Modesto City Elementary Schools: Vote Yes on Measure E Bonds - Stanislaus County - 2018 general Election
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  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Welcome to the Yes No on Measure E Campaign

#HonestBallots Movement

Your Stanislaus County Registrar of Voters printed and circulated ballots for this measure that didn't conform to the law. The registrar ignored our Notice and Demand to follow the law. The legislature makes this a crime. (See: How 25 County Registrars Committed A Crime.)

If you want to get really steamed up about the collusion between your Registrar and Modesto City Elementary Schools to lie and cheat in order to steal your taxes, you can read the letter for yourself.

Do you want to give this district a Thanksgiving surprise? Please call or text me (with #HonestBalllots, Stanislaus, 0625130:E, and your name) at 909-378-5401 right now for details. It's urgent and very time-sensitive.

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.

  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Measure E Question

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EXHIBIT A

BALLOT LABEL

The following statement was prepared in the hope the legislature would suspend the law (AB-195) that required districts to inform you of the amount of taxes for which you're voting. It's all about deceiving the voters. The school bonds cartel has no shame. It just wants your money. The ends justify the means.

One of the notorious budget trailer bills was amended in May to allow the district to keep you in the dark. Unfortunately for them, Dan Walters got wind of it and castigated the legislature for their sleazy and unscrupulous conduct. The budget trailer bill never came to a vote before the August 10 filing deadline. So the issue is moot.

[If AB 195 is repealed or stayed before deadline]:

MODESTO CITY ELEMENTARY SCHOOL DISTRICT CLASSROOM/SCIENCE LAB ENHANCEMENT MEASURE. To update classrooms/science labs in local schools to support quality instruction in subjects like math/science/reading/writing; replace aging portables with permanent classrooms; and equip classrooms with learning technology preparing students for 21st-Century jobs, shall Modesto City Elementary School District issue $57 million in bonds at legal rates, with citizen oversight, annual audits, no funds for administrator salaries, all funds used for Modesto schools only and all funds staying local?

Bonds - Yes ___ Bonds - No ___

[Per AB 195]:

MODESTO CITY ELEMENTARY SCHOOL DISTRICT CLASSROOM/SCIENCE LAB ENHANCEMENT MEASURE. To update classrooms/science labs to support quality instruction in math/science/reading/writing; replace aging portables with permanent classrooms; equip classrooms with technology preparing students for 21st-Century jobs, shall Modesto City Elementary School District issue $57 million in bonds at legal interest rates, collecting about $2.85 million annually with rates approximately $22 per $100,000 assessed valuation while bonds are outstanding, with citizen oversight, audits, no funds for administrators, all funds local?

Bonds - Yes ___ Bonds - No ___

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  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Impartial Analysis for Measure E

IMPARTIAL ANALYSIS BY COUNTY COUNSEL
BOND MEASURE E
Modesto City Elementary School District

Upon approval of 55% of the votes cast by voters on this Measure E, California law authorizes Modesto City Elementary School District ("District") to issue bonds in an aggregate amount not exceeding $57,000,000 to finance specific classroom and science lab school projects. The bonds would constitute an indebtedness of the District. The bonds interest rates and maturity dates will not exceed the legal maximums.

California Education Code section 15100 restricts the use of the money raised from the bonds sale to such items as building and maintaining school buildings, improving school grounds, supplying school buildings and grounds with equipment, and the acquisition of real property for school facilities. In addition, the District may only use the proceeds for projects listed in the measure. The project list includes, among others: acquire and construct and/or renovate, modernize and update classrooms/ science labs, instructional and support facilities; replace aging portables with permanent classrooms; equip and improve classroom technology; and improve energy efficiency.

Proceeds may not be used for any other purpose, 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.

Approval of this measure will authorize a levy of ad valorem taxes on property located within District boundaries to pay bond principal, interest and associated costs.

