CITY OF PLEASANTON

PLEASANTON UNIFIED SCHOOL DISTRICT LIAISON COMMITTEE

AGENDA

June 13, 2017 3:30 p.m.

157 Main, Conference Room #3

123 Main Street Pleasanton, CA 94566

Accessible Public Meetings

The City of Pleasanton will provide special assistance for citizens with disabilities to participate in public meetings upon advance notice. If you need an auxiliary hearing aid or sign language assistance at least two working days advanced notice is necessary. Please contact the Office of the City Clerk 123 Main Street, Pleasanton, CA 94566, or (925) 931-5027.

1. Call to Order

2. Roll Call

3. Public Comment - Comments are limited to items not listed on the Agenda

4. Approve meeting minutes of March 14, 2017

5. Budget Update (PUSD)

6. Personnel Update (PUSD)

a. Status of Superintendent Executive Search

b. Misc. Personnel Updates

7. Status of Bond Issuance and Facilities Master Planning (PUSD)

8. Status of Mitigation Agreement Update (PUSD)

9. Monthly Planning Update (City)

10. Misc. Updates (City / PUSD)

a. PUSD Mariachi Program

b. Harvest Park Middle School – 2017 Gold Ribbon School

c. Village High School Award – 2017 Model Continuation School

d. City Workplan

e. STEAM Preschool Funding Update (City)

f. Community Newsletter

11. Approve Cancellation of July and August Liaison meetings

12. Upcoming Agenda Items

13. Matters Initiated by Liaison Committee Members

14. Adjournment

Next Meeting Date September 12, 2017

4

CITY OF PLEASANTON PLEASANTON UNIFIED SCHOOL DISTRICT

LIAISON COMMITTEE

MINUTES

March 14, 2017

1. Call to Order The meeting was called to order at 3:31 p.m.

2. Roll Call

Present: Steve Maher, Kathy Narum, Arne Olson Absent: Valerie Arkin

3. Public Comment None

4. Approve meeting minutes of February 14, 2017 It was m/s by Narum/Maher to approve minutes. All Approved.

5. Monthly Planning Update Gerry Beaudin, Director of Community Development noted that the Community Development Planning update is published every other month and updated on the City’s website. He also noted that the Downtown Specific Plan (DSP) task force was informed by the PUSD Board of Trustees not to include the school administrative offices in the current DSP. He informed the committee that the community online survey regarding the Downtown area is online and open until April 2nd. Mr. Beaudin gave a brief update regarding the proposed Valley Trails residential project which will include 34 residential units on the current Church site that is expected to be on the Planning Commission agenda on March 22nd for approval. Micaela Ochoa, Interim Superintendent noted that at the February 14th PUSD Board of Trustees meeting, direction was given to staff to explore the Neal Property for building the 10th Elementary School. She thanked the city for providing the EIR and relevant documents for the Neal property location.

6. Updated District Budget Micaela Ochoa, Interim Superintendent reviewed a power point presentation with the committee on the Fiscal year 2016-17 Second Interim Report which covered actual expenditures and actual revenues from July 1 through January 31 and updated projections for the balance of the year. Discussion ensued regarding Local Control Funding, CalSTRS and CalPERS rates, member contributions, earnings from CalPERS investments and multi-year projections.

7. Measure I1

Ms. Ochoa noted that Prop 39 was certified in January and the district had 60 days to create an audit oversight committee which will consist of 10 committee members. She indicated that to date the district had received 33 applications however, a member from a verified tax organization was still needed.

City-School Liaison Committee Page 2 of 2 March 14, 2017

8. Superintendent Executive Search Firm Update Ms. Ochoa stated that a committee has been formed with twelve members to select a firm for the superintendent executive search. She indicated that five firms were interviewed and the committee chose Hazard, Young & Altea Associates to move forward with. The PUSD Board of Trustees held a special board meeting on March 8th to approve the selection of the firm recommended by the committee.

9. Pleasanton Unified School District’s Safe Haven Resolution Ms. Ochoa shared a copy of the resolution the PUSD adopted on February 28th regarding the recognition of a Safe Haven School District and provided an informational sheet on undocumented students and families: The Facts regarding student and staff rights.

