Resolution: Elementary Schools

RESOLUTION NO. 01-02-014

RESOLUTION OF THE BOARD OF TRUSTEES OF THE EUREKA UNIFIED SCHOOL DISTRICT ORDERING SCHOOL FACILITIES IMPROVEMENT DISTRICT BOND ELECTION IN AND FOR SCHOOL FACILITIES IMPROVEMENT DISTRICT NO. 1, AND AUTHORIZING NECESSARY ACTIONS IN CONNECTION THEREWITH

WHEREAS, this Board of Trustees (the "Board") of the Eureka Unified School District (the "District"), of the County of Humboldt, California, by its Resolution No. 00-01-024, adopted on November 15, 2000, has ordered School Facilities Improvement District No. 1 to be formed comprising a specified area of the District corresponding to the former Eureka City Elementary School District, as shown on the map of School Facilities Improvement District No. 1 ("SFID No. 1") on file with the Clerk of the Board, in order to be able to conduct therein a general obligation bond election to provide needed financing for the construction, improvement, expansion, rehabilitation and renovation of public elementary school facilities for the benefit of the land located within SFID No. 1; and

WHEREAS, the Board is authorized generally by Sections 5304 and 5322 of the Education Code to order elections for and within the District and to designate the specifications thereof, including for the purpose of submitting to the electors the question of whether bonds of the District shall be issued and sold pursuant to Education Code Sections 15330 and following; and

WHEREAS, pursuant to Section 18 of Article XVI and Section 1 of Article XIII A of the California Constitution, and Section 15266 of the Education Code, school districts may seek approval of general obligation bonds and levy an ad valorem tax to repay those bonds upon a 55% vote of those voting on a proposition for the purpose, provided certain accountability measures are included in the proposition; and

WHEREAS, effective January 1, 2002, pursuant to Section 15348(b) of the Education Code, general obligation bonds of a school facilities improvement district may be approved upon a 55% vote of those voting on a proposition for the purpose; and

WHEREAS, the Board deems it necessary and advisable to submit such a bond proposition to the electors of the School Facilities Improvement District No. 1 to be approved by 55% of the votes cast; and

WHEREAS, such a bond election must be conducted concurrent with a statewide primary election, general election, or special election, or at a regularly scheduled local election, as required by Section 15266 of the Education Code; and

WHEREAS, on March 5, 2002, a statewide primary election is scheduled to occur throughout the District; and

WHEREAS, pursuant to Education Code Section 15270, based upon a projection of assessed property valuation, the Board has determined that, if approved by voters, the tax rate levied to meet the debt service requirements of the bonds proposed to be issued will not exceed $60 per year per $100,000 of assessed valuation of taxable property; and

WHEREAS, it is desirable that the election be consolidated with such other election or elections as may be held on the same day in the same territory or in territory that is in part the same; and

WHEREAS, Section 9400 and following of the Elections Code requires that a tax rate statement be contained in all official publications and ballot pamphlets prepared, sponsored or published by the District which relate to the election; and

WHEREAS, the Board now desires to authorize the filing of a ballot argument in favor of the proposition to be submitted to the voters at the election; and

WHEREAS, if the project to be funded by the bonds will require State matching funds for any phase, the sample ballot must contain a statement, in form prescribed by law, advising the voters of that fact, and the Board finds that completion of all or a portion of certain of the projects planned to be financed from the bonds will require State matching funds not yet received by the District;

NOW, THEREFORE, be it resolved, determined and ordered by the Board of Trustees of the Eureka Unified School District as follows:

Section 1. Findings: The Board hereby finds the foregoing recitals to be true and correct in all respects.

Section 2. Specifications of Election Order: Pursuant to Education Code Sections 5304, 5322, 15327, and 15340 and following, and applicable provisions of the Education Code and Elections Code, a special election is hereby ordered to be held within the boundaries of School Facilities Improvement District No. 1 ("SFID No. 1") of the Eureka Unified School District on March 5, 2002, for the purpose of submitting to the registered voters of SFID No. 1 the following proposition:

EUREKA ELEMENTARY SCHOOLS IMPROVEMENT BOND OF 2002

This Proposition may be known and referred to as the "Eureka Elementary Schools Improvement Bond of 2002" or as "Measure ____". [designation to be assigned by County Registrar of Voters]

FINDINGS

The Eureka Unified School District (also known as "Eureka City Schools") is committed to offering a personalized education with a challenging curriculum. By providing the highest quality education possible, Eureka City Schools has enhanced the quality of life for the Eureka community.

All of Eureka City Schools' elementary schools are more than 45 years old.

In order to maintain our schools as effective places for teaching and learning for the future, and to be able to retain and attract students and quality staff to our programs, major renovations and repair work is needed to bring each of our elementary school campuses to current standards of safety, and to ensure that they will remain standing for future generations.

The Board of Trustees of the Eureka Unified School District has prepared a facilities plan and identified repair and rehabilitation needs that are more than the District is able to fund from currently available sources or annual revenues.

The Board of Trustees has created a special School Facilities Improvement District serving the territory of the former Eureka City Elementary School District, to ensure that only voters and taxpayers within this area of the District may decide whether or not to improve our children’s elementary schools.

Eureka City Schools has sought and continues to seek all available outside sources of funding for improving our school buildings, including local, state, and federal grants, and matching funds. The District has received State grant funds and has used these grants to complete critical projects, but outside money will not be sufficient to provide all of the District's facilities needs.

It is necessary to seek voter approval of a bond measure in order to provide the local funding share of identified school facility repairs and modernization projects.

BOND AUTHORIZATION

By approval of this proposition by at least 55% of the registered voters voting on the proposition, the Eureka Unified School District shall be authorized to issue and sell bonds of School Facilities Improvement District No. 1 of up to $10,585,000 in aggregate principal amount to provide financing for the specific elementary school facilities projects listed in the Bond Project List attached hereto as Exhibit A, and in order to qualify to receive State matching grant funds, subject to all of the accountability requirements specified below.

ACCOUNTABILITY REQUIREMENTS

The provisions in this section are specifically included in this proposition in order that the voters and taxpayers of Eureka may be assured that their money will be spent wisely to address specific elementary schools facilities needs of the Eureka Unified School District, all in compliance with the requirements of Article XIII A, 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 has prepared an updated facilities plan in order to evaluate and address all of the elementary schools facilities needs of the Eureka Unified School District at each campus and facility, and to determine which projects to finance from a local bond at this time. The Board of Trustees hereby certifies that it has evaluated safety, class size reduction and information technology needs in developing the Bond Project List contained in Exhibit A.

Independent Citizens’ Oversight Committee. The Board of Trustees shall establish an independent Citizens’Oversight Committee (pursuant to Education Code Section 15278 and following), to ensure bond proceeds are expended only for the school facilities projects listed in Exhibit A. The committee shall 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 shall conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects listed in Exhibit A.

Financial Audits. The Board of Trustees shall conduct an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed in Exhibit A.

Special Bond Proceeds Account; Annual Report to Board. Upon approval of this proposition and the sale of any bonds approved, the Board of Trustees shall take actions necessary to establish an account in which proceeds of the sale of bonds will be deposited. As long as any proceeds of the bonds remain unexpended, the Chief Business Official of the District shall cause a report to be filed with the Board no later than January 1 of each year, commencing January 1, 2003, stating (1) the amount of bond proceeds received and expended in that year, and (2) the status of any project funded or to be funded from bond proceeds. The report may relate to the calendar year, fiscal year, or other appropriate annual period as the Superintendent shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the Board.