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HomeMy WebLinkAbout1988-05-10; City Council; 9426; Carlsbad Unified School District Proposition ZU 0 4 4 KJ P 03 cn Q\ rl 1 I- : 1 r-, .I4 v) 0 a 0 &I PI rcl 0 a, ho KJ v) v) KJ a a, 5 a aJ v) &I 0 a c aJ rl .r( d 5 0 u 03 03 \ 0 rl \ rl /a *b CI3"" OF CARLSBAD - AGENt BILL DEPT. HD.J~ CARLSBAD UNIFIED SCHOOL DISTRICT PROPOSITION IIZ" JUNE 1988 BALLOT WTG. 5110188 RECOMMENDED ACTION: Review material provided on Proposition "Z" and consider possible City Council position. BACKGROUND: School Board member Joe Angel addressed the City Council at the April 26, 1988 regular meeting. Mr. Angel asked the City Council to consider endorsing Proposition "Z". The material presented to the City Council by Joe Angel and other background material from the School District Office is attached for your consideration. FISCAL IMPACT: None at this time Attachment : 1. Proposition ''Z" Citizens for School Facility Brochure 2. Letter dated 4/26/88 from Sharon Faithful, Citizens for 3. Information Packet on Proposition IIZ" from Carlsbad School School Facilities District ATTAC TNT #1 PROPOSITI0 "2" CITIZENS FOR i SCHOOL FACILITIES I r) .- , CJ-FLSEAD, CAL 3FN 1-4 CITIZENS FOR SCEOOL FACILITIES PROPCSITION Z b? 1s FFOPOSITION Z -, 7 Prop Z will be on the June 7 ballot and asks Carlsbad Unified School District voters to approve a one time fee from developers for the purpose of building new schools to relieve present and future overcrowding. This one tine fee is for new housing only and will not apply to additions or remodeling to existing homes. All senior citizen housing projects are exemFted. New developments are exempted if they provide alternate plans for school facilities in their area. 1. Carlsbad Unified School District currently has an enrollment total of 5,599 students. The breakdown is as follows: Elementary: 2101 Jr. High : 764 Eigh School: 1734 The projected increased enrollment for the school year 88/89 is 6,000 students. GE?TE?AL FACTS : The State of California has decreased and liaited the amount a school district can charge developers for school facilities. There are no funds to be provided by the State in the immediate future for school facilities for Carlsbad. Communities must provide for their o::.n methods of funding for school facilities, i Since Prop Z is a special tax, it will require a 2/3 vote. IN DEPTH: Eecause of their concerns regarding the fact that the Carlsbad Unified School District xi11 not be able to keer, up with growth due to a lack of funding from the State of California for new schools, the members of the Eoard of Trustees voted unanimously to place Proposition 2 on the June ballot. Y?!Y PROP 2 IS NEEDED: The Carlsbad Unified School District lost thousands of dollars in potential revenue after the State im- plemented a cap on the amount a school district could charge developers of new homes. Eefore thLs..legisLation was enacted, the school district used money collected from developers to build new schools. Since implementation of this State Schools Facilities Legislation in January 1987, (which drastically reduced developer fee revenues to the school district and nade it virtually impossible to fund facilities requireaents locally), the Eoard of Trustees kas keen searching for a source of funding to sup?ort facilities needs. (SEE SCTP?LE?'E::T A) .. .- Ha ZZ 34 W c, a € I d a > a d a + ld c, + a m C- ai5 Ym l4 a > a d a. + cd + W c, cd a > .d rn S 0 e 60 a k I C 0 z ala ha oc -3 acw P wa >c a0 a .rl + €0 Od rl- 0 am0 EO +J a a E 0 + 0 0 64 s 0 +J a a cw Lc a a 0 4 m am >s a0 a *r( Y a rl rl d E W cd k cd r( cd U Ll 0 h r) 0 0 c u IR al 0 = rcc 0 c 0 .rl c, u 3 k c, sal Ok ocd 2 e mcd 1 3. i. u 0 c NAMES AYD PECNE lXJ?E!ERS OF C?.NTACTS: Citizens for School Facilities Chairperson: Sharon Faithful 729-5446 Secretary : Bill Dunmeyer(principa1, Carlsbad Sigh School) Treasurer : Jim KcCormick(Schoo1 Board hielhber) 543-9050 Fundraising: John Herrera 724-2508 Political Analyst : Joe Angel(Schoo1 Board member) 434-5894 Campaign Activity : Eric Larson(City Council menber) 931-1600 Support/ Logistics : John Blair (Assistant School Superintendant) In di vi du a1 Voter Contact:Marty and Joyce Spring 729-5147 Mark Nelson 434-4747 Groups : Mark Caruana Media : Rosanne Groves 434-5554 ATTACHMENT #2 Letter dated 4/26/88 from Sharon Faithful, Citizens for School Facilities C~TI~~~S FOR SCHOOL FACILITIES YES ON PROPOSlTlON Z 4533 Avila Avenue Carlsbad, Ca. 92008 U April 26, 1988 TO: Wayor Bud Lewis and Members of the City Council FROV: Sharon Faithful, Chairperson for Citizens for School Facilities Please consider this letter as the requested follow-up for an item to be placed on your agenda. The item is Prop- osition Z, which was asked to be placed on the agenda for the meeting of Pray 17 by Wr, Joe Angel, President of the Board of Trustees for the Carlsbad Unified School District. The Citizens for School Facilities would like to ask for your consideration of the endorsement of Proposition Z. Thank you. S inc er ely , ‘Sharon Faithful . ATTACHMENT #3 INFORMATION PACKET CARLSBAD UNIFIED SCHOOL DISTRICT CARLSBAD UN I F I ED SCHOOL D I STR I CT CARLSBAD, CAL I FORN I A FUNDI NG SOURCES FOR FAC I L IT I ES A, FROM THE SCHOOL DISTRICT 1, DEVELOPER FEES - $1,5O/SQUARE FOOT FOR NEW HOME CONSTRUCTION, THE AVERAGE AMOUNT COLLECTED PER MONTH IS DROPP I NG I AVAILABLE BALANCE AFTER FUNDI NG ALGA ROAD PROPERTY; CHS PHASE I; ELEMENTARY COP'S; ARCHITECT, INSPECTOR , AND PLANNING FEES - $5,154,934 I Bl OTHER LOCAL SOURCES 1, GENERAL OBLIGATION BONDS 2, PARCEL TAX - $5,400 PER DWELLING UNIT, .SIMILAR TO THE FEE IN EFFECT PRIOR TO JANUARY, 1986, NEW PARCEL TAX TO BE REQUIREMENTS, ALL SENIOR CITIZENS (OVER AGE 55) ARE ADJUSTED ON AN ANNUAL BASIS TO MEET FACILITIES EXEMPTED rn 3, MELLO-ROOS - DISTRICT IS