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AAV July 2009 Waiver Item 38 Attachment 1


This page is an accessible alternate version (AAV) of the State Board of Education July 2009 Waiver Item 38 Attachment 1 (PDF; 406KB; 9pp.).

California Department of Education
General Waiver Request First Time Waiver:
GW-1 (Rev. 3/16/07)
http://www.cde.ca.gov/re/lr/wr/

Send Original plus one copy to:
Waiver Office, California Department of Education
1430 N Street, Suite 5602
Sacramento CA 95814

CD Code: 1964501

Local educational agency: El Monte City School District

Contact name and recipient of approval/denial notice: Kristinn Olafsson
Contact's person e-mail address: kolafsson@emcsd.org

Address: 3540 N. Lexington Avenue EI Monte, CA 91731

Phone (and extension. if necessary): 626-453-3790 x 3790
Fax: 626-575-6160

Period of request: From July 2009 to June 2015

Local board approval date (Required): April 28, 2009
Date of public hearing (Required): April 28, 2009

Legal Criteria

1. Under the general waiver authority of Education Code 33050-33053, the particular Education Code or California
Code of Regulations section(s) to be waived (number): 15268 and 15102 EC 5-15-09
Topic of the waiver: To allow the District to exceed its bonding limit of 1.25% of the taxable assessed value of property.

2 If this is a renewal of a previously approved waiver, please list Waiver Number: and dale of SBE Approval

3. Collective bargaining unit information. Does the district have any employee bargaining units? Yes
If yes, please complete required information below:
Bargaining unit(s) consulted on date(s): 4/20/09
Name of bargaining unit and representative(s) consulted: EMETA/CTA Margie Kunka CSEA/Margie Espinoza
The position(s) of the bargaining unit(s): Support (Please specify why)
Comments (If appropriate):

4. Public hearing requirement: A public hearing is not simply a board meeting, but a properly noticed public hearing held during a board meeting at which time the public may testify on the waiver proposal. Distribution of local board agenda does not constitute notice of a public hearing. Acceptable ways to advertise include: (1) print a notice that includes the time, date, location, and subject of the hearing in a newspaper of general circulation or (2) in small school districts, post a formal notice at each school, and three public places in the district.

How was the required public hearing advertised?
Notice in a newspaper and Notice posted at each school.

5. Advisory committee/School site councils. Please identify the council(s) or committee that reviewed this waiver: Advisory Committee

Date the committee/council reviewed the waiver request: 4/23/09 (ECC)

Were there any objections?
No.

6. Education Code or California Code of Regulations section to be waived. If the request is to waive a portion of a section, type the text of the pertinent sentence of the law, or those exact phrases requested to be waived (or use a strike out key if only portions of sections are to be waived).

The EI Monte City School District, in Los Angeles County, is requesting a Waiver of Education Code
Section 15260 (for bonds issued since 2000) which prohibits elementary school districts from issuing
bonds in excess of 1.25 percent of the assessed valuation of taxable property of the District.

7. Desired outcome/rationale. Stale what you hope to accomplish with the waiver. Describe briefly the circumstances that brought about the request and why the waiver is necessary to achieve improved student performance and/or streamline or facilitate local agency operations, if more space is needed, please attach additional pages.
(SEE ATTACHMENT)

6. Education Code or California Code of Regulatiorl$ section to be waived. If the request is to waive a portion of a section, type the text of the pertinent sentence of the law. or these exact phrases requested to be waived (or use a strih.e out key if only portions of sections are to be waived).
The EI Monte City School District, in Los Angeles County, is requesting a Waiver of Education Code
Section 15260 (for bonds issued since 2000) which prohibits elementary school districts from issuing
bonds in excess of 1.25 percent of the assessed valuation of taxable property of the District.

7. Desired outcome/rationale. Stale what you hope to accomplish with the waiver. Describe briefly the circumstances that broughl about the request and why the waiver is necessary to achieve improved sludent performance and/or slreamline or facilitate local agency operations, If more space is needed. please attach additional pages.
(SEE ATTACHMENT)

8. For a renewal waiver only, district also must certify:
True or False:
The facts thal precipilated the original waiver request have not changed.
The remedy for the problem has not changed.
Members of the local governing board and district staff are not aware of the existence of any controversy over the implementation of this waiver or the requesl to extend it.

