San Diego Unified School District

Measure U Bond Measure - 55% Approval Required

COUNTY COUNSEL IMPARTIAL ANALYSIS

This measure was placed on the ballot by the governing board of the San Diego Unified School District (“District”). This measure, if approved by 55% of the voters, will authorize the District to issue and sell general obligation bonds in an amount not to exceed $3,200,000,000.

Proceeds from the sale of the bonds authorized by this measure can only be used for the construction, reconstruction, rehabilitation, replacement, furnishing and equipping of school facilities on the Bond Project List set forth in the full text of the measure. These projects include but are not limited to improving school security, constructing new facilities, renovating and repairing buildings and infrastructure, upgrading equipment and technology, and improving recreation spaces. These and other projects could apply to public charter schools. The District shall set aside $528,000,000 of proceeds for charter school projects, adjustable based on the proportion of students attending charter schools.

Proceeds from the sale of the bonds shall not be used for teacher or administrator salaries, or other school operating expenses. The District certified that it evaluated safety, class size reduction, and information technology needs in developing the Bond Project List.

Approval of this measure does not guarantee that any of the projects will be completed. The District’s proposal for certain projects assumes receipt of matching State funds possibly subject to appropriation by the Legislature or approval of a statewide bond measure.

Principal and interest on the bonds will be paid from the proceeds of tax levies on the assessed value of taxable property within the District. These taxes would be in addition to property taxes already levied. The Tax Rate Statement submitted by the District estimates the average annual tax rate would be $33 for every $100,000 of assessed valuation while the bonds are outstanding, with an estimated end date of 2061-62, and the highest tax rate would be approximately $60 for every $100,000 of assessed valuation. The District states that the tax rate limitation in Proposition S, approved by voters on November 4, 2008, does not apply to the tax rate of the bonds proposed by this measure. The District states that if the bond issuance causes the District to exceed its statutory bonding limit, the voters by approving this measure authorize the District to seek a waiver of the limit. 

The estimated total debt service, including principal and interest, required to be repaid if the bonds are issued and sold is approximately $7,313,000,000. This is an estimate. Actual amounts may vary depending on the timing of sales, bonds sold at each sale, interest rates, and assessed valuation.

The measure includes the accountability provisions of an annual independent performance audit to ensure funds have been expended on the projects listed, and an annual independent financial audit of bond proceeds. The District must also establish an independent citizens’ oversight committee.

A “YES” vote is in favor of authorizing the District to issue and sell $3,200,000,000 in general obligation bonds.

A “NO” vote is against authorizing the District to issue and sell $3,200,000,000 in general obligation bonds. 

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TAX RATE STATEMENT

An election will be held in the San Diego Unified School District (the 'District') on November 8, 2022, to authorize the sale of $3.2 billion in bonds of the District to finance school facilities as described in the measure. If the bond measure is approved by at least 55% of the voters of the District voting on the bond proposition, 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. The best estimate 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 filing of this statement, is 3.3 cents per $100 ($33.00 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 2061-62.
• 2. The best estimate of the highest tax rate that 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 six cents per $100 ($60 per $100,000) of assessed valuation in fiscal year 2050-51.
• 3. The best estimate of the total debt service, including the principal and interest that would be required to be repaid if all of the bonds are issued and sold is approximately $7,313,000,000.

Voters should note that 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, which could be more or less than the assessed value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective tax rate than described above. Certain taxpayers may also be eligible to postpone payment of taxes. Property owners should consult their own property tax bills and tax advisors 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 estimates are in addition to, and not inclusive of, other taxes levied by the District to pay bonds authorized at other elections. The average annual tax rate, the highest tax rate, the final fiscal year in which the tax is anticipated to be collected and the year or years in which they will apply, and the actual total debt service, may vary from those presently estimated for a variety of reasons, including, without limitation, due to variations in the timing of bond sales, the amount or amortization of bonds sold, market conditions 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 or amortization of bonds sold at any given time will be determined by the District based on need for project funds and other factors, including the legal limitations on bonds approved by a 55% affirmative vote. Market conditions, including, without limitation, interest rates, are affected by economic and other factors beyond the control of the District and 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. The growth or decline in assessed valuation is the result of a number of economic and other factors outside the control of the District.

Dated: 7/26, 2022.

/s/

Lamont Jackson
Superintendent
San Diego Unified School District

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