The Tax Rate Statement for Measure E in this sample ballot pamphlet reflects the District's best estimates, based on currently available data and projections, of the property tax rates required to service the bonds. The actual amount of tax levied may be higher. The best estimate of the average annual tax rate required to be levied to fund the bonds over the entire duration of the bond debt service is $0.022 per $100 (or $22 per $100,000) of assessed valuation. The best estimate of the highest tax rate to be levied to fund the bonds is $0.030 per $100 (or $30 per $100,000) of assessed valuation. If all bonds are issued and sold, the best estimate of the total debt service, including principal and interest, is approximately $114,000,000.

The measure requires District be accountable for the use of the proceeds from the sale of the bonds as required by the California Constitution and Education Code. An independent citizens' oversight committee will ensure the bond proceeds are expended only on the projects outlined in the measure. Performance and financial audits will be conducted annually.

The measure is placed on the ballot by the Board of Education of the District.

A "yes" vote is a vote to authorize the issuance and sale of $57,000,000 in bonds and financed by ad valorem taxes levied on real property in the District.

A "no" vote is a vote against issuing the proposed bonds.

Submitted by County Counsel pursuant to Elections Code section 9500.

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

  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Argument in Favor of Measure E

ARGUMENT IN FAVOR OF MEASURE E

Vote YES on Measure E to make critical repairs and upgrades to Modesto elementary and middle schools to ensure that local students can receive the quality education they deserve in safe, up-to-date classrooms.

Measure E, along with its companion measure, Measure D, work together to ensure that our Modesto schools meet modern academic and safety standards. Measure D makes critical repairs to school facilities and security systems, and Measure E updates Modesto classrooms and science labs with 21st-century learning technology to ensure all students can build the skills they need to thrive in today's world.

Voting YES on D & E means that our Modesto classrooms and science labs can be repaired and upgraded to prepare students to succeed in high school, college and 21st-century careers.

Specifically, Voting YES on D & E Will:

  • Repair leaking roofs
  • Improve fire, emergency, lighting and security camera systems
  • Equip classrooms and science labs with modern learning technology to prepare students for 21st century jobs
  • Update aging cafeterias, restrooms, plumbing, heating, air conditioning and electrical systems
  • Improve accessibility for students with disabilities
  • Repair and update outdated classrooms and science labs to protect the quality of academic instruction in core subjects like math, science, reading and writing

Measure E Requires Strict Fiscal Accountability

  • Every penny benefits our local elementary and middle schools and cannot be taken by the state
  • No funds can be used for administrators' salaries, pensions or benefits
  • An independent citizens' oversight committee and annual audits are mandatory to ensure funds are spent as promised

Parents, teachers and community leaders all agree—Measures D & E will repair and update elementary and middle school classrooms to help Modesto students succeed. Join them and vote YES on D & E!

/s/ Carol Whiteside,
Former Mayor

/s/ Curtis R. Grant,
Retired University Professor

/s/ Gladys E. Williams,
President NAACP 1048

/s/ Bart Ah You,
Concerned Citizen

/s/ Olga V. Castaneda,
Librarian

  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Argument Against Measure E

ARGUMENT AGAINST MEASURE E

None Filed.

  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Full Text of Measure E

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EXHIBIT B

FULL BALLOT TEXT

MODESTO CITY ELEMENTARY SCHOOL DISTRICT
CLASSROOM/SCIENCE LAB ENHANCEMENT MEASURE

By approval of this measure by at least fifty-five percent (55%) of the registered voters voting thereon, the Modesto City Elementary School District shall be authorized to issue and sell bonds of up to $57 million in aggregate principal amount to provide financing for the specific elementary and middle/junior high school facilities projects listed below in the Bond Project List, subject to all of the accountability safeguards specified herein.