Renewals of General Waivers must be submitted two months before the active waiver expires. The local governing board must approve the renewal request. Relroactive waivers must go through the First Time Waiver Process.

ls this waiver associated with an apportionment related audit penalty? (per EC 41344): No

Has there been a Categorical Program Monitoring (CPM) finding on this issue?: No

District or County Certification - I hereby certify that the information provided on this application is correct and complete.
Jeff Seymour - Superintendent
4/22/09 - Date

Attachment

7. Desired outcome/rationale. State what you hope to accomplish with the waiver. Describe briefly the circumstances that bronght abont the request and why the waiver is necessary to achieve improve student performance andlor streamline or facilitate local agency operations. If more space is needed, please attach additional pages.

In November 2008, the district's voters approved a general obligation bond measure for $75 million. To date the district has issued no bonds from the authorization. The district would like to issue $28 million, but is limited to zero
by the statutory cap. Approval of the waiver would allow the district to issue the $28 million. This would increase the district's bonded indebtedness ration from 1.25 percent to 1.719 percent for 2009-2010.
If a waiver is obtained, The District's indebtedness will reach 1.719% for 2009-2010, based on a projected Assessed Valuation (AV) decline of 2%. The AV growth assumptions are listed below.

2009-10: -2.0%
2010-11: 0%
2011-12: 1.0%
2012-13 2.0%
2013-14: 2.5%
2014-15: 3.0%

Based on last year's AV growth rate of 6.15% the District's projected indebtedness in 2014-15 will be below the statutory limit of 1.25% as shown on attached table. In addition. doing one issuance is more economical that several smaller issuances.

We are now attempting to address the urgent facility requirements at Wright Elementary School and LeGore Elementary School.

Frank Wright School is a K-8 grade school with a population of just under 1,000 students that is achieving outstanding academic growth with its students. It has an API score of 789. It has met all subgroup requirements for NCLB compliance and met its AYP targets. It maintains programs in technology, music and art and has achieved recognition in track and physical education. The school has been highlighted in the Center for Performance Assessment's publications.

The project consists of:

Anne Leflore School has a population of over 500 students and is an outstanding Pre-K-6 grade school in the EI Monte City School District. It has been awarded the California Distinguished Schools designation in past years, and has been a Title One Achieving school also. Its current API scores are 791 and it has met all subgroup requirements for NCLB criteria in its most current year of test results.

The renovation project will consist of:

In addition, the funds will provide planning for the new project at Durfee Elementary School along with completion of all work at Columbia Elementary School.

 

RBC Capital Markets
777 South Figueroa Street
Suite 850
Los Angeles, CA 90017
Tel: 213-362-4138
Tax: 213-362-4110

April 22, 2009

Mr. Kris Olafsson
Assistant Superintendent, Business Services
El Monte City School District
3540 N. Lexington Avenue
El Monte, CA 91731

Dear Kris:

As your investment banker, we have reviewed your existing general obligation bond indebtedness picture to ascertain the viability of issuing an additional 528 million in authorized but unissued bonds. At present, as an elementary school district, limited to 1.25% of assessed value, you are only able to issue less than SO million in additional bonds. The current need is for the use of $28 million. If a waiver is obtained, the District's indebtedness will reach 1.719% for 2009-10, based on a projected Assessed Valuation (AV) decline of 2%. The AV growth assumptions are listed below.
2009-10: -2.0%
2010-11: 0%
2011-12: 1.0%
2012-13: 2.0%
2013-14: 2.3%
2014-15: 3.0%
Based on last year's AV growth rate of 6.15% the District's projected indebtedness in 2014-15 will be below the statutory limit of 1.25% as shown on attached table. In addition, doing one issuance is more economical that several smaller issuances.
In the light of the difficulty in securing other sources of much needed funding to respond to the capital needs being experienced by the District, we believe that the proposed waiver authorization is highly feasible for the EI Monte City School District.
We appreciate the opportunities we have had to work with the District on General Obligation Bonds from the campaign to the present and are honored to be a part of this current important venture.

