are old, and our work is not done. The average age of schools in the District is over 54 years with Rother Elementary, our oldest, first built nearly 62 years ago. These aging schools need major classroom, facility, and infrastructure improvements to preserve the excellent education provided to local children. By improving local schools, we can meet today's safety, technology, and educational standards and better our community.

Measure E will upgrade and renovate elementary classrooms, restrooms, and school facilities by:

• • Repairing or replacing leaky roofs
• • Replacing and upgrading deteriorating plumbing, drainage and sewer systems and inadequate electrical systems
• • Making health, safety and handicapped accessibility improvements
• • Replacing outdated heating, ventilation and air-conditioning systems
• • Constructing or renovating science and technology labs

General Election · November 6, 2018 · 25
Local Ballot Measure: E

Measure E makes financial sense and protects taxpayers:

• • Measure E will not increase the tax rate but will be lower than what property owners have been paying
• • All funds must be spent locally and cannot be taken by the State
• • By law, an independent citizens' oversight committee must annually audit and review spending
• • Funds can only be spent to improve facilities, not for teacher or administrative salaries

Measure E upgrades and repairs old classrooms, improves the education of local children, and maintains the quality of our community, all without increasing taxes. That's something we can all support. Please join us and VOTE YES ON MEASURE E!

Argument Against Measure E

No Argument Against Filed.

Full Text of Measure E

General Election · November 6, 2018 · 31
Local Ballot Measure: E

Full Text of Measure E

INTRODUCTION

The Enterprise Elementary School District was established in 1868 and serves the East side of the City of Redding, in the County of Shasta. The District serves approximately 3,748 students in nine (9) schools, several of which are aging. The District faces a variety of challenges to its ability to adequately house all of its students. The District has an ongoing need for facilities and infrastructure, including security improvements to improve student safety; repairing, replacing, and upgrading defective, old systems including leaky roofs, inadequate electrical systems, outdated HVAC systems, and deteriorating plumbing, drainage, and sewer systems. The District also has a need for expanding its technology infrastructure for future needs and increased capacity to improve student access to computers and modern technology. The District needs to be prepared for increased enrollment because of local home development and construction, and anticipates a need to modernize or expand school libraries to serve an increase in student enrollment. Addressing these issues of refurbishment of aging facilities, growth, and facilities upgrades, requires that the District ask its voters to approve a General Obligation Bond.

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 Sacramento.

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, upgrade, and refurbish safe and modern schools to ensure our students have the educational opportunities they deserve.

32 · General Election · November 6, 2018
Local Ballot Measure: E

BONDS

To improve educational quality; upgrade/renovate/construct classrooms, restrooms and facilities; repair/replace leaky roofs; upgrade outdated electrical and plumbing/sewer systems; make health/safety/handicapped accessibility improvements; shall Enterprise Elementary School District issue $26,000,000 of bonds at legal rates, levy an estimated 3 cents/$100 of assessed value, raising an average $1,540,000 annually while bonds are outstanding, have an independent citizens' oversight committee, NO money for administrative salaries, with funding that cannot be taken by the state?

MEASURE

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.

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 and the availability of needed funds. 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.

General Election · November 6, 2018 · 33
Local Ballot Measure: E

SCHOOL FACILITIES PROJECTS TO BE FUNDED FROM BOND PROCEEDS

The following list includes both projects that can be completed using the bond proceeds, along with State matching funds and other building funds the District is projected to receive and projects that are planned and needed but whose construction is contingent on the amount of bond funds available, plus the amount of State matching and other building funds the District may receive in the future, which is a function of the State building program rules, passage of State bonds, and the growth rate of the District. The completion of specific projects is also contingent on final project costs.

