El Dorado Union High School District

Measure A Bond Measure - 55% Approval Required

Measure A (the “Measure”), if approved by at least 55% of the registered voters voting thereon, would authorize the El Dorado Union High School District (the “District”) to incur bonded indebtedness up to a maximum amount of $120,000,000.  The Measure was placed on the ballot by the Board of Trustees (“Board”) of the District pursuant to Resolution No. 2019/20-08. 

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 Measure A 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 Measure A is passed, the actual dates of sale and the amount of bonds sold would be governed by the District based on the need for construction 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 $232,022,143.  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 Measure A 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 A means you wish to allow the District to incur bonded indebtedness. 

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

An election will be held in the El Dorado Union High School District (the “District”) on March 3, 2020, to authorize the sale of up to $120,000,000 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. 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 1.6 cents per $100 ($16 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 2050-51.

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 1.6 cents per $100 ($16 per $100,000) of assessed valuation in fiscal year 2020-21 and such tax rate is expected to continue through 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 $232,022,143.

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. 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 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 construction 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.