Shoreline Unified School District

Measure I - 55% Approval Required

COUNTY  COUNSEL'S IMPARTIAL ANALYSIS OF BOND MEASURE I

SHORELINE UNIFIED SCHOOL DISTRICT AUTHORIZATION FOR ISSUANCE OF BONDS

Ifthis Measure is approved by a 55% vote, the Shoreline Unified School District will be authorized to issue and sell bonds in the amount of$19.5 million at legal interest rates.

The Measure states that the funds produced by the bond issuance must be used to upgrade, replace and install infrastructure, repair and modernize outdated classrooms and facilities at all district schools, build new educational facilities and improve technology.  Bond proceeds will not be used for teacher and administrator salaries.

In order to pay for the bonds, the projected tax rates will be 3.9 cents per $100 oftaxable value ($39 per $100,000 of assessed value) while the bonds are outstanding.  If all of the bonds are sold, the total debt service (including the principal and interest) will be $37,700,000.  The tax will raise approximately $1.4 million dollars annually.  If the bond issuance is authorized, the tax will commence in fiscal year 2019-20 and the final fiscal year in which it is anticipated that the tax will be collected is 2044-45.

The Measure requires a performance audit to ensure that funds are only expended on the Measure's projects; requires annual independent financial audits; and requires the establishment and appointment of an independent citizens' oversight committee.

TAX RATE STATEMENT FOR BOND MEASURE I SHORELINE UNIFIED SCHOOL DISTRICT GENERAL OBLIGATION  BONDS

An election will be held in the Shoreline Unified School

District (the "District") on November 6, 2018, to authorize the sale of up to $19.5 million in bonds of the District to finance school facilities as described in the measure.   If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of ad valorem tax levies made upon the taxable property in the District.  The following information is provided in compliance with Sections 9400-9404 of the Elections Code ofthe  State of California.  Such information is based upon the best estimates and projections presently available from official sources, upon experience within the District, and other demonstrable factors.

Based upon the foregoing and projections of the District's assessed valuation, the following information is provided:

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 a projection of assessed valuations available at the time of filing of this statement, is $0.039 per $100 of assessed valuation (or $39 per $100,000 of assessed value). The final fiscal year in which it is anticipated that the tax will be collected is 2044-45.

2.    The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing of this statement, is

$0.039 per $100 of assessed valuation (or $39 per

$100,000 of assessed value).  It is estimated that such rate would be levied starting in fiscal year

2019-20 and following.

3.               The  best  estimate  of  the  total  debt  service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is approximately $37,700,000.

Voters should note the estimated tax rate is based on the assessed value (not market value) of taxable property on the official tax rolls of the applicable county. 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.  Property owners should consult their own property tax bills and tax advisors to determine their property's assessed value and any applicable tax exemptions.

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which amounts are not maximum amounts or durations and are not binding upon the District.  The

actual  debt  service,  tax  rates  and  the  years  in  which they will apply may vary from those used to provide the estimates set forth above, due to factors such as variations in the timing  of bond sales, the par amount of bonds sold and market interest rates available at the time of each sale, actual assessed  valuations over the term of the bonds, and other factors.   The date and amount of bonds sold at any given time will be determined by the District based on the need for project funds and other considerations. The actual interest rates at which the bonds will be sold will depend on conditions in the bond market at the time of sale. Actual future assessed valuations will depend upon the amount and value of taxable property within the District as determined by the County Assessors in the annual assessment  and the equalization  process.

FULL TEXT OF BOND MEASURE I

This  measure  may  be known  as the "Shoreline Unified School District School Classroom and Facility Repair, Modernization  and  Improvement  Measure"  or "Measure I."

BOND AUTHORIZATION

By approval  of this measure  by at least 55 percent of the registered   voters  voting  on  the  measure,  the  Shoreline Unified School District will be authorized to issue and sell bonds of up to $19.5 million in aggregate principal amount at interest rates not to exceed legal limits and to provide financing for the specific types of school facilities projects listed in the Bond Project List described  below, subject to all the accountability  requirements  specified below.

ACCOUNTABILITY REQUIREMENTS

The  provisions  in  this  section  are  specifically  included in this measure  in order that the voters and taxpayers  in the District may be assured that their money will be spent wisely.  Expenditures to address specific facilities 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 School Board has identified detailed facilities needs of the District and has determined which projects  to finance from a local bond.  The School 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.  Following approval   of  this  measure,   the  Board  of  Trustees   will establish an Independent Citizens' Oversight Committee, under Education Code Sections 15278 and following, to ensure bond proceeds are expended only on the types of school facilities projects listed below.  The committee will be established  within 60 days of the date when the results of the election appear in the minutes of the School Board.