10. Summer Recreation Programs at PUSD Facilities Sean Welch, Assistant to the City Manager discussed the Summer Camps scheduled this year for Amador High School. Discussion ensued regarding prior year city programs held at the high schools and popular recreation programs such as Legos/Science/Technology and Engineering.

11. Approve Cancellation of April 11, 2017 Liaison meeting It was m/s by Maher/Narum to cancel the April 11, 2017 Liaison committee meeting due to the joint City Council/PUSD Board of Trustee meeting scheduled for that evening. All approved.

12. Draft Joint Meeting Agenda The draft joint meeting agenda was reviewed.

13. Upcoming Agenda Items

• Combined Services City/School District/JPA

14. Matters Initiated by Liaison Committee Members None

15. Adjournment

The meeting was adjourned at 4:38 p.m.

Pleasanton Unified School District

Fiscal Year 2017-18 Proposed Budget

Presentation to Board of Trustees

June 13, 2017

1

5

Presentation Items Annual Budget Cycle District Funds General Fund Revenues and Expenditures Other Funds Next Steps

2

The Annual Budget CycleBudget

Adoption

Revised Budget

First Interim

Second Interim

Third Interim

UnauditedActuals

Audited Actuals

At each period, we:

Update budget Certify District’s

financial condition Present summary to

Board of Education Submit copies to

County Office of Education and State

3

District FundsOPERATING FUNDS CAPITAL FUNDS

Fund Description Fund Description

01 General Fund 14 Deferred Maintenance Fund

10 Special Education Pass-Through Fund

21 Building Fund

11 Adult Education Fund 25 Capital Facilities Fund

13 Cafeteria Special Revenue Fund

35 County Schools Facilities Fund

17 Special Reserve Fund for Other Than Capital Outlay Projects

40 Special Reserve Fund for Capital Outlay Projects

63 Other Enterprise Fund 51 Bond Interest & Redemption Fund

4

FY2017/18 Estimated General Fund Revenues

The LCFF stipulates four grade spans. Each grade span has a base grant, which is a specific dollar amount the state provides to Districts based on the number of days students attend school

District income is based on the average daily attendance(ADA) - not the number of students enrolled.

Our primary source of revenue is provided by the

grade span based grant.General Fund Revenue

(Unrestricted & Restricted)

$145.4M

LCFF82%

Federal2%

State14%

Local2%

5

FY2017/18 Target Entitlement

Base Grant Grade Span Adjusted SupplementalGrade Span per ADA Adjustment Grants Grant

Grades TK-3 7,193$ 748$ 7,941$ 1,588$ Grades 4-6 7,301$ -$ 7,301$ 1,460$ Grades 7-8 7,518$ -$ 7,518$ 1,504$ Grades 9-12 8,712$ 227$ 8,939$ 1,788$

6

FY2017/18 Unrestricted General Fund RevenuesLCFF

LCFF Sources $102.1M

Education Protection Account $17.2M

Other State

Lottery $2.2M

Mandated Costs Block Grant $0.5M

One-Time Mandate Reimbursement $0

Apprenticeship $1.8M

Local

Interest $85K

Facility Use Fees/Contracts $0.5M

Other Local Revenue $0.9M

Our primary source of revenue is provided by the

grade span based grant.Unrestricted Revenue

$125.2M

LCFF95%

State4%

Local1%

7

FY2017/18 Restricted General Fund RevenuesOur primary source of restricted revenue (i.e., categorical funds) is the State. These funds have

restrictions on their use.Restricted Revenue

$20.2M

LCFF

LCFF $0.7M

Federal

Special Education $2.3M

Title I $0.3M

Title II $0.2M

Title III $0.3M

Carl Perkins $49K

PBIS $0.5M

Other State

Special Education $8.9M

Lottery $0.7M

STRS on-behalf pension $5.0M

CA Clean Energy Jobs Act $0.8M

Local

Other Local Revenue $0.7M

LCFF3%

Federal18%

State75%

Local4%

8

FY2017/18 Contributions to Restricted ProgramsRestricted programs are like mini-funds and should be self-sustaining –expenditures should match revenues.

When expenditures exceed revenues, a contribution is made to the restricted program.

