Measure E - Los Rios Community College District Bond Measure
Full Text
Impartial Analysis
Tax Rate Statement
Argument in Favor
BALLOT MEASURE SUMMARY
Without increasing future tax rates, shall the measure to repair classrooms, facilities and labs at American River, Cosumnes River, El Dorado, Folsom Lake and Sacramento City campuses for job training, nursing/ healthcare, engineering/ science and fire/ police programs, by Los Rios Community College District to authorize $650 million of bonds be adopted with legal rates, raising an average $52 million per year until repaid, an average tax levy less than $0.02 per $100 assessed valuation, annual audits and taxpayer oversight?
Bonds—Yes Bonds—No
FULL TEXT
BOND AUTHORIZATION
By approval of this measure by at least 55 percent of the registered voters voting on the measure, the District will be authorized to issue and sell bonds of up to $650,000,000 in aggregated principal at interest rates not in excess of the legal limit and to provide financing for the specific educational facilities projects listed in the Bond Project List described below, subject to all the accountability requirements specified below.
The Bonds may be issued under the provisions of the California Education Code (starting at Section 15100), under the provisions of the California Government Code (starting at Section 53506), or under any other provision of law authorizing the issuance of general obligation bonds by community college districts. The Bonds may be issued in series by the District from time to time, and each series of Bonds shall mature within the legal limitations set forth in the applicable law under which the Bonds are issued.
The provisions in this section are specifically included in this measure in order that the voters and taxpayers in the District may be assured that their money will be spent wisely. Expenditures to address specific facilities needs of the District will be in compliance with the requirements of Article XIIIA, Section 1(b)(3), of the State Constitution and the Strict Accountability in Local School Construction Bonds Act of 2000 (codified at Education Code Sections 15264 and following.)
Evaluation of Needs. The Board of Trustees of the District has identified detailed facilities needs of the District and has determined which projects to finance from a local bond. The Board hereby certifies that it has evaluated safety, class size reduction, enrollment growth, and information technology needs in developing the Bond Project List shown below.
Independent Citizens’ Oversight Committee. Following approval of this measure, the Board of Trustees will establish an Independent Citizens’ Oversight Committee, under Education Code Sections 15278 and following, to ensure bond proceeds are expended only on the types of educational facilities projects listed below. The committee will be established within 60 days of the date when the results of the election appear in the minutes of the Board of Trustees.
Performance Audits. The Board of Trustees will conduct annual, independent performance audits to ensure that the bond proceeds have been expended only on the educational facilities projects listed below.
Financial Audits. The Board of Trustees will conduct annual, independent financial audits of the bond proceeds until all of those proceeds have been spent for the educational facilities projects listed below.
Government Code Accountability Requirements. As required by Section 53410 of the Government Code, (1) the specific purpose of the bonds is set forth in this Full Text of Bond Measure, (2) the proceeds from the sale of the bonds will be used only for the purposes specified in this measure, and not for any other purpose, (3) the proceeds of the bonds, when and if issued, will be deposited into a building fund to be held by the Sacramento County Treasurer, as required by the California Education Code, and (4) the Chancellor or the Vice Chancellor of Finance and Administration of the District shall cause an annual report to be filed with the Board of Trustees of the District not later than January 1 of each year, which report shall contain pertinent information regarding the amount of funds collected and expended, as well as the status of the projects listed in this measure, as required by Sections 53410 and 53411 of the Government Code.
No Teacher or Administrator Salaries
Proceeds from the sale of bonds authorized by this measure shall be used only for the purposes specified in Article XIII A, Section 1(b)(3), those being for the construction, reconstruction, rehabilitation, or replacement of educational facilities, including the furnishing and equipping of educational facilities, and the acquisition or lease of educational facilities, and not for any other purpose, including teacher and administrator salaries and other operating expenses.
State Matching Funds
The following statement is included in this measure pursuant to Education Code Section 15122.5: Approval of this measure does not guarantee that the proposed project or projects that are the subject of bonds under this measure will be funded beyond the local revenues generated by this measure. The District's proposal for the project or projects described below may assume the receipt of matching state funds, which, if available, could be subject to appropriation by the Legislature or approval of a statewide bond measure.