PRESENTLY PLANNING A MELLO-ROOS PROJECT WITH HPI FOR THE CONSTRUCTION OF THE ALGA ROAD ELEMENTARY SCHOOL I 4 I DEVELOPER ASSISTANCE - SCHOOL SITES, SITE PREPARATION, STREETS, OR SCHOOL CONSTRUCTION, Cl STATE SCHOOL FUNDING 1, STATE ALLOCATION BOARD - SINCE AUGUST 1, 1987, THE SAB HAS HAD NO REMAINING FUNDS FOR SCHOOL CONSTRUCTION, ALREADY APPROVED APPLICATIONS WILL USE UP THE JUNE, 1988 STATE BOND ISSUE OF $800 MILLION, .. CARLSBAD UN I F I ED SCHOOL D I STR I CT CARLSBAD, CALIFORNIA ESTIIATED FACILITIES SCHEDULES AND COSTS 1987 - CHS PHASE 1 PLANNING, HOPE SCHOOL PAYMENTS, $ 892,000 SITE RECONSTRUCTION, MAINTENANCE, - 1988 - ALGA ROAD SITE PURCHASE, HOPE SCHOOL PAY- $ 3,988,000 MENTSj CHS PHASE I CONSTRUCTION, SITE RECONSTRUCTION, MAINTENANCE, 1989 - ALGA ROAD SITE PLANNING, CALAVERA HILLS $ 2,913,000 ELEMENTARY SCHOOL SITE PURCHASE, HOPE SCHOOL COP's PAYMENTS, CHS PHASE 11, SITE RECON- STRUCTION, MAINTENANCE, 1990 - ALGA ROAD SCHOOL CONSTRUCTION, CALAVERA $12,007,000 HILLS SCHOOL PLANNING, HOPE SCHOOL COP's PAYMENTS, CHS PHASE I I, SITE RECONSTRUCTION, MA I NTENANCE i 1991 - CALAVERA HILLS PHASE I I PLANNING, OSA/OLA $ 2,658,000 REVIEW, HOPE SCHOOL PAYMENTS, PURCHASE OF MORE LAND AT CHS, RECONSTRUCTION, MAINTENANCE I 1992 - CALAVERA HILLS SCHOOL CONSTRUCTION, HOPE $ 5,866,000 SCHOOL COP's PAYMENTS, RECONSTRUCTION, MAINTENANCE, 1993 - HOPE SCHOOL FINAL COP's PAYMENTS, CHS, MORE $ 1,730,000 RELO'S, RECONSTRUCTION, MAINTENANCE I TOTAL FAC I L IT I ES REQU IREMENTS 1987-93 $30,054,000 .. .. CARLSBAD UN I F I ED SCHOOL D I STR I CT CARLSBAD, CALIFORNIA WHAT IS THE CRISIS? DEMANDS FOR SCHOOL FACILITIES FAR OUTWEIGH THE SUPPLY OF FUNDS AVAILABLE THROUGHOUT THE STATE I STATE SUPERINTENDENT HONIG STATES THAT THERE WILL BE A NEED FOR $11 BILLION DOLLARS FOR FACILITIES, INCLUDING UPGRADING OF BUILDINGS, THE SCHOOL DISTRICT HOW DID WE GET THIS WAY? ALLOCATION OF MONEY FOR FACILITIES OVER THE LAST DECADE HAS DECREASED TO A POINT THAT MAKES IT VIRTUALLY IMPOSSIBLE TO CATCH UP WITH THE NEEDS, AT THE SAME TIME, AS A RESULT OF PROPOSITION 13, TAXING AND OTHER FUND RAISING ACTIVITIES HAVE BEEN GIVEN TO SACRAMENTO, AT THE SAME TIME, LOCAL AGENCIES MUST RECEIVE A TWO-THIRDS VOTE FROM COMMUNITY RESIDENTS IN ORDER TO SECURE FUNDING, CARLSBAD UNIFIED SCHOOL DISTRICT Carlsbad, California Questions and Answers on Proposition Z What is Proposition Z? Proposition Z was placed on the June 5, 1988 Ballot by the Carlsbad Unified School District Board of Trustees. If approved by a two-thirds vote of the school district voters, it will place a tax of $5,400 per unit on the builders of new housing, excluding senior housing and additions to existing dwellings. Will Proposition Z increase my taxes? No. This is - not a property tax. It is strictly a tax on - new housing to be paid by builders. Permits for room additions or remodeling projects are not taxed. Housing for senior citizens and one-bedroom add-on projects will not be taxed. Who is supporting these Propositions? The Citizens for School Faci 1 i ties is an a1 1 -volunteer commi ttee of concerned parents, community activists and residents, educational and business leaders. We organized to raise money for the campaign and to volunteer our time contacting voters. Under Proposition Z, who will pay for the new schools? Developers would pay a one-time tax to receive building permits for new housing. The amount of the tax will not exceed $5,400 per unit, and senior citizen housing and one-bedroon projects will be exempted. Thousands of new houses are the reason that schools are overcrowded, and the tax will apply to new housing construction ONLY. Why is this tax needed? All districts in the North County are experiencing serious overcrowding conditions. - All available space is being used for classrooms. Leased portable classrooms have been placed on par,king lots and in playgrounds. The school districts DO NOT have the money needed to build new schools. Page Two Weren't bonds or a school tax already approved in a recent election? Proposition 53, a State bond measure in 1986, provided $800 million in funds for California schools. Approved applications Statewide already total $2 billion. Although local districts are waiting "in line", there is little or no chance that adequate funding will be available in the foreseeable future for our Di s tri ct . Several other bond issues were on the last November ballot. Although close, none of them passed, regardless of their pressing school requirements. School districts whose bond requirements failed include Sweetwater High School District in Chula Vista, as well as Poway and Ramona. If this proposition does not pass, what will happen? Schools are overcrowded NOW. As new housing units (already approved by the County) are built, the situation will grow worse. Possible actions include mandatory four-track year-round school, double sessions, and widespread busing. As a stop-gap measure, districts could build "temporary" sites of portable classrooms. Building such schools would require that scarce money be spent on rental fees, instead of permanent facilities. Even doing th s would not solve overcrowding. How was the amount of the tax determined? The tax was determined by a formula including the cost to build a school, the student capacity of each new school, and the average number of students generated per new house. The tax will be adjusted annually by the School Board as part of the budget process each August to reflect the actual funding needed for the coming fiscal year. The maximum, of course, is $5,400. Will the fee be collected if state or other money becomes available or sufficient schools are built? If other funds become available, the tax will be reduced on an annual basis, to credit the money received from other sources. If new school needs are being met, the tax will