Special Education Revenues

$25.9M

Special Education

Contributions by Fiscal Year

FY2014/15 $11.0M

FY2015/16 $12.2M

FY2016/17 $13.7M estimate

FY2017/18 $14.1M projected

Contribution54%

Federal 9%

State37%

9

FY2017/18 General Fund Expenditures

Personnel83%

Non-Personnel17%

General Fund Expenditures

$127.9M Personnel$19.4M Non-Personnel

$147.3M Total

Non-Personnel Expenditures

$3.1M Utilities

$7.8M Professional Services

$1.1M Insurance

$4.3M Supplies/Materials

$0.5M Communications

$0.8M Professional Development

$0.9M Equipment/Rentals/Repairs

$0.9M Other Outgo

$19.4M Total

10

Multi-Year Projections: Revenue Changes from Prior Year

Projection

2018-2019 2019-2020

LCFF $4.7M $4.0M

Mandated Cost Reimbursement - -

Special Education - $45KCareer Technical Education IncentiveGrant (CTEIG)

($0.8M) -

11

Projection

2018-2019 2019-2020

Step and Column $1.2M $1.2MSupplemental Funds $0.2M $0.2MSpecial Education $0.2M $0.2MCalSTRS/CalPERS $2.0M $2.1MTextbook Adoption $2.0M ($0.6M)CTE Supplies/Services ($0.3M) -Donations/Carryover: One-Time ($0.3M) -

12

Multi-Year Projections: Expenditure Changes from Prior Year

Ending Fund Balance

2017-2018 2018-2019 2019-2020

Beginning Fund Balance $12.4M $8.5M $8.4M

Nonspendable - Revolving cash and stores $0.5M $0.2M $0.2M

Restricted - Mental Health and Prop 39 $3.3M $3.2M $3.0M

Committed - Technology $0.2M $0.2M $0.2M

Reserve for Economic Uncertainties $4.5M $4.6M $4.6M

Unassigned/Unappropriated $4.0M $0.2M $0.4M

13

Other Funds Impacting the General Fund

Special Reserve Fund for Other Than Capital Outlay◦ Transfer in $75K from PSEE Gift

Child Development Enterprise Fund◦ Transfer in $112K

Deferred Maintenance Fund◦ Transfer out $0.8M

14

Capital Facilities Fund, Fund 25• Includes annual debt service payments for

COP totaling $1.5M

• Includes capital leases totaling $0.2M

15

Special Reserve Funds• Special Reserve Fund for Other Than Capital Outlay

Projects, Fund 17– PSEE Gift: 0.4M– OPEB: 5.8M– CalPERS Shift: 0.9M

• Special Reserve Fund for Capital Outlay Projects, Fund 40– Future Debt Service, Fund 01: 29K– Future Debt Service, Fund 25: 4.9M– Sycamore Fund: 6.8M

16

Special Reserve Fund – Capital OutlayLoans Outstanding as of FY17/18 Proposed Budget

Loan Description Fund AmountHearst Roofing 01 230,000Wireless LAN Project 01 27,140

Total 257,140

Loans Outstanding as of FY17 257,140Loans Outstanding as of FY16 758,877Loans Outstanding as of FY15 508,622Loans Outstanding as of FY14 1,358,796Loans Outstanding as of FY13 1,931,575Loans Outstanding as of FY12 2,721,967

17

Next Steps August 2017 Present the State Enacted Budget for 2017-18, Information

September 2017 Present 2016-17 Unaudited Actuals, Action

December 2017 Present First Interim Report, Action

January 2018 Present 2016-17 Audit Report, Action Present Governor’s Proposed Budget for 2018-19, Information Begin 2018-19 Budget Development March 2018 Present Second Interim, Action Present Budget Assumptions, Information April 2018 Present Updated Budget Assumptions, InformationMay 2018 Present Updated Budget Assumptions, Action Present May Revise, Information

18

PLEASANTON UNIFIED SCHOOL DISTRICTMulti-Year Projectionsas of FY17/18 Proposed Budget