Performance Audits.   The School  Board will conduct annual, independent  performance  audits to ensure that the bond proceeds have been expended only on the school facilities projects listed below.

measure,  and not for any other purpose, (3) the proceeds of the bonds, when and if issued, will be deposited into a building  fund to be held by the Marin County Treasurer, as required  by the California Education  Code, and (4) the Superintendent of the District shall cause an annual report to be filed with the Board  of Trustees  of the District not later than January 1 of each year, which report shall 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 Sections  53410 and

53411 of the Government Code.

ADDITIONAL COVENANTS OF THE DISTRICT

No Capital Appreciation Bonds.  The District Board has covenanted that it will not issue any bonds pursuant to this measure as capital appreciation bonds.

Limit on Repayment Ratio.   The District Board has covenanted  that  it will  not  issue  any  bonds  pursuant  to this measure that results in a repayment  ratio of total debt service  to principal  amount issued of more than 2.5 to 1, also  expressed  as no more than $2.50 for each dollar of bonds issued.

NO TEACHER OR ADMINISTRATOR SALARIES

Proceeds from the sale of bonds authorized by this measure shall  be  used  only  for the  purposes  specified  in Article XIIIA,  Section  1(b)(3), those  being for the construction, reconstruction,  rehabilitation,   or  replacement  of  school facilities, including the furnishing and equipping of school facilities,  and the acquisition  or lease of school facilities, and  not  for  any  other  purpose,  including   teacher  and administrator salaries and other school operating expenses.

STATE MATCHING  FUNDS

The   following   statement   is  included   in  this  measure pursuant to Education Code Section 15122.5:  Approval of this measure does not guarantee that the proposed project or projects that are the subject of bonds under this measure will be funded beyond the local revenues generated by this measure. The District's  proposal for the project or projects described below may assume the receipt of matching state funds, which, if available, could be subject to appropriation by the Legislature or approval of a statewide bond measure.

INFORMATION ABOUT  ESTIMATES AND PROJECTIONS INCLUDED IN BALLOT

Financial Audits.  The School Board will conduct annual,          Any estimates or projections in the bond measure or ballot independent  financial audits of the bond proceeds until all         materials, such as relating to estimated tax rates, the duration of those proceeds have been spent for the school facilities          of issued bonds and related tax levies and collections  are projects listed below.                                                                        provided as informational only. Such amounts are estimates Government Code  Accountability Requirements.   As         and are not maximum amounts or limitations on the terms required  by Section  5341 0 of the Government  Code, (1)         of the bonds, the tax rate or duration of the tax supporting the specific purpose  of the bonds is set forth in this Full          repayment of issued  bonds.   Such  estimates depend  on

Text of the Measure, (2) the proceeds from the sale of the              numerous variables which  are  subject  to variation  and

bonds will be used only for the purposes  specified in-t  is             change ovethe teofthDistrict's v rall

financmg plan, mcludmg but not hm1ted to the amount

of bonds issued and outstanding at any one time, the interest rates applicable to issued bonds, market conditions at the time of sale of the bonds, when bonds mature, timing of project needs and changes in assessed valuations in the District. As such, while such estimates and approximations are provided based on information currently available to the District and its current expectations, such estimates and approximations are not limitations and are not binding upon the District.

BOND PROJECT  LIST

Scope of Projects.  Bond proceeds will be expended on the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, of the Shoreline Unified School District, including the furnishing and equipping of such school facilities. The scope of projects includes:

modem learning environment and support student achievement in math, science, engineering, technology and skilled trades

Replace    deteriorating    and    aging    portable classrooms

• Make  health  and  safety  improvements,  such as installing necessary seismic reinforcements, reconfiguring                       campuses   to    better    separate playgrounds from parking spaces, and replacing aging building materials, including removal of hazardous materials including asbestos identified either prior to or during construction

• Improve student access to computers and modem technology,          including    providing    necessary infrastructure,                        hardware   and   other   modem instructional equipment

• Modernize,  renovate  and  construct  restrooms,

•Repair and Modernize Outdated Classrooms and Facilities at All District Schools•

•Replace Older Portables with New Classrooms•

•Upgrade, Replace and Install Infrastructure as Needed at A11

Campuses•

•Build New Classrooms and Facilities•

kitchens and cafeterias and other District support facilities such as offices, meeting and wellness and family centers, and multi-purpose rooms

• Make    energy    efficiency    upgrades    and improvements, such as windows, doors, lighting and lighting control systems, roofing, insulation, and floor coverings

•  Upgrade and/or replace necessary infrastructure

•Improve Technology, Connectivity and Access•

This measure authorizes bond projects to be undertaken at all District school sites and other support sites.