NOT be collected. THIS TAX CAN ONLY BE USED TO BUILD NEW SCHOOLS. CUSD - Fact Sheet Page Three Aren't the districts already collecting a $1.50 fee from builders? Yes. This fee was allowed by school facilities legislation in 1987, but without other funds, it will raise only one-third of the more than $30 million needed in the next five years. Money collected from this fee will be credited against the parcel tax to ensure that builders are not double-charged. Aren't there other sources of money to build new schools? Local districts have considered all the possible options. O Among them are: Lottery money, which by law CANNOT be used to fund school construction. Me1 lo-Roos (Benefit Assessment Districts) can be formed to pass construction bonds. School districts have proposed this alternative to local developers, who have repeatedly refused this option. Under Mello-Roos, developers could issue bonds which would be paid back as much as 75% by the State. However, developers have stated that they have no confidence that the State could afford the payback. O School districts receive State money (ADA) based on enrollment figures to EDUCATE new students, but no additional funds are given to build schools to house the new students. O General obligation bonds, repaid by an ad valorem tax on all property owners, were the traditional source for school construction funds. Since Proposition 13, the two-thirds voter majority required has made passage all but impossible, as these bonds increase local property taxes on all taxpayers. Will the cost of new homes go up if these measures pass? Not necessarily. Builders will decide. They have stated the cost will be passed on to buyers, but they could still choose other funding methods, such as Mello-Roos Districts, to build schools if they wished. How do school districts in other areas obtain money for new schools? In many communities, developers have voluntarily entered into Mello-Roos agreements or built or leased new schools to the districts. Some districts in Santa Clarita Valley and in Chino have passed propositions similar to Proposition Z. CUSD - Fact Sheet Page Four Don't the builders claim that this tax is illegal? On March 23, the Building Industry Association filed suit against the five Santa Clarita Valley school districts, contending that the parcel tax is unconstitutional. The Los Angeles Superior Court dismissed the case on all points and held that the Districts should proceed with parcel tax collections pending any final appeals through the courts. Don't Lottery Funds fulfill the District's financial needs? NO. In reality, lottery funds make up only a small proportion of the District's funding. Out of a total General Fund budget of approximately $23.4 million, lottery fund receipts wil be only about 2.5%, or $586,000, for the year. By law, lottery funds can - not be used for facilities construction. Are comnercial development projects going to share in school facilities costs? Yes. The School District is preparing to update the developer fee program based upon new legislation and new, more liberal interpretations of the State's Schools Faci 1 i ties 1 aws. Commercial developers wi 11 be assessed $. 25 per square foot in the future, just as in our neighboring school districts, as well as sharing in the Parcel Tax. Can school transportation be funded with the Parcel Tax? Not really. School transportation is really a long-term, recurring annual cost. The State presently only funds about 40% of the cost of our present Special Education transportation. Any further transportation costs would have to be paid out of pocket from the General Fund and a direct reduction from current education programs of our children - not just for one year, but from now on. The stated purpose of the parcel tax is really to provide school facilities, not to buy buses or pay ongoing operating costs of a transportation system. CONNY 8. McCORMACK REGISTRAR OF VOTERS 16191 565.5800 I61 91 694-3400 REGISTRAR OF VOTERS 52014 RUFFIN ROAD, SAN OIEGO. CALIFORNIA 92123 Date: qril 11, 1988 APR 14 ~m To : Carlsbad Unified School District From: Cathy Tripp, Supervisor Elections Administration Mr. Blair, This is for your infonnation. already proofed it, but the mre who read it, the better. Please know if you find any errors. Re : Sample Ballot Proofs - Election Date: June 7, 1988 First Second Third Fourth - xx Final Enclosed is material to be Droofed for the umoming election in your jurisdiction. P1 eas 6 proof immediately corrections in red ink. One set is for your other is to be returned to this office. Material Prop 2 - All text Ballot Leaf OK as is OK w/corrections and mark your records and the Show new proof t S iana tu r e /J&+ %L. / Date: Y\rC\e ~ I Please call 694-3404 with the co fi re_tions and a decision will be made on whether to have the material returned by mail or by messenger. We have people let nae Thanks for your cooperation and prompt attention to this matter. PRIMARY ELECTION - JUNE 7,1988 - SAN DlEGO COUNlY 1 NONPARTISAN - OFFICIAL BALLOT I CITY OF CARLSBAD Shall Ordinance No. NSB be adopted amending Chapter 3.12 of =~$8 .) 