SECTION I: KEY FINDINGS

  • 0 Modesto City Elementary School District has provided quality elementary and middle/junior high school (K-8) education to students in the local community for over 100 years.
  • 0 Aging education facilities need repairs and upgrades to meet modern academic and safety standards.
  • 0 The District has conducted a facility improvementproject prioritization process with input from parents, teachers, staff, and members of the community to identify the upgrades needed at each school site in order to meet modern safety standards, to meet the District's goals for supporting current academic standards, and to address specific priorities at individual school sites.
  • 0 These projects include addressing urgent needs, like replacing leaky roofs, keeping schools clean, well-maintained and in good condition, performing essential safety repairs and maintenance on classrooms and facilities, and upgrading fire and earthquake safety.
  • 0 Updates are needed to improve campus and student security, including lighting, security cameras and fencing to control access to all campuses.
  • 0 Updating classrooms and aging facilities will make school more efficient and will help cut utility costs, freeing up money to support teaching and classroom instruction.
  • 0 Locally-controlled funding from bond measures is the primary means by which the all local school districts are able to keep its school buildings and classrooms in good repair, safe, designed and equipped to support changing educational standards, methods and approaches.
  • 0 The District cannot rely on the State of California to fund school facility improvements and the limited state dollars available for facility upgrades often require local matching funds that could be provided by a local bond measure.
  • 0 The District is proposing this bond measure to fund improvements to classrooms, science labs and other educational facilities to support quality academic instruction for students along with a companion measure to complete urgent health and safety improvements at local elementary and middle/junior high schools.
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  • 0 The District's two bond measures are designed to work together as a package to sure students are safe while also providing modern classrooms and educational facilities needed to support quality instruction that meet current academic standards.
  • 0 These bond measure will benefit local Modesto schools only and no funds can be taken away by the State or other school districts, and by law, no money can be used for administrator salaries or pensions.
  • 0 These bond measures require strict fiscal accountability protections including mandatory annual audits and an independent citizens' oversight committee comprised of local residents to ensure funds are managed and spent properly.

SECTION II: 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 Education has evaluated the facilities needs of the District, and has identified projects to finance from a local bond measure at this time. The Board of Education hereby certifies 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 Education 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 Citizens' Oversight Committee may be empowered by the Board of Education to oversee the expenditure of bond proceeds from more than one bond measure, if applicable. A new committee shall be established within sixty (60) days of the date when the Board of Education enters the results of the election in its official minutes.

Annual Performance Audit. The Board of Education 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 Education 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 Education 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 Education 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.

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SECTION III: 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. All information contained within this "Section III: Bond Project List" comprises the list and description of permissible projects and expenses that may be paid from bond proceeds, and where such projects may be completed.

Proceeds from the sale of bonds authorized by this measure 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 teacher and administrator salaries and other school operating 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 joint-use funds, development impact fees, state funds, and other available funds. The District will pursue state matching funds if and when they become available, and if received, they will be used for and mainly applied to projects on the Bond Project List or other high priority capital outlay expenditures as permitted in Education Code section 17070.63(c). While no specific project is dependent on the receipt of state funding for completion, approval of this measure does not guarantee that all projects on this Bond Project List will be funded beyond the local revenues generated by this measure. The District's proposal for the projects assumes the receipt of some state matching funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure.

Specific projects to be funded by the bond measure include, without limitation, the following:

A. PROJECTS TO PROVIDE UPGRADED SPACE FOR INSTRUCTION AND SUPPORT 21ST-CENTURY LEARNING

  • 0 Replace portable classroom buildings with permanent classrooms;
  • 0 To accommodate 21st-century learning methods, acquire sites and construct, furnish and equip and/or renovate, modernize, upgrade, repair, replace:
    • 0 classrooms and buildings, including relocatable or modular buildings
    • 0 school libraries
    • 0 middle/junior high school art and music spaces and venues
    • 0 athletic fields, hardcourts, and play areas
    • 0 multipurpose rooms, auditoriums, gymnasiums and locker rooms
    • 0 food service facilities, community centers, meetings spaces, custodial spaces, workrooms, administrative offices and parent/student support service areas

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  • 0 Update building exteriors by painting and repairing and/or replacing siding and heating and ventilation systems (HVAC);
  • 0 Replace doors and windows;
  • 0 Update and/or renovate classrooms by repairing and/or replacing flooring, ceiling tiles and casework, re-painting and updating electrical systems;
  • 0 Improve outdoor athletic spaces including fields and hardcourts with updated equipment, fencing, lighting, backstops and playing surfaces;
  • 0 Install new or replace deteriorating campus fencing and gates;
  • 0 Repair and/or update special education indoor pool at Sonoma Elementary including pool infrastructure, exhaust systems, chemical controls, accessibility equipment and pool equipment.