School Facility Project List.  The items presented on the following list are the types of projects to be financed with voter-approved bond proceeds. Specific examples included on this list are not intended to limit the generality of the broader types of projects described and authorized by this measure. The types of projects authorized are:

• Repair  and/or  replace  deteriorating  and  leaky roofs and windows

• Repair and upgrade outdated and inadequate plumbing and electrical systems

• Repair, replace or upgrade outdated and inadequate heating, ventilation and air-conditioning systems

•  Acquire, install and/or upgrade campus security systems, including smoke detectors, fire alarms, sprinkler systems, school communication systems, fencing and lighting furnishings.

• Upgrade,   repair   and/or   expand   school   site parking, roadways and other grounds, including constructing and/or installing exterior lighting and signage, pathways, walkways, ADA access ramps, shade structures, benches and other outdoor seating areas and installing landscaping and drainage

• Repair, upgrade, renovate, improve and equip school  playgrounds,  sports  fields,  courts  such as  tennis  and  basketball,  tracks,  gymnasiums and physical education and athletic facilities, including constructing and acquiring all related improvements and facilities such as locker rooms and seating

• Make Federal and State-mandated Occupational Safety & Health Administration (OSHA) safety upgrades,                  including    playground    equipment replacement

• Ensure and upgrade federal and state-mandated Americans with    Disabilities    Act    (ADA) accessibility  to  schools, including  upgrades to site access, parking, staff and student restrooms, relocation of certain existing electrical devices, drinking fountains, playground equipment, and other necessary improvements.

•  Acquire  land, rights of ways,  or other  interests in real property, including the leasing of real property, to provide adequate school and related facilities to serve school sites

• If funds  from  non-bond sources become available and are applied to any of the following projects, then such projects may also be funded in part with bond funds as needed:

--Construct     and    upgrade    agricultural    career technical education (CTE) facilities (commonly referred to as The Farm)

--Make other improvements to classrooms and facilities throughout the District

Each of the bond projects  described  in this Bond Project List  include  the costs  of furnishing and equipping such facilities, and all costs  which are incidental but directly related to the types of projects described above.  Examples of incidental costs  include,  but are not limited  to: costs of design,  engineering, architect  and  other  professional serv-ices, facilities assessments, inspections, site preparation, utilities,  landscaping, construction  management and other planning and  permitting, legal,  accounting and  similar costs; independent annual financial and performance audits; a customary construction contingency; demolition and disposal of existing structures; the costs of interim housing and storage  during  construction including  relocation  and construction costs  incurred  relating  to interim  facilities; rental or construction  of storage facilities  and other space on an interim basis for materials and other equipment  and furnishings displaced during construction; costs of relocating facilities  and equipment  as needed in connection  with the projects; interim  classrooms and  facilities for  students, administrators, and school  functions, including modular facilities; federal  and  state-mandated safety  upgrades; addressing unforeseen conditions revealed by construction/ modernization  and other necessary improvements required to comply with existing building codes, including the Field Act; access requirements of the Americans with Disabilities Act; costs of the election; bond issuance costs; and project construction oversight and administration during the duration of such projects, including by District personnel, as permitted by law.

The scope and nature of any of the specific projects described above may be altered by the District as required by unforeseen conditions  that may arise during the course of design and construction. In the event that a modernization or renovation project is more economical for the District to be undertaken as new construction, this bond  measure  authorizes land acquisition, relocation,  expansion and construction  and/or reconstruction, and all costs relating thereto, for said reason or, alternatively,  based on other considerations deemed in the best interest  of the District  by the Governing Board.

In addition, this measure authorizes the acquisition of real property,  including  necessary  rights of ways or other real property interests, required to accomplish projects set forth above,  to expand  District  facilities, to provide  facilities access, or to provide additional school or related facilities, which acquisition includes  sites that may not be adjacent to existing  sites.   In addition,  authorized  projects include reimbursements for project  costs previously  paid by the District, and paying and/or prepaying interim or previously obtained financing for the types of projects included on the project list, such as bond anticipation notes and other lease financings relating to projects and/or equipment previously financed.

The order in which school facilities  projects  are listed in the foregoing  Bond Project List does not suggest an order of priority.   Determination of bond project  prioritization is vested in the Governing  Board.  In determining  project funding priorities pursuant to this bond measure, the Board is committed to taking into consideration factors such as non­ bond funding sources which have previously been received or may be received for said projects, and in such instance, using bond funds as a secondary  source of funding  when needed.  Furthermore, the District declares its intention to continue to pursue State facilities funding sources whenever possible, including State matching grant funds for eligible projects.

The Governing Board's prioritization funding projects as of the date of placing this measure on the ballot can be obtained from the District's web site or by request to the office of the Superintendent.

The District is unable to anticipate all unforeseen circumstances which  may  prevent  some  of the projects listed on the above school facility project list from being undertaken or completed from local funds generated by this bond measure, or which may require modification to current priorities.