BOND PROJECT LIST
Scope of Projects. Bond proceeds will be expended to modernize, replace, renovate, construct, acquire, equip, furnish, rebuild and otherwise improve educational and support facilities within the District. Projects which are described below include all related and incidental costs, including their share of the costs of the election and bond issuance and costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, and other planning, legal, accounting and similar costs, independent annual financial and performance audits, a customary contingency, and other costs incidental to and necessary for completion of the listed projects.
Bond proceeds may also be expended to acquire equipment in any classroom or other educational facility within the District. The District may alter the scope and nature of any of the specific projects that are described below as required by conditions that arise over time.
DISTRICT-WIDE IMPROVEMENTS
Bond proceeds may be spent to improve any District facilities located at any campus, as needed for any of the following purposes, depending upon the age, condition and needs of each particular facility:
- Upgrade electrical, communication, computer, fire alarm, and similar building systems as well as main power service and distribution, which may include active and passive solar power and heating system acquisition, installation and construction
- Replace, repair or upgrade plumbing, piping and drainage systems, including water supply, meters, water heating, and wastewater systems, plumbing fixtures and sinks, etc., within buildings and sites and to connect with city supply and drainage systems
- Replace or modify aging heating, ventilation and air cooling systems with energy-efficient heating and air cooling systems (HVAC), including installing energy management systems (EMS)
- Replace, modify, upgrade interior and exterior lighting and safety and security lighting systems and fixtures, as necessary
- Repair, modify and construct structural elements of existing structures as necessary
- Replace or repair aging roofs
- Upgrade, modify and construct restroom facilities throughout the District
- Comply, as necessary, with the Americans with Disabilities Act (ADA)
- Construct and repair roadways, walkways, grounds, parking lots and make entrance improvements including signage for safety and public information
- Develop and implement the facilities master plans and related requirements such as environmental impact reports and soils testing
- Upgrade, modify building elements to improve safety and security
- Modernize and improve bookstores, food service facilities, child development centers, physical education spaces, and athletic fields
- Make infrastructure improvements throughout the district
To improve the overall educational experience for students in the District, renovation, modernization, upgrades and major repairs will take place at existing District college sites and facilities, including but not limited to the following projects at the following locations:
AMERICAN RIVER COLLEGE
- Construct and Modernize Classrooms and Student Service Facilities at American River College and Natomas Educational Center
- Construct a Facility for Advanced Manufacturing and Advanced Transportation
- Modernize and/or Replace Classrooms at the Science Building
- Modernize and/or Replace Classrooms at Davies Hall for Liberal Arts
- Modernize and/or Replace Classrooms at Environmental Resources Buildings
- Modernize and/or Replace Classrooms at Raef Hall
- Modernize and/or Replace Classrooms at Fine Arts Building
- Modernize and/or Replace Classrooms for Health Occupations
- Modernize and Improve the Student Services Facilities
- Modernize and Improve the Administration Building
- Provide new instructional space
COSUMNES RIVER COLLEGE
- Construct and Modernize Classrooms and Student Service Facilities at Cosumnes River College and Elk Grove Educational Center
- Modernize and/or Replace the Library
- Modernize and/or Replace Classrooms at the Business Science Building
- Modernize and/or Replace Classrooms at the Performing Arts Building
- Provide new instructional space
FOLSOM LAKE COLLEGE
- Construct and Modernize Additional Classrooms and Student Service Facilities at Folsom Lake College, Rancho Cordova Educational Center, and El Dorado Educational Center
- Construct a New Lecture Hall and Additional Classrooms
- Modernize and Improve Instructional and Lab Space for Science at El Dorado Educational Center
- Provide new instructional space
SACRAMENTO CITY COLLEGE
- Construct and Modernize Classrooms and Student Service Facilities at Sacramento City College, West Sacramento Educational Center, and Davis Educational Center
- Modernize and/or Replace Student Services Facilities and Classrooms at Rodda Hall South Building, including programs in Social Science, Math, and Support Services
- Modernize and/or Replace Student Services Facilities and Classrooms at Rodda Hall North Building, including programs in Health Occupations, Science, and Support Services
- Modernize and/or Replace Classrooms at the Business Building
- Modernize and/or Replace Classrooms in the Music Wing of the Performing Arts Complex
- Modernize and Improve the Learning Resources Center
- Modernize and Improve the Facilities for Student and Community Engagement
- Provide new instructional space
DISTRICT OFFICE COMPLEX
- Improve and/or Expand District Office Facilities
- Modernize and/or Replace District Office Facilities
Each of the bond projects described in this Bond Project List include the costs of furnishing and equipping such facilities, and all costs which are incidental but directly related to the types of projects described above.
