Marysville Joint Unified School District

Measure J - 55% Approval Required

Measure___ , a Marysville Joint United School District (the "District") bond measure, seeks voter approval to authorize the District to issue and sell up to $74,000,000 of bonds at legal rates. The primary purpose of the bonds is raise money for school facilities projects as specified in the measure.

Pursuant to Section 18 of Article XVI and Section 1 of Article XIIIA of the California Constitution, this measure will become effective upon the affirmative vote of at least 55% of the qualified electors voting on this measure.

This measure provides that the proceeds of the bonds will fund various school facilities projects outlined in the measure (reproduced in the voter information pamphlet) that include, but are not limited to: school improvements to safety and security; repairing and modernizing school facilities; building systems repair and replacement; school improvements regarding energy efficiency and sustainability; and school improvements to support student learning and instruction.

If 55% of those who vote on this measure vote "yes", the District will be authorized to issue bonds in the amount of $74,000,000. Upon voter approval, the principal and interest on the bonds will be paid by tax levies made upon the assessed value of taxable property in the District. The District's best estimate of the average annual tax rate required to be levied to fund the bonds is 5.634 cents per $100 of assessed value (or $56.34 per $100,000 of assessed value). The final fiscal year in which the tax is anticipated to be collected is 2054-2055. 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 $150,748.926.

The actual rate of interest at which the bonds will be sold will depend on the bond market at the time of each sale. The actual assessed value of the properties upon which the tax will be levied will depend on the amount and value of the taxable property within the District as determined by the County Assessor in the annual assessment and equalization process.

The Board of Trustees will appoint a citizens' oversight committee and conduct annual, independent financial and performance audits to account for and assure funds have only been spent on the projects listed in the measure and not for any other purpose, including teacher and administrative salaries. The proceeds of the bonds will be held in a separate account with annual reporting of the funds collected, spent, and status of the various school facilities projects by the District.

If 55% of those voting on this measure do not vote for approval, the measure will fail and the District will not be authorized to issue the bonds.

This measure was placed on the ballot by the Board of Trustees of the District.

An election will be held in the Marysville Joint Unified School District (the "District") on November 6, 2018, to authorize the sale of up to $74,000,000 in bonds (the "Bonds-) of the District to continue improving the quality of education in local elementary, middle, and high schools of the District. Specifically, Bond proceeds shall be utilized for the purposes of acquisition, construction, renovation, furnishing, and equipping of school facilities, support facilities, and equipment.

if the Bonds are authorized and sold, debt service thereon will be payable from the proceeds oi 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. It is anticipated that the District will sell the Bonds in separate series.

1.                The best estimate of the average tax rate that would be required to be levied to fund this Bond issue during the life of the Bonds, based on estimated assessed valuations available at the time of filing of this statement, is 5.6340 per $100 ($56.34 per $100,000) of assessed valuation. The final fiscal year in which the tax is anticipated to be collected is 2054­2055.

2.                The best estimate of the highest tax rate that would be required to be levied to fund the Bond issue, based on estimated assessed valuations available at the time of filing of this statement, is 60 per $100 ($60.00 per $100,000) of assessed valuation which would first occur in fiscal year 2022-2023.

3.                The best estimate of total debt service, including principal and interest, that would be required to be repaid if all the Bonds are issued and sold is $150,748,926. This estimate results in a debt service to principal ratio of 2.04: I , which is significantly less than the maximum ratio of 4.00:1 allowed by State law. This estimate is based on the assumption that interest rates will increase over time, and the Bonds will have a maximum term of 30 years per series.

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable property on the 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 the need for construction funds and other factors, including the legal limitations on bonds approved by a 55% vote. 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 County Assessor in the annual assessment and the equalization process.

EXHIBIT A

FULL TEXT OF MEASURE

Upon the passage of Measure _________ , as set forth above, the Marysville Joint Unified

School District (the "District") shall be authorized to issue bonds in the aggregate amount of $74,000,000 (the "Bonds"), bearing interest at rates not exceeding the statutory limit, for the purpose of funding the school facilities projects listed below under the heading "School Facilities Projects that May Be Funded with Proceeds of Bonds" (the "Bond Projects") at the District's schools. The Bond Projects were derived from the District's Facilities Master Plan along with comments from the Board of Trustees (the "Board") and the community, including teachers, staff, students, and residents.

