Fort Bragg Unified School District

Measure B - 55% Approval Required

MEASURE B– continued

TAX RATE STATEMENT

REGARDING PROPOSED

FORT BRAGG UNIFIED SCHOOL DISTRICT

GENERAL OBLIGATION BONDS

An election will be held in the Fort Bragg Unified School District (the “District”) on March 3, 2020, to authorize the sale of up to $35.0 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 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 $0.0555 per $100 of assessed valuation (or $55.50 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 $0.06 per $100 of assessed valuation (or $60.00 per $100,000 of assessed value).  It is estimated that year in which the highest tax rate would apply commences in fiscal year 2021-22.

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 $70.0 million.

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.

FORT BRAGG UNIFIED SCHOOL DISTRICT

FULL TEXT OF MEASURE B

INTRODUCTION

The following is the abbreviated form of the bond measure:

“To improve the quality of local schools; repair or replace leaky roofs; update inadequate electrical systems; make health and safety improvements; and modernize/renovate and construct classrooms, restrooms and school facilities; shall Fort Bragg Unified School District’s measure be adopted authorizing $35,000,000 in bonds at legal interest rates, generating approximately $2,000,000 annually while bonds are outstanding with levies of approximately 6 cents per $100 assessed value, with annual audits, citizens’ oversight and no money for salaries/operations?”

BOND AUTHORIZATION

By approval of this measure by at least 55 percent of the registered voters voting on the measure, the Fort Bragg Unified School District will be authorized to issue and sell bonds of up to $35.0 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.

Financial Audits.  The School Board will conduct annual, independent financial audits of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed below.

FORT BRAGG UNIFIED SCHOOL DISTRICT

FULL TEXT OF MEASURE B – continued

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 XIII A, 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

Voters are informed that any estimates or projections in the bond measure or ballot materials, including relating to estimated tax rates, the duration of issued bonds and related tax levies and collections are provided as information only.  Such amounts are estimates and are not maximum amounts or limitations on the terms of the bonds, the tax rate or duration of the tax supporting repayment of issued bonds.  Such estimates depend on numerous variables which are subject to variation and change over the term of the District’s overall facilities and bond financing plan, including but not limited 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 of the Fort Bragg Unified School District, including furnishing and equipping, and the acquisition or lease of real property for school facilities, and not for any other purpose, including teacher and administrator salaries or other school operating expenses, in compliance with California Constitution Article XIIIA, Section 1(b)(3).  This measure authorizes bond projects to be undertaken at all current and future District sites and campuses.

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

·         Repair and/or replace deteriorating/leaky roofing.

·         Upgrade, repair and/or install infrastructure sufficient to serve District facilities, including updating inadequate electrical systems, plumbing, sewer, drainage and gas.

·         Construct, remodel, repair, acquire and modernize classrooms and other school facilities, including improvements to exteriors, to provide modern educational facilities.

·         Energy efficiency and modernizing upgrades to facilities including new doors, windows, flooring, paint, insulation and sealing.

·         Renovate, repair, upgrade and construct restrooms.

FULL TEXT OF MEASURE B – continued

• Replace aging and deteriorating portables with permanent structures including modular buildings.
• Safety improvements to provide safe and secure campuses, including improving and/or constructing secure and safe entrance points, acquiring and upgrading communications systems, lighting systems, bell systems, fire and life safety systems, fencing and cameras.
• Make upgrades and improvements to buildings including foundation work, and abate and remove hazardous materials identified prior to or during construction including asbestos removal.

·         Construct and/or improve bus loading zones, drop-off areas, driveways and cross-walks, including all related paving, grading, signage, curb work and landscaping.

·         Make Federal and State-mandated Americans with Disabilities Act (ADA) accessibility upgrades including but not limited to ensuring site access, paths of travel, ramps, parking, staff and student restrooms, relocation of existing electrical devices, drinking fountains, playground equipment, as necessary to ensure adequate accommodations are provided and all applicable legal requirements are met.

·         Modernize and renovate dining/cafeteria/kitchen services facilities, including replacing built-in furnishings, and acquiring modern equipment and furnishings.

·         Improve student access to computers and modern technology, including providing necessary electrical infrastructure, hardware, software, computers, devices and other modern instructional equipment

·         Improve, upgrade and repair building and campus exteriors including roofing, signage, lighting, painting, siding, paving, parking lots, gutters, landscaping, irrigation and grading.

·         Constructing/improving outdoor meeting and eating areas including installing shade structures.

·         Improve playgrounds and playfields including installing fall resistant surfaces, providing updated equipment and landscaping.

·         Construct, upgrade, repair and modernize physical education facilities at all sites including but not limited to improvements/modernizations to gyms, bathroom and locker room facilities, courts, installing all-weather track surfaces and installing and/or upgrading stadium lighting fixtures.

·         Acquire/repair/upgrade heating, ventilation and air conditioning systems (HVAC).

·         Site work to all sites including new or improved asphalt and grading, and improvements to bus storage facilities and lift system.

Each of the bond projects described in this Bond Project List include

FULL TEXT OF MEASURE B – continued

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; project construction oversight, management and administration during the duration of such projects, including by District personnel, and bond issuance costs.

Unforeseen conditions may arise during the course of planning, design and construction resulting in the scope and nature of any of the specific projects described above being altered by the District.  In the event that the District determines that a modernization or renovation project identified on the list is more economical for the District or otherwise in the District’s best interest to be undertaken as new construction, this bond measure authorizes said new construction, including land acquisition, relocation, expansion and construction and/or reconstruction, and all costs relating thereto.  In addition, this measure authorizes the acquisition of real property, including necessary rights of ways or other real property interests, required to expand District facilities, to provide access to other District sites and facilities, or to provide additional school or related facilities.  Further, authorized projects include reimbursements for project costs previously paid by the District, and the payment or repayment of interim or previously obtained financing for the types of projects included on the project list, such as bond anticipation notes and capital leases relating to projects and/or equipment previously financed.  Finally, projects on this list may be undertaken and used as joint use projects with other public agencies.

The order in which projects are listed in the foregoing Bond Project List does not suggest an order of priority.  Project prioritization is vested in and will be determined by the District Board of Trustees.

Approval of the District’s bond measure does not guarantee that all of the identified projects within this Bond Project List will be funded beyond what can be completed with funds generated by this bond measure.  The District plans to pursue funds from the State of California, if available, to complete certain of the identified facilities projects.  The District is unable to anticipate all unforeseen circumstances which may prevent some of the projects listed above from being undertaken or completed.