B. PROJECTS TO ENABLE SCHOOLS TO MEET CURRENT ACADEMIC STANDARDS

  • 0 Build new or transform existing spaces to ensure functional science labs to meet District facility standards for elementary and middle/junior high schools, including purchase of safety equipment, appliances and systems, and building science equipment storage areas.
  • 0 Upgrade/improve energy efficiency and install or replace energy conservation or generation systems (lighting, electrical, solar, geothermal) to reduce utility costs and accommodate District's increased usage of and demand for 21St century technology;
  • 0 Improve school site network infrastructure, which may include:
  • 0 Upgrading and improving the routing and network aggregation capabilities for each site in order to support the larger numbers of concurrent network and internet connections;
  • 0 Upgrading and improving the network access layer switching capabilities in order to support the larger numbers of devices on our school networks as well as supporting the higher speed requirements;
  • 0 Upgrading and improving classroom wiring for both wired and wireless data communication;
  • 0 upgrading and improving fiber network cabling between data wiring closets.
  • 0 Acquire and install centrally manageable, networked loudspeaker/bell/clock systems;
  • 0 Provide updated classroom audio/visual technology; and
  • 0 Furnish classrooms, learning and support spaces with furniture, screens, bulletin boards, and window coverings.

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Unless limited by express language in the Bond Project List, projects listed may be completed at any andall elementary and middle/junior high school sites and facilities where such project is determined by the Board to be necessary or required, and projects are authorized to be performed at any and all of the following school sites:

Elementary Schools

          Beard Elementary              Lakewood Elementary
          Bret Harte Elementary         Marshall Elementary
          Burbank Elementary            Martone Elementary
          El Vista Elementary           Muir Elementary
          Enslen Elementary             Robertson Road Elementary
          Everett Elementary            Rose Avenue Elementary
          Fairview Elementary           Shackleford Elementary
          Franklin Elementary           Sonoma Elementary
          Fremont Elementary            Tuolumne Elementary
          Garrison Elementary           Wilson Elementary
          Kirschen Elementary           Wright Elementary

Middle/Junior High Schools

          Evelyn Hanshaw Middle School  Mark Twain Junior High School
          La Loma Junior High School    Roosevelt Junior High School

Listed projects, repairs, improvements, rehabilitation projects and upgrades will be completed only as needed, and the listing of projects does not imply a particular prioritization among such improvements. Projects may be done in phases, based on Board of Education priorities. 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, timing, prioritization or other facets of project implementation will be made solely by the Board of Education by subsequent action. Where terms such as "renovate," "upgrade," "repurpose" and "improve" are used in the Bond Project List, the Board of Education has the discretion to 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. Property, buildings and equipment on the bond project list may be acquired through lease, sale, lease-purchase, lease-leaseback or other project delivery or acquisition methods determined appropriate by the Board.

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Each project is assumed to include its share of costs of bond issuance, architectural, engineering, legal and planning costs, construction management, bond project staff and consultants, staff development and training expenses associated with learning construction techniques and approaches, 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, code compliance and assessment reviews, master planning, environmental studies, permit and inspection fees and temporary housing and relocation and rebuilding 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, some of the projects described above may be delayed or may not be completed. Necessary site preparation, grading or restoration may occur in connection with acquisition of property, new construction, modernization, renovation or remodeling, or installation or removal of modular classrooms, 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.

SECTION IV: ADDITIONAL SPECIFICATIONS

No Administrator Salaries. 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 teacher and administrator salaries and other school operating expenses.

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.

No Long Term Debt for Short Lifespan Items. The weighted average maturity of each issue of bonds will not exceed 120 percent (120%) of the average reasonably expected economic life of the projects financed by the bonds, consistent with federal tax law.

