Vote Yes on San Joaquin County Measure C - 2018 primary Election
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  Welcome    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Welcome to the Yes No on Measure C Campaign

Are you sure you want vote to support this extravagant measure? It has no accountability.

This campaign was designed by Dale Scott & Co Inc. 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.

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Measure C Question

13

EXHIBIT B

BALLOT MEASURE
ABBREVIATED FORM


MEASURE _:"To repair and improve our schools; upgrade fire alarms, and rehabilitate existing classrooms, shall $156.38 million of Stockton Unified School District's bonds, approved in 2008, be as new bonds, with legal rates, an average tax levy of while bonds are outstanding (averaging $10.8 million per year), annual audits, and no increase in total authorized District debt or current tax rates?"

Bonds-Yes Bonds-No


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Impartial Analysis for Measure C

IMPARTIAL ANALYSIS OF MEASURE C RECEIVED

Stockton Unified School District 2018 Bond Reauthorization Measure 18 MAR -2 PM 3:11

REGISTRAR OF VOTERS

Prepared by the San Joaquin County Counsel

In 2008, voters approved Measure Q, which authorized the Stockton Unified School District (the "District") to incur bond indebtedness up to four hundred sixty-four million five hundred thousand dollars and no cents ($464,500,000.00). In 2012, the voters approved Measure E, which allowed the District to reauthorize bonded indebtedness up to a maximum amount of one hundred fifty-six million dollars and no cents ($15 6,000,00000). The District's Board now desires to complete the school facilities projects that were previously approved by the voters in 2008 under Measure Q.

Approval of Measure C would allow the District to reauthorize bond indebtedness up to a maximum amount of one hundred fifty-six million three hundred eighty thousand dollars and no cents ($156,380,000.00). The issuance and sale of such reauthorized general obligation bonds, would not exceed the original authorized amount of Measure Q bonds. Bond proceeds could also be used to qualify for State of California matching funds.

Funds derived from bond sales could not be used for teacher and administrator salaries, school operating expenses or for any other purpose or project other than the school facilities projects expressly stated within the measure. To assure that funds derived from bond sales authorized by Measure C are spent only for the purposes expressly stated within the measure, and for no other purpose, Measure C would require the District to: (l) appoint an independent citizens' oversight committee and (2) conduct annual independent performance and financial audits.

If Measure C is approved, and bonds are authorized and sold, the principal thereof and interest thereon shall be payable from the proceeds of tax levies made upon the taxable property in the District. If Measure C is approved, the tax rate necessary for payment of principal and interest on any bonds sold will be largely dictated by the timing of the bond sales, the amount sold at a given sale, market interest rates at the time of each sale (although in no event greater than the maximum bond net interest rate allowed by law), as well as actual assessed valuation of taxable property in the District over the term of repayment. A statement of the tax rate data required by Elections Code Section 9401 will be provided to all registered voters with the sample ballot for the bond election.

Approval of Measure C does not guarantee that the projects proposed by the District to be funded from the proceeds of bonds authorized and sold will be funded beyond the local revenues generated by the bond sales authorized by Measure C. The District's proposal for such projects assumes the receipt of matching State of California funds that could be subject to appropriation by the State Legislature or to approval by a statewide bond measure.

Passage of Measure C requires approval by fifty-five percent (55%) of voters voting thereon.

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Argument in Favor of Measure C

Stockton Unified School District
Argument in Favor of Measure C

Vote Yes on Measure C!

In February 2008, Stockton Unified School District voters overwhelmingly passed a general obligation bond to improve our children's schools. Since that time, tremendous improvements have been made in repairing and rehabilitating our schools and classrooms. But much remains to be done.

Measure C will let us continue the job of improving our public schools by reauthorizing $156.38 million of the previously approved bonds. This can be done without increasing the District's total authorized debt and . In addition, Measure C will save taxpayers millions of dollars and come with .

Measure C will allow the District to continue to upgrade fire alarm and emergency communications systems.

Measure C will allow the District to continue to replace .

Measure C will allow the District to continue to replace relocatable buildings with permanent classrooms.

Measure C will allow the District to continue to repair aging heating, ventilation and air conditioning systems.

Measure C makes financial sense by allowing the District to borrow at lower rates, saving taxpayers millions of dollars in interest without increasing total District debt and , pensions or benefits.

Measure C will protect taxpayers by requiring an independent citizens' oversight committee, annual audits and prohibiting the State from taking our bond money and spending it in other districts.

To build better and safer schools, improve student achievement, and enhance your property values by improving local schools, please join teachers, parents, grandparents, families, neighbors and local business leaders in voting Yes on Measure C.

