Napa Valley Unified School District

Measure H Bond Measure - 55% Approval Required

MEASURE “H”

(NAPA VALLEY UNIFIED SCHOOL DISTRICT)

IMPARTIAL ANALYSIS OF COUNTY COUNSEL

State law authorizes school districts to sell bonds to finance the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of real property for school facilities. Monies generated by the sale of such bonds may only be spent for these specified purposes. Thus, the bond proceeds cannot be expended to finance teacher and administrator salaries or other school operating expenses.

The Napa Valley Unified School District (the “District”) has called for an election on the question of whether bonds should be issued and sold by the District. Such bonds may only be issued and sold if at least 55% of the persons who actually vote approve Measure “H”. The bonds would be repaid through an increase in property taxes based upon the assessed value of taxable property in the District in each year of repayment. The Tax Rate Statement, which appears following the full text of Measure “H” in this voter information pamphlet, reflects the District’s current best estimate of the property tax rate increases that will be required to service the bonds at various points during the life of the bonds. The estimated annual tax to be levied to meet debt service requirements for the proposed bonds cannot exceed $60 per $100,000 of assessed value.

If Measure “H” is approved, bonds may be issued in series and are required to be repaid within 40 years from the date they are issued. The maximum interest chargeable on the bonds is regulated by state law and is presently twelve percent (12%) per annum. The actual interest rates at which the bonds are sold will depend on the bond market at the time of each sale.

The District proposes to issue and sell bonds in an aggregate amount not to exceed $269,000,000. Money raised by the sale of the bonds must be used exclusively to finance the list of projects described in the full text of Measure “H” which is included in this voter information pamphlet (the “Bond Project List”). When developing the Bond Project List, the District was required by state law to evaluate safety, class size reduction and information technology needs. Inclusion of a particular project on the Bond Project List, however, is not a guarantee that the project will actually be funded or completed.

If Measure “H” is approved and bonds are issued and sold, the District will appoint a citizens’ oversight committee and conduct annual independent audits to assure that the funds are spent only on school and classroom improvements and for no other purposes.

Approval of Measure “H” will have no effect on existing law, but will allow for the issuance and sale of bonds in accordance with the terms of existing law and Measure “H”.

A “YES” VOTE MEANS that the District will be authorized to issue and sell the bonds.

A “NO” VOTE MEANS that the District will not be authorized to issue and sell the bonds.

/s/ Minh C. Tran

Napa County Counsel

TAX RATE STATEMENT

NAPA VALLEY UNIFIED SCHOOL DISTRICT

JUNE 7, 2016

An election will be held in the Napa Valley Unified School District (the “District”) on June 7, 2016, to authorize the sale of up to $269,000,000 in bonds of the District to finance school facilities as described in the measure. If the bonds are approved, the District expects to sell the bonds in multiple series. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property in the District. The information regarding tax rates is provided to comply with Section 9401 of the Election Code of the State of California. This 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 assessed valuations of taxable property in the District, and assuming the entire debt service, including principal and interest on the bonds, will be paid through property taxation:

1. The best estimate from official sources of the tax rate which would be required to be levied to fund the bond issue during the first fiscal year after the first sale of bonds, and an estimate of the year in which that tax rate will apply is $.03900 per $100, or $39.00 per $100,000 of assessed valuation of all property to be taxed in fiscal year 2017-2018.

2. The best estimate from official sources of the tax rate which would be required to be levied to fund the bond issue during the first fiscal year afier the last sale of bonds and an estimate of the year in which that rate will apply is $.03900 per $100, or $39.00 per $100,000 of assessed valuation of all property to be taxed in 2028-2029.

3. The best estimate from official sources of the highest tax rate which would be required to be levied to fund the bond issue and an estimate of the year in which that rate will apply is $.03900 per $100 or $39.00 per $100,000 of assessed valuation of all property to be taxed in fiscal year 2017-2018.

4. The best estimate from official sources of the total debt service, including principal and interest which would be required to be repaid by tax rates levied on taxable property, if all the bonds are issued, sold and paid as projected would be $484,819,013.