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total REVENUELCFF 119,283,492 669,673 119,953,165 123,974,362 669,673 124,644,035 127,974,986 669,673 128,644,659 Federal - 3,516,886 3,516,886 - 3,516,886 3,516,886 - 3,516,886 3,516,886 State 4,517,449 15,148,608 19,666,057 4,517,449 15,145,010 19,662,459 4,517,449 15,186,412 19,703,861 Local 1,449,004 841,297 2,290,301 669,708 571,297 1,241,005 669,708 571,297 1,241,005

TOTAL REVENUE 125,249,945 20,176,464 145,426,409 129,161,519 19,902,866 149,064,385 133,162,143 19,944,268 153,106,411

EXPENDITURESCertificated 67,504,277 12,932,393 80,436,670 68,310,425 12,857,164 81,167,589 69,116,573 13,007,629 82,124,202 Classified 11,973,322 6,855,795 18,829,117 12,041,006 6,900,255 18,941,261 12,108,690 6,944,716 19,053,406 Benefits 18,217,457 10,391,165 28,608,622 20,374,869 10,381,991 30,756,859 22,605,415 10,417,123 33,022,539 Books & Supplies 2,695,765 1,564,316 4,260,081 4,767,399 1,604,479 6,371,879 4,261,862 1,644,643 5,906,505 Services, Other Operating Expenses 10,041,934 4,094,864 14,136,798 10,080,464 4,294,864 14,375,328 10,259,590 4,494,864 14,754,454 Capital Outlay 94,681 6,000 100,681 94,681 6,000 100,681 94,681 6,000 100,681 Other Outgo 1,076,847 92,811 1,169,658 1,010,029 92,811 1,102,840 1,010,029 92,811 1,102,840 Direct Support/Indirect Costs (2,020,559) 1,775,750 (244,809) (2,020,559) 1,775,750 (244,809) (2,020,559) 1,775,750 (244,809) Other Adjustments - - - - - - (3,150,000) - (3,150,000) TOTAL EXPENDITURES 109,583,724 37,713,094 147,296,818 114,658,314 37,913,315 152,571,629 114,286,282 38,383,536 152,669,818

EXCESS OF REVENUES OVER EXPENDITURES 15,666,221 (17,536,630) (1,870,409) 14,503,205 (18,010,449) (3,507,244) 18,875,861 (18,439,267) 436,594

OTHER FINANCING SOURCES/USESTransfers In 642,439 75,000 717,439 642,439 75,000 717,439 642,439 75,000 717,439 Transfers Out 1,203,000 - 1,203,000 1,203,000 - 1,203,000 1,203,000 - 1,203,000 Sources

Uses

Cont. to Rest. Programs (17,711,368) 17,711,368 - (17,911,368) 17,911,368 - (18,111,368) 18,111,368 -

TOTAL OTHER FIN. SOURCE/USES (18,271,929) 17,786,368 (485,561) (18,471,929) 17,986,368 (485,561) (18,671,929) 18,186,368 (485,561)

NET INCREASE (DECREASE) IN FUND BALANCE (2,605,708) 249,738 (2,355,970) (3,968,724) (24,081) (3,992,804) 203,932 (252,899) (48,967)

Beginning Fund Balance 11,798,069 3,007,286 14,805,355 9,192,361 3,257,024 12,449,385 5,223,637 3,232,944 8,456,581 Other AdjustmentAudit Adjustments - Other RestatementsENDING BALANCE, JUNE 30 9,192,361 3,257,024 12,449,385 5,223,637 3,232,944 8,456,581 5,427,569 2,980,044 8,407,614

Components of Fund BalanceRevolving Cash 74,380 74,380 74,380 74,380 74,380 74,380 Stores 359,713 359,713 95,445 95,445 95,445 95,445 Prepaid Expenditures 110,060 110,060 - - - - General ReserveLegally Restricted Balances 3,257,024 3,257,024 3,232,944 3,232,944 2,980,044 2,980,044 Designated for:Econ. Uncertainties 4,454,995 4,454,995 4,613,239 4,613,239 4,616,185 4,616,185 Site Grants/Carryover - - - - - - Other Designations: Technology 213,415 213,415 213,415 213,415 213,415 213,415

- - - - -

- - - - -

Undesignated / Unappropriated 3,979,799 - 3,979,799 227,158 - 227,158 428,145 - 428,145