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 Education 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 Bond funds may be used to reimburse the District for Bond Project list expenditures incurred prior to the election and bond issuance, in accordance with federal tax law.

Attention of all voters is directed to the fact that the financial information contained in this measure is based upon the District's projections and estimates only, which are not binding upon the District, nor are the summary estimates, if any, provided in the Ballot Label. 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 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 B-6
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30 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 County Assessor in the annual assessment and the equalization process.

In preparing this information, the District obtained reasonable and informed projections of assessed property valuations that took into consideration projections of assessed property valuations made by the County Assessor, if any, in accordance with Education Code Section 15100(c).

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Measure E Tax Rate Statement

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EXHIBIT C

TAX RATE STATEMENT

An election will be held within the boundaries of Modesto City Elementary School District ("School District") on November 6, 2018 to authorize the sale of up to $57,000,000 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 to 9404, inclusive, of the California Elections Code.

  1. 1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors, is estimated to be $0.022 per $100 ($22.00 per $100,000). The final fiscal year in which the tax is anticipated to be collected is 2056-57.
  2. 2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund this bond issue, and an estimate of the year in which that rate will apply, based on assessed valuations available at the time of filing this statement or a projection based on experience within the same jurisdiction or other demonstrable factors, is estimated to be $0.030 per $100 ($30.00 per $100,000) of assessed valuation in fiscal year 2028-29.
  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 will be approximately $114,000,000, considering the assumptions set forth in paragraphs (1) and (2) above.

Voters should note that the estimated tax rate is-based on the ASSESSED VALUE of taxable property on the Stanislaus County 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 School District's projections and estimates only, which are not binding upon the School 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 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 School 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 School District as determined by the County Assessor in the annual assessment and the equalization process.

Signed:
Craig Rydquist, Interim Superintendent
Dated: June 25, 2018

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Measure E Agenda Description

Agenda of June 25, 2018 (complete item)

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MODESTO CITY SCHOOLS
BOARD OF EDUCATION AGENDA

BOARD ROOM IN THE STAFF DEVELOPMENT CENTER
1415th REGULAR MEETING

June 25, 2018

Period for Public Presentations 6: 15 p.m.*

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B. DISCUSSION AND ACTION ITEMS

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8:10 to 8:25 9. Approval of Resolution No. 17/18-28 Ordering an Election, and Establishing Specifications of the Election Order in the Modesto City Elementary School District - Classroom Enhancement.

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MODESTO CITY SCHOOLS

TO: Craig Rydquist, Interim Superintendent Regular Meeting

SUBJECT: Approval of Resolution No. 17/18-28 Ordering June 25, 2018
an Election, and Establishing Specifications of the Election Order in the Modesto City Elementary School District - Classroom Enhancement


BACKGROUND

October 9, 2017, the Board approved the development of a Modesto City Elementary School District General Obligation Bond Proposal for the November 2018 election. The Board authorized staff to form a Bond Planning Team consisting of Financial Advisors, Bond Underwriters, and Campaign Consultants.

On December 12, 2017, the Board held a Special Workshop to discuss district facilities needs and a Bond Feasibility Study, and authorized a community survey to assist with the decision whether to go to the voters for funding of certain facilities improvements. On April 9, 2017, the Board held a Special Workshop to review the Bond Survey results and the feasibility assessment, and the results have been used to finalize the facilities needs included in the bond proposal.

At the May 14, 2018 and June 4, 2018 regularly scheduled meetings, the Board reviewed draft resolutions and bond language for two Elementary District Bond Measures, and provided input into wording changes.

ISSUE

The Board must approve Resolution No. 17/18-28 to formally initiate the election on the November ballot for the consideration of two Modesto City Elementary School District General Obligation Bonds. The Classroom/Science Lab Enhancement Measure is a $57 million General Obligation Bond.

