San Pasqual Valley Unified School District

Measure T Bond Measure - 55% Approval Required

The California Constitution authorizes school districts to issue bonded indebtedness through the imposition of ad valorem property taxes upon approval of two-thirds of voters of the district who vote on the measure.

The San Pasqual Valley Unified School District (“the District”) proposes to issue bonded indebtedness for construction, rehabilitation, or replacement of school facilities, including furnishing and equipping school facilities, or acquisition or lease of real property for school facilities.

If two-thirds of the voters of the District who vote on the measure vote in favor of the measure, the District will be authorized to incur debt by issuing general obligation bonds to provide financing for projects listed in measure T. Proceeds may only be used for the stated purpose and not for any other purpose, including teacher and administrator salaries, or other school operating expenses. If the measure is not approved by at least two-thirds of the voters of the District who vote on the measure, the measure will fail and the bonds will not be issued.

The maximum principal amount of the proposed bonds is not to exceed eight million dollars ($8,000,000.00). The interest rate will be established at the time of sale and will depend on market rates at that time. If issued under the Government Code, the maximum duration of the bonds cannot exceed forty (40) years. If issued under the Education Code, the maximum duration of the bonds cannot exceed twenty-five (25) years. The exact effect on tax rates cannot be determined until after the bonds are sold. The bonds will bear interest at a rate not exceeding the legal limit.

An annual report will be prepared, indicating the amount of funds collected and expended and the status of any projects listed in the measure.

A “yes” vote is a vote to authorize the issuance and sale of the general obligation bonds in an amount not-to-exceed the principal amount eight million dollars ($8,000,000.00). A “no” vote is a vote not to authorize the District to issue and sell said bonds.

The above statement is an impartial analysis of Measure T. If you desire a complete copy of the measure, please call the Election Official’s Office at (442) 265-1060 and a copy will be mailed at no cost to you.

KATHERINE TURNER
COUNTY COUNSEL

Eric Havens
Deputy County Counsel

       As shown on the enclosed official ballot, an election is being held in the San Pasqual Valley Unified School District (“District”) on November 8, 2016, for the purpose of submitting to the registered voters within the District the question of whether the District shall issue and sell bonds in an amount not to exceed $8,000,000 for the purpose of providing funds for the specified school facilities and school projects as set forth in the resolution of the District calling such bond election. This measure will authorize a tax sufficient for payment of interest on, and redemption of, the bonds. The bonds shall bear interest at a rate, or rates, to be established at such time as the bonds are sold, in one or more series, at fixed or variable interest rates not to exceed the maximum applicable statutory rate for such bonds. If such bonds are authorized and sold, the principal thereof and the interest thereon are a general obligation of the District, payable from the proceeds of ad valorem taxes on taxable real property located within the District.

       The following information is submitted in compliance with California Elections Code Sections 9401 through 9404 based on estimates of assessed valuations available at the time of filing of this statement:

       (a)      The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the first sale of the bonds based on estimated assessed valuations available at the time of filing of this statement or a projection based on experience within the same jurisdiction or other demonstrable factors is $0.092 per $100 ($92.00 per $100,000) of assessed valuation.

       (b)      It is anticipated that the bonds will be sold in more than one series. The best estimate from official sources of the tax rate which would be required to be levied to fund such bond issues during the first fiscal year after the last sale of the bonds based on estimated assessed valuations available at the time of filing of this statement or a projection based on experience within the same jurisdiction or other demonstrable factors is $0.092 per $100 ($92.00 per $100,000) of assessed valuation. It is estimated that this tax rate would apply in the 2021-2022 tax year.

       (c)      The best estimate from official sources of the highest tax rate which would be required to be levied to fund the bond issues during the term of the bond issues, based on estimated assessed valuations available at the time of filing of this statement or a projection based on experience within the same jurisdiction or other demonstrable factors, is $0.092 per $100 ($92.00 per $100,000) of assessed valuation. It is estimated that the highest tax rate would apply in the 2021-2022 tax year based on assessed valuations available at the time of this filing or a projection based on experience within the same jurisdiction or other demonstrable factors.