TOTAL EXPENDITURES 148,499,818 153,774,629 153,872,818 SELPA Pass Through - - - Adjusted Total Expenditures 148,499,818 153,774,629 153,872,818

3.0% Minimum Reserve 4,454,995 4,613,239 4,616,185 Over (Under) 3% reserves 3,979,799 227,158 428,145

2.68% 0.15% 0.28%

2020Projection

2019ProjectionDescription

2018Proposed Budget

13.3 Attachment D 1 of 1

5

Adam BauerChief Executive Officer

Fieldman, Rolapp & Associates949.660.7303 tel949.295.5735 cell

abauer@fieldman.com

June 13, 2017

Measure I1 Finance Plan Update

7

Table of Contents

Section I. Bond Issuance Flowchart

Section II. District Tax Rates, Historical Assessed Value and Bonding Capacity

Section III. Measure I1 Proposed Scenario

Section IV. District Credit Rating and Next Steps

1

Bond Issuance FlowChart

Section I

2

GO Bond Debt Issuance Process

School District decides to issue

bonds

Finance Team

Assembled

Review Funding Options

Bond Pricing Closing On-GoingMonitoring

Planning Phase Preparation Phase

Pricing Phase Monitoring Phase

•Determine amount and

issuance schedule

•Includes underwriter, BC/DC and

Financial Advisor

•Taxable property, credit rating, interest

rates

Prepare Legal

Documents

Credit Rating

Process

Board Considers Approval

•Term sheet •Document

distribution and review

•Review ratings•Evaluate options

•Prepare credit presentation

•Board considers

parameters and Resolution

•Pre-marketing, pre-pricing, and

pricing

•Funds available to the

District

•Continuing Disclosure •Review

Refundings

3

District and Alameda County Tax Rates

Section II

4

2016-17 Alameda County K-14 Tax Rates

Sources: Alameda County Auditor-Controller’s Office 5

* Does not include Lammersville Joint USD, Tracy Joint USD, or San Joaquin Delta CCD which are primarily located in San Joaquin County. Thehashed lines represent estimated total tax rates based on each district’s Tax Rate Statement who successfully passed bond measures in 2016.

$380.00 $200.00

$189.20$184.30

$159.20$157.20

$154.10$136.60

$132.70$129.20

$124.30$117.90

$115.10$104.60

$99.20$97.40$97.20$96.70

$88.60$80.80

$71.40$68.00

$49.10$46.40

$37.00$25.60$24.60

$22.40

Albany USD (+$180 Measures B and E)Albany USD

Castro Valley USD (+$60 Measure G)Piedmont USD (+$60 Measure H1)

New Haven USDDublin USD (+$60 Measure H)

San Leandro USD (+$36.20 Measure J1)Livermore Valley Joint USD (+$48 Measure J)

Berkeley USDCastro Valley USD

Piedmont USDSan Leandro USD

Oakland USDNewark USD

San Lorenzo USDHayward USD

Dublin USDAlameda USD

Livermore Valley Joint USDFremont USD

Pleasanton USD (+ $49 Measure I1)Emery USD

Chabot-Las Positas CCD (+$24.50 Measure A)Sunol Glen USD

Ohlone CCDPeralta CCD

Chabot-Las Positas CCDPleasanton USD

Tax Rate per $100,000 of AV

2016-17 Alameda County K-14 Tax Rates*

Measure I1 Proposed Scenario(Infrastructure, Technology

and COP Prepayment)

Section III

6

Measure I1 Finance Plan

(1)Assumes 4.00% AV growth in FY 17-18 and 4.00% every year thereafter.(2) Series 2017 assumes current market conditions. Series 2019, 2022 and 2024 assume MMD 10-year average ‘AA’ scale plus an additional 100 basis points for each future bond series.