Word count: 267

RECEIVED 18 MAR -2 PM 4:21
REGISTRAR OF VOTERS

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Rebuttal to Argument in Favor of Measure C

When you lie, you might as well tell big ones -- "no additional cost to taxpayers." Does District think you're stupid? In 2008 you agreed to tax levy of $60 per $100,000 of assessed value. District tricked you in 2012 to double that to $120. If passed, tax levy will be $180 -- triple what you agreed to in 2008. Measure C will cost you $301,112,115 minimum. You're being deceived.

No administrator salaries? Constitution says no salaries. Statutes say no salaries. Resolution, question, measure, and argument say no salaries. Guess what lawyers snuck in? "pay for project administration by District personnel." You can take that to the bank. How many millions from previous bonds paid salaries?

Oversight? Where's committee's website? Who's on it? When does it meet? Where are the expenditures? Where are the audits? Where are its reports? Have you ever seen reports from Measure E (2014)? Measure E (2012)? Measure Q (2008)? Measure C (2005)? Measure G (2000)?

Fact: Measure C is a contract. What's in the fine print? "costs of the election," "audits," and on and on.

Fact: Have you ever read School Accountability Report Cards? (sarconline.org) Not a "leaky roof" in the lot. Who's being dishonest here?

Bottom Line: Can you trust District? Have you seen enough to convince you that, when you're not looking, District is willing to breach law, its promises, and its trust?

Would you agree to a contract where promises weren't explicitly and unambiguously written into it? You're being deceived! Don't get fooled again! Don't sign a blank check! Vote No! http://bit.ly/NoSUSDBond

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Argument Against Measure C

Are you parents? Do you hold your children accountable? Supporting schools is good. Supporting wasting your money on vague, unenforceable promises is bad.

Don't be deceived by District's campaign, funded by businesses that will likely benefit from bond money. (Isn't that called pay-to-play?) Beware of high-priced marketers masquerading as "parents, teachers, and community leaders."

How many bonds have you passed? $934,500,000 - Measure G (2000) $80,000,000, Measure C (2005) $120,000,000, Measure Q (2008) $464,500,000, Measure E (2012) $156,000,000*, Measure E (2014) $114,000,000. District already played *reauthorization trick on you once.

Why Vote No on Measure C?

It's virtually, word-for-word, identical to every other bond measure written by lawyers and advisors who've made $12,907,251 (payable by you, with interest) from facilities bonds issued since 2001.

What will Measure C buy? Why isn't a list of specific projects in Measure C? Because it would restrict District to spend only on those things?

Can you trust District? Why did it violate oversight laws over many years for previous measures?

Were you surveyed? Did you get a campaign mailer from District? You paid for it all. Is that fair? Using your money for campaign purposes?

Proposition 39 permits a bare majority of voters (55%) to approve these bonds. "To ensure that before they vote, voters will be given a list of specific projects their bond money will be used for," it requires that Measure C be a "list of the specific school facilities projects to be funded." (Source: Proposition 39 ballot measure.)

Measure C's intentionally vague language gives District a blank check with no accountability.

Don't waste your money on insincere promises. Did District keep promises from previous measures? It's spent $510,903,706 since 2001 and still has "leaky roofs?" Where has all that money gone?

Bond money is like drugs. Don't give District another fix. Just say no! Want more evidence of District's deception? http://bit.ly/NoSUSDBond

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Full Text of Measure C

9

EXHIBIT A

BALLOT MEASURE
FULL TEXT OF MEASURE


MEASURE _: "To repair and improve our schools; upgrade fire alarms, repair leaky pipes and roofs and rehabilitate existing classrooms, shall $156.38 million of Stockton Unified School District's bonds, approved in 2008, be reauthorized as new bonds, with legal rates, an average tax levy of 4.9 cents per $100 of assessed valuation while bonds are outstanding (averaging $10.8 million per year), annual audits, independent taxpayer oversight and no increase in total authorized District debt or current tax rates?"

Bonds-Yes Bonds-No


BOND AUTHORIZATION

By approval of this Measure by at least 55 percent of the registered voters voting on the measure, the Stockton Unified School District (the "District") will be authorized to issue and sell bonds of up to $156,3 80,000 in aggregated principal amount at interest rates not in excess of the legal limit, having a final estimated maturity in 2046-47, and to provide financing for the specific types of 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, acquire, construct, install, equip, furnish and otherwise improve the District facilities on the Bond Project List.

