Approval of Measure LA ("Measure") would authorize the Board of Trustees ("Board") of the Los Angeles Community College District ("District") to issue general obligation bonds in an amount not to exceed $5,300,000,000. The District placed the Measure on the ballot by Resolution entitled, "Resolution of the Board of Trustees of the Los Angeles Community College District Ordering an Election and EstablishingSpecifications of the Election Order," adopted by the Board on July 6, 2022.
Proceeds from the sale of the bonds authorized by the Measure will be used only for the purposes specified in the Measure, including repairing, upgrading, and constructing classrooms and other community college facilities in the District; removing hazardous materials; repairing and replacing electrical and plumbing systems, heating,ventilation and air conditioning systems, gas and sewer lines, roofs, windows, walls, doors, drinking fountains,lighting systems, fire safety equipment, emergency communications and security systems; upgrading facilities to meet sustainability and State of California compliance standards; installing wiring and electrical systems to support computers, wireless internet access, technology and other electrical needs; refinancing of outstanding lease obligations and demolition of buildings; and acquiring and upgrading classroom technology.
A complete list of the projects and allowed expenditures is included in the full text of the Measure. Bond proceeds may not be expended on teacher and administrator salaries and other operating expenses.
The Board will cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for projects identified in the Measure. The Board will appoint an independent Citizens' Oversight Committee in compliance with Education Code section 15278 no later than 60 days after theBoard enters the election results in its minutes. The District will create an account into which the bond proceeds will be deposited and will comply with the reporting requirements of Government Code section 53410.
The bonds will not exceed the maximum interest rate as allowed by law. According to the District's Tax RateStatement, the best estimate of the average tax rate required to fund the bond issue, based on estimated assessed valuations available when the District filed the statement, is $14 per $100,000 of assessed valuation. The best estimate of the highest tax rate required to fund the bonds, based on estimated assessed valuation available when the District filed the statement, is $25 per $100,000 of assessed valuation in fiscal year 2045-2046. The best estimate of the final fiscal year in which the tax is anticipated to be collected is fiscal year 2062-2063. The best estimate of total debt service, including principal and interest, is $7,881,092,000.