Examples of incidental costs include, but are not limited to: costs of design, engineering, architect and other professional services, facilities assessments, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; independent annual financial and performance audits; a customary construction contingency; demolition and disposal of existing structures; the costs of interim housing and storage during construction including relocation and construction costs incurred relating to interim facilities; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; costs of relocating facilities and equipment as needed in connection with the projects; interim classrooms and facilities for students, administrators, and educational functions, including modular facilities; federal and state-mandated safety upgrades; addressing unforeseen conditions revealed by construction/modernization and other necessary improvements required to comply with existing building codes, including the Field Act; access requirements of the Americans with Disabilities Act; costs of the election; project construction oversight, management and administration during the duration of such projects, including by District personnel, and bond issuance costs.
Unforeseen conditions may arise during the course of planning, design and construction resulting in the scope and nature of any of the specific projects described above being altered by the District. In the event that the District determines that a modernization or renovation project is more economical for the District or otherwise in the District’s best interests to be undertaken as new construction, this bond measure authorizes said new construction, including land acquisition, relocation, expansion and construction and/or reconstruction, and all costs relating thereto. In addition, this measure authorizes the acquisition of real property, including necessary rights of ways or other real property interests, required to expand District facilities, to provide access to District facilities, or to provide additional educational or related facilities. Further, authorized projects include reimbursements for project costs previously paid and paying and/or prepaying interim or previously obtained financing for the types of projects included on the project list, such as bond anticipation notes, and including payment and prepayment of lease payments relating to projects and/or equipment previously financed. Finally, projects on this list may be undertaken and used as joint use projects with other public agencies.
Approval of the District’s bond measure does not guarantee that all of the identified projects within this Bond Project List will be funded beyond what can be completed with funds generated by this bond measure. The District plans to pursue funds from the State of California, if available, to complete certain of the identified facilities projects. The District is unable to anticipate all unforeseen circumstances which may prevent some of the projects listed above from being undertaken or completed.
The order in which projects are listed in the foregoing Bond Project List does not suggest an order of priority. Project prioritization is vested in and will be determined by the District Board of Trustees.
IMPARTIAL ANALYSIS
IMPARTIAL ANALYSIS OF MEASURE E
(Los Rios Community College District – School Bond Measure)
Prepared by Sacramento County Counsel
Measure E, if approved by the voters, would allow the Los Rios Community College District (“District”) to incur bonded indebtedness up to a maximum amount of $650,000,000. The proceeds from the issuance and sale of such general obligation bonds could only be used for 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.
No funds derived from bond sales may be used for general school operating expenses, including administrator and teacher salaries, or for any purpose or project other than those expressly stated in the measure. Measure E lists the school facility improvement projects within the District intended to be financed by bond sales.
To assure that funds are spent only as specified in the measure, Measure E requires: 1) the appointment of a citizen’s oversight committee and 2) completion of annual independent performance and financial audits.
If Measure E is passed, the actual dates of sale and the amount of bonds sold would be governed by the District based on the need for construction funds and other factors. If Measure E is approved, the tax rates necessary for payment of principal and interest on any bonds sold will be largely dictated by the timing of the bond sales, the amount sold at a given sale, market interest rates at the time of each sale (although in no event greater than the maximum bond interest rate allowed by law), as well as actual assessed valuation of taxable property in the District over the term of repayment.
Passage of Measure E requires approval by 55% of the voters voting thereon.
A “YES” vote on Measure E means you wish to allow the District to incur bonded indebtedness.