0" c the Carlsbad Municipal Code to increase the Transient Occupancy Tax rate from 6% to 896? No kS*O Shall Ordinance No. NSlO be adopted amending Chapter 3.12 Occupancy Tax rate by an additional 2% to pay for the D of the Carlsbad Municipal Code to increase the Transient promotion of tourism in the city and for a public golf course, tennis coufls and rekted fadies? CARLSBAD UNIFIED SCHOOL DISTRICT I Shall the Carlsbad Unfied School District tax builders of new dwelling units $5400 per unit, adjusted annually for inflation, to provide school facilities and appurtenances, with credit for facilities or funds provided pursuant to an agreement wlth District and with exemptions for: - additiops to existing dwelling units - residentlal dwdling units used p~nnenentfy by persons 55 years of age and older - property exempt from prop* taxes, all subject to provisions in District Resolution No. 158788, and shall District's appropriations limit heretofore or hereafter imposed be YES3 XO increased for those taxes collected? L Martin B Chapman Go. 001 044 r PRIMARY ELECTlON - JUNE 7,1988 - SAN DIEGO COUNTY -l NONPARTISAN - OF FlClAL BALLOT CARLSBAD UNIFIED SCHOOL DISTRICT ~~ Shall the Carlsbad UnHied School District tax buiidem of new dwdling units $5400 per unit, adjusted annually for hlbtion, to provide school facilities and appurtenances, with asdit for fadlitlee or funds provided pursuant to an agmment WlVI Distrid and with exmptions for: - adddons to existing dwelling units - residential dwdimg units used pannanemtty by pasons 55 years of age and older - propcrty exempt from prom taxes. all subject to provisions m Distrid Resolution No. 15.8788. and shall District's appropdtions limit heretofore or hereafter imposed be increased for those taxes collected? L Martin 8 Chr man Go. oore& L CARLSBAD UNIFIED SCHOOL DISTRICT Proposition Z (Thls proposition will appear on the ballot In the kllowlng form.) ~ ~~~~~ Shall the Carlsbad Unified School District tax builders of new dwelling units $5400 per unit. adjusted annually for inflation. to provide school facilities and appurtenances, with credit for facilities or funds provided pursuant to an agreement with District and with exemptions for: - additions to existing dwelling units - residential dwelling units used permanently by persons 55 years of age and older - property exempt from property taxes, all subject to provisions in District Resolution No. 15-8788, and shall District's appropriations limit heretofore or hereafter imposed be increased for those taxes collected? COUNTY COUNSEL'S IMPARTIAL ANALYSIS This proposition would allow the Carlsbad Unified School District to impose a special tax of up to $5400.00 per dwelling unit upon any person receiving a building penit for new residential construction. The tax would be adjusted annually for inflation. Proceeds of the tax would be used for the construction, acquisition and leasing of required school facilities. The tax would not be imposed on additions to dwelling units, buildings which would be exempt from property taxes and senior citizens projects. Under certain circumstances, an exemption from the tax would be allowed for persons who have made arrangements to provide adequate school facilities, such as through bonds sold by a Community Facilities District. A credit against the tax would be allowed for fees paid for the purpose of funding the construction and reconstruction of school facilities. This measure also raises the appropriations limit of the District. This raise in the The measure requires a two-thirds (2/3) vote for passage. appropriations limit expires after four (4) years. NPR-0405.01 ARGUMENT IN FAVOR OF PROPOSITION 2 Our overcrowded schools are burstina at the seams, Housing developments will continue to appear throughout our community as a result of building permits already issued. This overcrowding problem must be solved. Proposition "2" WILL NOT INCREASE YOUR TAXES. It places a one-time tax on NEW HOUSING ONLY. Senior housing projects and additions to existing residential dwellings are EXEMPT. The School District simply does not have the money to build new schools. Lottery money CANNOT be used to build schools. State Bond Aid is not available. Proposition "2 would replace the $5,447 developer fee which was in effect prior to January 1,1987. Vote YES on Proposition "Z. Thank you. A steady increase in school enrollments is the result. CITIZENS FOR SCHOOL FACILITIES JOE ANGEL, President Board of Trustees Legislative Committee SHARON L. FAITHFUL, Chairperson DANIEL J. BURNS CUTA - Vice President DORIS LEE RlTCHlE Senior Citizen Commissioner ERIC LARSON Member of the City Council ARGUMENT AGAINST PROPOSITION Z No argument against the proposition was filed in the office of the Registrar of Voters. CITIZENS FP!? SCBCqL FACILITTES PRCPOSITICN 2 Rosanne Grove? Media Contact 434-5554 PRESS CClNFERENCE There will be a press conference at Eope Elementary School, 3010 Tamarack Ave., Carlsbad; Tuesday April 19 at 8:30 a.m. to formally "kick-offll the campaign for Pcop 2. (Hope School was constructed to help relieve overcro1J;ding in the Calaveras Hills ?rea of Carlsbad and was ogened to caFacity September 1987. It was funded Zron developer fees before the State's reduction.) paid for by Citizens for School Facjlitlee FACTS ABOUT THE CUSD BUDGET There are two major categories of educational funding needs - the General Education Fund and the School Facilities Fund. Approximately 82%, or $19,186,595, of our General Education Fund comes from the State. This amount represents $2,833.67 per Average Daily Attendance (ADA) and includes other State revenues for categorical s (special projects) and special purpose apportionments. This figure includes the 4.37% COLA for this fiscal year and an estimated $586,600 in lottery funds. Lottery funds represent only about 2.5% of the total funds received from the State. It needs to be pointed out that the State's 4.37% COLA includes the lottery funds. Originally, lottery funds were passed for the purpose of providing "extra", or additional, funding. NOW, they have become part of the State educational funds. The remaining 18% of the General Fund includes federal revenue (2%), local revenue (3.5%), and a net beginning balance of $3,000,000, or 12.5%. The General Fund pays for the salaries and benefits for all employees, the books and supplies for classrooms, and the special programs offered. - NOTE: If a transportation program were to be provided by CUSD, it would not be funded from the Federal