The 2018 Reauthorization Bonds shall be issued as current interest bonds and shall not be issued as capital appreciation bonds. The 2018 Reauthorization Bonds may be issued and sold in several series. No series of Bonds shall be issued if such issuance would cause the tax rate levied to pay debt service on all of the outstanding 2018 Reauthorization Bonds to exceed $60 per year per $100,000 of taxable property (as defined in Education Code Section 15268), based on projections made by the District at the time of issuance of such series of 2018 Reauthorization Bonds.

A-l

10

TAX RATE, ESTIMATED ANNUAL COLLECTION AMOUNT, AND DURATION OF TAX

Pursuant to California Elections Code Section 13119(b), (a) the rate of the ad valorem tax is estimated to be the rate disclosed in the Tax Rate Statement contained in the voter pamphlet and separately provided; (b) the estimated average amount of the ad valorem tax to be collected in each year is expected to average $10,800,00 per year, however, this amount shall vary from year to year (range from $2,620,000 to $17,446,713 per year) depending on the amount needed to pay debt service on the 2018 Reauthorization Bonds that are outstanding in any year; and (c) the final fiscal year in which the ad valorem tax to fund the 2018 Reauthorization Bonds is expected to be collected is fiscal year 2046-47.

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, 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 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.

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).

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 Governing Board of the District (the "Board") has identified detailed facility needs of the District and has determined which projects to finance from a local bond at this time. The Board 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 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 A-2 11 committee will be established within 60 days of the date when the results of the election appear in the minutes of the Board.

Performance Audits. The Board 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 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 Chief Business Official of the District will cause an annual report to be filed with the Board, 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 San Joaquin 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; provided, however, that bond proceeds may be used to during the duration of such projects.

BOND PROJECT LIST

Projects which are described below include all related and incidental costs, including their share of the and bond issuance and costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, and other planning, legal, accounting and similar costs, , a customary contingency, and for completion of the listed projects.

The District may alter the scope and nature of any of the that are described below as required by conditions that arise over time.

Whenever specific items are included in the following list, they are presented to provide examples and are not intended to limit the generality of the broader description of authorized projects. The order in which particular projects are listed is not intended to indicate priority for funding or completion. The itemization of projects in the list below does not guarantee that all such projects will be undertaken. The ability of the District to undertake and complete the listed projects is subject to the adequacy and availability of sufficient funding sources.

12

REPAIR AND REHABILITATION OF EXISTING FACILITIES

Bond proceeds will be expended to modernize, replace, renovate, acquire, construct, install, equip, furnish, and otherwise improve any or all of the following schools as well as educational and support facilities within the District:

John Adams Elementary School Pulliam Elementary
August Elementary Rio Calaveras Elementary
Bush Elementary Roosevelt Elementary
Cleveland Elementary San Joaquin Elementary
Commodore Stockton Skills Elementary Spanos Elementary
El Dorado Elementary Taft Elementary/Montesorri Magnet
Elmwood Elementary Taylor Elementary
Fillmore Elementary Tyler Elementary
Fremont-Lopez Elementary Van Buren Elementary
Grunsky Elementary Victory Elementary
Hamilton Elementary Washington Elementary
Harrison Elementary Wilson Elementary
Hazelton Elementary Cesar Chavez High School
Henry Elementary Edison High School
Hong Kingston Elementary Franklin High School
Hoover Elementary Stagg High School
Huerta Elementary Jane Frederick High School
Kennedy Elementary Stockton High School
King Elementary Health Careers Academy
Kohl Open Elementary Merlo Institute of Environmental Technology
Madison Elementary Pacific Law Academy
Marshall Elementary Peyton Elementary
McKinley Elementary School For Adults
Monroe Elementary Stockton Early College Academy
Montezuma Elementary Walton Special Center
Nightingale Charter Weber Institute for Applied Sciences & Technology

Specific projects at these sites may include any or all of the following improvements:

Modernization/Facility Upgrades

  • 0 Upgrade of building infrastructure systems including repair and/or installation of roofs, plumbing, air conditioning, electrical, and lighting
  • 0 Modernization of restrooms
  • 0 Modernization of learning commons and food service facilities
  • 0 Replacement of windows
  • 0 Improvements and replacements to landscapes and fencing
  • 0 Improvements for parking lots, service vehicle access, and pick-up/drop-off locations
  • 0 Replace relocatable buildings with new construction
  • 0 Modernization of Performing Arts Center
  • 0 Upgrades to Athletic Facilities
  • 0 Improve Career Technical and Other Vocational Programs as adopted
  • 0 Replace and repair roofing

A-4

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Measure C Tax Rate Statement

16

TAX RATE STATEMENT

STOCKTON UNIFIED SCHOOL DISTRICT

An election will be held in the Stockton Unified School District (the "District") on June 5, 2018, to authorize the sale of up to $ 1 56,3 80,000 in bonds of the District to finance school facilities as described in the proposition. If the bonds are approved, the District expects to issue the bonds in multiple series over time. Principal and interest on the bonds 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 through 9405 of the California Elections Code.