The School District could issue the full $270 million by 2027 to fund $246 million in infrastructure, prepay outstanding COPs and fund short-term technology through 2027

7

$0

$10

$20

$30

$40

$50

$60

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044

Tax

Rat

e (p

er $

100,

000

of A

V)

Fiscal Year

2016 GO Bond Election Estimated Tax Rates(1)(2)

Series 2017A Series 2017B Series 2017 T-1 Series 2019C Series 2022D Series 2022 T-2 Series 2024E Series 2027 T-3 Max Tax Rate $49

Series 2017

Series 2017 T-1

Series 2019

Series 2022

Series 2022 T-2

Series 2024

Series 2027 T-3

Total

Issue Date 8/29/2017 8/29/2017 8/1/2019 8/1/2022 8/1/2022 8/1/2024 8/1/2027 -Par Amount $65,675,000 $3,325,000 $65,000,000 $65,000,000 $1,665,000 $67,600,000 $1,735,000 $270,000,000Project Amount 50,884,093 - 64,410,000 64,479,995 - 66,994,400 - 246,768,489COP Prepayment 14,267,511 - - - - - - 14,267,511Technology Funds - 3,300,000 - - 1,650,000 - 1,650,000 6,600,000Final Maturity Date 8/1/2042 8/1/2022 8/1/2044 8/1/2044 8/1/2027 8/1/2044 8/1/2032 8/1/2044Repayment Ratio 1.38 1.04 1.89 2.06 1.13 2.02 1.15 1.82

Percentage of CIBs 100% 100% 100% 100% 100% 100% 100% 100%Percentage of CABs 0% 0% 0% 0% 0% 0% 0% 0%

Sources and Uses of Funds*

* Preliminary, subject to change.

The School District could use proceeds from the first series of Measure I1 Bonds to:

Prepay a portion of its outstanding COPs

Fund $3.3 million in short-term technology

Fund approximately $50 million for additional infrastructure projects

8

SOURCES

(New Money Portion)

(Partial 2010 COP

Refunding)

(Short-Term Technology

Bond)Total

Bond ProceedsPar Amount $51,390,000.00 $14,285,000.00 $3,325,000.00 $69,000,000.00Premium 3,765,268.85 1,206,144.45 68,525.15 5,039,938.45

Total Sources $55,155,268.85 $15,491,144.45 $3,393,525.15 $74,039,938.45

USESProject Fund Amount

Project Fund $50,884,093.48 - $3,300,000.00 $53,284,093.48

Refunding Escrow DepositsCash Deposit - $0.59 - $0.59SLGS Purchases - 14,267,511.00 - 14,267,511.00

- $14,267,511.59 - $14,267,511.59

Other Fund DepositsDebt Service Fund $3,765,268.85 $1,206,144.45 $68,525.15 $5,039,938.45

Delivery Date ExpensesCosts of Issuance $148,956.52 $41,405.80 $9,637.68 $200,000.00Underwriter's Discount 256,950.00 71,425.00 16,625.00 345,000.00

$405,906.52 $112,830.80 $26,262.68 $545,000.00

Other Uses of FundsAdditional Proceeds $4,657.61 ($1,262.68) $3,394.93

Total Uses $55,055,268.85 $15,591,144.45 $3,393,525.15 $73,139,938.45

General Obligation Bonds, 2016 Election, Series 2017

Prepayment of COP from GO Bond Proceeds* The GO Bonds would only prepay the portion of the 2010 COPs that

previously refunded the 2002 variable rate COPs issued by the Alameda-Contra Costa Schools Financing Authority

Measure I1 language dictates that debt service savings must be shown and that the refinancing does not extend the maturity of the COP obligation

* Preliminary, subject to change.

Paid from GO Bond proceeds

Paid from developer fees

Period Ending

Principal InterestPrincipal

RedeemedTotal

8/1/2017 $935,000.00 $343,571.88 - $1,278,571.88

2/1/2018 - 293,775.00 - 293,775.008/1/2018 605,000.00 293,775.00 - 898,775.002/1/2019 - 284,321.88 - 284,321.888/1/2019 625,000.00 284,321.88 - 909,321.882/1/2020 - 271,821.88 - 271,821.888/1/2020 640,000.00 271,821.88 11,135,000.00 12,046,821.88

Total $2,805,000.00 $2,043,409.40 $11,135,000.00 $15,983,409.40

9

Partial Prepayment of 2010 COPs* By issuing general obligation bonds to prepay existing COPs, the cost of

borrowing will be significantly reduced when compared to COP debt

Coupon Rate Comparison Interest Cost Comparison

* Preliminary, subject to change.

