Exploration of a Future Bond Measure Exploration of a Future Bond Measure for San Leandro Unified School Districtfor San Leandro Unified School District

Special Board MeetingApril 13, 2010

Cindy Cathey, Interim SuperintendentSong Chin-Bendib, Assistant Superintendent, Business Services

Mike Murphy, Director, Measure B & Bond Projects

Measure AMeasure A1997 Voter Approved $53.8 Million Bond1997 Voter Approved $53.8 Million Bond

•Initial 12- year schedule accomplished in 7 years•Leveraged State Grants In Excess of $33 Million•All Promised Projects Completed

– New San Leandro High School Science and Technology Wing

– New John Muir Middle School Academic Wing– Bancroft Middle School Shop Renovation & Expansion– Modernization at Nine School Sites– District-Wide Seismic Upgrades

and…

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New K-5 Facility—Jefferson Elementary School Winter 2004

Measure AMeasure A1997 Voter Approved $53.8 Million Bond1997 Voter Approved $53.8 Million Bond

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Measure B: $109 million facilities bond passed with a 67.66% yes vote in November 2006

Citizens Oversight Committee

Conceptual Design Teams

Construction begins Winter 2008

February 2007November 2006Bond Planning began February 2006 March 2007

June 2007

Summer/Fall, 2007

Early Measure B timeline shows pre-construction planning and preparation …

Site Design and Review Teams (SDRT)

Secondary Development Team

Career Technical Education (CTE)/ Prop 1D Grant Application Process

Ford Lot Closes Escrow

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General Obligation Bond (Measure B) Conceptual Cost Estimate presented to the SLUSD Board of Education August 1, 2006

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Success Story: Funding Received for Success Story: Funding Received for Fred Korematsu Campus Fred Korematsu Campus (9(9thth Grade Campus)Grade Campus)

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State Matching Funds State Matching Funds for Measure B & Jobs Createdfor Measure B & Jobs Created

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Impact of Measure B on Jobs Impact of Measure B on Jobs Creation TodayCreation Today

Currently, we have 126 contractors workingon four projects:

• 9th Grade Campus = 70 Contractors• Bancroft Roofing & HVAC = 6 Contractors• SLHS New Arts Ed. = 29 Contractors• SLHS Library Expansion = 21 Contractors

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Looking aheadLooking ahead——things to things to consider when exploring a consider when exploring a future bond measure for our future bond measure for our students and schoolsstudents and schools

Presented by Ruth Alahydoian, KNN Public FinancePresented by Ruth Alahydoian, KNN Public Finance

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San Leandro Unified School District November 2010 Bond Election Board Workshop | page 10

General Obligation (G.O.) General Obligation (G.O.) Bond BasicsBond Basics

• Proposition 39 Election• 55% voter approval • Regularly scheduled election dates• Accountability requirements

• Citizens Oversight Committee• Annual Performance and Financial

Reports • Tax rate maximum ($60 per $100,000 AV)

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20092009--10 Tax Rates for Alameda County Schools10 Tax Rates for Alameda County Schools

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Source: Alameda County

2009-10 Tax Rate per

District $100,000 AV

Albany USD $170.90

Berkeley USD 150.20

Piedmont USD 146.50

New Haven USD 131.70

Oakland USD 125.90

Castro Valley USD 102.30

San Lorenzo USD 86.80

Newark USD 86.50

Dublin USD 81.60

Pleasanton USD 80.90

San Leandro USD 77.10

Hayward USD 71.00

Livermore Valley JUSD 67.40

Alameda USD 49.80

Fremont USD 43.40

Sunol Glen USD 38.50

Emeryville USD 13.20

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Authorization AmountAuthorization Amount

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 12

The Board will ask voters to approve a maximum authorization amount.Tax rate associated with that authorization amount is only an estimate based on assumptions.The Board must determine the appropriate assumptions to use to determine an authorization amount.

BASE CASEAuthorization Amount: $40 MillionAssumptions:

Tax Rate Target per $100,000 AV $20

Interest Rate Paid on Bonds 6%

Assessed Value Growth Year to Year:

2010-11 -2%

2011-12 0%

2012-13 1%

2013-14 2%

2014-15 and thereafter 3%

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Alternate Assumptions Change Alternate Assumptions Change Authorization AmountAuthorization Amount

• Using different assumptions results in different authorization amounts.