  1. 1. The best estimate of the average annual tax rate which would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on estimated assessed valuations available at the time of filing of this statement, is $0.04993 cents per $100 ($49.93 per $100,000) of assessed valuation. The final fiscal year in which the tax to be levied to fund this bond issue is anticipated to be collected is fiscal year 2046-47.
  2. 2. 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 cents per $100 ($60.00 per $100,000) of assessed valuation in fiscal year 2026-27.
  3. 3. 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 approximately $301,112,115.
  4. 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. Taxpayers eligible for property tax exemption, such as the homeowner's exemption will be taxed at a lower effective tax rate than described above, and certain taxpayers may be eligible for a postponement of their property taxes. 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, 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 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: February 13, 2018

    /s/Daniel R. Wright
    Dan Wright, Acting Superintendent
    Stockton Unified School District

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Measure C Agenda Description

Agenda of February 13, 2018 (complete item)


BOARD OF EDUCATION
Stockton Unified School District
701 North Madison Street
Stockton, California 95202
February 13, 2018

9.0 Business and Finance
A 9.1 Resolution 17-35 of the Governing Board of the Stockton Unified 4252
School District Ordering a School Bond Election, Establishing Specifications of the Election Order, and Requesting Consolidation with Other Elections Occurring On June 5, 2018
1

STOCKTON UNIFIED SCHOOL DISTRICT February 13, 2018

SUBJECT: Resolution 17-35 of the Governing Board of the Stockton Unified School District Ordering a School Bond Election, Establishing Specifications of the Election Order, and Requesting Consolidation with Other Elections Occurring On June 5, 2018

INTRODUCTION

The District has been diligently working with its financial advisor, Dale Scott and Company, to assess and improve its municipal financing opportunities and program yield. The District has recently completed the refunding of a Certificate of Participation as a result of this work and simultaneously reviewed an opportunity to reauthorize the remaining $156,3 80,000 million dollars from a 2008 Bond Measure Q. After presenting the option to the Board, the District deployed a survey to assess the public's interest in reauthorizing the remaining bond funds. The survey results were positive and after presenting the data to the Governing Board on January 9, 2018, the District recommended proceeding with the development of the Resolution to place on the June 5, 2018 ballot.

ANALYSIS

The District and Dale Scott presented a series of presentations to the Governing Board on August 22, September 26, and November 14, 2017. These presentations summarized the history of the District's bond measures, a summary of bond projects, and bond reauthorization program strategies. At the November 14th meeting, the District shared that next steps would include developing a survey to poll a percentage of voters in the community and assess their interest in reauthorizing the remaining Measure Q dollars.

The survey was conducted in December 2017 and Dale Scott and Company presented the results of the survey to the Governing Board at its January 9, 2018 meeting. The survey and the results were used to help analyze the climate of the community and subsequently assist in the continued development of a strategy and potential recommendation. The positive results of the survey supported the decision to develop a resolution for the Board's consideration to place a reauthorization measure on the June 2018 ballot. Securing the additional $156 million dollars will support the District's goal, as supported by the voters in 2008, to repair and enhance District facilities. It is the intent of this reauthorization that taxpayers will not realize an increase in their overall tax rate.

Funding Source: N/A

RECOMMENDATION

It is recommended that the Governing Board adopt Resolution 17-35: Resolution of the Governing Board of the Stockton Unified School District Ordering a School Bond Election, Establishing Specifications of the Election Order, and Requesting Consolidation with Other Elections Occurring On June 5, 2018.

Prepared by: Ms. Lisa Grant-Dawson, Chief Business Official

Reviewed by: Mr. Daniel R. Wright, Acting Superintendent

Action Item No. 9.1

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Measure C Resolution

2

RESOLUTION NO. 17-35

RESOLUTION OF THE GOVERNING BOARD OF THE
STOCKTON UNIFIED SCHOOL DISTRICT
ORDERING A SCHOOL BOND ELECTION,
ESTABLISHING SPECIFICATIONS OF THE ELECTION ORDER,
AND REQUESTING CONSOLIDATION WITH OTHER ELECTIONS
OCCURRING ON JUNE 5, 2018

WHEREAS, the Stockton Unified School District (the "District") is a school district duly organized under the laws of the State of California;

WHEREAS, a duly called Proposition 39 election was held in the District on February 5, 2008, and at such election there was submitted to and approved by the requisite fifty-five percent (55%) vote of the qualified electors of the District the following measure for incurring bonded indebtedness ("Measure Q"):

"To improve the quality of education and student access to computers and technology, renovate science labs, repair restrooms, modernize and upgrade schools and classrooms throughout the District, construct additional classrooms and facilities, replace outdated temporary portable classrooms with permanent classrooms, and qualify the District for millions in State matching funds, shall the Stockton Unified School District issue $464,500,000 of bonds at legal interest rates with an independent citizen's oversight committee, annual audits and NO money for administrator salaries?"