or State levels. General education funds would have to be used, which would drastically interfere with our educational program within the District. Neighboring districts pay as much as $700,000 per year and up to fund their transportation needs. Those funds come out of their general education funds, which is reflected in their student-teacher ratios, special programs being offered, and instructional supplies being furnished. Facility needs are not included in General Fund expenditures, and lottery funds cannot be used for facilities. School renovations or new school construction must be financed by developer fees or funds from the State. There are no funds available at the State level. CUSD now has a balance of approximatley $5 million in their School Facilities Fund. This is earmarked for renovation of schools over 30 years of age, relocatables for current growth, expansion of present faci 1 i ties, new school equipment and suppl ies, and 1 imi ted new school facilites. The present costs to build new schools are as follows: Elementary - $ 6.5 million Junior High - 14.0 million High School - 28.0 million With our 60% growth rate, we now need, or will need in the immediate future, three new elementary schools. Also, our high school is 30 years old and needs major renovation. The addition of portables continues to drastically cut back on playground/physical education areas, and our student-teacher ratio in California is ranked 50th in the United States. Facts About the CUSD Budget Page 2 The funding needed to meet our current needs with regards to facilities requirements (1987-93) is $30,054,000. With an average of $864,000 now collected per year in developers fees; together with the $5 million presently in the facilities fund, we would have a total of approximately $10 million to meet this crisis (through 1993). We will need another $20 million to meet our schools needs for the immediate future with no additional funds available from the State or the developers. Also, a bill (AB 1929) just passed in Sacramento March 14, 1988 which restricts the collection of developer fees. This could decrease our facilities fund by another $5 mill ion (870,00O/year through 1993). ,- .I *, BOARD OF TRUSTEES JANUARY 27, 1988 CARLSBAD CITY COUNCIL CHAMBERS MINUTES - REGULAR MEETING The meeting was called to order at 7:05 p.m. by President Joe Angel. The meeting was adjourned to Closed Session at 7:06 p.m. The meeting was reconvened at 7:35 p.m. and no action was taken. Closed Session Present: Trustees Angel, McCormick, Nygaard, Johnson, Switzer. Absent: None. Trustee Switzer led the Pledge of Allegiance and Trustee Nygaard called for a moment of silent meditation. ublic Hearin PUBLIC HEARING It was moved by Trustee Switzer, seconded by Trustee Nygaard and carried unanimously to adjourn to a Public Hearing at 7:36 p.m. for the purpose of considering an election for school facilities development tax. It was noted that a notice of the Board’s intention to hold a Public Hearing in order to call an election on June 7, 1988 had been properly published and posted. It was moved by Trustee Switzer, seconded by Trustee Nygaard and carried unanimously to receive and file the Proof of Publication and Affidavit of Posting presented by the Clerk. Patricia B. Giannone of Bowie, Arneson, Kadi, and Dixon and district staff described the school facilities needs of the district and the nature of the election proceedings. No written communications had been received by the dis- trict concerning the Public Hearing. James A. Cothran, local citizen and Vice President of the Carlsbad Board of Realtors, read a prepared state- rent from Dennis Meacham, President of the Carisbad Board of Realtors, in opposition to a special tax election. NO one else in the audience wished to speak to the issue. It was moved by Trustee Switzer, seconded by Trustee McCormick and carried unanimously to close the 2ublic Hearing at 7:55 p.m. AGENDA ITEM 2 1 ... -2- Considerable discussion between Board members took place elections. f comparing special tax elections with Mello-Roos type January 27, 1988 7 - It was moved by Trustee McCormick and seconded by Trustee Res. 15-8788 Johnson to adopt Resolution No. 15-8788, ordering an election for school facilities development tax, establish- ing specifications of the election order and requesting consolidation with the 1988 Presidential Primary Election. Ayes: Trustees Angel, McCormick, Johnson. Noes: Trustees Nygaard, Switzer. Absent: None. It was moved by Trustee McCormick, seconded by Trustee Johnson and carried unanimously to call for the question again. It was moved by Trustee McCormick and seconded by Trustee Johnson to adopt Resolution No. 15-8788. Ayes: Trustees Angel, McCormick, Johnson, Switzer. Noes: Trustee Nygaard. Absent: None. It was moved by Trustee McCormick, seconded by Trustee Johnson and carried unanimously to again reconsider the action on Resolution No. 15-8788. Concern was voiced that the Board should be unanimous in asking for support of citizens in an election, and it was suggested that a volunteer committee be established at the next regular Board meeting. It was moved by Trustee McCormick, seconded by Trustee Johnson and carried unanimously to adopt Resolution No. 15-8788, ordering an election for school facilities development tax, establishing specifications of the election order and requesting consolidation with the 1988 Presidential Primary Election. ACCEPTANCE OF AGZXDA It was moved by Trustee Nygaard, seconded by President Angel and carried unanimously to accept the agenda for the January 27, 1988 regular meeting of the Board of Trustees with the exception that the name of Rick Engineer- ing be removed from the report appearing on agenda page 37. CONSENT CALENDAR It was moved by Trustee McCormick and seconded by Trustee