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Voter’s Edge California
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Presentado por
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League of Women Voters of California Education Fund
KPBS Voters Guide@KPBSNews
November 6, 2018 — Elección General de California
Distrito especial

Otay Mesa Enhanced Infrastructure Financing District
Measure O Bond Measure - 55% Approval Required

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Resultados electorales

Se aprueba

3,164 votos si (75.2%)

1,042 votos no (24.8%)

100% de distritos activos (10/10).

4,552 boletas electorales serán contadas.

Approving Bond Issuance For Public Facilities in Otay Mesa
— undefined

Without increasing the property tax rate, shall the Public Financing Authority for the Otay Mesa Enhanced Infrastructure Financing District (District) authorize the District to issue up to $230 million in tax increment bonds to finance public facilities, including roads, parks, police and fire stations, libraries, water lines, and sewers, identified in the District's Infrastructure Financing Plan?

¿Qué es esta propuesta?

Información básica sobre la iniciativa de ley — Información oficial sobre esta iniciativa

Un voto por el SÍ significa

A “Yes” vote on the measure is a vote to approve the issuance of bonds by the District.

Un voto por el NO significa

A “No” vote on the measure is a vote against approving the issuance of bonds by the District.

Resumen

Office of The City Attorney City of San Diego

BALLOT TITLE

Bond Authorization for Otay Mesa Enhanced Infrastructure Financing District

BALLOT SUMMARY

This measure authorizes the Otay Mesa Enhanced Infrastructure Financing District to issue tax increment bonds in an amount up to $230 million. The proceeds of the bonds may only be used to fund public improvements such as street and highway projects, parks, library, police and fire facilities, and water and sewer projects. All projects funded are in the Otay Mesa Community Plan area. 

Antecedentes

San Diego County Registrar of Voters

Passage of the ballot measure requires affirmative vote of 55 percent (55%) of the qualified voters within the District voting at the Special Election voting in favor of adoption of the ballot measure.

The Public Financing Authority (Authority) of the Otay Mesa Enhanced Infrastructure Financing District (District) has requested the City Attorney prepare a ballot title, summary and impartial analysis for a measure that would authorize the District to issue tax increment bonds to fund the public facilities authorized in the Infrastructure Financing Plan (IFP) adopted by the Authority.

On July 16, 2018, the Authority adopted resolution OMPFA-7 calling a special election in the District for November 6, 2018, submitting the measure to the qualified voters of the District, and requesting the consolidation of the District special election with the California statewide General Election to be held on the same date. 

Análisis del analista legislativo / Proposal

Office of The City Attorney, City of San Diego

CITY ATTORNEY’S IMPARTIAL ANALYSIS

This measure was placed on the ballot by the Public Financing Authority (Authority) of the Otay Mesa Enhanced Infrastructure Financing District (District). The District was formed by the City of San Diego pursuant to state law and the District is governed by the Authority.

If approved by fifty-five percent (55%) of qualified voters voting on the measure, this measure will authorize the District to issue up to $230 million in tax increment bonds to fund projects in the Otay Mesa area. The District covers the same area as the Otay Mesa Community Plan area.

Under state law, the District already receives tax increment revenue, which is the incremental growth in property tax revenue over the base year (2017). This measure does not raise taxes or change the purpose for which tax increment revenue may be used. Rather, it authorizes the District to borrow money and to use its existing tax increment revenue to pay that money back over time and with interest. The borrowed money is in the form of bonds sold to generate immediate revenue. Under existing law, the maximum interest rate on the bonds is 12%. The actual interest rate will be determined by market rates at the time that bonds are issued and may be lower than 12%.

The measure allows the District to sell bonds from time to time as funding for projects is needed. This means the bonds will likely be sold in a series of separate transactions over a number of years. The estimated cost of each bond issuance is four percent (4%) of the principal amount, or face value, of the bonds sold, such that the cost could be approximately $400,000 for each $10 million in bonds issued.

If bonds are issued, the District will receive a lump sum of money that may only be used to fund projects already approved by the Authority.

The District’s Infrastructure Financing Plan contains a list of the approved projects, which includes streets, parks, libraries, police and fire facilities, and water and sewer facilities, and identifies the approximate cost of each. This measure will allow the District to borrow money by selling bonds, providing the District with an up-front funding source to complete approved projects earlier than if the District waited to initiate projects until after receiving tax increment revenue. The District will repay its bond debt as its tax increment revenue grows over time. A portion of the District’s tax increment revenue will be used to pay the cost of issuing and paying interest on the bonds, and will not be directly used to fund projects.

