Fullerton Joint Union High School District

Measure K Bond Measure - 55% Approval Required

Fullerton Joint Union High School District Measure K

This measure was placed on the ballot by the governing board (“Board”) of the Fullerton Joint Union High School District (“School District”). This measure, if approved by 55 percent of the votes cast on the measure, will authorize the District to issue and sell $310,000,000 in general obligation bonds. The sale of these bonds by the School District represents a debt of the School District.

Voter approval of this measure will also authorize an annual tax to be levied on taxable property in the School District to generate revenue to pay principal and interest on the bonds. The School District’s stated best estimate in its tax rate statement of the average annual tax rate required to fund the bonds is $30 per $100,000 of assessed value. The School District’s best estimate of the highest annual tax rate required to fund the bonds is $30 per $100,000 of assessed value.

Proceeds from the sale of bonds authorized by this measure may only be used by the School District 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. A complete list of the projects and allowed expenditures, which bonds proceeds may be spent on, is included in the full text of the measure. The Board has certified that it has evaluated safety, class size, and information technology needs in developing its project list.

The California Constitution provides that proceeds of school district bond measures cannot be used for teacher or administrator salaries or other operating expenses and requires independent annual performance and financial audits. State law requires the establishment of an independent citizens oversight committee for ensuring that bond proceeds are expended as specified in the measure and as provided by law.

Approval of Measure K does not guarantee that the proposed project or projects in the School District that are the subject of the bonds under Measure K will be funded beyond the local revenues generated by Measure K. The School District’s proposal for the project or projects may assume the receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure.

A “YES” vote is a vote in favor of authorizing the School District to issue and sell $310,000,000 in general obligation bonds.

A “NO” vote is a vote against authorizing the School District to issue and sell $310,000,000 in general obligation bonds.

Fullerton Joint Union High School District Measure K

An election will be held in the Fullerton Joint Union High School District (the “District”) on March 3, 2020, to authorize the sale of up to $310,000,000 in bonds of the District for the specific school facilities projects listed in the Bond Project List established by the District, as described in the proposition. If the bonds are authorized and a State bonding capacity waiver is received, the District expects to sell the bonds in two or more series. 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 9400-9404 of the Elections Code of the State of California.

1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund that bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors is 3 cents per $100 of assessed valuation ($30 per $100,000 of assessed valuation) of all property to be taxed. The best estimate of the final fiscal year in which the tax is anticipated to be collected is 2046-47.

2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund that bond issue, and an estimate of the year in which that rate will apply, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors is 3 cents per $100 of assessed valuation ($30 per $100,000 of assessed valuation) of all property to be taxed. The best estimate of the year in which the highest tax rate will apply is anticipated to be 2020-21.

3. The best estimate from official sources 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 $541,316,825.

Voters should note that such estimated tax rates are specific to the repayment of bonds issued under this authorization and are and will be in addition to tax rates levied in connection with other bond authorizations approved or to be approved by local voters for the District or for any other overlapping public agency.

District voters have approved a prior authorization ($67,940,000 2002 Measure AA) under which the District has issued bonds that are still outstanding. In 2019-20, the general obligation bond tax rate was $10.91 per $100,000 of assessed value for such authorization. The District has issued all bonds under such authorization. District voters have also approved a prior authorization ($175,000,000 2014 Measure I) under which the District has issued bonds that are still outstanding. In 2019-20, the general obligation bond tax rate was $16.88 per $100,000 of assessed value for such authorization. The District has issued four bonds under such authorization totaling $151,500,000, leaving $23,500,000 still to be issued.

Voters should note that estimated tax rate is based on the ASSESSED VALUE of taxable property on the Orange County’s and Los Angeles County’s official tax rolls, not on the property’s market value. Property owners should consult their own property tax bills 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 actual tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates 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 of bonds sold at any given time will be determined by the District based on need for construction funds and other factors. The actual interest rates at which the bonds will be sold 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 Orange County and Los Angeles County Assessors in the annual assessment and the equalization process.

Dated: November 12, 2019.

s/ Scott Scambray

Superintendent, Fullerton Joint Union High School District

https://www.ocvote.com/voting/current-election-info/2020-presidential-primary-election-info/measures-pri2020/