Cajon Valley Union School District

Measure T Bond Measure - 55% Approval Required

CAJON VALLEY UNION SCHOOL DISTRICT
BOND ELECTION

COUNTY COUNSEL IMPARTIAL ANALYSIS

This measure was placed on the ballot by the governing board of the Cajon Valley Union School District (“District”). This measure, if approved by 55% of the qualified electors voting on this measure, will authorize the District to issue and sell general obligation bonds in an amount not to exceed $125,000,000. If approved, the bonds may be issued in several series and may mature in 40 years or such shorter period as determined by the District Board. The interest rate on the bonds could not exceed statutory limits.

Approval of this measure will authorize a levy on the assessed value of taxable property within the District in an amount needed to pay the principal and interest on the bonds each year the bonds are outstanding. The Tax Rate Statement submitted by the District estimates the highest tax rate which would be required to be levied to fund this bond issue is $15.60 for every $100,000 of assessed valuation and the total debt service, including principal and interest, required to be repaid if all the bonds are issued and sold is approximately $240,100,000. These amounts are estimates. Actual amounts may vary depending on the timing of sales, amount of bonds sold at each sale, and assessed valuation.

Proceeds from the sale of bonds authorized by this measure can only be used for purposes described in the full text of this measure and as permitted by State law. Approval of this measure does not guarantee that any or all of the proposed projects identified by the District will be funded by the sale of the bonds. The District has represented that some of the projects identified may require state matching funds for completion.

The California Constitution permits property taxes, above the standard 1% limitation, to be levied upon real property to pay the principal and interest on any bonded indebtedness for, among other things, the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, when approved by 55% of the voters if:

(1) the proceeds from the sale of the bonds are used only for the purposes specified,

(2) the District evaluates safety, class size reduction, and information technology needs to approve a list of specific projects to be funded,

(3) the District conducts an annual, independent performance audit to ensure funds have been expended on the specific projects listed, and

(4) the District conducts an annual, independent financial audit of bond proceeds.

Additionally, if the bond measure is approved, State law requires the District to establish an independent citizens’ oversight committee. The District has made the issuance of the bonds in this measure subject to these legal requirements.

A “YES” vote is in favor of authorizing the District to issue and sell $125,000,000 in general obligation bonds.

A “NO” vote is against authorizing the District to issue and sell $125,000,000 in general obligation bonds.

The official tax rate statement for this measure appears on pages 7 and 8 of this PDF:
https://www.sdvote.com/content/dam/rov/en/election/4182-Nov-2020/Measures/Cajon_Valley_School_Dist.pdf

TAX RATE STATEMENT
$125 MILLION
CAJON VALLEY UNION SCHOOL DISTRICT
GENERAL OBLIGATION BONDS

An election will be held in the Cajon Valley Union School District (the “District”) on November 3, 2020, to authorize the sale of up to $125 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 1.297 cents per $100 of assessed valuation (or $12.97 per $100,000 of assessed valuation). The final fiscal year in which the tax is anticipated to be collected is 2059-60.

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 1.560 cents per $100 of assessed valuation (or $15.60 per $100,000 of assessed valuation). It is estimated that such rate would be levied starting in fiscal year 2026-27 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 $240.1 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 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.

David Miyashiro, Ed.D.
Superintendent
Cajon Valley Union School District