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 13

Changing Tax Rate Target:

Tax RateAuthorization

Amount

$15 $30 Million

$20 $40 Million

$25 $50 Million

$30 $60 Million

$60 $120 Million

Changing AV Growth Assumption:

AV Growth in 2014-15 and thereafter

Authorization Amount

0% $30 Million

1% $33 Million

2% $36 Million

3% $40 Million

4% $45 Million

5% $50 Million

Changing Interest Rate Assumption:

Interest Rate Authorization Amount

4% $52 Million

5% $45 Million

6% $40 Million

7% $35 Million

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What Happens if Assumptions are What Happens if Assumptions are Not Accurate?Not Accurate?

• What happens if assumptions are too aggressive?– Tax rate must go higher than estimated

and/or– Bond issuance is delayed.

• What happens if assumptions are too conservative?– Tax rate may be less than estimated and/or– Bond issuance is accelerated, and/or– Bonds are repaid sooner

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 14 13

Tax Impact by Property TypeTax Impact by Property Type

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 15

Commercial12%

Industrial22%

Other Non‐Residential

1%

SF Residential48%

Condominiums6%

Multifamiliy10%

Other Residential

0%

Proportional Distribution of Assessed Values by Land Use Type

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Board RestrictionsBoard Restrictions

• Once the resolution is passed, the District CANNOT advocate for a “Yes” vote on the bonds by:– Spending District resources to help the campaign– Allowing District staff to help with the campaign

during working hours– Advocating during Board meetings

• However, the District CAN:– Provide information on the needs of District– Allow staff and Board members to work on the

campaign on their own time

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 16 15

Schedule for November 2, 2010 ElectionSchedule for November 2, 2010 Election

San Leandro Unified School District November 2010 Bond Election Board Workshop | page 17

Time Frame/DeadlineIdentify needs/engage school sites and community in developing project list March - May 2010

OPTIONAL - Hire a survey consultant to conduct a survey on voter sentiments April 2010

Begin information campaign about project list May 2010

Form a committee of community and school leaders to develop budget and direction for campaign -- committee hires a campaign consultant (recommended)

March - May 2010

Solicit parent, teacher, administrator and public comments April - May 2010

Develop proposal for ballot measure - pull together project list and authorization amount June 2010

Draft ballot measure and resolution June 2010

Public discussion of specific projects on project list June 2010

Board meeting to approve resolution to place the bond measure on the ballot July 2010

Deadline to submit resolution to County - MUST be approved 88 days before election day August 6, 2010

Election campaign August - Nov 2010

ELECTION DAY November 2, 2010

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What are the DistrictWhat are the District’’s facilities s facilities needs, now and in the future? needs, now and in the future?

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Potential SLUSD Bond Potential SLUSD Bond Projects to ConsiderProjects to Consider

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Burrell Sports FieldExisting Challenges

•Aging and Deteriorated – Built in 1958•Seasonal Use Due to Natural Turf•Noncompliance Safety Issues

•Handicap Accessibility•Bleachers

•Mitigation Options•Upgrade Existing Facilities $11 million•Reconfigure – New Stadium $15 million

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San Leandro Unified School District November 2010 Bond Election Board Workshop | page

San Leandro High School PoolExisting Challenges

•Pending Health Department Closure 2012•Noncompliance Safety Issues

Pool Specific Filtration & Chlorination SystemsUneven & Deteriorated Pool DeckCool Water Showers

•Mitigation OptionsRepair Existing Pools $1.5 million(Source: Arch-Pac Aquatics, 2008 – with a 10% inflation adjustment)

Replace Existing Pools $2.2 million(Source: Arch-Pac Aquatics, 2008 – with a 10% inflation adjustment)

New Swim Center $6.0 million

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San Leandro Unified School District November 2010 Bond Election Board Workshop | page

Estimated Cost of a Bond Election

Campaign costs covered by the Committee - $60,000 - $70,000Committee will fundraise and build their own budgetSome funds available from prior campaign

Election costs covered by the District estimated at $60,000Last November 7, 2006, General Election - Cost was $37,626.88 November election is least costlyBilled for actual cost onlyAlready paying for Board election in November 2010

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San Leandro Unified School District November 2010 Bond Election Board Workshop | page

Alternatives to November 2010Alternatives to November 2010

‘Proposition 39’ elections must be held in even-numbered years.

Next available election dates:February 7, 2012June 5, 2012November 6, 2012

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Questions and DiscussionQuestions and Discussion

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