SMUSD COC Scores High On Transparency in San Diego Taxpayer's Educational Foundation Report
The San Diego Taxpayer's Educational Foundation in its July 2014 School Bond Transparency In San Diego commented favorably on SMUSD COC as noted below:
"Compare this to the experience in finding information when the link is prominently placed on a homepage, like in the case of SMUSD. On SMUSD's homepage there is immediately a link to information regarding their school facilities bond (Proposition K)."
"However, two schools that passed their facilities bonds since the issuance of the 2011 report have been able to perform at an exceptional level. SMUSD (2010) only missed one mark on the website section of the transparence scorecard..."
"SMUSD again excelled in its performance...in the report and audit criteria."
At its July 24th meeting the COC adopted the following items, which address comments in the SDETD report:
1. A link to the Resolution Adopting the Policies and Regulations Relative to the COC has been added to the website;
2. Links to COC agendas and minutes will clarify that presentations and reports are also included in those links;
3. Beginning with the July 24th meeting project status and expenditures will be reported by project and site. This had been requested by COC members prior to receiving the SDETD report now that San Marcos High School is nearing completion and other projects are now underway.
4. COC recommended that the Governing Board consider the firm's specific project management experience and knowledge of construction best practices when selecting the firm to prepare the annual Performance Audit.
A link to the full SDTED report and the COC review and report to the Governing Board and community has, or will be, provided.
The Citizens Bond Oversight Committee (the COC) was established to actively review and report on the proper expenditure of taxpayer money for school construction. The COC is required to report on compliance with Article XIIIA, Section 1(b)(3) of the California Constitution including:
The COC may also make specific recommendations related to maximizing bond revenues by implementing cost-saving measures. The COC may not directly involve itself with the issuance of bonds or the negotiation of contracts.
Citizens Oversight Committee Meetings
COC meetings are open to the public and the public is encouraged to attend.
The next COC meeting will be October 23rd at 6:00pm at the District's Business Services Conference Room.
Proposition K Bond Issuance
Bonds authorized: $287,000,000.
In accordance with Proposition K the maximum interest rate on any bond cannot exceed 12% and the final maturity of any bond cannot exceed 40 years. Recent legislation restricts Capital Appreciation Bonds to no more than 25 years along with other restrictions. Based on the initial financing plan a tax rate of $44 per $100,000 of assessed value was expected to be sufficient to support the debt service on the bonds; however, the maximum statutory tax rate is $60 per $100,000 of assessed value and the Series C Bonds were issued relying on the $60 per $100,000 cap based on the Resolution of Issuance adopted by the Governing Board on March 10, 2014.
Bonds issued to date: $281.7 million;
$142 million Series A bonds issued June 22, 2011; yields ranged from 1.38% for the shortest maturity to 6.65% for the longest maturity with an All-In True Interest Cost (calculation of borrowing cost including underwriter's discount and costs of issuance) of 5.234377%; maximum maturity at issue was 28 years with a weighted average maturity of 21.2 years (reflects that bonds mature beginning in 2013)
$65 million Series B bonds issued May 8, 2012; yields ranged from 0.75% for the shortest maturity to 5.80% for the longest maturity with a True Interest Cost of 5.689025%; maximum maturity at issue was 40 years with a weighted average maturity of 30.8 years (reflects that bonds mature beginning in 2013, however most of the issue was Capital Appreciation Bonds maturing in 2047 and 2051).
$74.7 million of Series C bonds issued May 15, 2014; yields ranged from 0.250% for the shortest maturity to 5.310% for the longest maturity with a True Interest Cost of 4.616904%; maximum maturity at issue was 26 years with a weighted average maturity of 21.886 years (maximum maturity of Capital Appreciation Bonds Current Interest Bonds was 24 years and 26 years respectively.
Remaining planned bond issuance: $5.3 million of potential issuance remains under Proposition K authorization.
Now that San Marcos High School is nearing completion the District is embarking on additional projects financed with Prop K bond funds. As a result, reports will summarize expenditures by project and site.
For a summary of the construction budget and status for the project you are interested in click on the thumbnail above or the link in the left margin.
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Results of Independent Financial & Performance Audits
The District is required to obtain annual financial and performance audits related to the expenditure of Proposition K bond proceeds. Christy White Associates completed independent financial and performance audit reports for the fiscal year ended June 30, 2013. The audit firm :
The full reports are available by clicking on the links in the left margin.
Compliance with Article XIIIA, Section 1(b)(3) of the California Constitution
Based on its review of information provided by the District and the independent auditor to the COC, and its inspections of the projects to date, the COC concludes that expenditures of Proposition K Bond Building Fund have been in compliance with the requirements of Section 1(b)(3) of Article XIIIA of the California Constitution.