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only. The actual tax rates 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 the market interest rates at the time of the sales, and the actual assessed valuations over the term of repayment of the bonds. The date of sale and the amount of bonds sold at given time will be determined by the District based on its need for construction funding as well as other factors. The actual interest rates at which the bonds will be sold will depend on bond market conditions at the time of sale. Actual assessed valuations at future dates will depend upon the amount and value of taxable property within the District as determined by the County Assessor in the County of Napa in the annual assessment and the equalization process. Accordingly, the actual tax rate and the years in which such rates are applicable may vary from those presently estimated above.

Dated: March 4, 2016

Patrick J. Sweeney, Ed.D., Superintendent

Napa Valley Unified School District

FULL TEXT BALLOT MEASURE 

OF THE NAPA VALLEY UNIFIED SCHOOL DISTRICT 

BOND MEASURE ELECTION JUNE 7, 2016 

The following is the full measure presented to the voters by the Napa Valley Unified School District. 

“To fix or replace earthquake damage, fire safety, plumbing/mechanical systems with funding that cannot be taken by the State, relocate or repair schools on earthquake faults, update aging electrical, plumbing, outdated heating/ventilation systems, provide flexible classrooms/labs for science and other core academics, update classrooms for vocational/career technology, repair, construct, acquire classrooms, sites, facilities/equipment, shall Napa Valley Unified School District issue $269,000,000 in bonds, at legal rates, with independent oversight/audits, no money for administrators?” 

PROJECT LIST 

The Board of Education of the Napa Valley Unified School District is committed to maintaining the quality of education in local schools with earthquake safe, secure, upgraded classrooms and labs for science and other core academics and vocational and career technology education. To that end, the Board evaluated the District’s urgent and critical facility needs, including safety issues, class size, computer and information technology, enrollment trends in developing the scope of projects to be funded. The District conducted a facilities evaluation and received public input in developing this Project List. Teachers, staff, community members and the Board have prioritized the key health and safety needs so that the most critical facility needs are addressed. The Board concluded that since the recent earthquake it learned that three schools are built above earthquake faults, all schools must be updated to current earthquake and fire safety standards to keep all students safe. Therefore, in approving this Project List, the Board of Education determines that the District must: 

. (i)  Retrofit older buildings so they are earthquake safe; and 

. (ii)  Improve energy efficiency and save hundreds of thousands of dollars that can be used to support classroom core academic programs; and 

. (iii)  ADHERE TO SPECIFIC FISCAL ACCOUNTABILITY SAFEGUARDS SUCH AS: 

. (a)  All funds benefit local schools; no funds can be taken away by the State.

. (b)  All expenditures must be subject to annual independent financial audits. 

. (c)  No funds can be used for administrators’ salaries and pensions. 

. (d)  An independent citizens’ oversight committee must be appointed to ensure that all funds are spent only as authorized. 

The Project List includes the following types of upgrades and improvements at District schools and sites: 

IMPROVE SCHOOL SAFETY: Student Safety Projects 

Goal and Purpose: AFTER THE RECENT EARTHQUAKE, IT WAS DETERMINED THAT THREE SCHOOLS ARE BUILT ABOVE EARTHQUAKE FAULTS. This measure will permit all schools to be updated to current earthquake and fire safety standards. Schools will benefit from a variety of safety projects, such as: 

•     Fix or replace earthquake damage, fire safety, plumbing and mechanical systems. 

• Make seismic upgrades or rebuild schools with earthquake damage. 

• Replace old, outdated and inefficient electrical plumbing, heating and ventilation systems. 

IMPROVE STUDENT LEARNING: Basic School Repair and Upgrade Projects With Locally Controlled Funds That Cannot be Taken By The State 

Goals and Purposes: Class sizes in the District are the highest in Napa County. This measure will reduce class size for all students so that our students get the same quality of education as kids in neighboring communities.
By improving energy efficiency and installing solar panels, the District can save hundreds of thousands of dollars that can be used to improve the quality of instruction and core academic programs.
• Renovate aging classrooms and science labs for 21st Century learning. • Provide classrooms for vocational and career technology education.
• Provide flexible modern classrooms and labs for science and other core academics. 

FISCAL RESPONSIBILITY: Community Accountability Requirements

Goal and Purpose: To ensure that every penny from this measure benefits local schools and that no funds are taken away by the State or other school districts, this measure will benefit from the following safeguards:

• Require the establishment of an independent citizen oversight committee to review all expenditures to ensure that funds are used as promised.

• Require independent financial audits of all expenditures to ensure that fiscally responsible financial controls are followed.