A “Yes” vote on the measure is a vote to approve the issuance of bonds by the District.

A “No” vote on the measure is a vote against approving the issuance of bonds by the District. 

Efectos fiscales

San Diego County Registrar of Voters

FISCAL IMPACT ANALYSIS

Formed in July 2017, the Otay Mesa Enhanced Infrastructure Financing District (District) currently receives a portion of the City of San Diego’s allocation of property tax revenue generated from existing property taxes to pay for public infrastructure identified in the District Infrastructure Financing Plan (“Plan”). A yes vote will allow the District to issue up to $230 million in bonds in one or more bond series over the 45-year life of the District to finance the cost of public infrastructure.

Bonds are debt. When the District issues bonds, the bonds are sold and the bond investors are repaid over time, with interest. The money received by the District from the sale of the bonds, known as bond proceeds, is used to pay for public infrastructure according to the Plan. The ballot measure does not increase the existing property tax rate. The bonds would be repaid with existing revenues of the District, thereby restricting the use of a portion of District revenues while any bonds remain outstanding.

The purpose of issuing bonds is to allow the District to receive cash up front to be able to fund infrastructure projects sooner. Without bonds, the public infrastructure can still be funded on a payas-you-go basis, but construction of the public improvements would take much longer as needed funds accumulate over time.

There are costs associated with the issuance of bonds such as payments to necessary finance professionals: bond underwriters, bond and disclosure attorneys, fiscal consultants and municipal advisors, as well as staff costs, and, if necessary, municipal bond insurance premiums, all of which are expected to be paid from bond proceeds at the time of bond issuance. These costs are estimated not to exceed 4% of the principal value of the bonds. In addition, interest costs on the bonds issued are paid annually. The interest rate on the bonds will be set based on market rates at the time of issuance. The interest rate will not exceed the maximum legal rate at the time of the bond issuance. It is not possible to project the future interest costs of the bonds when the interest rate is unknown. In addition to the costs described above, there are on-going costs related to reporting and compliance requirements while the bonds remain outstanding. 

Published Arguments — Arguments for and against the ballot measure

Argumento A FAVOR

ARGUMENT IN FAVOR OF MEASURE O

Otay Mesa and Ocean View Hills need PARKS, ROADS & IMPROVEMENTS.

Voting YES on Measure O will help us build them WITHOUT RAISING TAXES.

In the coming years, the community will have more housing and more businesses. It is critical that Otay Mesa retain the resources needed to build new public facilities to support the people that live and work here.

The Otay Mesa Facilities Financing Plan has identified the need for millions of dollars to build a new fire station, new parks, increased traffic improvements and more.

Voting YES will allow the money from the Otay Mesa Enhanced Infrastructure Finance District, money that would otherwise be managed by City Hall, to only be used to BUILD PROJECTS IN OTAY MESA and OCEAN VIEW HILLS.

VOTE YES to give this District the ability to issue $230 million in bonds to build the vital infrastructure projects WITHOUT RAISING TAXES.

VOTE YES for the future families and jobs that Otay Mesa and Ocean View Hills will support.

VOTE YES for the parks, fire station, roads and traffic solutions our neighborhoods will need.

YES on MEASURE O Coalition:

  • David Alvarez, Councilmember, District 8

  • Alejandra Mier y Teran, Director, Otay Mesa Chamber of Commerce

  • Dr. Moises Aguirre, School Administrator

  • Mr. Ronnie Taylor, Retired Marine (33 years)

  • Felipe Nuno, Retired Air Force (33 years) and 10-year resident of Ocean View Hills

Argumento EN CONTRA

ARGUMENT AGAINST MEASURE O

No argument against Measure O was filed with the City Clerk’s Office.

Leer la legislación propuesta

Legislación propuesta

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Due to the complexity of the tables presenting specific projects proposed in the measure, the full text of this measure will not be entered into Voter's Edge by a League of Women Voters volunteer. Instead, Voter's Edge will point to the full text in a PDF version of a sample ballot prepared by the San Diego County Registrar of Voters: https://www2.sdcounty.ca.gov/rov/Sample_Ballots/Eng/SB-ENG-575.pdf

To find your own sample ballot version, containing all the candidates and measures on your own ballot, please use the ROV's sample ballot look-up tool at https://www2.sdcounty.ca.gov/rov/Eng/ballot.asp .

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¿Quién está a favor y en contra de esta iniciativa de ley?

Sí por Measure O

Organizaciónes (1)

Funcionarios electos y designados (0)
No por Measure O
Organizaciónes (0)
Funcionarios electos y designados (0)
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