All District Sites

• • New HVAC systems to replace aging systems;
• • Improve safety and security by creating secure and monitored entrances to all campuses;
• • Restroom renovations, including flooring, wall systems, privacy enclosures, ventilation, plumbing, and ADA upgrades;
• • Improve safety and security through the implementation of building control systems, including new electronic locking/building access systems;
• • ADA upgrades, including ensuring accessible pathways, correcting existing cross slopes, ramps, and alternatives to interior stairs;
• • Add covered walkways to classrooms without covers;
• • New buildings to replace aging portable buildings;
• • Replace old, failing asphalt parking lots and playground surfaces;
• • Improve energy efficiency through the implementation of building control systems, including replacement of aging HVAC systems and installation of a centralized control system;
• • Add shade structures to eating areas and playground spaces;

34 · General Election · November 6, 2018
Local Ballot Measure: E

• • Improve energy efficiency though installation of solar arrays on new shade structures and covered walkways;
• • Development of a safe and secure centralized maintenance and operations facility;
• • Improve playgrounds for safety of students to include modern equipment, new fall material such as pour and play rubber materials.

Alta Mesa Elementary

• • Upgrade old, failing storm drain system;
• • Remodeled rooms/wing 3 for special education usage (changing room, handicap student bathroom, cooldown room, etc.);
• • Playgrounds: new equipment, poured rubber surface;
• • Rehab of exterior facilities, finished, and paint;
• • Expand front office to include private health office for school nurse/students and add a conference room.

Boulder Creek

• • Add restrooms accessible to lower playgrounds;
• • Add or expand the library to adjust to increase population and grades served;
• • Add a workroom/copy room, current facility is inadequate due to growth. Recapture classroom spaces currently used for administrative purposes;
• • Parking lot improvements to improve safety and traffic flow;
• • Upgrade pods, wall systems and partitions to improve auxiliary learning spaces;

General Election · November 6, 2018 · 35
Local Ballot Measure: E

• • Increase size of cafeteria covered eating area to accommodate growing student population;
• • Playfield improvements including softball backstops and track development/improvements for school and community use;
• • Development of an outdoor theatre;
• • Labs, including STEM.

Lassen View Elementary

• • Development of new kindergarten playground, replacement of aging play structures;
• • Construction of a gym for school and community use;
• • Develop additional parking.

Mistletoe School

• • Construction of a gym for school and community use;
• • Develop additional parking;
• • Acquire adjacent property/parcel to expand campus for gym and parking;
• • Remodel office to create conference room;
• • Build music room for junior high;
• • Construct or renovate labs, including STEM (Science Technology, Engineering, and Math).

Parsons Junior High

• • Construct or renovate labs, including STEM (Science Technology, Engineering, and Math);
• • Expand the gym to include expanded entry, performing arts stage addition, and new, safer, modern and mechanical multi-use bleachers;
• • Complete performing arts building and design and construction;
• • Redesign parking lot and traffic flow;
• • Develop a greenhouse/garden area;

36 · General Election · November 6, 2018
Local Ballot Measure: E

• • Develop custodial shop and storage facilities;
• • Development of an outdoor theatre; and
• • Repaint/re-stripe and possibly re-rubberize the track.

Rother Elementary

• • Construct new gym or multipurpose room for school and community use;
• • Expand/develop new office facilities to centralize administrative services;
• • Add student restrooms accessible to playground; and
• • Drop off/pick up areas and parking lot improvements to improve student safety and traffic flow.

Shasta Meadows

• • Drop off/pick up areas and parking lot improvements to improve student safety and traffic flow;
• • Install a permanent shade structure outside the cafeteria; and
• • Upgrade playfields to include improved track facility.

Monte Vista

• • Repair or replace aging roofs;
• • Construct or renovate labs, including STEM (Science Technology, Engineering, and Math);
• • Construct new classrooms, library, and other facilities;
• • Improve entrance to the school to improve bus/vehicle traffic flow and student safety;
• • Expand playground facilities, structures and equipment; and
• • Upgrade buildings, shops, and equipment to expand career preparedness curriculum.

***

The listed projects will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, General Election · November 6, 2018 · 37
Local Ballot Measure: E program/project management, 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, including the reduction or retirement of outstanding lease obligations and interim funding incurred to advance fund projects from the Project List; payment of the costs of preparation of all facility planning, facility studies, assessment reviews, facility master plan preparation and updates, environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated District activities caused by construction projects.

The construction of facilities included in the project list above is assumed to include the construction of new classrooms and support sites, including the acquisition of land, necessary furnishings, equipment, technology, and installation of site infrastructure, as needed to accommodate continued growth or shifts in student population and provide additional learning facilities or replace aging facilities.