• Prohibit any funds from being used for administrator salaries or pensions.

• Prohibit the issuance of capital appreciation bonds.
** * 

The listed projects will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expenses and a customary contingency for unforeseen design and construction costs. In addition to the listed projects stated above, the Project List also includes the acquisition of a variety of instructional, maintenance and operational equipment, including the reduction or retirement of outstanding lease obligations and interim funding incurred to advance fund projects from the Project List; installation of signage and fencing; payment of the costs of preparation of all facility planning, facility studies, assessment reviews, facility master plan preparation and updates, environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated District activities caused by construction projects. In addition to the projects listed above, the repair and renovation of each of the existing school facilities may include, but not be limited to, some or all of the following: renovate student and staff restrooms; repair and replace heating and ventilation systems; upgrade of facilities for energy efficiencies; repair and replace worn-out and leaky roofs, windows, walls, doors and drinking fountains; install wiring and electrical systems to safely accommodate technology and other electrical devices and needs; upgrade or construct support facilities, including administrative, physical education, performing arts, music and art buildings, classrooms and libraries; construct new schools to improve safety or relieve overcrowding; repair and replace fire alarms, emergency communications and security systems; resurface or replace hard courts, turf and irrigation systems and campus landscaping; expand parking and drop-off areas; acquire land; interior and exterior painting and floor covering; demolition; upgrade pools; upgrade central kitchen and/ or add school kitchens (with equipment) and cafeterias; construct various forms of storage and support spaces and classrooms; repair, upgrade and install interior and exterior lighting systems; improve handicap accessibility, playgrounds, athletic fields and play apparatus; replace outdated security fences and security systems (including access control systems), provide indoor space for assemblies or for rainy day lunch; upgrade music labs, media centers, adult education facilities. The upgrading of technology infrastructure includes, but is not limited to, upgrade computer systems and instructional technology, upgrade classroom technology and teaching equipment, acquire, portable interface devices, servers, switches, routers, modules, sound projection systems, upgrade voice-over-IP, call manager and network security/firewall, wireless technology systems and refresh classroom technology. The allocation of bond proceeds will be affected by the District’s receipt of State matching funds and the final costs of each project. The budget for each project is an estimate and may be affected by factors beyond the District’s control. Some projects throughout the District, such as gyms, fields and performing arts facilities, may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. The final cost of each project will be determined as plans and construction documents are finalized, construction bids are received, construction contracts are awarded and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses. Necessary site preparation/restoration may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property. Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staff when performing work on or necessary and incidental to bond projects. Bond proceeds shall only be expended for the specific purposes identified herein. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410. 

FISCAL ACCOUNTABILITY: IN ACCORDANCE WITH EDUCATION CODE SECTION 15272, THE BOARD OF EDUCATION WILL APPOINT A CITIZENS’ OVERSIGHT COMMITTEE AND CONDUCT ANNUAL INDEPENDENT AUDITS TO ASSURE THAT FUNDS ARE SPENT ONLY ON DISTRICT PROJECTS AND FOR NO OTHER PURPOSE. THE EXPENDITURE OF BOND MONEY ON THESE PROJECTS IS SUBJECT TO STRINGENT FINANCIAL ACCOUNTABILITY REQUIREMENTS. BY LAW, PERFORMANCE AND FINANCIAL AUDITS WILL BE PERFORMED ANNUALLY, AND ALL BOND EXPENDITURES WILL BE MONITORED BY AN INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS’ OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS’ OVERSIGHT COMMITTEE. 

NO ADMINISTRATOR SALARIES: PROCEEDS FROM THE SALE OF THE BONDS AUTHORIZED BY THIS PROPOSITION SHALL BE USED ONLY FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, OR REPLACEMENT OF SCHOOL FACILITIES, INCLUDING THE FURNISHING AND EQUIPPING OF SCHOOL FACILITIES, AND NOT FOR ANY OTHER PURPOSE, INCLUDING TEACHER AND SCHOOL ADMINISTRATOR SALARIES AND OTHER OPERATING EXPENSES. 

BOND ISSUANCE LIMITS 

(b) Bonds must be phased in over time so that project success can be determined before more bonds are issued. 

(a) No bonds shall be issued until the Board has established specific project priorities. 

(c) The availability of State matching funds shall be considered in selecting projects. 

(d) No capital appreciation bonds shall be issued.