Skip this Video
Download Presentation
ABC Unified School District

Loading in 2 Seconds...

play fullscreen
1 / 35

ABC Unified School District - PowerPoint PPT Presentation

  • Uploaded on

ABC Unified School District. Board of Education Meeting. July 15, 2014 Bond Resolution Toan Nguyen, Assistant Superintendent-Business Services/Chief Financial Officer Mark Farrell, Senior Financial Advisor, Dale Scott & Company Don Field, Partner, Orrick, Herrington, Sutcliffe LLP.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'ABC Unified School District' - shelly

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
ABC Unified School District

Board of Education Meeting

July 15, 2014

Bond Resolution

ToanNguyen, Assistant Superintendent-Business Services/Chief Financial Officer

Mark Farrell, Senior Financial Advisor, Dale Scott & Company

Don Field, Partner, Orrick, Herrington, Sutcliffe LLP

the 1997 bond
The 1997 Bond

1997 Election - Yes Vote: 68.2% (Approved as a “Two-Thirds” Bond)

  • Authorized $59M
  • Including State Facilities Matching Fund and Other District funding sources, the old modernization project was approximately $135 M
  • $42M Outstanding, will be paid off by 2034
  • Approximately $28 per 100,000 Assessed Value Tax Rate
  • Two refundings, saving the taxpayers more than $2M.
The 1997 Bond Modernization

Architectural and Structural

  • Replace roofing and repair canopies
  • Abate asbestos and lead
  • Upgrade restrooms, replace toilet partition and restroom hardware
  • Re-paint & re-carpet

Mechanical Systems

  • Replace heating ventilation and air-conditioning units
  • Provide solid state energy management system
the 1997 bond modernization
The 1997 Bond Modernization

Plumbing Systems

  • Replace galvanized piping and exterior hose bibs
  • Evaluate and add hydrants per code
  • Replace drinking fountains and plumbing accessories
  • Correct drainage and replace drains
  • Correct irrigation with replacement of sprinkler heads, re-plumbing, timer and shut off valves

Electrical Systems and Low Voltage

  • Provide new power distribution
  • Replace technology distribution system and re-cable all classrooms
  • Replace light fixtures with T-8 lamps
  • Install emergency lighting
  • Provide standardize Fire Alarm Systems
  • Replace intrusion detection system
2014 Possible Bond Survey

In February, 2014, a survey of 500 registered voters was conducted over a seven day period

A telephone survey of 500 likely voters (those having voted in Nov. 2012 and voted in either Nov. 2002, Nov. 2006, Nov. 2010 or June 2012) was conducted between February 21, 2014 and February 27, 2014.

Surveys were conducted during the weekday in the evenings, and on the weekend both in the morning and evening.

The average length of the bond survey was about 8.70 minutes.

Margin of error for the bond survey is +/- 4.33%.


The G.O. bond measure received 72.2% (Yes/Lean Yes) support before voters received information and remained at 72.2% after voters received additional information

There was strong voter support for all of the projects tested (More/Somewhat More Likely)

Bond measure size still to-be-determined, survey based on 3.5% annual assessed value growth and a $59/$100,000 tax rate

Voters in the District indicate strong support for a local school improvement bond program

2014 Possible Bond Survey

Current Facilities/Technology Needs

Estimated CostCumm. Est. Cost

  • Safety and Security $ 18,473,709 $ 18,473,709
  • Basic Facilities Needs $ 71,701,635 $ 90,175,344
  • STEM/Science Initiative $ 4,496,678 $ 94,672,022
  • Access to Modern Technology:

A. Baseline Technology $ 85,410,038 $180,082,060

B. 21st Century Infrastructure $ 92,702,022 $272,784,082

  • Parity (Transform) $ 73,921,894 $346,705,976
  • Future Project Phase $298,428,492 $645,134,468
From great…
  • Cerritos HS
  • Stowers ES
  • Nixon ES