WHEREAS, pursuant to the Measure Q authorization, four series of Measure Q bonds were sold: (a) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2008, Series A," in the principal amount of $65,000,000, on May 21, 2008; (b) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2008, Series B, Qualified School Construction Bonds (Tax Credit Bonds)," in the principal amount of $16,040,000, on December 30, 2009; (c) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2008, Series C, Qualified School Construction Bonds (Federally Taxable Direct Subsidy Bonds)," in the principal amount of $14,930,000, on August 5, 2010; and (d) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2008, Series D," in the principal amount of $56,146,496.65, on June 2, 2011;

WHEREAS, due to the general economic downturn that commenced in 2008 and declines in the assessed valuations of property in the District that subsequently occurred, the District was unable to issue additional series of bonds under its then-remaining Measure Q authorization (the "Unissued Measure Q Bonds") because Proposition 39 prohibits the issuance of additional series of bond if the tax rate levied to pay debt service on such additional bonds, together with debt service due on the outstanding series of Measure Q bonds, exceeds $60 per year per $100,000 of taxable property;

WHEREAS, the Governing Board of the District (the "Board") then determined that it was in the best interest of the District to call for an election to submit to the voters of the District 3 the question whether a new issue of general obligation bonds in the amount of $156,000,000 (the "2012 Reauthorized Bonds") should be issued and sold for the purpose of raising money to complete the voter-approved Measure Q projects;

WHEREAS, to ensure that the issuance of the 2012 Reauthorized Bonds did not result in an increase in the total authorized District debt pursuant to Measure Q, the Board agreed to "cancel" a like aggregate principal amount of the remaining Unissued Measure Q Bonds;

WHEREAS, a duly called Proposition 39 election was held in the District on November 6, 2012, and at such election there was submitted to and approved by the requisite fifty-five percent (55%) vote of the qualified electors of the District the following measure for incurring bonded indebtedness ("Measure E"):

"In order to repair, equip, acquire and construct classrooms, school facilities, playgrounds and athletic fields; replace portables with permanent classrooms; and reduce overall borrowing costs, shall $156,000,000 of Stockton Unified School District bonds, approved by voters in February 2008, be reauthorized through issuance of new bonds, with no increase in total authorized District debt, interest rates below legal limits, independent citizen oversight, no money for administrator salaries, and all funds spent locally and not taken by the State?"

WHEREAS, pursuant to the Measure B authorization, two series of Measure B bonds were sold: (a) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2012, Series A, GO Reauthorization BondsŪ," in the principal amount of $65,000,000, on March 6, 2014, and (b) the "Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election of 2012, Series B, GO Reauthorization BondsŪ," in the principal amount of $30,000,000, on December 17, 2015;

WHEREAS, this Board hereby finds that there continues to be an urgent need in the District to complete those projects approved by District voters under Measure Q and, in order to complete those projects, this Board has determined to call an election to submit to the electors of the District the question whether a new issue of general obligation bonds (the "201 8 Reauthorized Bonds"), in an amount equal to the remaining amount of the Unissued Measure Q Bonds ($156,3 80,000), shall be issued and sold for the purpose of raising money to complete the projects for which the Measure Q bonds were authorized;

WHEREAS, to ensure that the issuance of the 2018 Reauthorized Bonds will not result in an increase in the total authorized District debt pursuant to Measure Q, the Board has determined and shall covenant that the Board will take all actions which are required in order to "cancel" a like aggregate principal amount of Unissued Measure Q Bonds;

WHEREAS, Education Code Section 15100(c) provides that, before the governing board of a school district may order an election pursuant to Education Code Sections 15100 et seq., it shall obtain reasonable and informed projections of assessed property valuations that take into consideration projections of assessed property valuations made by the county assessor;

4

WHEREAS, although the San Joaquin County Assessor's Office (the "County Assessor") provides periodic updates of assessed property valuations for the current tax year, the County Assessor does not make projections of assessed property valuations;

WHEREAS, this Board has been presented projections of assessed property valuations of the property within the District's boundaries in connection with developing the bond proposition that take into consideration, among other things, current assessed property valuations and historical average growth rates of assessed property valuations of the property within the District's boundaries, and the Board finds those projections to be reasonable and informed;