Switzer to approve the Consent Calendar as follows: 2 TO: FROM: SUBJECT: CARLSBAD UNIFIED SCHOOL DISTRICT Carlsbad, California January 27, 1988 Thomas f&jri@?rley, Ed.D. , District Superintendent John H. %air, Assistant Superintendent, Business Services Special Tax Election - June 7, 1988 Resolution No. 15-8788 Resolution of the Board of Trustees of the Carlsbad -Unified School District Ordering An Election for School Facilities Development Tax, Establishing Specifications of the Election Order and Requesting Consolidation with the 1988 Presidential Primary Election BACKGROUND INFORMATI ON Since implementation of State Schools Facilities Legislation in January, 1987, which drastically reduced developer fee revenues to the District and made it virtually impossible to fund facilities requirements locally, the Board of Trustees has been searching for a source of funding to support facilities needs. It was established in the Estimated Facilities Schedules and Costs, 1987-1993 Report to the Board on December 9, 1987 that the District anticipates K-72 facilities requirements of $30,054,000 through calendar year 1993. In that same period, it is estimated that revenues optimistically might provide for $22,376,265. This would leave a remaining facilities shortfall of $7,677,735. CURRENT CONSIDERATIONS Resolution No. 15-8788 (Exhibit A), the proposed Resolution of the Board of Trustees of the Carlsbad Unified School District Ordering an Election for School Facilities Development Tax, Establishing Specifications of the Election Order and Requesting Consolidation with the 1988 Presidential Primary Election, is structured to tax builders of new dwelling units $5,400 per unit, adjusted annually for inflation, so as to provide school facilities and appurtenances. It would provide credit for facilities or funds provided pursuant to agreements with the District, such as a Mello-Roos election and bond issue,and would also enable exemptions for: a. additions to existing dwelling units. b. residential dwelling units of persons 55 years of age or older. c. property exempt from property taxes. It would also increase the District's Gann Limit to the extent taxes are collected for facilities (see Exhibit A). Special Tax Election - 2- January 27, 1988 A Proposed Calender of Events for the Special Tax Election is included for information (Exhibit B). Affidavit of Posting Notice of Public Hearing of the Board of Trustees of the Carlsbad Unified School District on Special Tax Election is included as Exhibit - C and/or will be provided the Clerk of the Board of Trustees at the meeting. Legal Notice of the Public Hearing was published in the Blade Tribune on January 18, 1988 and January 25, 1988. FINANCIAL IMPLICATIONS The school facilities development tax is designed to provide essential funding of Carlsbad Unified School District facilities requirements which are not presently available from local or State sources of facilities funding. RECOMMENDATION It is respectfully requested that the Board of Trustees approve Resolution No. 15-8788, Resolution of the Board of Trustees of the Carlsbad Unified School District Ordering an Election for School Facilities Development Tax, Establishing Specifications of the Election Order and Requesting Consolidation with the 1988 Presidential Primary Election. 1. d .I.!' AB 12 0 2' _..- 1/26/88 RESOLUTION NO. 15-8788 RESOLUTION OF THE BOARD OF TRUSTEES OF THE CARLSBAD UNIFIED SCHOOL DISTRICT ORDERING AN ELECTION FOR SCHOOL FACILITIES DEVELOPMENT TAX, ESTABLISHING SPECIFICATIONS OF THE ELECTION ORDER AND REQUESTING CONSOLIDATION WITH THE 1988 PRESIDENTIAL PRIMARY ELECTION WHEREAS, increased residential development within the Carlsbad Unified School District (the tvDistrictn) has caused great overcrowding of the existing school facilities; and WHEREAS, the applications for funding now before the State Allocation Board for funding construction and reconstruction of school facilities are estimated to be in the magnitude of approximately Three Billion Dollars for which there are no funds available; and WHEREAS, the District currently has inadequate school facilities for the estimated increase in the number of students that will result from residential projects approved, pending approval, and to be submitted to the City of Carlsbad; and WHEREAS, the District has been unable at this point to obtain funding from the State of California to build, acquire school facilities to meet the need for additional school facilities; and lease or -1- _- WHEREAS, Section 4 of Article XIIIA of the California Constitution authorizes the District to impose a special tax upon approval by two-thirds of the votes cast by voters voting on the proposition; and WHEREAS, on January 27, 1988, at 7:30 p.m., a duly noticed public hearing was held on the question of whether the Board of Trustees (the vlBoardtv) should order an election for the purpose of submitting to the electors of the District the question of whether a special tax shall be levied in the amount and manner and for the purposes as set forth below, at which hearing all persons interested were given an opportunity to appear and be heard concerning the proposed special tax and the Board's intention to order such election; and WHEREAS, in the judgment of the Board, it is advisable, and determined to be necessary to provide for the educational needs of the present and future students and residents of the District, to order the County Superintendent of Schools to call an election on the question of whether a special tax shall be imposed, in the amount and manner and for the purposes set forth below. NOW THEREFORE, the Board of Trustees of the Carlsbad Unified School District DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS : Section 1. The Board, pursuant to Section 4 of Article XIIIA of the California