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: acquisition of land; renovate student and staff restrooms; upgrade or install signage, clocks and fencing; repair and replace heating and ventilation systems; upgrade of facilities for energy efficiencies; repair and replace worn-out and deteriorated roofs, windows, walls, doors and drinking fountains; upgrade public address systems; install wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; meet earthquake safety standards; improve water conservation; upgrade or construct support facilities, including administrative, physical education (including upgrading gyms, athletic facilities, tracks, bleachers, lockers and equipment rooms), theater, labs (including STEM labs), and performing arts and music classrooms; 38 · General Election · November 6, 2018
Local Ballot Measure: E repair and replace fire alarms, emergency communications and security systems; resurface or replace hard courts; irrigation and drainage systems and campus landscaping; replace asphalt and broken pavement; expand or improve parking lots and drop-off areas; replace portable classrooms; interior and exterior painting, floor covering and tile replacement; upgrade or expand school cafeterias; construct various forms of storage and support spaces and classrooms; repair, upgrade and install interior and exterior lighting systems; improve athletic fields and shade structures, including adding solar shade structures, and solar panels; replace or upgrade outdated security fences, gates and security systems (including access control systems); and upgrade heating, ventilation and air conditioning systems. The upgrading of technology infrastructure includes, but is not limited to, servers, switches, routers, modules, sound projection systems, call manager and network security/firewall, wireless technology systems, and other miscellaneous equipment. Some projects throughout the District 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. 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 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. Bond proceeds shall only be expended for the specific purposes identified herein. The District shall create General Election · November 6, 2018 · 39
Local Ballot Measure: E an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code section 53410.

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 Enterprise Elementary 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.

Measure E Tax Rate Statement

26 · General Election · November 6, 2018
Local Ballot Measure: E

Tax Rate Statement for Measure E

An election will be held in the Enterprise Elementary School District (the "District") on November 6, 2018, to authorize the sale of up to $26,000,000 in bonds of the District for the school facilities projects described in the bond measure. If such bonds are authorized, the District expects to sell the bonds in one or more series. 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 California Elections Code. Such information is based upon assessed valuations available from official sources and projections based upon experience within the District, and other demonstrable factors. Based upon the foregoing, the following information is provided:

1. (1) The best estimate from official sources of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on estimated assessed valuations which are projected based on experience within the District or other demonstrable factors, is $0.03 per $100 of assessed valuation ($30.00 per $100,000 of assessed valuation). The final fiscal year in which the tax is anticipated to be collected is Fiscal Year 2051-52.
2. (2) The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue, based on estimated assessed valuations which are projected based on experience within the District or other demonstrable factors, is $0.03 per $100 of assessed valuation ($30.00 per $100,000 of assessed valuation). The estimated year in which that rate would apply is Fiscal Year 2020-21.
3. (3) 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 $53,900,000. This estimate is based on assumptions regarding

   General Election · November 6, 2018 · 27
   Local Ballot Measure: E

   future interest rates and the term, timing, structure and amount of each series of bonds.
4. (4) The proposed measure is not projected to raise taxes above what property owners have been paying from a prior 1990 bond election; rather, the proposed measure is expected to result in an overall lower tax rate, for an extended term. It is the District's current plan to structure the proposed bonds so that the tax rate necessary to pay debt service on the new bonds is not projected to exceed the rate paid by property owners the past 28 years, and in fact is estimated to be significantly lower at $0.03 per $100 of assessed valuation ($30.00 per $100,000 of assessed valuation).

Voters should note that such estimated tax rates are specific to the repayment of bonds issued under this authorization and are and will be in addition to tax rates levied in connection with other bond authorizations approved or to be approved by the District or any other overlapping public agency.

Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on Shasta 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.

28 · General Election · November 6, 2018
Local Ballot Measure: E

The dates of sale and the amount of bonds sold at any given time will be determined by the District based on 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 Shasta County Assessor in the annual assessment and the equalization process.

/s/ Philip Brown
Chief Business Official
Enterprise Elementary School District

Measure E Resolution