Abc Unified School District, California, Measure Bb, Bond Issue (November 2018)

Yes

To improve student safety/campus security/intruder-protection systems, construct and upgrade classrooms, science labs, and school facilities that support college readiness and career training in math, science, engineering, technology, arts, and skilled trades, and keep instructional technology up-to-date, shall ABC Unified School District issue $258,000,000 in bonds at legal rates, levying 5 cents/$100 assessed value for 29 years ($15,500,000) to improve our schools, with citizen oversight, independent audits and all money locally controlled?^[2]

Approval of Measure BB (“Measure”) would authorize the Board of Education (“Board”) of the ABC Unified School District (“District”), which placed the Measure on the ballot by Resolution No. 18-03, to issue general obligation bonds in an amount not to exceed $258,000,000.

Proceeds from the sale of bonds authorized by the Measure shall be used only for the purposes specified in the Measure to modernize, repair, and replace existing school facilities. Projects include, but are not limited to, upgrading school libraries; renovating and/or adding campus bathrooms; upgrading and/or replacing shade structures; upgrading school main office; renovating or adding multi-purpose rooms; renovating and/or constructing classrooms; upgrading computer and science labs, playground surfaces and equipment, plumbing and electrical systems, and technology infrastructure; replacing the oldest portable classrooms and acquiring new portable classrooms; upgrading facility disabled access; making seismic retrofits; improving energy efficiency; expanding and/or upgrading drop-off/pick-up access and parking facilities; replacing furnishings and equipment; and abating hazardous materials. Bond proceeds may not be expended on teacher or administrator salaries or other operating expenses but may be used to reimburse the District for the cost of work performed by staff on, or necessary and incidental to, bond projects.

The Board shall cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for projects identified in the Measure. The Board shall appoint an independent Citizens’ Oversight Committee under Education Code section 15278 et seq. to ensure that bond proceeds are spent as specified in the Measure and as provided by law. The Board shall deposit bond proceeds in a special account and comply with statutory reporting requirements.

Bonds shall be issued and sold as current interest bonds and/or current interest term bonds and not as Capital Appreciation Bonds or bonds with a compounding interest feature. Bonds shall be issued in one or more series under any legal provision for issuance of general obligation bonds by school districts. The interest rate and maturity date on any bond shall not exceed the maximums allowed by law. According to the District’s Tax Rate Statement, the best estimate of the average annual tax rate required to fund the bonds, based on assessed valuations available when the District filed the statement, is $49.50 per $100,000 of assessed valuation. The best estimate of the highest tax rate required to fund the bonds is the same as the average tax rate. The final fiscal year the tax is estimated to be collected is 2047-48. The estimated total debt service required to be repaid if all bonds are issued and sold is $449 million, including principal and interest. Estimated tax rates are based on the assessed value of taxable property on official rolls, not on a property’s market value. Properties of taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate.

This Measure requires a fifty-five percent (55%) vote for passage.^[2]