Proposition 39 Bond Accountability Measures

At its July 24, 2018 meeting, the Board of Trustees (the "Board") certified that it evaluated safety, class size reduction, and information technology needs in developing the list of the Bond Projects set forth below. The proceeds of the Bonds shall be used only for the Bond Projects identified in the list below, and not for any other purpose (i.e., teacher and administrative salaries and other school operating expenses).

The Board shall give consideration to the life expectancy of any Bond Project to ensure the Project's useful life is consistent with the term of the Bonds, to the extent feasible.

The proceeds of the Bonds will be held in a separate account. The Board is bound to conduct financial and performance audits annually to account for the Bond funds and to assure that funds have only been expended on the specific projects authorized.

The Board will appoint a citizens' oversight committee (the "Citizens' Oversight Committee") having a minimum of seven members and including at least one member active in a business organization representing the business community located within the District, one member active in a senior citizens' organization, one member active in a bona fide taxpayers' organization, one member who is the parent or guardian of a child enrolled in the District, and one member who is both a parent or guardian of a child enrolled in the District and active in a parent-teacher organization.

School Facilities Projects that May Be Funded with Proceeds of Bonds

The Bond Projects for the Authorized Schools, as described more specifically in the District's Facilities Master Plan, and incorporated herein by this reference, consist of the following:

School Safety and Security:

• Improve campus, site and support facilities safety and security by installing and upgrading security cameras and systems, exterior lighting, fencing systems, gates, locks and other safety equipment and measures

Modernization:

• Upgrade, repair and replace flooring, leaky roofs, dry-rot, windows, parking lots, aging classrooms, portables, bathrooms and other school and support facilities
• Replace outdated and aging portable classrooms with new classrooms
• Upgrade, replace and modernize food service facilities, multipurpose rooms, and performing arts facilities
• Upgrade, replace, modernize and construct athletic facilities
• Patch and paint inside and outside of classrooms and support facilities Updates to Existing School-Wide Building Systems:
• Upgrade and replace outdated heating, ventilation, and air-conditioning (HVAC) systems
• Repair and upgrade the District's electrical lighting systems, including replacing outdated lighting with LED lighting and other energy efficient systems and equipment
• Upgrade and replace plumbing systems, including installing low-flow faucets and toilets, and other modern fixtures that can save water, and installing running water in classrooms
• Upgrade, repair and replace communication systems

Improvements to Learning Environments:

• Modernize classrooms, science labs and educational technology for student instruction
• Construct, reconstruct, replace, and reconfigure classrooms and school facilities and libraries, to provide learning flexibility and to support high-quality instruction, including renovating facilities for improved Career Technical Education
• Acquire and equip classrooms with furniture and equipment to improve learning environments, including improving student access to modern technologies
• Upgrade, redesign, replace, and repair outdoor learning environments at District schools, including but not limited to the installation of shade structures, grass, and playground equipment

Each of the Bond Projects described in the list above include all costs incidental but directly related to the specific projects described above. Such costs include, but are not limited to, demolition of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, interim classrooms and facilities for students, administrators, and school functions but only to the extent such facilities are deemed necessary by the Board as a result of unforeseen conditions, 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, bond issuance costs and project administration during the duration of such projects, including administration by District personnel.

For any of the Bond Projects described above with respect to construction at an existing District site, the District is authorized to identify an alternate site and/or acquire land for such purpose and construct the approved project at such site if the District has determined that the existing site does not satisfy the requirements of the Division of State Architect or other State laws, codes and regulations applicable to public school sites.

The order in which the Bond Projects are listed above does not suggest an order of priority. Project priorities will be determined by the District Board. The District is unable to anticipate all unforeseen circumstances which may prevent some of the projects listed above from being undertaken or completed.

The cost of all the Bond Projects set forth in the list above may exceed the amount of bonds authorized by Measure  ____ . Approval of the District's Measure ____  does not guarantee that the proposed school facilities projects in the District that are the subject of bonds under Measure will be funded beyond the local revenues generated by Measure . The District's proposal for the school facilities projects may assume receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure. The allocation of bond proceeds may also be affected by the final costs of each project.

The final cost of each project will be determined as plans are finalized, construction bids are awarded and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed.