Irvine Unified School District Technology Bond Discussion February 19, 2013
Adam Bauer Principal (949) 660-7303 Cell: (949) 295-5735
[email protected]
00068359
Charles Heath Principal (415) 291-1894 Cell: (415) 810-8053
[email protected]
Table of Contents Potential Proposition 39 General Obligation Bond
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Technology Bond Structures
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Questions and Discussion
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2
Potential Proposition 39 General Obligation Bond
3
School District Debt Financing with General Obligation Bonds
Bonding Capacity
•
• Unified School Districts: 2.50% of Assessed Valuation
At least 88 days before election: − − −
Tax Rate Limitations • Unified School Districts: $60 per $100,000
Before Election
After Election •
Requires Voter Approval • 55% approval required for full district
•
Citizens Oversight Committee appointed Annual audits required
Use of Proceeds •
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Projects to be financed must be stated School board must declare resolution for election Tax rate amount must be estimated and bond amount named
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
History of Assessed Valuation FY Ending 2005 2006 2007 2008 2009 2010 2011 2012 2013 (1)
Total Assessed (1)
Valuation
$21,735,221,551 $24,945,799,586 $29,685,145,799 $33,264,930,824 $35,055,759,151 $35,037,287,346 $34,873,409,942 $35,622,966,656 $36,811,119,332 5-Year Average
% Change 14.77% 19.00% 12.06% 5.38% -0.05% -0.47% 2.15% 3.34% 2.07%
Total A.V. before Redevelopment Increment
Historical Change in Assessed Valuation 20.00%
15.00%
5-Year Average: 2.07%
10.00%
5.00%
0.00%
-5.00% 2006
FY Ending 2013
2007
2008
2009
Total Assessed Valuation(1) $36,811,119,332
2010
2011
Assumed % Growth in A.V. -
2012
2013
Bonding Capacity $920,277,983
Section 3.1 (d) of CFD No. 09-1 Mitigation Agreement •
“…IUSD shall not be prohibited by the terms of this Agreement from subjecting the Communities to any increase in ad valorem real property tax pursuant to an IUSD-wide general obligation bond election, formation of a school facilities improvement district (but only if such school facilities improvement district is not of such a size and does not disproportionately include property owned by the Developer within the Communities in a manner that unreasonably or inequitably burdens such property in relation to the other properties to be benefited by the financing provided by such school facilities improvement district), or imposition of an IUSD-wide parcel tax which parcel tax is imposed to fund IUSD operations; provided, however, that nothing herein shall be construed to constitute a waiver by Developer of its right or ability to dispute such proposed formation of a school facilities improvement district, imposition of a parcel tax, or passage of an IUSD-wide general obligation bond.” Source: CalMuni
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Potential 2014 GO Bond Election - $20 Tax Rate Series 2015 Dated Date Par Amount Project Amount Final Maturity Date
$20 per $100,000 Series 2019 Series 2022
02/01/15 $50,805,000 $49,471,112 08/01/39
02/01/19 $37,305,000 $36,843,865 08/01/43
02/01/22 $33,990,000 $33,552,070 08/01/46
(Assumed Tax Rate of $20 per $100,000 of A.V.) Series 2019
Series 2022
Series 2025
02/01/25 $38,160,000 $37,692,880 08/01/49
Total $160,260,000 $157,559,927 -
Estimated Tax Rates(2)
Election of 2014 Debt Service(1) Series 2015
Series 2025
Series 2016
Series 2019
Series 2022
Series 2025
Max Tax Rate
25.00
$8,000,000
20.00
$7,000,000 $6,000,000
15.00
$5,000,000 $4,000,000
10.00 $3,000,000 $2,000,000
5.00
$1,000,000 $0 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
0.00
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
(1) CIBs
(2) Assumes
scale based on MMD ‘AA’ 10-year average per maturity. Assumes no Capital Appreciation Bonds.
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0% growth in Assessed Valuation every year.
Potential 2014 GO Bond Election - $30 Tax Rate Series 2015 Dated Date Par Amount Project Amount Final Maturity Date
$30 per $100,000 Series 2019 Series 2022
02/01/15 $76,235,000 $74,333,476 08/01/39
02/01/19 $55,975,000 $55,383,175 08/01/43
Series 2025
02/01/22 $50,975,000 $50,418,175 08/01/46
Election of 2014 Debt Service(1) Series 2019
Series 2022
Series 2025
02/01/25 $57,235,000 $56,634,355 08/01/49
$240,420,000 $236,769,181 -
Estimated Tax Rates(2)
(Assumed Tax Rate of $30 per $100,000 of A.V.) Series 2015
Total
Series 2016
Series 2019
Series 2022
Series 2025
Max Tax Rate
35.00
$12,000,000 30.00
$10,000,000
25.00
$8,000,000
20.00
$6,000,000
15.00
$4,000,000
10.00
$2,000,000
5.00
$0 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
0.00
2016
(1) CIBs
2018
2020
2022
(2) Assumes
scale based on MMD ‘AA’ 10-year average per maturity. Assumes no Capital Appreciation Bonds.
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2024
2026
2028
2030
2032
2034
2036
2038
2040
0% growth in Assessed Valuation every year.
2042
2044
2046
2048
Potential 2014 GO Bond Election - $40 Tax Rate Series 2015 Dated Date Par Amount Project Amount Final Maturity Date
$40 per $100,000 Series 2019 Series 2022
02/01/15 $101,675,000 $99,205,670 08/01/39
02/01/19 $74,635,000 $73,912,555 08/01/43
Series 2025
02/01/22 $67,980,000 $67,304,140 08/01/46
Election of 2014 Debt Service(1) Series 2019
Series 2022
Series 2025
Series 2016
$320,570,000 $315,968,405 -
Series 2019
Series 2022
Series 2025
Max Tax Rate
45.00
$16,000,000
40.00
$14,000,000
35.00
$12,000,000
30.00
$10,000,000
25.00
$8,000,000
20.00
$6,000,000
15.00
$4,000,000
10.00
$2,000,000
5.00
$0 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
02/01/25 $76,280,000 $75,546,040 08/01/49
Estimated Tax Rates(2)
(Assumed Tax Rate of $40 per $100,000 of A.V.) Series 2015
Total
0.00 2016
(1) CIBs
2018
2020
2022
(2) Assumes
scale based on MMD ‘AA’ 10-year average per maturity. Assumes no Capital Appreciation Bonds.
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2024
2026
2028
2030
2032
2034
2036
2038
2040
0% growth in Assessed Valuation every year.
2042
2044
2046
2048
Strategic Approach to a June 2014 G.O. Bond Election IUSD Registered Voters: 110,041 Expected June 2014 Voter Turnout: 30,641 (28%) Votes Needed to Win: 16,853 (55%) Goal: Persuade at least 17,000 voters to vote Yes Feasibility Study
Now
Measure Development/ Public Outreach
Red Light/ Green Light (Week of May 7, 2013)
• Poll • Election timing • Bond amount/ tax rate • Projects • Political landscape • Competing issues • Potential controversy
Advocacy Campaign
March 8, 2014 Board Calls For Election • Write resolution • Ballot question • Non-advocacy communication • Consensus building • Board vote
• Private fundraising • Direct mail • Website • Endorsements • Phone banks • Lawn signs • GOTV
June 5, 2014 Election Day
Strategic Approach to a November 2014 G.O. Bond Election IUSD Registered Voters: 110,041 Expected Nov. 2014 Voter Turnout: 56,619 (51%) Votes Needed to Win: 31,141 (55%) Goal: Persuade at least 31,500 voters to vote Yes Feasibility Study
Now
Measure Development/ Public Outreach
August 9, 2014 Board Calls For Election
Red Light/ Green Light (Week of Oct. 1, 2013)
• Poll • Election timing • Bond amount/ tax rate • Projects • Political landscape • Competing issues • Potential controversy
Advocacy Campaign
• Write resolution • Ballot question • Non-advocacy communication • Consensus building • Board vote
November 5, 2014 Election Day
• Private fundraising • Direct mail • Website • Endorsements • Phone banks • Lawn signs • GOTV
Case Study: Tustin Unified School District Measure S • Election Date: November 6, 2012 • Authorization Amount: $135 million bond measure • Use of funds: -
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Provide and maintain up-to-date technology, data and communication equipment Upgrade and expand wireless systems, telecommunications, Internet and network connections Upgrade and replace district technology improving efficiency and reducing operational costs Upgrade and replace computers, hardware and software systems, classroom and library technology and teaching equipment to enhance instruction Keep our technology up-to-date and allow our students to learn the skills necessary for a 21st Century economy Upgrade middle school science and secondary career technical educational classrooms and instructional technology to meet university and industry-standard specifications better preparing our students for college and career opportunities Provide additional electrical, network and telephone service capacity to relieve overloaded systems so that it can handle modern instructional technology Provide online and virtual classroom learning curriculum and instruction
• Election Results: Yes: 60.1% No: 39.9%
Technology Bond Structures
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Technology Bond Structures
Phased Technology Bond Sales • Multiple GO Bond sales • Consistent updates to the technology program
Technology Endowment • Lump sum • Investment restrictions (Non-AMT Municipal Bonds)
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Next Steps – June 2014 Election Date
Description
Monday, February 18, 2013 through Friday, March 1, 2013
Interview and select a pollster
Week of Monday, March 4, 2013
Kick-off meeting @ TBD with pollster to begin development of survey questionnaire
Monday, March 25, 2013
Begin drafting poll
Friday, April 5, 2013
Review and approve poll
Monday, April 8, 2013
Begin polling period
Friday, April 19, 2013
End of polling period
Tuesday, May 7, 2013
Present results and recommendations to Board of Education
Friday, November 15, 2013
Approve tracking poll (if needed)
Monday, November 18, 2013 through Friday, November 29, 2013
Conduct tracking poll (if needed)
Tuesday, January 7, 2014
Board of Education meeting for the following items: 1. Present tracking poll results and recommendations (if needed) 2. Present draft bond measure documents for first reading and feedback
Board of Education meeting to adopt two resolutions: Tuesday, February 18, 2014
1. Resolution ordering Election 2. Resolution requesting consolidation with other elections, authorizing Tax Rate Statement, and authorizing Board Members to sponsor ballot arguments
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Next Steps – November 2014 Election Date
Description
Monday, July 15, 2013 through Friday, July 26, 2013
Interview and select a pollster
Week of Monday, July 29, 2013
Kick-off meeting @ TBD with pollster to begin development of survey questionnaire
Monday, August 19, 2013
Begin drafting poll
Friday, August 30, 2013
Review and approve poll
Monday, September 2, 2013
Begin polling period
Friday, September 13, 2013
End of polling period
Tuesday, October 1, 2013
Present results and recommendations to Board of Education
Friday, April 11, 2014
Approve tracking poll (if needed)
Monday, April 14, 2014 through Friday, April 25, 2014
Conduct tracking poll (if needed) Board of Education meeting for the following items:
Tuesday, July 1, 2014
1. Present tracking poll results and recommendations (if needed) 2. Present draft bond measure documents for first reading and feedback
Tuesday, July 15, 2014
1. Resolution ordering Election 2. Resolution requesting consolidation with other elections, authorizing Tax Rate Statement, and authorizing Board Members to sponsor ballot arguments
Board of Education meeting to adopt two resolutions:
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Questions and Discussion
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