Black Oak Mine Unified School District

Measure H - 55% Approval Required

IMPARTIAL ANALYSIS
BLACK OAK MINE UNIFIED SCHOOL DISTRICT
BOND MEASURE H
Measure H (the “Measure”), if approved by at least 55% of the registered voters voting thereon, would authorize the Black Oak Mine Unified School District (the “District”) to incur bonded indebtedness up to a maximum amount of $29,868,000.  The Measure was placed on the ballot by the Board of Trustees (“Board”) of the District pursuant to Resolution No. 2019-18.

Proceeds from the sale of the bonds authorized by the Measure would be used only for 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. No funds derived from bond sales may be used for general school operating expenses, including administrator and teacher salaries, or for any purpose or project other than those expressly stated in the measure.  The full text of the Measure lists the school facility improvement projects within the District intended to be financed by bond sales. 

The Measure provides that the Board shall conduct annual independent performance and financial audits and shall appoint an independent Citizens’ Oversight Committee to ensure that bond proceeds are spent only as specified in the Measure and as provided by law.  Bond proceeds shall be deposited in a special fund and an annual report shall be made to the Board of the amount of funds collected and expended and the status of projects.

If the Measure is passed, the actual dates of sale and the amount of bonds sold would be governed by the District based on the need for project funds and other factors.  According to the District, the best estimate of the total debt service to be repaid if all the bonds are issued and sold is approximately $59,537,800.  Principal and interest on the bonds will be paid only by revenue derived from ad valorem taxes levied upon the taxable property within the District. If the Measure is approved, the tax rates 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 interest rate allowed by law), as well as actual assessed valuation of taxable property in the District over the term of repayment. 

A “YES” vote on Measure H means you wish to allow the District to incur bonded indebtedness.

A “NO” vote on Measure H means you do not wish to allow the District to incur bonded indebtedness.

An election will be held in the Black Oak Mine Unified School District (the “District”) on March 3, 2020, to authorize the sale of up to $29,868,000 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 of the 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 $0.049 per $100 of assessed valuation (or $49.00 per $100,000 of assessed value). The final fiscal year in which it is anticipated that the tax will be collected is 2054-55.

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 $0.049 per $100 of assessed valuation (or $49.00 per $100,000 of assessed value). It is estimated that such rate would be levied starting in fiscal year 2020-21 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 $59,537,400.

Voters should note the estimated tax rate is based on the assessed value (not market value) of taxable property on the County’s official tax rolls. 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 Assessor in the annual assessment and the equalization process.