Constitution, hereby orders the County Superintendent of Schools to call an election and submit to the -2- .. elLCtors of the Dis-rict the question of whether a special tax (the IISchool Facilities Development Tax") shall be levied and collected to provide funds for school facilities and appurtenances. Section 2. The purpose of the election shall be for the voters in the District to vote on a proposition, a copy of which is attached hereto as Exhibit "A" (the vlPropositiontv) and incorporated herein by this reference, containing the question of whether the District shall levy and collect the School Facilities Development Tax, whether any appropriations limit shall be adjusted accordingly, and setting forth the amount and manner of collection of the School Facilities Development Tax. Section 3. Section 4. The date of the election shall be June 7, 1988. The School Facilities Development Tax shall be levied upon all persons receiving building permits within the District at a rate of Five Thousand Four Hundred Dollars ($5,400) per dwelling unit. The amount of the School Facilities Development Tax described hereinabove would be adjusted annually on April 15 of each year to reflect the change from the prior twelve (12) months in the U.S. Bureau of Labor Statistics Consumer Price Index for all urban consumers of the San Diego metropolitan area (the IlC.P.1. Adjustmentvf) . -3- \\ Section 5. Additions to existing residential dwelling units, residential units determined by the District to be used permanently by persons 55 years of age or older and buildings otherwise exempt from property taxation shall be exempt from the School Facilities Development Tax. Section 6. Persons receiving building permits shall be exempt from payment of the School Facilities Development Tax for any permits as to which the Board determines and certifies that satisfactory arrangements have been made between the District and such persons to provide sufficient school facilities for the District such as by sale of bonds of a Mello-Roos community facilities district. Section 7. The proceeds of the School Facilities Development Tax, to the extent of the amount thereof, shall satisfy obligations to pay any school facilities fees payable in the amount of $1.50 per square foot of residential dwelling space, or such other amount as may be established by the Board pursuant to Section 53080, et seq., of the California Government Code. Section 8. Each year as part of the annual budget adoption process, the Board will determine the total amount of expenditures necessary in the next succeeding fiscal year to construct, lease or finance school facilities and appurtenances needed by the District. than the School Facilities Development Tax and available for such Revenue projected from sources other -4- i i. .C purposes will be deducted from such total amount. The difference, if any shall be the maximum amount to be derived from the School Facilities Development Tax for such year. If the amount to be derived from the School Facilities Development Tax is such that the maximum rate of the School Facilities Development Tax set forth in Exhibit is not needed, the Board shall reduce the rate accordingly. Section 9. Subject to voter approval as set forth herein, the School Facilities Development Tax shall be levied commencing June 8, 1988. Section 10. The collection of the School Facilities Development Tax is not intended to decrease or offset any increase in funding from local, State or Federal Government sources that would otherwise be available to the District during the period of applicability of the School Facilities Development Tax. In the event such funding is received, the Board shall reduce the School Facilities Development Tax in the manner provided in Section 8 herein. Section 11. It is specifically intended relative to submitting the School Facilities Development Tax to the electors of the District that the authorization to levy said Tax will not decrease or offset any potential funding for school facilities by the State of California, including the State Allocation Board, -5- .. 4. c \, but the Board hereby acknowledges that there may be such a decrease or an offset to the extent of said Taxes actually levied and collected. Section 12. The authority for ordering the election is Article XIIIA, Section 4 of the California Constitution. Section 13. The authority for the specification of this election order is contained in Section 5322 of the Education Code. Section 14. This Resolution shall stand as the order to the County Superintendent of Schools to call an election within the boundaries of the District on June 7, 1988. Section 15. The Clerk of the Board is hereby directed immediately to send a certified copy of this Resolution to the County Superintendent of Schools of the County of San Diego so that said Superintendent receives it on or prior to February 5, 1988. Section 16. The Clerk of the Board is hereby directed to send a certified copy of this Resolution to the Registrar of Voters of the County of San Diego no later than February 5, 1988. Section 17. The Board hereby requests that the County of San Diego, acting through the Clerk of the Board of Supervisors, or Registrar of Voters, as appropriate, consolidate the election ordered hereby with the 1988 Presidential Primary Election to be held on June 7, 1988, and take all steps necessary to conduct the election, canvass the returns and certify the results. -6- See-ion 18. The County Superintendent of Schools of the County of San Diego is hereby requested to deliver a copy of this Resolution and order, and a formal notice of the election to the Clerk of the Board of Supervisors and the Registrar of Voters no later than February 8, 1988. Section 19. The submission of the School Facilities Development Tax to the electorate of the Carlsbad Unified School District is not a project within the meaning of the California Environmental Quality Act. ADOPTED, SIGNED AND APPROVED this 27th day of January, 1988. Board of Trustees of the Carlsbad Unified School District ATTEST : Clewhe Board of Trusteesoor the Carlsbad Unified School District -7- .