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June 5, 2018 — California Primary Election
Special District

Beverly Hills Unified School District
Measure BH - 55% Approval Required

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Election Results

Passed

3,630 votes yes (60.76%)

2,344 votes no (39.24%)

100% of precincts reporting (21/21).

School District Bond
— undefined

To improve aging Beverly Hills schools, upgrade/replace inefficient heating, cooling/electrical systems, classrooms, libraries/science labs, deteriorating restrooms/leaky roofs, provide modern classroom technology/science equipment, shall this Beverly Hills Unified School District measure be adopted to upgrade, construct/acquire classrooms, facilities, sites/equipment, and issue $385,000,000 of bonds at legal rates, levy on average 4.4 cents/$100 assessed value, $23,700,000 annually for school repairs while bonds are outstanding, require taxpayer oversight, annual audits/all funds for Beverly Hills schools?

What is this proposal?

Measure Details — Official information about this measure

Impartial analysis / Proposal

Mary C. Wickham, County Counsel

Approval of Measure BH (“Measure”) would authorize the Beverly Hills Unified School District (“District”), to issue general obligation bonds in an amount not to exceed $385,000,000. The Measure was placed on the ballot by the Board of Education (“Board”) of the District by Resolution No. 2017-2018-022.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including, but not limited to, repairing/replacing old floors, walls, restrooms, windows, roofs, classrooms, plumbing and electrical systems; modernizing science labs, buildings, facilities, classrooms and science equipment; installing energy efficient systems; replacing heating/ventilation, air conditioning, air filtration, and lighting systems; improving building safety for earthquakes and fires; enhancing security systems; upgrading schools for improved accessibility for disabled persons; removing hazardous materials, including oil well remediation and site repurposing; upgrading outdated electrical systems to enhance modern computer technology, data, and communication; and upgrading and expanding wireless systems, telecommunications, Internet and network connections, including purchasing computers, hardware, equipment, and modern learning technology for classrooms. Bond proceeds may not be expended on teacher and administrator salaries and other operating expenses.

The Board shall cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for projects identified in the Measure. The Board shall appoint an independent Citizens’ Oversight Committee (“Committee”) in compliance with Education Code section 15278 no later than 60 days after the Board enters the election results in its minutes. The Committee will ensure that bond proceeds are spent as specified in the Measure and as provided by law. The District shall create an account into which proceeds of the bond shall be deposited and shall comply with the reporting requirements of Government Code section 53410.

The bonds shall not exceed the maximum interest rate or maturity as allowed by law. The tax levy authorized to secure the bonds shall not exceed the Proposition 39 limits per $100,000 of taxable property in the District when assessed valuation is projected by the District to increase.

According to the District’s Tax Rate Statement, the best estimate of the highest tax rate required to fund the bond issue, which is estimated to be the same in every fiscal year, is $44.00 per $100,000, based on a projection of assessed valuation available when the District filed its Tax Rate Statement.

This Measure requires a fifty-five percent (55%) vote for passage.

Tax rate

An election will be held in the Beverly Hills Unified School District (the “District”) on June 5, 2018 to authorize the sale of $385,000,000 in general obligation bonds. If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of tax levies made on the taxable property in the District. These estimates are based on projections derived from information obtained from official sources and other demonstrable factors. The actual tax rates and the years in which they will apply may vary depending on the timing of bond sales, the amount of bonds sold at each sale, and actual increases in assessed valuations. The following information is submitted in compliance with Sections 9400-9404 of the California Elections Code.

i. The best estimate of the average annual tax rate that would be required to fund this bond issue over the entire duration of bond debt service, based on estimated assessed valuations available at the time of filing of this statement, is $0.044 per $100 ($44.00 per $100,000) of assessed valuation.
ii. The best estimate of the final fiscal year in which the tax required to fund this bond issue is anticipated to be collected is fiscal year 2040-41.
iii. The best estimate of the highest tax rate that would be required to fund this bond issue, based on estimated assessed valuations available at the time of filing this statement, is $0.044 per $100 ($44.00 per $100,000) of assessed valuation, which is projected to be the same in every fiscal year the bonds remain outstanding.
iv. 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 will be approximately $546 million.