MaturitySeries 2017 GO Bond

Prior 2010 COP

MaturitySeries 2017 GO Bond

Prior 2010 COP

Interest Cost Differential

8/1/2018 2.000% 3.125% 8/1/2018 $473,054 $587,550 $114,4968/1/2019 3.000% 4.000% 8/1/2019 475,850 568,644 92,794 8/1/2020 4.000% 4.000% 8/1/2020 415,100 543,644 128,544 8/1/2021 4.000% 4.000% 8/1/2021 375,100 518,044 142,944 8/1/2022 4.000% 4.125% 8/1/2022 331,700 491,644 159,944 8/1/2023 4.000% 4.250% 8/1/2023 282,900 454,519 171,619 8/1/2024 3.000% 4.500% 8/1/2024 247,300 413,081 165,781 8/1/2025 5.000% 4.625% 8/1/2025 217,150 357,506 140,356 8/1/2026 5.000% 4.625% 8/1/2026 163,650 297,844 134,194 8/1/2027 5.000% 5.000% 8/1/2027 115,650 225,000 109,350 8/1/2028 3.000% 5.000% 8/1/2028 66,150 153,750 87,600 8/1/2029 3.000% 5.000% 8/1/2029 34,050 78,750 44,700

Average Coupon: 3.847% 4.713% Total $3,197,654 $4,689,975 $1,492,321

10

District Credit Rating and Next Steps

Section IV

11

Pleasanton USD Credit Ratings The School District has a current ratings of ‘Aa2’ by Moody’s and ‘A+’ by

S&P Large growing tax base (five consecutive years of Assessed Value growth) Very strong socioeconomic wealth indices Increasing ADA for FY 16-17 Strong management of narrow liquidity and reserves Closed FY 2015-16 with a $7.7 million surplus, and increased reserves

Moody's S&P Credit Worthiness

Aaa AAA An obligor has EXTREMELY STRONG capacity to meet its financial commitmentsAa1 AA+Aa2 AAAa3 AA-A1 A+A2 AA3 A-

Baa1 BBB+Baa2 BBBBaa3 BBB-

An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree.

An obligor has STRONG capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments

12

Next Steps*

13

Date Description

June 13, 2017School Board Meeting

- Finance Plan Follow-Up

June 27, 2017 School Board Meeting - Consider approval of issuance and sale

June 28, 2017 60 day validation period ends

Week of July 31, 2017 Rating Presentation with Rating Agencies

August 27, 2017 60 day validation period ends

August 30, 2017 Bond Pricing

September 13, 2017 Closing

* Preliminary, subject to change.

7

The PUSD’s Mariachi Program is a free after school enrichment program for students in 2nd through 12th grades. The mariachi classes taught by professional mariachi musicians will focus on the traditional mariachi instruments: guitar, vihuela, guitarron (bass), violin and trumpet and explore the different regional music from Mexico that are commonly played by Mariachis, such as: rancheras, boleros, polkas, huapangos, sones, jaliscienses, and jarabes.

Students will learn from experienced and professional Mariachi musicians who, not only instruct the students; but also share their talent, enthusiasm, and dedication to the preservation and enjoyment of this traditional cultural music. The program is structured for both beginning students with no previous experience and for students that have knowledge/training on an instrument. Like any other type of music genre, Mariachi is meant for all ages and ethnicities; therefore this program encourages students from all cultural backgrounds to partake in this exciting program. Pleasanton Unified School District will lend instruments to students who do not have access to them.

Spaces are very limited and demand for this program is very high, so please make sure your child is committed to attending every class and to practicing her/his instrument at home. A student will lose her/his spot in the program if they have excessive absences to make room for a student on the waitlist. The following is the location, day, time and start date of the 2017-18 Mariachi Program. Please submit your application online before May 12th at https://goo.gl/forms/4J4qEwIYf08ndCMW2.

Hearst Elementary School 5301 Case Avenue

Thursdays (beginning September 7, 2017)

Beginner/Intermediate Students: 6:00-7:30 pm Advanced Students: 7:30-9:00 pm

If you have questions or comments about the program, please contact Susana Lopez-Krulevitch at slopezkrulevitch@pleasantonusd.net.