Sincerely,

Rod Carter,
Managing Director

El Mote City School District

Bonding Capacity Analysis

Year Par Oustanding 2008 Election 2009 Series A ($28MM Par) Total Outstanding Par Total Assessed Value (AV) AV Growth Bonding Capacity at 1.25% Bonding Capacity Less Outstanding Par Outstanding Par as a % of AV

8/1/2008

70,938,417 - 70,938,417 5,720,327,113

6.15%**

71,504,089 565,672 1.24%
8/1/2009 68,353,417 - 96,353,151* 5,605,920,571 -2% 70,074,007 (26,279,144) 1.719%***
8/1/2010 65,698,972 1,505,000 93,698,706 5,605,920,571 0% 70,074,007 (23,624,699) 1.671%***
8/1/2011 63,201,964 1,635,000 69,696,698 5,717,478,390 1% 71,468,480 18,226,218) 1.569%***
8/1/2012 60,962,430 1,434,072 85,842,163 5,665,561,080 2% 73,319,514 (12,522,650) 1.463%***
8/1/2013 58,396,461 1,412,526 81,822,143 6,018,007,013 2.5% 75,225,088 (6,597,056) 1.36%***
8/1/2014 56,188,254 1,386,375 78,201,391 6,258,125,493 3% 78,226,569 25,178 1.25%
8/1/2015 53,834,149 1,364,086 74,460,911 6,477,159,885 4% 80,964,499 6,503,588 1.15%
8/1/2016 50,207,263 1,337,641 69,469,937 6,736,246,280 4.5% 84,203,079 14,733,142 1.031%
8/1/2017 45,638,146 1,264,330 63,563,179 7,039,377,363 4.5% 87,992,217 24,429,036 .903%
8/1/2018 40,792,033 1,236,095 57,452,736 7,356,149,344 4.5% 91,951,867 34,499,131 .781%
8/1/2019 35,335,663 1,211,131 50,760,472 7,687,176,065 4.5% 96,089,701 45,329,229 .660%
8/1/2020 33,397,545 1,182,936 47,811,022 8,033,098,988 4.5% 100,413,737 52,802,715 .593%
8/1/2021 31,024,718 1,157,624 44,055,258 8,394,588,442 4.5% 104,932,356 60,877,097 .525%
8/1/2022 28,507,910 1,132,654 40,380,628 8,772,344,922 4.5% 109,654,312 69,273,684 .460%
8/1/2023 25,848,335 1,107,501 38,588,398 9,167,100,444 4.5% 114,588,756 78,000,357 .399%
8/1/2024 23,044,250 1,082,388 32,676,813 9,579,619,963 4.5% 119,745,250 87,068,437 .341%
8/1/2025 20,960,061 1,059,804 29,510,235 10,010,702,862 4.5% 125,133,786 95,623,551 .295%
8/1/2026 18,768,388 952,340 26,258,658 10,461,184,491 4.5% 130,764,806 104,506,148 .251%
8/1/2027 16,427,391 927,006 22,965,422 10,931,937,793 4.5% 136,649,222 133,683,800 .21%
8/1/2028 13,962,263 901,900 19,573,267 11,423,874,993 4.5% 142,796,437 123,225,151 .171%
8/1/2029 11,340,428 878,935 16,049,551 11,937,949,368 4.5% 149,224,367 133,174,817 .134%
8/1/2030 9,727,447 811,664 13,557,635 12,475,157,090 4.5% 155,939,464 142,381,628 .109
8/1/2031 7,765,196 788,258 10,783,720 13,036,539,159 4.5% 162,956,739 152,173,019 .083%
8/1/2032 7,029,556 765,146 9,259,822 13,623,183,421 4.5% 170,289,793 161,029,970 .063%
8/1/2033 7,029,556 743,814 8,494,675 14,236,226,675 4.5% 177,952,833 169,458,159 .06%
8/1/2034 7,029,556 721,305 7,750,861 14,876,856,875 4.5% 185,960,711 178,209,850 .052%

* Outstanding par plus $28 million issuance in 2009
** Actual AV growth
*** Exceeds bonding capacity limit of 1.25% of AV

April 20, 2009

Mr. Jeff Seymour
Superintendent
El Monte City School District
3540 N. Lexington Avenue
El Monte, CA 91731

Re: Support El Monte City School District to Waive EC Section 15268, To Allow the District to Exceed It's Bonding Limit

Dear Mr. Seymour,

The Executive Board Members of EMETA/CTA & CSEA have reviewed your request
for support to waive the referred California Education Code above. We are in agreement
with your finding that it would be in the best interest of the District and the community' to
allow the District to exceed its bonding limit form 1.25% of the taxable assessed value of
property to 1,719%.