Based upon the foregoing and projections of the District’s assessed valuation, the timing of the bond sales and the amount of bonds sold at any given time will be determined by the needs of the District and other factors. Actual assessed valuations will depend upon the amount and value of taxable property within the District as determined by the Sutter County Assessor in the assessment and the equalization process.

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable property in the District as shown 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.

Dated: March 9, 2018.

DR. MICHAEL BREGY
Superintendent
Beverly Hills Unified School District

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

MEASURE BH MAKES PROTECTING STUDENTS A TOP PRIORITY

MEASURE BH WILL:
-Enhance safety and security at all five school sites to include earthquake/seismic retrofitting, lighting, fencing, windows, locks, cameras, fire and life safety systems, alarms and sprinkler systems.
-Beverly Hills High School: modernization of K.L. Peters auditorium, Salter Theater, choir, music room and classroom buildings. New gymnasium and athletic facility, outdoor aquatic center, football/soccer field, lacrosse, baseball and softball fields, and oil well site remediation.
-El Rodeo School: modernization of classrooms, library, technology labs, sports fields, play courts and new parking structure.
-Horace Mann School: chiller replacement and Building A roofing.
-Hawthorne School: modernization of auditorium.
-Beverly Vista School: student drop-off and site improvements.
-Equip classrooms with educational technology, secure online access, computer and science labs to support quality learning.
-Maintain flexibility for future reconfiguration of our schools.
-Upgrade all schools to improve ADA accessibility.

MEASURE BH IS A FISCALLY RESPONSIBLE APPROACH
Measure BH utilizes fiscally conservative financing and tough taxpayer accountability directed to specific construction projects at all five BHUSD schools. No funds are allowed for administrator and teacher salaries, pensions or legal expenses related to Metro litigation. Independent Citizens’ Oversight, mandatory audits and public reports will ensure funds are spent only on projects itemized in the ballot measure.

OUR KIDS CAN’T WAIT ANY LONGER
Whether or not you have school-age children, safeguarding our students and the local quality of public education is a smart investment. Exceptional public schools protect our property values and keep our community strong.

Please join us and Vote YES on MEASURE BH
LISA KORBATOV
President, Board of Education
NOAH MARGO
Vice President, Board of Education
MEL SPITZ
Member, Board of Education
HOWARD GOLDSTEIN
Member, Board of Education
ISABEL HACKER
Member, Board of Education

Arguments AGAINST

Are you parents? Do you hold your children accountable?

Supporting our schools is good. Wasting your money on vague, unenforceable promises is bad.

Don’t be deceived by District’s campaign, funded by businesses that will likely benefit from bond money. (Isn’t that called pay-to-play?) Beware of high-priced marketers masquerading as “parents, teachers, and community leaders.”

Why Vote No on Measure BH?
- It’s virtually, word-for-word, identical to every other bond measure written by lawyers and advisors who made $4,752,643 (payable by you, with interest) from facilities bonds issued since 2001.
- Did you hear about a list of projects? Why isn’t there a list of SPECIFIC projects in Measure BH? Because it would restrict the District to spend the money ONLY on those things?
- Can you trust District? Why did it violate oversight laws over many years for Measure E (2008) $334,000,000? Measure K (2002) $90,000,000?
- Did you know that District issued $261,951,593 in facilities bonds since 2013? $425,581,822 since 2002? Where has all that money gone?
- Did you know District issued CABs (capital appreciation bonds, like those in Poway Unified scandal) 6 times? One at a whopping 11.4% interest rate.

Proposition 39 permits a bare majority of voters (55%) to approve these bonds. “To ensure that BEFORE they vote, voters will be given a list of specific projects their bond money will be used for,” it requires that Measure BH be a “list of the specific school facilities projects to be funded.” (Source: Proposition 39 ballot measure.)