10 (a)

10 (b) Harvest Park named Gold Ribbon School Local school among 17 in county to receive distinction

by Julia Reis / Pleasanton Weekly

The California Department of Education announced earlier this week that Harvest Park Middle School has been named a 2017 Gold Ribbon School.

The statewide distinction is awarded to schools that have adopted a model program or practice that includes projects and strategies replicated by other local educational entities, PUSD officials said in a statement about the award.

"This award represents the dedication of our teachers, parents and district to provide a 21st-century learning environment for all Harvest Park students," principal Robin Munsell stated. "I continue to be impressed with the innovative teaching happening at Harvest Park. This is a wonderful honor for our school community."

Added interim superintendent Micaela Ochoa, "This distinction is an incredible honor and a testament to the continued excellence of our Harvest Park community."

The California Gold Ribbon Schools Award was created to honor schools in place of the California Distinguished Schools Program, which is on hiatus while the state creates new assessment and accountability systems. Nearly 475 middle and high schools were eligible to apply this year.

Harvest Park was among 17 middle and high schools in Alameda County to receive the distinction. Dublin High, Wells Middle School, Eleanor Murray Fallon Middle School, Andrew N. Christensen Middle School, William Mendenhall Middle School and Stone Valley Middle School were the other Tri-Valley schools recognized.

Harvest Park was previously named a California Distinguished School in 1994, 2001, 2005 and 2013; a National Blue Ribbon School in 2002 and a National School of Character in 2005.

Gold Ribbon Schools will be recognized during a ceremony in Santa Clara May 4.

10 (c)

Del Valle High School in Livermore and Village High School in Pleasanton have been named 2017 Model Continuation Schools by the California Department of Education (CDE). They are two of the thirty-five continuation schools to be honored out of 452 schools across the state. For Del Valle High School, the award comes back to back with the 2014 Model Continuation School honor, as the designation lasts three years. The announcement of the selections was made by State Superintendent Tom Torlakson, on February 16. He stated, “I applaud the dedicated administration and staff on their work to assist and motivate at-risk students and help them reach their full potential. The positive and nurturing climate these schools have created inspires students to do well in their academic work and also to contribute to their communities.” Village High School, Pleasanton’s only continuation school, opened in 1978. It is home to approximately 150 students. The school offers a smaller school setting with reduced class sizes for students needing to recover credits to graduate on time or simply seeking an alternative high school environment. Village High School Principal Dana Chavez commented, “We have powerful instruction going on throughout the campus. We have a low student-to-teacher ratio, which ensures that students can have their unique needs met. When students transfer here, they feel as if they’re getting their needs met academically, socially, and emotionally.” Village High School will retain its designation as a Model Continuation High School for three years. It and Del Valle High will be recognized at the 2017 California Continuation Education Association CCEA State Conference in Fresno on April 28–30. Del Valle is a fully WASC-accredited high school that provides opportunities for students who seek a high school diploma outside of the traditional comprehensive high school model. Students arrive at Del Valle deficient in credits; with the support of the staff and with creative programs such as the Culinary Academy, students have found success at Del Valle and earn their diplomas. Kelly Bowers, PhD, Livermore Superintendent of Schools, stated “This well-deserved honor is a tribute to the continued dedicated service by Del Valle staff members on behalf of traditionally underserved students. The validating team came away from the visit at Del Valle so impressed with its positive, caring culture and enriching climate.” Principal Darrel Avilla said, “The Model Continuation High School recognition is the result of professional, caring adults who connect with students through programs and curricula that engage the students in learning.” English teacher Susanne Wagner added, “Del Valle is a place where students are encouraged and nurtured to blossom into their full potential. Many of our students come to us feeling left behind in the educational system, but because we are a small, alternative school, we are able to work with them individually and adapt the curriculum and environment to meet their needs. Del Valle High School graduates young adults with a renewed sense of accomplishment, pride, and hope for the future.” Model Continuation High Schools were recognized for operating innovative academic programs that help prepare at-promise students for 21st century careers and college. The Model Continuation High Schools Recognition Program is a joint project of the CDE and the CCEA. The program honors continuation high schools for the comprehensive services they provide at-risk youth through instructional strategies, flexible scheduling, guidance, and counseling.