CC - Item 6A - Measure D•
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER ~y`'~-~.,2.;,
DATE: OCTOBER 28, 2008
SUBJECT: TAKE ACTION ON MEASURE D
SUMMARY
At the request of Mayor John Tran, attached is information regarding Measure D for the
City Council to review: Measure D has been placed 'on the November 4'" ballot by the
EI Monte Union High School District (EMUHSD).
EMUHS is asking voters to consider Measure D, which would allow the District to issue
$148 million in General Obligation Bonds to fund the construction, reconstruction,
rehabilitation, or replacement of school facilities, including the furnishing and equipping
of school facilities.
Attached is information provided by EMUHSD.
Staff Recommendation
Staff recommends that the City Council discuss this item and provide staff with
direction.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Aileen Flor s
Public Affairs Manager
Attachments: A - Measure D Fact Sheet
APPROVED FOR CITY COUNCIL AGENDA: O •
EL MONTE UNION HI 'CHOOL DISTRICT
MEASURE "D" FAC HEET AND Q & A
Q. Why did the Board of Trustees call for a school bond now?
A. Six years ago our community approved a school bond to rehabilitate our local high schools.
Significant upgrades have since been completedand today local high school students are benefiting
from improved academic classrooms, labs and job training facilities. But even with the improvements
made possible by the 2002 bond, some areas of our existing high schools-most constructed over 3~
years ago-remain overcrowded, outdated and deteriorated.
Q. W--hat is Measure "D" and what will it do?
A. Measure "D" is a $148 million school bond measure that will:
• Replace portables with permanent classrooms to relieve high school overcrowding
Add classrooms to improve student access to college and high demand jobs
• Upgrade educational technology in classrooms, labs, and school libraries
• Repair/replace deteriorated heating/ventilation/air-conditioning units to increase energy
efficiency and cost savings.
• Modernize outdated science labs, libraries and school buildings
• Upgrade security systems, building exteriors, lighting, fencing, school structures and grounds
for improved safety and security
Q. What are General Obligation (G.O.) Bonds?
A. General obligation bonds fund the construction, reconstruction, rehabilitation, or replacement of
school facilities; including the furnishing and equipping of school facilities. Similar to a mortgage,
G.O. bonds are repaid over time. Bonds cannot be used for salaries, administration,. or overhead.
Q. How would Measure "D" be repaid?
A. The loan repayment comes from a tax on all property located within the District's
boundaries: residential, commercial, and industrial. The tax rate for repayment is determined by the
assessed valuation of property, not market value. Assessed valuation is the value placed on property
by the County pursuant to Proposition 13 and is typically much lower than the market value for
which a property may be sold. The tax rate increase is a maximum of $30 per $100,000 of
assessed value.
Q. What safeguards exist for taxpayers?
A. State law requires a detailed project list be presented to voters for all such bond measures. Only
projects identified on the detailed project list may be funded from bond proceeds. In addition, State
law requires an independent citizens' oversight committee and annual financial and performance
audits to ensure money is used only for voter approved school improvements and repairs and not
used for salaries, administration, or overhead.
Q. What about using other sources of funding, such as State Funds, the District's General Fund,
and Lottery Funds?
A. The District will utilize all revenues collected from Developer Fees; however, Developer Fees alone
are insufficient to fund the amount of required improvements. The District has utilized all existing
~ eligibility for State fimding and will continue to seek opportunities for State grants. The General
Fund is budgeted.in large part on annual funds from the State to cover the ongoing costs of running
a school district, including instruction and teacher salaries, and does not account for the needs
including school repair and construction. State law prohibits the use of lottery funds for the repair or
construction of school facilities.
Q. What happens if Measure "D" fails?
A. The proposed school improvements would be delayed as the District seeks other sources of funding.
The facility needs at our schools will continue to escalate with time.
Q. Who can vote in the election?
A. All the registered voters who live within the boundaries of the EI Monte Union High School District
are eligible to vote on Measure "D". The deadline to register to vote is October 20, 2008. The
election is scheduled for November 4, 2008.