       (d)      The best estimate of the total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold is $16,350,000.

       Voters should note that these estimated tax rates are based on the assessed value of taxable property within the District as shown on the official rolls of Imperial County, not on the property’s market value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective rate than described above. Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined by the Imperial County Assessor in the annual assessment and the equalization process. Property owners should consult their own property tax bills and/or tax advisors to determine their property’s assessed value and any applicable tax exemptions.

       Attention of all voters is directed to the fact that these estimates are based on assumptions and projections derived from information obtained from official sources. The actual tax rates and the years in which they will apply may vary depending on the timing of any bond sales, the amount of bonds sold, market interest rates at the time of each sale of bonds and actual assessed valuations over the term of repayment of the bonds. The timing of the bond sales and the amount of bonds sold at any given time will be governed by the needs of the District. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of each such sale. Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined by the Imperial County Assessor in the annual assessment and the equalization process.

Dated: June 28, 2016

Interim/Acting Superindendent
San Pasqual Valley Unified School District

“In order to build a gymnasium/multi-purpose facility to support educational and after-school programs for both student and community use, build new state of the art classrooms, and to modernize, construct, upgrade and renovate classrooms at the school and school buildings of the San Pasqual Valley Unified School District (“District”), as further described below, and in so doing increase safety at school campuses and increase educational effectiveness of classrooms for students, shall the District be authorized to issue general obligation bonds in an amount not to exceed $8,000,000, which bonds shall be issued for a term not to exceed the statutory maximum, at an interest rate below the legal maximum?

PROJECT COSTS - FACILITIES

The general obligation bonds of the District would be used for the following purposes:

• Build a gymnasium/multipurpose facility to support educational and after-school programs for both student and community use
• Build and furnish new state of the art classrooms
• Improve student health and safety systems including security, fire & life safety systems and student pick-up/drop off areas
• Upgrade infrastructure technology to better prepare students for high school and future careers
• Provide the local match to access State and federal grants to modernize, construct and repair schools
• Address unforeseen conditions revealed by construction/ modernization (e.g. plumbing or gas line breaks/repairs, dry rot, seismic, structural, etc.)

Project Costs for Additional Fixtures and Equipment

Project costs for fixtures and equipment for the District school site and educational support sites identified herein may include, but are not limited to, some or all of the following: security, safety and communication systems and equipment, computers and computer systems, including, but not limited to, audio systems, improvements and fixtures and other non-portable electronic equipment and systems.

Project costs for the above-referenced projects may include installation costs, engineering and design costs, project management/construction management costs, warranty costs, master facilities planning, state or local costs, expenses and/or fees involving design, planning, site and facilities development costs and charges, environmental reviews and proceedings, necessary supporting infrastructure costs, relocation costs and expenses (including, but not limited to, interim student housing costs and expenses), necessary contingency plans and related costs for construction and completion of the aforementioned facilities projects, direct legal costs and related costs. Project costs may also include the payment or prepayment of lease payments for lease of authorized facilities, property or buildings, prepayment of lease obligations for facilities purposes and payment of costs and expenses for interim financing of authorized facilities (including, but not limited to, financing delivery costs). Allowable project costs also include: costs of issuing the bonds or other securities (as authorized under California law), informational distribution costs and election costs authorized under State law. Funding for these projects may come from this bond measure or other District resources as the school facilities needs arise.

Approval of the District’s bond measure does not guarantee that all of the identified projects within this list will be funded beyond local funds generated by the bond measure and does not guarantee that the projects will be completed in any particular order. The timeline and order of completion of the identified projects within this Bond Project List are at the discretion of the District. The District will also pursue funds from the State of California to complete certain of the identified facilities projects. In addition, the issuance of bonds pursuant to this bond measure depends in part on the assessed valuation of properties within the District and as a result bond issuance may require approval from the State Department of Education of a waiver of bonding capacity.”