Atascadero Unified School District

Measure C-20 Bond Measure - 55% Approval Required

Bonds are financial instruments used to borrow money. Under the California Constitution, school districts may issue bonds if approved by at least 55 percent of voters within the boundaries of the district who are voting on a measure to authorize the issuance of bonds. The bonds are sold to the public and constitute a debt of the district. The principal and interest on the bonds are repaid by an annual property tax levy on all real property within the jurisdiction of the school district, calculated on the current assessed value of each property (“an ad valorem tax”). 

The Board of Trustees of the Atascadero Unified School District (“the District”) has placed Measure C-20 on the ballot, proposing the sale of bonds in an amount not to exceed $40 million. The District’s Tax Rate Statement, included in the voter information guide, which was mailed to voters of the District, reflects an estimate of the maximum property tax levies required to service the bonds.

As legally required, proceeds from the sale of the bonds (i.e., funds generated by the bonds) may only be used for the purposes identified in the measure, including such things as: expansion of certain programs and facilities; improving, repairing, and upgrading classrooms and educational facilities; repairing, renovating and modernizing outdated classrooms and facilities and technology; installing energy cost-savings systems; upgrading of facilities for emergency preparedness and enhanced security; and upgrading athletic grounds and facilities (all as more fully described in the full-text of the measure).  The law prohibits the use of bond proceeds to pay for teacher and administrator salaries or other operational expenses.

Approval of the measure does not guarantee that all proposed projects of the District to be improved with bond proceeds will be funded beyond the local revenues generated by the measure. The District’s proposal for the 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.

As required by law, the District must follow certain accountability provisions to oversee the funds collected and expended, including the establishment of an independent Citizens’ Oversight Committee, the annual completion of Performance and Financial Audits, and an annual report detailing proceeds received by the sale of the bonds and expenditures made, all requirements of which are reflected in the full text of measure.

The District’s Tax Rate Statement provides the District’s best estimate of the highest tax rate to be levied at an approximate rate of no more than six cents per $100 ($60 per $100,000) of assessed property value per year. The final fiscal year in which the tax is anticipated to be collected is 2034-35. 

A “Yes” vote on this measure is a vote in favor of the issuance of $40 million in general obligation bonds to be used for the purposes set forth in Measure C-20.

A “No” vote on this measure is a vote against the issuance of $40 million in general obligation bonds for the purposes set forth in Measure C-20.                                                                 

An election will be held in the Atascadero Unified School District (the “District”) on November 3, 2020, to authorize the sale of up to $40,000,000 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 $0.043 per $100 of assessed valuation (or $43 per $100,000 of assessed value).  The final fiscal year in which it is anticipated that the tax will be collected is 2034-35.
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 $0.060 per $100 of assessed valuation (or $60 per $100,000 of assessed value).  It is estimated that the year in which the highest tax rate would apply is in fiscal year 2021-22.
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 $46.5 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 or durations 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.

INTRODUCTION

The following is the abbreviated form of the bond measure:

“To expand vocational/career education facilities for programs including engineering, technology, robotics, construction trades and agricultural science; improve school security/student safety; upgrade school emergency preparedness; build additional school facilities as needed; and create local construction jobs; shall Atascadero Unified School District’s measure be adopted authorizing $40 million of bonds with legal interest rates, levies averaging less than five cents per $100 assessed valuation for 14 years ($3.3 million/year for bond repayment), annual audits and independent oversight?”

BOND AUTHORIZATION

By approval of this measure by at least 55 percent of the registered voters voting on the measure, the Atascadero Unified School District will be authorized to issue and sell bonds of up to $40 million in aggregate principal amount at interest rates not to exceed legal limits and to provide financing for the specific types of school facilities projects listed in the Bond Project List described below, subject to all the accountability requirements specified below.

ACCOUNTABILITY REQUIREMENTS

The provisions in this section are specifically included in this measure in order that the voters and taxpayers in the District may be assured that their money will be spent wisely.  Expenditures to address specific facilities needs of the District will be in compliance with the requirements of Article XIIIA, Section 1(b)(3), of the State Constitution and the Strict Accountability in Local School Construction Bonds Act of 2000 (codified at Education Code Sections 15264 and following.)

Evaluation of Needs.  The School Board has identified detailed facilities needs of the District and has determined which projects to finance from a local bond.  The School Board hereby certifies that it has evaluated safety, class size reduction, enrollment growth, and information technology needs in developing the Bond Project List shown below.

Independent Citizens’ Oversight Committee.  Following approval of this measure, the Board of Trustees will establish an Independent Citizens’ Oversight Committee, under Education Code Sections 15278 and following, to ensure bond proceeds are expended only on the types of school facilities projects listed below.  The committee will be established within 60 days of the date when the results of the election appear in the minutes of the School Board.

Performance Audits.  The School Board will conduct annual, independent performance audits to ensure that the bond proceeds have been expended only on the school facilities projects listed below.

Financial Audits.  The School Board will conduct annual, independent financial audits of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed below.

Government Code Accountability Requirements.  As required by Section 53410 of the Government Code, (1) the specific purpose of the bonds is set forth in this Full Text of the Measure, (2) the proceeds from the sale of the bonds will be used only for the purposes specified in this measure, and not for any other purpose, (3) the proceeds of the bonds, when and if issued, will be deposited into a building fund to be held by the San Luis Obispo County Treasurer, as required by the California Education Code, and (4) the Superintendent of the District shall cause an annual report to be filed with the Board of Trustees of the District not later than January 1 of each year, which report shall contain pertinent information regarding the amount of funds collected and expended, as well as the status of the projects listed in this measure, as required by Sections 53410 and 53411 of the Government Code.