WHEREAS, this Board has determined that, based upon such projections of assessed property valuation, if approved by voters, the tax rate levied to meet the debt service requirements of the bonds proposed to be issued will not exceed the maximum tax rate permitted by Education Code Section 15270;

WHEREAS, the Board is generally authorized to order elections within the District and to designate the specifications thereof, pursuant to Education Code Sections 5304 and 5322; and

WHEREAS, the Board is specifically authorized, upon a two-thirds vote of the Board, to order elections, pursuant to Education Code Sections 15264 et seq., for the purpose of submitting to the electors the question of whether the 2018 Reauthorized Bonds of the District shall be issued and sold for specified purposes.

NOW, THEREFORE, be it resolved by the Governing Board of the Stockton Unified School District, San Joaquin County, California, as follows:

Section 1. Election Order. Pursuant to Education Code Sections 5304, 5322 and 15264 et seq., and Article XVI, Section 18(b) of the California Constitution, the Board hereby orders an election be held Within the boundaries of the Stockton Unified School District on June 5, 2018, submitting to the voters of the District the question of whether bonds of the District, in the amount of $156,380,000 (the "2018 Reauthorized Bonds") shall be issued and sold for the purposes described in the ballot measure approved under Section 2 and in Exhibit A (Full Text of the Measure) and Exhibit B (Abbreviated Ballot Measure), and for paying costs incident thereto. This Resolution constitutes the order of the District to call such election and shall constitute the "specifications of the election order" pursuant to Education Code Section 5322.

Section 2. Purpose of Election; Ballot Measure. The purpose of the election shall be for the voters in the District to vote on a measure, a full copy of which is attached hereto as Exhibit A and marked "Exhibit A - Ballot Measure - Full Text of Measure" (the "Full Text of the Measure"), containing the question of whether the District shall issue the bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of Education Code Section 15272. The Full Text of the Measure, which commences with the heading "FULL TEXT OF MEASURE" and includes all of the text thereafter on Exhibit A, shall be printed in the voter information pamphlet provided to voters, with such measure designation as is assigned to the measure. As required by Elections Code Section 13247 and Education Code Section 5322, the abbreviated form of the measure to appear on the ballot is attached hereto as Exhibit B and is marked as "Exhibit B - Ballot Measure Abbreviated Form" (the "Abbreviated Ballot Measure"). The Superintendent, the Chief

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Business Official, or their designee, are hereby authorized and directed to make any changes to the text of the measure (full text and/or abbreviated measure) as required to conform to any requirements of Article XIIIA, Education Code Section 15264 et seq., the Elections Code, the San Joaquin County Registrar of Voters (the "County Registrar"), the Office of the San Joaquin County Counsel or the District's bond counsel.

Section 3. Use of 2018 Reauthorized Bond Proceeds, Facilities Specifications and Audit Requirements.

  1. (a) Use of 2018 Reauthorized Bond Proceeds. Proceeds from the sale of the 2018 Reauthorized Bonds may be used only for the purposes specified in Article XIII A, Section 1(b)(3) of the California Constitution.
  2. (b) Specification of Facilities. The school facilities projects (the "Projects") to be funded are as described in Exhibit A. As required by Article XIII A of the California Constitution, the Board hereby certifies that it evaluated safety, class size reduction, and information technology needs in developing the list of Projects set forth in Exhibit A.
  3. (c) Performance Audit. The Board shall conduct an annual, independent performance audit to ensure that the 2018 Reauthorized Bond funds have been expended only on the specific Projects listed in Exhibit A.
  4. (d) Financial Audit. The Board shall conduct an annual, independent financial audit of the proceeds from the sale of the 2018 Reauthorized Bonds until all of the proceeds have been expended for the Projects listed in Exhibit A.

Section 4. Government Code Accountability Requirements. Pursuant to Government Code Sections 53410 and 53411, the District hereby finds or directs that:

  1. (a) the purpose of the 2018 Reauthorized Bonds is to fund the facility needs as set forth in the Full Text of the Measure;
  2. (b) the bond proceeds shall only be used on the Projects authorized in the Full Text of the Measure;
  3. (c) all proceeds of the 2018 Reauthorized Bonds shall be placed in a separate account; and
  4. (d) the Chief Business Official of the District shall issue an annual report to the Board containing the amount of funds collected and expended as well as the status of the Projects authorized in the Full Text of the Measure.

Section 5. Independent Citizens' Oversight Committee. It is the intent of this Board that an independent citizens' oversight committee be appointed within sixty days of the Board entering the election results in the minutes, to ensure that the proceeds of the 2018 Reauthorized Bonds are spent only for the specific purposes and Projects identified in Exhibit A. The membership requirements and procedures for such committee shall be established by the Board in accordance with the requirements of law.