PROPOSAL

The attached Resolution, Exhibit A, and Exhibit B, contains specific ballot language and authorizes the transmittal of the ballot language to the Stanislaus County Registrar of Voters for receipt not later than July 5, 2018, in order to be place on the November 6, 2018 ballot.

Resolution No. 17/18-28 authorizes the Board to call the election for November 6, 2018 and the submission to the electors the question of whether bonds shall be issued by the District in the amount of $57 million for the purpose of raising funds for specific school facilities. Those specific facilities are contained in Exhibit B.

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Approval of Resolution No. 17/18-28 Ordering an Election, and Establishing Specifications of the Election Order in the Modesto City Elementary School District - Classroom Enhancement

FISCAL IMPACT

No District resources can be used to promote the passage of the General Obligation Bond.

RECOMMENDATION

It is recommended that the Board of Education approve Resolution No. 17/18-28 ordering an election, and establishing specifications of the election order for the Modesto City Elementary School District - Classroom Enhancement.

Originating Department: Business Services - Planning

Approved for Recommendation
Reviewed and Recommended by: to the Governing Board by:
Tim Zearley Craig Rydquist
Associate Superintendent, Business Services Interim Superintendent
Chief Business Official

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Measure E Resolution

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RESOLUTION #17/18-28

RESOLUTION OF THE BOARD OF EDUCATION OF THE MODESTO CITY
ELEMENTARY SCHOOL DISTRICT ORDERING A SCHOOL BOND ELECTION ON
NOVEMBER 6, 2018 AND AUTHORIZING NECESSARY ACTIONS IN
CONNECTION THEREWITH

(CLASSROOM/SCIENCE LAB ENHANCEMENT MEASURE)

WHEREAS, the Board of Education ("Board") of the Modesto City Elementary School District ("District"), Stanislaus County, California is authorized to order elections within the District and to designate the specifications thereof, pursuant to Sections 5304 and 5322 of the California Education Code ("Education Code"); and

WHEREAS, the District has provided quality elementary and middle/junior high school (K-8) education to students in the local community for over 100 years; and

WHEREAS, aging education facilities need repairs and upgrades to meet modern academic and safety standards; and

WHEREAS, the District has conducted a facility improvement project prioritization process with input from parents, teachers, staff, and members of the community to identify the upgrades needed at each school site in order to meet modern safety standards, to meet the District's goals for supporting current academic standards, and to address specific priorities at individual school sites; and

WHEREAS, these projects include addressing urgent needs, like replacing leaky roofs, keeping schools clean, well-maintained and in good condition, performing essential safety repairs and maintenance on classrooms and facilities, and upgrading fire and earthquake safety; and

WHEREAS, updates are needed to improve campus and student security, including lighting, security cameras and fencing to control access to all campuses; and

WHEREAS, updating classrooms and aging facilities will make school more efficient and will help cut utility costs, freeing up money to support teaching and classroom instruction; and

WHEREAS, bond revenue is the primary means by which the all local school districts are able to keep its school buildings and classrooms in good repair, safe, designed and equipped to support changing educational standards, methods and approaches; and

WHEREAS, the District cannot rely on the State of California to fund school facility improvements and the limited state dollars available for facility upgrades often require local matching funds that could be provided by a local bond measure; and

WHEREAS, the District is proposing this bond measure to fund improvements to classrooms, science labs and other educational facilities to support quality academic instruction for students along with a companion measure to complete urgent health and safety improvements at local elementary and middle/junior high schools; and

WHEREAS, the District's two bond measures are designed to work together as a package to ensure students are safe while also providing modern classrooms and DWK DMS 3268003v1
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WHEREAS, these bond measure will benefit local Modesto schools only and no funds can be taken away by the State or other school districts, and by law, no money can be used for administrator salaries or pensions; and

WHEREAS, these bond measures require strict fiscal accountability protections including mandatory annual audits and an independent citizens' oversight committee comprised of local residents to ensure funds are managed and spent properly; and

WHEREAS, the Board is specifically authorized to order elections for the purpose of submitting to the electors the question of whether bonds of the District shall be issued and sold for the purpose of raising money for the purposes hereinafter specified, pursuant to Section 15100 et seq. of the Education Code; and

