New Haven Unified School District Budget and Finance Committee by - - PowerPoint PPT Presentation

1470 Maria Lane, Ste. 315 | Walnut Creek, CA 94596

Budget and Finance Committee

by Isom Advisors, a Division of Urban Futures, Inc.

April 13, 2020

New Haven Unified School District

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New Haven Unified School District

March 4, 2020

Review from Last Meeting

Criteria / Factor Parcel Tax GO Bond “Passability” (Threshold) Parcel Tax = 66.7% GO Bond = 55.0%

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District Experience / History

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Use (flexibility) (GO Bond – Employee Housing / Lease Revenues as a component)

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Urgency / How soon can the District generate funds

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Long Term (On-going stream of revenues)

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Survey Results

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New Haven Unified School District

Alameda County

March 2020 Election Results

Measure / District Type Support Measure A – Alameda USD Parcel Tax 67.10% Measure B – Albany USD Parcel Tax (Renewal) 83.16% Measure E – Berkeley USD Parcel Tax 80.51% Measure G – Berkeley USD Bond Measure - $380 million 80.52% Measure H – Berkeley USD Parcel Tax (Renewal) – for building maintenance 83.74% Measure I – Castro Valley USD Parcel Tax 64.61% Measure J – Dublin USD Bond Measure - $290 million 57.83% Measure K – Emery USD Parcel Tax 75.25% Measure L – Fremont USD Parcel Tax 54.86% Measure M – Pleasanton USD Bond Measure - $323 million 52.40% Measure N – San Leandro USD Bond Measure - $198 million 63.90% Measure O – Sunol Glen USD Bond Measure - $9.5 million 50.56% Measure U – City of Union City Parcel Tax (Renewal) 62.51%

* Green rows represent successful elections; gray rows represent unsuccessful elections. For Proposition 39 bond measures, 55.0% support is needed to pass. For parcel tax measures, two-thirds support is needed to pass. Source: Alameda County Registrar of Voters; Ballotpedia.org; smartvoter.org

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New Haven Unified School District

Statewide Results

March 2020 Election Results

Election Year % of Successful Bond Measures 2020* 36% 2018 84% 2016 93% 2014 82% 2012 81% 2010 74% 2008 86%

* 2020 data only represents primary election. Source: County Election Results; Ballotpedia.org

❖ Out of 121 school and community college district bond measures on the ballot in March 2020, only 44 were successful. ❖ The success rate was 36.4%, notably lower than for past elections (as shown on the table to the right). ❖ The March 2020 election was also challenging for parcel taxes. Notably, in Santa Clara County – where voters have regularly supported parcel taxes – all six parcel taxes for K-14 school and community college districts failed.

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New Haven Unified School District

General Obligation Bonds ❖ Since 2001, there have been 40 Proposition 39 bond elections in Alameda County for K-12 school districts. 92.5% have been successful. Bonds have passed at a higher rate due to the lower threshold

Difference in Success Rates

Parcel Taxes ❖ Since 2000, there have been 59 parcel tax elections in Alameda County for K-12 school districts. 78% have been successful.

Pass 78.0% Fail 22.0%

Parcel Tax Election in Alameda County

Pass 92.5% Fail 7.5%

Prop 39 Bond Election in Alameda County

Source: California State Treasurer's Office; California Department of Education (Education Data Partnership)

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New Haven Unified School District

Support levels have varied over time

Union City Parcel Tax

Election Date Type Support March 2004 Measure K Parcel Tax – Public safety services tax for 5-years (adj for inflation) 68.9% June 2008 Measure K Parcel Tax (Renewal) – 20-year extension (adj for inflation) 62.07% November 2008 Measure UU Parcel Tax (Renewal) – 8-year extension (adj for inflation) 73.25% November 2016 Measure QQ Parcel Tax (Renewal) – 4-years (adj for inflation) 78.16% March 2020 Measure U Parcel Tax (Renewal) - $168 per parcel for 8-years (adj for inflation) 62.51%

* Green rows represent successful elections; gray rows represent unsuccessful elections. For parcel tax measures, two-thirds support is needed to pass. Source: Alameda County Registrar of Voters; Ballotpedia.org; smartvoter.org

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New Haven Unified School District

District voters have been very supportive of bond measures

New Haven USD

Election Date Type Support November 1987 General Obligation Bonds – $11 million 66.7% (66.7% needed) June 1993 General Obligation Bonds – $55 million 75.3% (66.7% needed) June 1996 Measure A General Obligation Bonds – $35 million 70.8% (66.7% needed) November 2003 Measure A General Obligation Bonds – $120 million 68.4% (66.7% needed) May 2011 Measure B Parcel Tax – $180 per parcel for 4-years 66.4% (66.7% needed) June 2012 Measure H Parcel Tax – $180 per parcel for 4-years 62.9% (66.7% needed) November 2014 Measure M General Obligation Bonds – $125 million 68.7% (55.0% needed)

* Green rows represent successful elections; gray rows represent unsuccessful elections. Source: Alameda County Registrar of Voters; Ballotpedia.org; smartvoter.org

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New Haven Unified School District

Following these steps are key to District’s success

Timeline – 2020 Election Dates

Task Responsible Party November 2020 Review Survey Results District Spring 2020 Decision of whether to pursue bond measure or parcel tax election District April 2020 Prepare Resolution for Calling Election*

• Includes ballot language
• Authorization amount / tax rate statement (if bond) / parcel tax

rate (if parcel tax)

• Bond project list (if bond)

Consultant/ Bond Counsel May 2020 Board Meeting - Board action to adopt Resolution Calling Election District June 2020 Submit Resolution Calling Election District August 2020 Prepare Argument in Favor of Measure Consultant/District August 2020 Submit Argument in Favor of Measure Consultant/District August 2020 Form campaign committee and conduct campaign kick-off meeting Campaign Committee August 2020 Run Campaign Campaign Committee August – November 2020 Election Day November 3, 2020

Appendix: Parcel Tax vs. Bonds

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New Haven Unified School District

Bonds can be approved with a lower voter threshold

Parcel Taxes and Bonds

❖ The two most common types of voter approved sources of funding are parcel taxes and general obligation bonds Parcel Tax General Obligation Bond (Proposition 39)

Voter Threshold

66.7% (two-thirds) required 55.0% required

Election Dates

May generally be held on any Tuesday Must be held on the same day as a statewide primary, general

• r special election, or at a

regularly scheduled local election

Use of Proceeds

Can be used for any purpose specified in the ballot May be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property

Exemptions

Can provide exemptions (such as to senior citizens) No exemptions allowed