… to

  • Classroom Inspiration
  • Library Media Inspiration
Safety and Security
  • Improved School Drop-off Area
  • Cerritos ES
  • Congestion
Basic Facilities Needs
  • Bragg ES
  • Current Playground
  • Playground Surface Inspiration
Basic Needs Continued
  • Bragg ES
  • Current Pergola
  • Shaded Lunch Area Inspiration
Basic Needs Continued
  • Cerritos HS
  • Typical Classroom Configuration
  • Inspiration Classroom
STEM and Science Initiative
  • Cerritos HS
  • Current Science Lab
  • Science Lab Inspiration
Access to Modern Technology
  • Cerritos HS Current Technology
  • Technology Center Inspiration
Access to Technology Continued
  • Melbourne ES
  • Current Technology
  • Inspirational Technology Access
Parity and Transformation
  • Aloha ES
  • Portable Classroom
  • Exterior Inspiration
proposition 39 overview
Proposition 39 Overview

Constitutional amendment passed in 2000, lowering voter approval threshold for school district G.O. bonds to 55%

What can be financed?

Limitations and Requirements

2/3rd approval by school board

More specific project list

Regular elections only

$60 per $100,000 of Assessed Value (not Market Value) tax rate limit for unified school districts

Annual financial and performance audits

Citizen oversight committee

  • Acquisition of real property
  • Construction, renovation or replacement of school facilities
  • Furnishing and equipping of school facilities
la county unified school districts tax rates
LA County Unified School Districts Tax Rates

2013/14 Tax Rates per $100,000 of Assessed Value

la county unified districts bond dollars per student
LA County Unified Districts Bond Dollars per Student

Cumulative Bond Authorizations Per Student (at time of Election)

ABC has the lowest bond authorization amount per Student in the County

assessed value history
Assessed Value History

Total Assessed Value














Assessed Value (billions)














Fiscal Year

Note: Annual percentage changes listed above assessed value figures

bond sizing analysis
Bond Sizing Analysis

Bond authorization amount determined by project needs and capacity of tax base

  • New Bond Authorization Overview
  • Will fully comply with AB 182
  • Would not require the use of Capital Appreciation Bonds
  • Uses reasonable AV growth projections in order to not “over promise” voters
  • Assumptions:
  • Three financings: 2015, 2018, and 2021
  • 30-year amortization, Current Interest Bonds Only
  • Current interest rates: 4.5%
  • 3.5% annual assessed value growth

For a property with a Assessed Value (not Market) of $300,000, the additional tax will be $180 per year, or 49 cents a day.

additional tax per household1
Additional Tax per Household

Assuming the AV will increase by 2 percent per Proposition 13 limitation

Hypothetical Bond Fund Allocation by Student(Actual Bond Allocation will be determined by future Board actions)
Hypothetical Bond Fund Allocation by Student(Actual Bond Allocation will be determined by future Board actions)
citizen oversight committee
Citizen Oversight Committee
  • Formed within 60 days of school board acknowledging election results
  • Independent committee, no District employees or officials, vendors, contractors or consultants
  • Minimum of seven members and include:
    • Member of business organization
    • Member of senior citizen organization
    • Member of bona fide taxpayers organization
    • Parent of a child enrolled in district
    • Parent of a child enrolled in district and active in parent-teacher organization
    • Reviews bond expenditures for compliance with Bond Project List
  • Reviews bond expenditures for compliance with Bond Project List
bond audits
Bond Audits
  • Annual Performance Audit
    • Independent audit to ensure bond proceeds expended only upon projects listed in Bond Project List
  • Annual Financial Audit
    • Independent audit of financial statements related to bond proceeds and expenditures
    • Audits must be submitted to Citizen Oversight Committee and made publically available
    • Audits must be conducted according to Government Audit Standards issued by Comptroller General of the United States
bond resolution
Bond Resolution
  • The Board can not, nor have the authority to raise tax.
  • By passing the Bond Resolution, the Board is placing a school bond measure to a vote. This will give voters a chance to approve or reject the school bond.
  • The voters will decide on the bond measure.
  • Must have at least 55 percent approval from voters.
  • Bond money can not be used for salaries.