WHEREAS, pursuant to section 18 of Article XVI and section 1 of Article XIII A of the California Constitution (also known as "Proposition 39"), and Section 15266 of the Education Code, school districts may seek approval of general obligation bonds and levy an ad valorem tax to repay those bonds upon a fifty-five percent (55%) vote of those voting on a proposition for that purpose, provided certain accountability measures are included in the proposition; and

WHEREAS, the Board deems it necessary and advisable to submit such a bond proposition to the electors to be approved by fifty-five percent (55%) of the votes cast; and

WHEREAS, such a bond election must be conducted concurrent with a statewide primary election, general election or special election, or at a regularly scheduled local election, as required by Section 15266 of the Education Code, and on November 6, 2018, a general election is scheduled to occur throughout the District; and

WHEREAS, pursuant to Section 15270 of the Education Code, if the measure is approved by the voters, bonds may only be issued if the tax rate levied to meet the debt service requirements would not exceed thirty dollars ($30) per year per one hundred thousand dollars ($100,000) of taxable property when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution, and the current estimated and projected average annual tax rate and highest tax rate, is not expected to exceed a tax rate levy of $22 per year per each $100,000 of the assessed value of taxable property; and

WHEREAS, the estimated tax rates, duration of tax collection, and total estimated amount of debt service, is described in the Tax Rate Statement contained in Exhibit C hereto; and

WHEREAS, Section 9400 et seq. of the California Elections Code requires that a tax rate statement be contained in all official materials, including any ballot pamphlet prepared, sponsored or distributed by the District, relating to the election; and

WHEREAS, in the judgment of the Board, it is advisable to request that the Stanislaus County Registrar of Voters ("County Registrar") act as the election official and call an election and submit to the registered voters of the District the full ballot proposition as detailed herein, in coordination with each other as necessary; and

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WHEREAS, the Board now desires to authorize the filing of a ballot argument in favor of the proposition to be submitted to the voters at the election.

NOW, THEREFORE, be it resolved, determined and ordered by the Board of Education of the Modesto City Elementary School District as follows:

Section 1. Specifications of Election Order. Pursuant to Sections 5304, 5322, 15100 et seq., and Section 15266 of the Education Code, an election shall be held within the District on November 6, 2018, for the purpose of submitting to the registered voters of the District the full ballot proposition contained in Exhibit B ("Full Ballot Text"), which FAull Ballot Text is hereby approved. The County Registrar shall provide for the performance of its duties in accordance with Education Code section 5303 and in accordance with any and all other laws and regulations applicable to such elections.

Section 2. Abbreviation of Proposition/Ballot Label. Pursuant to Sections 13119 and 13247 of the California Elections Code and Section 15122 of the Education Code, the Board hereby directs the County Registrar to use the abbreviation of the Full Ballot Text ("Ballot Label") that is attached hereto as Exhibit A. The Ballot Label shall function merely as an abbreviation of the Full Ballot Text and does not stand alone as a complete and binding statement of the measure, nor is it possible for the Ballot Label to contain all of the project and financial information a voter might wish to consider in casting a vote. Voters are urged to review the Full Ballot Text and the Tax Rate Statement to obtain a complete understanding of the measure, including all of the financial projections and estimates upon which the measure is based. The District Superintendent, or a designee thereof, is hereby authorized and directed to make any changes to the text of Exhibit A, as may be convenient or necessary to comply with the intent of this Resolution, the requirements of elections officials, or requirements of law.

Section 3. Voter Pamphlet. The County Registrar is hereby requested to reprint the Full Ballot Text in its entirety in the voter information pamphlet to be distributed to voters pursuant to Section 13307 of the Elections Code. In the event the Full Ballot Text is not reprinted in the voter information pamphlet in its entirety, the County Registrar is hereby requested to print, immediately below the impartial analysis of the bond proposition, in no less than 10-point boldface type, a legend substantially as follows:

"The above statement is an impartial analysis of Measure If you desire a copy of the measure, please call the Stanislaus County Registrar of Voters at and a copy will be mailed at no cost to you."

