General Obligation Issuance Capacity

Presentation to the:

Board of Education
January 25, 2016

Past Bond Election Results

Election Date

Par Amount

Requirement

Yes Vote

1993 Measure A

March 2, 1993

$12,000,000

2/3 vote required

n/a

1997 Measure B

March 4, 1997

$6,000,000

2/3 vote required

79.3%

2007 Measure A

Nov. 6, 2007

$48,300,000

55% required

63.9%

2012 Measure D

Nov. 6, 2012

$56,000,000

55% required

67.5%

Ballot Measure

Outstanding Debt

Authorization

Issue

Sale Date

1993 Election

2000 Refunding

12/1/2000

12,335,000

3,595,000

1997 Election

2015 Refunding

9/2/2015

3,640,000

3,640,000

2007 Election

Series A

4/3/2008

18,300,000

16,275,000

Series B

4/29/2000

17,200,000

16,670,000

Series C

4/6/2011

12,797,486

10,682,486

Series A

4/17/2013

30,000,000

25,895,000

Series B

9/2/2015

26,000,000

26,000,000

TOTAL

120,272,486

102,757,486

2012 Election

Original Principal

Outstanding Principal

California Proposition 39

Prop 39 was approved by voters in 2000

Authorizes general obligation bonds by a 55% majority vote for school and community
college districts

Requires 2/3 vote by District Board to place on the ballot

Elementary school districts are limited to a maximum levy of $30 per $100,000 of
assessed valuation

Requires that the District evaluate safety, class size reduction, and information
technology in developing its project list for bond financing

Requires that the District complete annual audits to ensure that the bond funds have
been used only for the projects listed in the measure

Under separate statutes, requires the appointment of a Citizens Oversight Committee for
bond expenditures

Assessed Valuation
FY 2015-16 AV grew by 6.73%
15-year average annual growth rate = 5.45%
$9,000,000,000

$8,000,000,000

$7,000,000,000

Unsecured

$6,000,000,000

Utility
Secured
$5,000,000,000

$4,000,000,000

$3,000,000,000

$2,000,000,000

Total AV % Change

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

10.2%

9.4%

4.4%

3.6%

6.8%

7.0%

8.5%

7.1%

6.0%

3.1%

0.6%

1.4%

4.5%

6.7%

6.2%

2016
6.7%

Bonding Capacity

Elementary School Districts are limited to an outstanding bond balance of no greater

than 1.25% of Assessed Value

Maximum tax levy of $30 per $100,000 of Assessed Value at time of issuance of any
series of bonds

Factors influencing capacity include:

Assumed growth in assessed value

Timing and amount of first and subsequent issuances

Prevailing interest rates at time of issuance

Other assumptions include:

25-year final maturity as allowed under the California Education Code

Current interest bonds only

Bonding Capacity (cont.)

Maximum statutory bond capacity for all outstanding debt is approximately $124
million for 2017 based on 4% Assessed Value growth this year.

The bond capacity is also limited by the maximum tax levy of $30.

Using a conservative Assessed Value growth rate assumption of 4% for 4 years and
2% thereafter, the District could issue $59.1 million in three separate issuances in
2017, 2019 and 2021.

A new bond measure could generate about $59 million in proceeds for the District

The tax rate would peak in FY 2018 at $28.75 and decline thereafter to an average of
about $25 per year.

A residential property assessed at $500,000 would pay an additional $125 per year.

Bond Election Process A General Timeline

Action

Date

Finalize project list, costs, bond size, timing, tax rate levels, and draft ballot measure language

June 2016

Adopt resolution calling for bond election

Late July or Early

August

Deliver resolution calling for election to San Mateo County Registrar of Voters

August

Bond Committee enters into contract with campaign consultant

August

Prepare tax rate statement, impartial analysis (bond counsel, county counsel), pro-ballot argument
(committee, campaign consultant) for voter pamphlet.

August

Fund raising by Bond Committee

Aug / Sept / Oct

Conduct campaign

Aug / Sept / Oct

Election

November 8, 2016

Election results certified

December

District Governing Board adopts resolution authorizing the issuance of bonds

Jan / Feb 2017

Prepare official statement; obtain bond ratings

Feb 2017

Sell bonds

Feb 2017

Receipt of bond money

March 2017
7