Measure BH’s intentionally vague language gives District a BLANK CHECK with NO ACCOUNTABILITY.

Don’t vote to waste your taxes on vague promises. Did District keep its promises from Measure E (2008)? Measure K (2002)? It spent $425,581,822 and still has “leaky roofs?”

Bond money is like drugs. Don’t give District another fix. Just say NO!

Want more evidence of District’s deception? http://bit.ly/NoBHUSDBond

TIM FERREIRA
Libertarian Party of Los Angeles County: Vice-Chair

Replies to Arguments FOR

Just tired, old cliches.

Back in March, did you know Beverly Hills Unified had ordered an election for a huge, new, $770,000,000 tax on your home? Do you feel compelled to reward reckless spending and poor management? If not for us, you wouldn’t get the whole story.

NO ADMINISTRATOR SALARIES?

Constitution says no salaries. Statutes say no salaries. Resolution, measure, and argument say no salaries. Guess what lawyers snuck in? Hint: “cost of District staff.” Salaries will be paid. You can take that to the bank.

FACTS
How did District get to $385,000,000? It’s maximum it can tax in one measure.
Six schools. $64,000,000 each.
Remember Measure Y ($260,000,000) (2016)? You voted it down. Election cost you over $100K.
Measure BH is a contract. Have you read the fine print? Besides District salaries, what else does it pay for? -- “staff training,” “painting,” “refinancing … lease,” “advances made by … City of Beverly Hills”, and on and on.
Are schools REALLY falling apart? Have you ever read School Accountability Report Cards? (sarconline.org) All school facilities are rated “good.” Not a “leaky roof” in the lot. Who’s being deceptive and dishonest here?
District’s spent $425,581,822, $261,951,593 since 2013. Why are you buying Measure E promises again?

BOTTOM LINE
Can you trust District? Have you seen enough to convince you that, when you’re not looking, District is willing to breach law, its promises, and its trust?
Would you really agree to a written contract where promises weren’t explicitly and unambiguously written into it?

You’re being deceived! Don’t sign a blank check. Vote NO! Learn more: http://bit.ly/NoBHUSDBond

TIM FERREIRA
Libertarian Party of Los Angeles County: Vice-Chair

Replies to Arguments AGAINST

The lone author of the argument against Measure BH, Tim Ferreira, resides outside of Beverly Hills. Mr. Ferreira is the 2018 Libertarian candidate for lieutenant governor and is pushing his party’s agenda by filing ballot oppositions up and down the state against all school construction bond measures.

Mr. Ferreira erroneously states that the measure is funded by businesses and high-priced marketers. The fact is that the BHUSD Board of Education voted unanimously to place Measure BH on the ballot to make critical security upgrades to protect our students and staff from armed threats.

Measure BH contains a well-defined list of specific facility projects to be funded at all 5 schools that are clearly stated in the voter pamphlet. There is no dispute that our schools are outdated and need critical improvements to meet fire, life and safety standards.

BHUSD has an AAA credit rating from Moody’s Investors Service and AA+ from Standards & Poor. In 2016 the district refinanced a portion of its Measure E bonds. The 2016 Refunding Bonds replaced higher interest Capital Appreciation Bonds (CABs) with lower interest rate bonds of 3.49% that saved the taxpayers of Beverly Hills over $6 million dollars.

Finally, the most recent annual Measure E Bond Performance Audit concluded that the Board is in compliance with bond oversight laws. In fact, the independent auditing firm of Moss-Adams found that “Measure E bond proceeds were used only for Listed Projects.”

Protect our Children: Vote YES on BH

LISA KORBATOV
President, Board of Education
NOAH MARGO
Vice President, Board of Education
MEL SPITZ
Member, Board of Education
HOWARD GOLDSTEIN
Member, Board of Education

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