Rebuilding Wright and LeGore Elementary-Schools is essential for the surrounding
education community and will benefit student achievements and physical environment.
We also understand the District's position in regards to maximizing construction dollars
and utilizing the current environment of gaining the best value as construction is at a all
time low and building materials along with labor is readily' available. These facility
improvements of building new permanent classrooms. library and other instructional
support space will fulfill our facilities issues.

In the light of the difficulty in securing other sources of much needed funding to respond
to the capital needs being experienced by the District the El Monte Elementary Teacher's
Association and CSEA supports the proposed waiver authorization.

Sincerely,

Margie Kunka
EMETA President

Margie Espinoza
President
CSEA Chapter 10

June 11, 2009

Ms. Kris Olafsson
Assistant Superintendent, Business Services
El Monte City School District
3540 N. Lexington Avenue
El Monte, CA 91731

Dear Kris:

Per your request we have prepared a detailed tax rate analysis for the issuance of
the $28 million El Monte City School District General Obligation Bonds 2008
Election Series A (the "Bonds"). Based on current market conditions at the time
of this letter, the debt service on the Bonds will result in a tax rate of less than
$30.00 per $100,000 Assessed Valuation starting in tax year 2009, Attached please
find the annual summary of tax rates for the Bonds.

Listed below is a summary of the Districts voter-approved general obligation
bonds from the 1999, 2004 and 2008 Elections, and the current authorized but
unissued bonds from these elections.

Election Bonds Authorized Bonds Sold Balance of Unsold Bonds
1999 40,000,000 40,000,000 0
2004 50,000,000 38,198,136 11,801,864
2008 75,000,000 0 75,000,000
Total $165,000,000 $78,198,136 $86,801,864

Please contact me if you have any questions or require additional information.

Sincerely,

Rod Carter
Managing Director
Office: 213-362-4133
Fax: 213-362-4110
Email: roderick.carter@rbcc.com

$28,000,000
El Monte City School District
Election of 2008 General Obligation Bonds. Series A

Estimated Tax Rate per $100,000

Tax Year Beginning Series A Debt Service Total Debt Service Projected Assessed Valuation Projected Tax Rate per $100,000
8/1/2008 - - 5,720,327,113 -
8/1/2009 1,545,000 1,545,000 5,605,920,571

29.95

8/1/2010 1,630,000 1,630,000 5,605,920,571 29.98
8/1/2011 1,625,000 1,625,000 5,717,478,390 29.57
8/1/2012 1,665,000 1,665,000 5,865,561,080 29.73
8/1/2013 1,700,000 1,700,000 6,018,007,013 29.60
8/1/2014 1,740,000 1,740,000 6,258,125,493 29.41
8/1/2015 1,780,000 1,780,000 6,477,159,885 29.06
8/1/2016 1,820,000 1,820,000 6,736,246,280

28.56

8/1/2017 1,860,000 1,860,000 7,039,377,363 27.93
8/1/2018 1,900,000 1,900,000 7,356,149,344 27.30
8/1/2019 1,945,000 1,945,000 7,687,176,065 26.74
8/1/2020 1,985,000 1,985,000 8,033,098,988 26.11
8/1/2021 2,030,000 2,030,000 8,394,588,442 25.26
8/1/2022 2,080,000 2,080,000 8,772,344,922 25.06
8/1/2023 2,125,000 2,125,000 9,167,100,444 24.50
8/1/2024 2,170,000 2,170,000 9,579,619,963 23.94
8/1/2025 2,220,000 2,220,000 10,010,702,862 23.44
8/1/2026 2,270,000 2,270,000 10,461,184,491 22.93
8/1/2027 2,320,000 2,320,000 10,931,937,793 22.43
8/1/2028 2,375,000 2,375,000 11,423,874,993 21.98
8/1/2029 2,430,000 2,430,000 11,937,949,368 21.52
8/1/2030 2,480,000 2,480,000 12,475,157,090 21.01
8/1/2031 2,540,000 2,540,000 13,036,539,159 20.60
8/1/2032 2,595,000 2,595,000 13,623,183,421 20.13
8/1/2033 2,655,000 2,655,000 14,236,226,675 19.71
8/1/2034 - - 14,876,856,875 0.00

 

Questions: State Board of Education | 916-319-0827 
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