No Teacher or Administrator Salaries

Proceeds from the sale of bonds authorized by this measure shall be used only for the purposes specified in Article XIII A, Section 1(b)(3), those being for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, and the acquisition or lease of school facilities, and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

State Matching Funds

The following statement is included in this measure pursuant to Education Code Section 15122.5:  Approval of this measure does not guarantee that the proposed project or projects that are the subject of bonds under this measure will be funded beyond the local revenues generated by this measure. The District's proposal for the project or projects described below may assume the receipt of matching state funds, which, if available, could be subject to appropriation by the Legislature or approval of a statewide bond measure.

INFORMATION ABOUT ESTIMATES AND PROJECTIONS INCLUDED IN BALLOT

Voters are informed that any estimates, averages or projections in the bond measure, ballot materials and ballot label, including relating to estimated or average tax rates, the duration or term of issued bonds and related tax levies and money raised annually from tax levies to repay issued bonds are provided as informational only.  Such amounts are estimates and are not maximum amounts, caps or limitations on the terms of the bonds, the tax rates or duration of the tax supporting repayment of issued bonds.  Such estimates depend on numerous variables which are subject to variation and change over the term of the District’s overall facilities and bond financing plan, including but not limited to the amount of bonds issued and outstanding at any one time, the interest rates applicable to issued bonds, market conditions at the time of sale of the bonds, when bonds mature, timing of project needs and changes in assessed valuations in the District.  As such, while such estimates, averages and approximations are provided based on information currently available to the District and its current expectations, such estimates and approximations are not limitations and are not binding upon the District.

BOND PROJECT LIST

Scope of Projects.  Bond proceeds will be expended on the construction, reconstruction, rehabilitation, or replacement of school facilities of the Atascadero Unified School District, including furnishing and equipping, and the acquisition or lease of real property for school facilities, and not for any other purpose, including teacher and administrator salaries or other school operating expenses, in compliance with California Constitution Article XIIIA, Section 1(b)(3).  This measure authorizes bond projects to be undertaken at all current and future District sites and campuses including:

School Facility Project List.  The items presented on the following list provide are the types of projects authorized to be financed with voter-approved bond proceeds.  Examples included on this list are not intended to limit the broader types of projects described and authorized by this measure.  The types of projects authorized are:

• Expand the District’s vocational/career education programs and facilities, such as engineering, technology, robotics, construction trades, and agricultural
• Upgrade classrooms and educational facilities with up-to-date computers and technology
• Repair and replace roofs
• Make improvements to facilities for emergency preparedness and enhanced security
• Meet handicap accessibility (ADA) requirements in restrooms and classrooms
• Upgrade and replace outdated heating, ventilation, and air-conditioning (HVAC) systems
• Repair, renovate and modernize outdated and aging classrooms and school facilities throughout the District
• Install solar and other energy cost saving systems
• Renovate restrooms throughout the District
• Upgrade playfields and athletic facilities throughout the District
• Replace the swimming pool on the high school campus
• Renovate or construct a multipurpose/cafeteria facility on the high school campus

Furnishing and Equipping/Incidental Costs Authorized.  Each of the bond projects described in this Bond Project List include the costs of furnishing and equipping such facilities, and all costs which are incidental but directly related to the types of projects described above.

Examples of incidental costs include, but are not limited to: costs of design, engineering, architect and other professional services, facilities assessments, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; independent annual financial and performance audits; a customary construction contingency; demolition and disposal of existing structures; the costs of interim housing and storage during construction including relocation and construction costs incurred relating to interim facilities; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; costs of relocating facilities and equipment as needed in connection with the projects; interim classrooms and facilities for students, administrators, and school functions, including modular facilities; federal and state-mandated safety upgrades; 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 including of legal counsel; project construction oversight, management and administration during the duration of such projects, including by District personnel, and bond issuance costs.

Scope and Nature of Projects.  Unforeseen conditions may arise during the course of planning, design and construction resulting in the scope and nature of any of the specific projects described above being altered by the District.  In the event that the District determines that a modernization or renovation project is more economical for the District or otherwise in the District’s best interests to be undertaken as new construction, this bond measure authorizes said new construction, including land acquisition, relocation, expansion and construction and/or reconstruction, and all costs relating thereto.  In addition, this measure authorizes the acquisition of real property, including necessary rights of ways or other real property interests, required to expand District facilities, to provide access to school or other District facilities, or to provide additional school or related facilities.  Further, authorized projects include reimbursements for project costs previously paid and paying and/or prepaying interim or previously obtained financing for the types of projects included on the project list.  Finally, projects on this list may be undertaken and used as joint use projects with other public agencies.

Bond Funds Limited; Projects Not Listed In Order of Priority.  Approval of the District’s bond measure does not guarantee that all of the identified projects identified on the Bond Project List will be funded beyond what can be completed with funds generated by this bond measure.  The project list may include projects which are not funded with bond proceeds.  The District plans to pursue funds from the State of California, if available, to complete certain of the identified facilities projects.  The District is unable to anticipate all unforeseen circumstances which may prevent some of the projects listed above from being undertaken or completed.  The order in which projects are listed in the foregoing Bond Project List does not suggest an order of priority.  Project prioritization is vested in and will be determined by the District Board of Trustees.