El Monte Union High School District

Measure HS - 55% Approval Required

Approval of Measure HS (“Measure”) would authorize the Board of Trustees (“Board”) of the El Monte Union High School District (“District”), which placed the Measure on the ballot by Resolution No. 01-18/19, to issue general obligation bonds in an amount not to exceed $190,000,000.

Proceeds from the sale of bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including, but not limited to, repairing or replacing roofs; upgrading fire-safety systems, including safety doors, smoke alarms and smoke detectors; improving access for disabled students; expanding and/or upgrading science, engineering, and computer labs; repairing and/or replacing plumbing and electrical systems; removing hazardous materials; upgrading heating, ventilation, and air-conditioning systems; repairing school buildings, including bathrooms and classrooms; expanding vocational and career classrooms, and instructional technology; upgrading emergency-communication systems; and installing security cameras and monitoring systems. Bond proceeds may be used to pay or reimburse the District for the cost of District staff when performing work on, or necessary or incidental to, bond projects. Bond proceeds may not be used for teacher or administrator salaries or 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 under Education Code section 15278 et seq., no later than 60 days after the Board enters the election results in its minutes, to ensure that bond proceeds are spent as specified in the Measure and as provided by law. The Board shall deposit bond proceeds in a special account and comply with statutory reporting requirements.

Bonds shall be issued under Education Code section 15264 et seq. or Government Code section 53506. The maximum rate of interest on any bond shall not exceed the legal limit. According to the District’s Tax Rate Statement, the best estimate of the average annual tax rate required to fund the bonds, based on assessed valuations available when the District filed the statement, is $30 per $100,000 of assessed valuation. The best estimate of the highest tax rate required to fund the bonds is the same as the average tax rate. The final fiscal year the tax is estimated to be collected is 2054-55. The estimated total debt service required to be repaid if all bonds are issued and sold is $373,250,850, including principal and interest. Estimated tax rates are based on the assessed value of taxable property on official tax rolls, not on a property’s market value.

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

An election will be held in the El Monte Union High School District (the “District”) on November 6, 2018, to authorize the sale of up to $190,000,000 in bonds of the District to finance facilities as described in the proposition. If the bonds are approved, the District expects to issue the bonds in multiple series over time. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400 through 9405 of the California Elections Code.

1. The best estimate of the average annual tax rate that would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of filing of this statement, is 3.0 cents per $100 of assessed valuation (or $30.00 per $100,000 of assessed value). The final fiscal year in which the tax to be levied to fund this bond issue is anticipated to be collected is fiscal year 2054-55.

2. The best estimate of the highest tax rate that would be required to be levied to fund this bond issue, based on estimated assessed valuations available at the time of filing of this statement, is 3.0 cents per $100 of assessed valuation (or $30.00 per $100,000 of assessed value) in fiscal year 2019-20.

3. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all of the bonds are issued and sold is approximately $373,250,850.
Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County of Los Angeles 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, debt service 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 need for construction funds and other factors. 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.

EDWARD A. ZUNIGA Ed.D.
Superintendent
El Monte Union High School District