Irvine Unified School District Technology Bond Discussion
Adam Bauer
Principal
(949) 660-7303
Cell: (949) 295-5735
February 19, 2013
00068359
Charles Heath
Principal
(415) 291-1894
Cell: (415) 810-8053
Table of Contents
Potential Proposition 39 General Obligation Bond 3
Technology Bond Structures 12
Questions and Discussion 16
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
Tax Rate Limitations
• Unified School Districts: $60 per
$100,000
Requires Voter Approval
• 55% approval required for full district
Before Election • At least 88 days before election:
− Projects to be financed must be stated
− School board must declare resolution for election
− Tax rate amount must be estimated and bond amount named
After Election • Citizens Oversight Committee
appointed
• Annual audits required
Use of Proceeds • 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
4
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
2006 2007 2008 2009 2010 2011 2012 2013
Historical Change in Assessed Valuation
History of Assessed Valuation
Source: CalMuni 5
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.”
FY EndingTotal Assessed
Valuation(1)
% Change
2005 $21,735,221,551 -
2006 $24,945,799,586 14.77%
2007 $29,685,145,799 19.00%
2008 $33,264,930,824 12.06%
2009 $35,055,759,151 5.38%
2010 $35,037,287,346 -0.05%
2011 $34,873,409,942 -0.47%
2012 $35,622,966,656 2.15%
2013 $36,811,119,332 3.34%
5-Year Average 2.07%
(1) Total A.V. before Redevelopment Increment
5-Year Average:
2.07%
FY EndingTotal Assessed
Valuation(1)
Assumed %
Growth in A.V.Bonding Capacity
2013 $36,811,119,332 - $920,277,983
Potential 2014 GO Bond Election - $20 Tax Rate
(2) Assumes 0% growth in Assessed Valuation every year. (1) CIBs scale based on MMD ‘AA’ 10-year average per maturity. Assumes
no Capital Appreciation Bonds.
6
Series 2015 Series 2019 Series 2022 Series 2025 Total
Dated Date 02/01/15 02/01/19 02/01/22 02/01/25 -
Par Amount $50,805,000 $37,305,000 $33,990,000 $38,160,000 $160,260,000
Project Amount $49,471,112 $36,843,865 $33,552,070 $37,692,880 $157,559,927
Final Maturity Date 08/01/39 08/01/43 08/01/46 08/01/49 -
$20 per $100,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
Election of 2014 Debt Service(1)
(Assumed Tax Rate of $20 per $100,000 of A.V.)
Series 2015 Series 2019 Series 2022 Series 2025
0.00
5.00
10.00
15.00
20.00
25.00
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Estimated Tax Rates(2)
Series 2016 Series 2019 Series 2022 Series 2025 Max Tax Rate
Potential 2014 GO Bond Election - $30 Tax Rate
(1) CIBs scale based on MMD ‘AA’ 10-year average per maturity. Assumes
no Capital Appreciation Bonds.
7
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
Election of 2014 Debt Service(1)
(Assumed Tax Rate of $30 per $100,000 of A.V.)
Series 2015 Series 2019 Series 2022 Series 2025
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Estimated Tax Rates(2)
Series 2016 Series 2019 Series 2022 Series 2025 Max Tax Rate
(2) Assumes 0% growth in Assessed Valuation every year.
Series 2015 Series 2019 Series 2022 Series 2025 Total
Dated Date 02/01/15 02/01/19 02/01/22 02/01/25 -
Par Amount $76,235,000 $55,975,000 $50,975,000 $57,235,000 $240,420,000
Project Amount $74,333,476 $55,383,175 $50,418,175 $56,634,355 $236,769,181
Final Maturity Date 08/01/39 08/01/43 08/01/46 08/01/49 -
$30 per $100,000
Potential 2014 GO Bond Election - $40 Tax Rate
(1) CIBs scale based on MMD ‘AA’ 10-year average per maturity. Assumes
no Capital Appreciation Bonds.
8
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
Election of 2014 Debt Service(1)
(Assumed Tax Rate of $40 per $100,000 of A.V.)
Series 2015 Series 2019 Series 2022 Series 2025
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Estimated Tax Rates(2)
Series 2016 Series 2019 Series 2022 Series 2025 Max Tax Rate
(2) Assumes 0% growth in Assessed Valuation every year.
Series 2015 Series 2019 Series 2022 Series 2025 Total
Dated Date 02/01/15 02/01/19 02/01/22 02/01/25 -
Par Amount $101,675,000 $74,635,000 $67,980,000 $76,280,000 $320,570,000
Project Amount $99,205,670 $73,912,555 $67,304,140 $75,546,040 $315,968,405
Final Maturity Date 08/01/39 08/01/43 08/01/46 08/01/49 -
$40 per $100,000
Feasibility Study Measure Development/
Public Outreach
March 8, 2014
Board Calls
For Election
June 5, 2014
Election Day
Advocacy Campaign
• Private fundraising
• Direct mail
• Website
• Endorsements
• Phone banks
• Lawn signs
• GOTV
Now
• Write resolution
• Ballot question
• Non-advocacy communication
• Consensus building
• Board vote
• Poll
• Election timing
• Bond amount/ tax rate
• Projects
• Political landscape
• Competing issues
• Potential controversy
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
Red Light/
Green Light
(Week of May 7, 2013)
Feasibility Study Measure Development/
Public Outreach
August 9, 2014
Board Calls
For Election
November 5, 2014
Election Day
Advocacy Campaign
• Private fundraising
• Direct mail
• Website
• Endorsements
• Phone banks
• Lawn signs
• GOTV
Now
• Write resolution
• Ballot question
• Non-advocacy communication
• Consensus building
• Board vote
• Poll
• Election timing
• Bond amount/ tax rate
• Projects
• Political landscape
• Competing issues
• Potential controversy
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
Red Light/
Green Light
(Week of Oct. 1, 2013)
Case Study: Tustin Unified School District Measure S
• Election Date: November 6, 2012
• Authorization Amount: $135 million bond measure
• Use of funds: - 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
12
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)
13
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
Tuesday, February 18, 2014
Board of Education meeting to adopt two resolutions: 1. Resolution ordering Election
2. Resolution requesting consolidation with other elections, authorizing Tax Rate
Statement, and authorizing Board Members to sponsor ballot arguments
14
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)
Tuesday, July 1, 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
Tuesday, July 15, 2014
Board of Education meeting to adopt two resolutions: 1. Resolution ordering Election
2. Resolution requesting consolidation with other elections, authorizing Tax Rate
Statement, and authorizing Board Members to sponsor ballot arguments
15
Questions and Discussion
16