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Section 6. Vote Required. Pursuant to Section 18(b) of Article XVI and Section 1 of Article XIII A of the California Constitution, the bond measure shall become effective only upon affirmative vote of fifty-five percent (55%) of those voters voting on the measure.

Section 7. Delivery of this Resolution; County Registrar of Voters to Call and Conduct Election. The Superintendent is hereby directed to send a copy of this Resolution to: (a) the County Superintendent of Schools, (b) the County Registrar of Voters ("County Registrar"), and (c) the County Clerk of the Board of Supervisors. Pursuant to Education Code Section 5322, the Resolution shall be received by the County Registrar no later than 88 days prior to the election date, unless otherwise permitted by law.

Pursuant to Education Code Section 5303, the County Registrar is hereby requested to print the full text of the ballot measure in the ballot materials as it appears on Exhibit A hereto, to publish a notice of school bond election in a newspaper of general circulation within the District, and to take all steps to prepare for and hold the election within the boundaries of the District in accordance with law and these specifications.

Section 8. Consolidation with Other Elections. Pursuant to Education Code Sections 5342, 15121, and 15266 and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the County Registrar and the County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on June 5, 2018 within the District. Pursuant to Section 10403 of the Elections Code, the Board hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed by Section 10418 of the Elections Code.

Section 9. Services of County Registrar of Voters. Pursuant to Education Code Section 5303 and Elections Code Section 10002, the County Board of Supervisors is requested to permit the County Registrar to render all services incident to the preparation for and holding of the election, for which services the District agrees to reimburse the County, such services to include the publication of a formal notice of school bond election and the mailing of the sample ballot and tax rate statement (described in Section 9401 of the Elections Code) pursuant to the terms of Education Code Section 5363 and the Elections Code. The Board hereby requests the County Registrar to publish the Full Text of the Measure, the Abbreviated Ballot Measure, and the Tax Rate Statement attached hereto as Exhibit C in the ballot materials.

Section 10. Canvass of Returns. The County Board of Supervisors is authorized to canvass the returns of the election pursuant to Section 10411 of the Elections Code.

Section 11. Ballot Arguments; Tax Rate Statement. In addition to any individual voter who is eligible to vote on the bond measure, or any bona fide association of citizens, any and all members of this Board are hereby authorized to act as an author of any ballot argument prepared in connection with the election, including a rebuttal argument. The Board hereby approves the form of the Tax Rate Statement attached hereto as Exhibit C. The President of the Board, the Superintendent, the Chief Business Official, or any designee of the foregoing, are hereby authorized to execute the attached Tax Rate Statement or other document and to perform all acts necessary to place the bond measure on the ballot.

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Section 12. Current Interest Bonds; Tax Rate. The 2018 Reauthorized Bonds shall be issued under Education Code Sections 15264 et seq., under the provisions of Government Code Sections 53506 et seq., if legally available to the District, or under any other provision of law authorizing the issuance of general obligation bonds by school districts. The 2018 Reauthorization Bonds shall be issued as current interest bonds and shall not be issued as capital appreciation bonds. The 2018 Reauthorization Bonds may be issued and sold in several series. No series of 2018 Reauthorization Bonds shall be issued if such issuance would cause the tax rate levied to pay debt service on all of the outstanding 2018 Reauthorization Bonds to exceed $60 per year per $100,000 of taxable property (as defined in Education Code Section 15268), based on projections made by the District at the time of issuance of such series of 2018 Reauthorization Bonds.

Section 13. State Matching Funds. Certain of the Projects may require state matching funds for completion. Approval of the District's bond measure does not guarantee that the proposed Projects will be funded beyond the local revenues generated by this bond measure. The District's proposal for the Projects may assume receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure. Reductions in state funds may result in a subsequent reduction in funding of Projects provided for herein.

Section 14. General Authorization with Respect to the Bond Measure. The members of the Board, the Superintendent, the Chief Business Official, and the other officers of the District are hereby authorized and directed, individually and collectively, to do any and all things and to execute, deliver, and perform any and all agreements and documents that they deem necessary or advisable in order to effectuate the purposes of this Resolution, including, without limitation, to prepare and submit for inclusion in the voter information pamphlet a tax rate statement and an argument in favor of passage of the ballot proposition. All actions heretofore taken by the officers and agents of the District that are in conformity with the purposes and intent of this Resolution are hereby ratified, confirmed, and approved in all respect.

