⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 3 findings
F01
Bond initiatives and propositions typically do not provide information as to the cost of principal and interest payments. This amount can be exponentially larger than the original principal in bond measures that employ a CAB structure.
F02
When school districts divert premiums to unauthorized uses and by artificially inflating interest rates to generate the premium, they are not acting consistent with statutory law and are incurring debt beyond what voters authorized in violation of the California Constitution.
F03
AB 182, if enacted, will require governing boards of school and community college districts to provide greater transparency to voters concerning: • Whether CABs are proposed and the reasoning for them 20 http://www.pomeradonews.com/2013/01/25/school-bond-legislation-unveiled/ 21 http://www.co.san-diego.ca.us/ttc/docs/news130125.pdf 22 http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0151-0200/ab_182_bill_20130124_introduced.pdf 6 • Cost comparisons between CIBs and CABs • Total debt service to principal ratios • Mandatory early redemption guarantees • Analysis of the overall bond cost • Underwriter disclosure. This mandatory reporting will provide greater bond referendum clarity for the taxpayers.
Recommendations 10
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R4No interest rates greater than 8%
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R5A debt ratio not to exceed 4 to 1
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R6Using the Education Code rather than Government Code. 13-80: Hold public meetings to discuss the financial impact on the school district for all future bond proposals. The discussion should include:
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R7Cost to homeowners in increased property taxes
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R8Total repayment amount
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R9What the new issue may do to future bond requirements. 13-81: For all future bond proposals send public notices to all district residents to ensure that the community has adequate notice of school board meetings where bond proposals will be discussed. Meeting notices must be posted in several public locations (e.g., school bulletin boards, school websites, school offices, classrooms and district offices), as defined by the Brown Act. 13-82: For all future bond proposals encourage the PTA or similar organizations to educate their membership in school board policies and procedures. Suggested featured speakers could be school board members or financial experts who can answer questions and share relevant bond information. REQUIREMENT AND INSTRUCTIONS The California Penal Code §933(c) requires any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the agency. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court); except that in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official (e.g. District Attorney, Sheriff, etc.), such comment shall be made to the Presiding Judge with an information copy sent to the Board of Supervisors. Furthermore, California Penal Code §933.05(a), (b), (c), details, as follows, the manner in which such comment(s) are to be made: (a) As to each grand jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the finding (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the
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13-79Page 7Structure future loans to offer more flexibility by allowing a variety of
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13-80Page 7Hold public meetings to discuss the financial impact on the school
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13-81Page 7For all future bond proposals send public notices to all district
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13-82Page 7For all future bond proposals encourage the PTA or similar