Section 4. Accountability Measures. Pursuant to legal requirements, and as specified in the Full Ballot Text, the Board certifies that the District:

  1. (a) Has evaluated the facilities needs of the District and has evaluated safety, class size reduction and information technology needs in developing the Bond Project List contained in the Full Ballot Text;
  2. (b) Will establish an independent Citizens' Bond Oversight Committee to ensure that bond proceeds are expended only for the school facilities projects described in the Bond Project List, in accordance with Education Code section 15278 et seq.;
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    21
  4. (c) Will 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;
  5. (d) Will 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; and
  6. (e) Shall take all actions to establish an account in which proceeds of the sale of the bonds will be deposited, and to cause a report to be filed with the Board no later than each January 1 identifying proceeds received and expended in the past fiscal year and the status of any project funded or to be funded with bond proceeds. The first report shall be due no later than January 1 of the first year after which bonds have been issued and proceeds spent.

Section 5. Required Vote. Pursuant to Section 18 of Article XVI and Section 1 of Article XIII A of the State Constitution, the above proposition shall become effective upon the affirmative vote of at least fifty-five percent (55%) of those voters voting on the proposition.

Section 6. Request to County Officers to Conduct Election; Cost of Election. The County Registrar is hereby requested, pursuant to section 5322 of the California Education Code, to take all steps to call and hold the election in accordance with law and these specifications. The District will reimburse the Registrar and the County for costs associated with the election as required by law.

Section 7. Consolidation of Election and Canvass of Vote.

  1. (a) Pursuant to Section 15266(a) of the Education Code, the election shall be consolidated with the election on November 6, 2018.
  2. (b) The Board of Supervisors of Stanislaus County is authorized and requested to canvass the returns of the election, as necessary, pursuant to Section 10411 of the California Elections Code.

Section 8. Delivery of Order of Election to County Officers. The Clerk of the Board is hereby directed to deliver or cause to be delivered, no later than July 5, 2018 (as requested by the County Registrar), or such other date with which the County Registrar agrees, one copy of this Resolution to the County Registrar with the completed Tax Rate Statement (in substantially the form attached hereto as Exhibit C), completed and signed by the Superintendent or his designee, and shall file a copy of this Resolution with the Clerk of the Board of Supervisors of Stanislaus County.

Section 9. Ballot Arguments. The members of the Board are hereby authorized to prepare and file with the County Registrar a ballot argument in favor of the proposition contained in Section 1 hereof, and a rebuttal, if necessary, to any arguments against the measure, within the time established by the County Registrar.

Section 10. Intention to Reimburse. The District may incur costs associated with bond-funded projects described in Exhibit B hereto prior to the issuance of bonds. For purposes of establishing compliance with the requirements of Section 1.150-2 of the regulations of the US. Treasury Department, the Board hereby declares its official intent to DWK DMS 3268003v1
B.9(5) 22 use proceeds of the bond to reimburse itself for lawful expenditures on capital projects described on the Bond Project List, up to a maximum principal amount of $57 million.

Section 11. Further Authorization. The members of this Board, the Superintendent, and all other officers of the District (each, a "District Representative") are hereby authorized and directed, individually and collectively, to do any and all things that they deem necessary or advisable in order to effectuate the purposes of this Resolution, including selection of a final Ballot Label and modification of the Full Ballot Text, the Ballot Label, and Tax Rate Statement if he or she determines such modifications are necessary and in the District's best interests. This Resolution and all of its Exhibits that are filed with the County Registrar by a District Representative shall constitute the final, binding ballot measure of the District.

Section 12. Effective Date. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED this day, June 25, 2018, by the following vote:

AYES:

NAYS:

ABSTAIN:

ABSENT:

APPROVED:

President of the Board of Education of the
Modesto City Elementary School District

Attest:

Clerk of the Board of Education of the
Modesto City Elementary School District

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