Section 15. Official Intent to Reimburse Expenditures. The District intends to undertake the Projects as described in Exhibit A. The District intends to use the proceeds of its general obligation bonds described in this Resolution to finance the Projects. The District may pay certain capital expenditures (the "Reimbursement Expenditures") in connection with the Projects prior to the issuance of the 2018 Reauthorized Bonds. The District reasonably expects that 2018 Reauthorized Bonds in an amount not expected to exceed $156,3 80,000 will be issued by it for the purpose of financing the Projects on a long-term basis and that certain of the proceeds of such debt obligations may be used to reimburse the District for the Reimbursement Expenditures. The Board hereby declares the District's official intent to use a portion of the proceeds of the 2018 Reauthorized Bonds to reimburse the District for the Reimbursement Expenditures. The foregoing statement is a declaration of official intent that is made under and only for the purpose of establishing compliance with the requirements of Treasury Regulations Section 1.150-2.

Section 16. No Increase in District Debt: Cancellation of Unissued Measure Q Bonds. The aggregate original principal amount of all of the Measure Q bonds and Measure E bonds which are issued by the District, together with the aggregate original principal amount of the 2018 Reauthorized Bonds which are issued by the District, shall not exceed $464,500,000, being 8 the original authorized amount of the Measure Q bonds. To that end, the Board hereby covenants as follows:

  1. (a) the Board shall adopt a resolution petitioning the Board of Supervisors of San Joaquin County to cause the Unissued Measure Q Bonds to be canceled in a principal amount equal to the principal amount of such series of 2018 Reauthorized Bonds; and
  2. (b) under any circumstances, including but not limited to a failure or refusal by the County to cancel a portion of the Unissued Measure Q Bonds, the Board shall not authorize the issuance of any Unissued Measure Q Bonds or 2018 Reauthorized Bonds if such issuance would cause the aggregate original principal amount of all of the Measure Q bonds and the Measure B bonds that were/are issued by the District, together with the aggregate original principal amount of the 2018 Reauthorized Bonds which are issued by the District, to exceed $464,500,000.

Section 17. Financial Advisor. The firm of Dale Scott & Company, is hereby retained as financial advisor with respect to the 2018 Reauthorized Bonds. The Superintendent, the Chief Business Official, and their respective designees, and each of them individually, are hereby authorized to execute and deliver a services agreement with such firm in the form of such agreement on file with the Secretary of the Board.

Section 18. Bond and Disclosure Counsel. The law firm of Dannis Woliver and Kelly is hereby retained as bond and disclosure counsel to the District with respect to the 2018 Reauthorized Bonds. The Superintendent, the Chief Business Official, and their respective designees, and each of them individually, are hereby authorized to execute and deliver a legal services agreement with such firm in the form of such agreement on file with the Secretary of the Board.

Section 19. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the following vote of the members of the Governing l Board of the Stockton Unified School District, of San Joaquin County, State of California, this 13th day of February 2018:

AYES; Lange P. Luntao, Maria Mendez, Angela Phi l lips , Cecilia Mendez , Kathleen Garcia

NOES:

ABSENT:Steve Smith, Andrea Burrise

ABSTAIN:

/s/A J Phillips
Angela Phillips, Preside Q the Governing Board
Stockton Unified School District

ATTEST:

/s/Daniel R. Wright
Dan Wright, Secretary of the Governing Board
Stockton Unified School District

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CERTIFICATION

SECRETARY CERTIFICATE

I, Dan Wright, Secretary of the Governing Board of the Stockton Unified School District, San Joaquin County, State of California, do hereby certify that the foregoing is a full, true, and correct copy of Resolution No. 17-35 duly approved and adopted by the Governing Board of the District at a regular meeting held on February 13, 2018, of which meeting all the members of the Governing Board had due notice and at which a majority thereof were present, and that at the meeting the Resolution was adopted by the following vote:

AYES: Lange P. Luntao, Maria Mendez, Angela Phillips, Cecilia Mendez, Kathleen Garcia

NOES:

ABSENT: Steve Smith, Andrea Burrise

ABSTAIN:

An agenda for the meeting was posted at least seventy-two (72) hours before the meeting at the offices of the District at 701 North Madison Street, Stockton, CA, a location freely accessible to members of the public, and a brief description of the Resolution appeared on the agenda. I have carefully compared the foregoing Resolution with the original minutes of the meeting on file and of record in my office, and the foregoing is a fill], true, and correct copy of the original Resolution adopted at the meeting and entered in the minutes. The Resolution has not been amended, modified or rescinded since the date of its adoption and is now in full force and effect.

Date: February 13, 2018

/s/Daniel R. Wright
Dan Wright, Secretary of the Governing Board
Stockton Unified School District

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