A “NO” vote on Measure E means you do not wish to allow the District to incur bonded indebtedness.
TAX RATE STATEMENT
REGARDING PROPOSED
LOS RIOS COMMUNITY COLLEGE DISTRICT
GENERAL OBLIGATION BONDS
An election will be held in the Los Rios Community College District (the “District”) on March 3, 2020, to authorize the sale of up to $650 million in bonds of the District to finance educational facilities as described in the bond measure. If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of ad valorem taxes levied upon taxable property in the District. The following information is provided in compliance with Sections 9400-9404 of the Elections Code of the State of California. Such 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 District’s assessed valuation, the following information is provided:
- The best estimate of the average annual tax rate which would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on a projection of assessed valuations available at the time of filing of this statement, is $0.015 per $100 of assessed valuation (or $15.00 per $100,000 of assessed value). The final fiscal year in which it is anticipated that the tax will be collected is 2042-43.
- The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing of this statement, is $0.023 per $100 of assessed valuation (or $23.00 per $100,000 of assessed value). It is estimated that such rate would be levied starting in fiscal year 2038-39 and following.
- The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is approximately $1.03 billion.
Voters should note that estimated tax rates are based on the assessed value (not market value) of taxable property on the County’s official tax rolls. In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills and tax advisors to determine their property’s assessed value and any applicable tax exemptions.
The attention of all voters is directed to the fact that the foregoing information has been prepared based upon projections and estimates only, which amounts or durations are not maximum amounts and are not binding upon the District. The actual debt service, tax rates and the years in which they will apply may vary from those used to provide the estimates set forth above, due to factors such as variations in the timing of bond sales, the par amount of bonds sold and market interest rates available at the time of each sale, actual assessed valuations over the term of the bonds, and other factors. The date and amount of bonds sold at any given time will be determined by the District based on the need for project funds and other considerations. The actual interest rates at which the bonds will be sold will depend on conditions in the bond market at the time of sale. Actual future assessed valuations 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. The growth or decline in assessed valuation is the result of a number of economic and other factors outside the control of the District.
By:
Chancellor
Los Rios Community College District
Argument in Favor if Measure E
Vote YES on Measure E!
Serving communities in Yolo and Solano counties, all of Sacramento County, and parts of El Dorado and Placer counties – Los Rios Community College District plays a critical role in the economic health of our region. Consider:
- With education and outreach centers in Davis, West Sacramento, Elk Grove, Natomas, El Dorado, and Rancho Cordova in addition to four main campuses — American River, Cosumnes River, Folsom Lake, and Sacramento City Colleges — Los Rios Community College District is the region’s largest and most important provider of job training to adults of all ages.
- Due to the continuing high cost of the UC and California State college systems, Los Rios Community College District provides an affordable alternative to students seeking college training or a degree.
Your Yes vote on Measure E will allow Los Rios Community College District to become an even more effective job training and education center. With improvements and upgrades throughout the district and no increase in taxes, Measure E projects will:
- Better prepare students for high-paying jobs
- Improve classrooms and labs for careers in fields such as healthcare and early childhood education
- Upgrade classrooms and labs for science, technology, engineering, and math-related fields
- Improve resources for healthcare, nursing, dental hygiene, and other job-training programs
- Expand wildfire prevention and firefighting training programs
- Improve educational resources for veterans
Measure E also imposes tough, ironclad taxpayer protections by:
- NOT INCREASING TAXES
- Ensuring our local community college projects are eligible for state matching funds
- Requiring independent citizen oversight and annual audits
- Prohibiting funds from going to administrators' salaries, pensions, or benefits
- Imposing tough legal restrictions requiring all monies to be spent locally and not taken by the state to be used elsewhere
For improved local job training, an affordable college alternative for our students, strong taxpayer protections, and no increase in taxes, please join us in voting YES on Measure E.
Doris Matsui
Congresswoman, US House of Representatives
Bob Poppenga
President, Davis Joint Unified School District
Ruth Scribner
Trustee, Los Rios Community College District
Christopher Cabaldon
Mayor, City of West Sacramento
Munpreet Sanghera
Student, Davis Center/Sacramento City College