- I\ STATE OF CALIFORNIA COUNTY OF SAN DIEGO I, Julianne L. Nyqaard , do hereby certify that the foregoing Resolution was duly adopted by the Board of Trustees of the Carlsbad Unified School District at a regular meeting thereof held on the 27th day of January, 1988, and that it was so adopted by the following vote: AYES : NOES : None. ABSENT: None. ABSTAIN None. Members Angel, McCormick, Nygaard, Johnson, Switzer. BY .*A /’- Clerl@of/ tlreBoard of Trustees for the C% lsbad Unified School District -8- ., 1. i' .- STATE OF CALIFORNIA COUNTY OF SAN DIEGO I1 Julianne I . Nvaard I do hereby certify that the foregoing is true and correct copy of Resolution No. 15-8788, which was duly adopted by the Board of Trustees of the Carlsbad Unified School District at a regular meeting thereof held on the 27th day of January, 1988. C1 e rId(-o f t oard of Trustees for/ the CaEad Unified ScGol District -9- AB1203A 1/19/88 PROPOSITION ( ): Shall the Carlsbad Unified School District tax builders of new dwelling units $5400 per unit, adjusted annually for inflation, to provide school facilities and appurtenances, with credit for facilities or funds provided pursuant to an agreement with District and with exemptions for: - additions to existing dwelling units - residential dwelling units used permanently by persons 55 years of age and older - property exempt from property taxes, all subject to provisions in District Resolution No. 15-8788, and snall District’s appropriations limit heretofore or hereafter imposed be increased for those taxes collected? Exhibit llA1l '+ .A , ,! PG/21 1/19/88 PROPOSED CALENDAR OF EVENTS SPECIAL TAX ELECTION OF THE CARLSBAD UNIFIED SCHOOL DISTRICT June 7, 1988 Board of Trustees of the Carlsbad Unified School District meets every 2nd and 4th Wednesday at 7:30 p.m. at the City Hall, 1200 Elm Avenue, Carlsbad, California 92008 1988 Monday January 18 Monday January 18 Friday January 22 Monday January 25 Wednesday January 27 First day of publication of Notice of Special Tax Election hearing in The Blade Tribune. - Posting of Notice of Special Tax Election hearing in District. Meet with Alex Bowie and Pat Giannone re final resolution and proposition. Posting of agenda containing description of Special Tax Election hearing on January 27, 1988. Second day of publication of Notice of Special Tax Election hearing. Board adopts Resolution Ordering Election for School Facilities Development Tax, Establishing Specifications of the Election Order and Requesting Consolidation With The 1988 Presidential Primary Election. [Section 4 of XI11 A of the California Constitution, Government Code 850075 et seq., Education Code 5 5322.1 EXHIBIT B (1 of 3) .' . .. Friday February 5 Monday February 8 Last day for receipt by County Superintendent of Schools of certified copy of the Resolution Ordering Special Tax Election from District. [Education Code § 53221 Last day for receipt by Registrar of Voters of certified copy of the Resolution Ordering Special Tax Election from District. [Education Code 9 53221 Last day for receipt by Registrar of Voters and Clerk of the Board of Supervisors of copy of the Resolution Ordering Special Tax Election and formal notice of election from County Superintendent. [Education Code 5 53241 Week of February 8 Finalize argument in favor of Special Tax. Wednesday February 24 Friday March 18 Monday March 28 Board adopts Resolution approving ballot argument in favor of Special Tax. 300 word limit. Last day * to submit direct arguments for or against Special Tax Ballot Measures. 300 word limit. (Discretion of Registrar) [Elections Code §§ 3784 and 53231 Last day* to submit Ballot Arguments in rebuttal to arguments for or against Special Tax Ballot Measures. 250 word limit. (Discretion of Registrar) [Elections Code §§ 3787 and 53231 * Registrar may set earlier deadlines to meet printing deadlines. EXHIBIT B (2 of 3) Tuesday June 7 Wednesday June 8 Election on Special Tax Proposition. First day of imposition of Special Tax on new construction within District. EXHIBIT B (3 of 3) AFFIDAVIT OF POSTING NOTICE OF PUBLIC HEARING OF THE BOARD OF TRUSTEES OF THE CARLSBAD UNIFIED SCHOOL DISTRICT ON SPECIAL TAX ELECTION I, Nancy Gi 1 lespie , an employee of the Carlsbad Unified School District hereby certify that on January 19, 1988, under the direction of the Clerk of the Board of Trustees, I posted securely and conspicuously copies of the NOTICE OF PUBLIC HEARING ON SPECIAL TAX ELECTION ON JUNE 7, 1988 attached hereto as Exhibit ltA1w, at the following locations: 1. Carl sbad Library 1250 Elm Avenue Carlsbad, CA 92008 2. CUSD District Office - Front Door 801 Pine Avenue Carlsbad, CA 92008 3. CUSD District Office - Employees Rm 801 Pine Avenue Carlsbad, CA 92008 I declare under the penalty of perjury that the foregoing is true and correct. Executed this 20th day of January, 1988, at Carlsbad, California. EXHIBIT C (1 of 2) 2 '. J AB1204 1/14/88 .. NOTICE OF HEARING BOARD OF TRUSTEES OF CARLSBAD UNIFIED SCHOOL DISTRICT SCHOOL FACILITIES SPECIAL TAX ELECTION ON JUNE 7, 1988 NOTICE IS HEREBY GIVEN that the Board of Trustees of Carlsbad Unified School District will hold a Public Hearing on January 27, 1988, at 7:30 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers in the City Hall of the City of Carlsbad located at 1200 Elm Street, Carlsbad, California, 92008, to consider calling a School Facilities Special Tax Election on June 7, 1988. The proposed amount of the School Facilities Special Tax, to be levied and paid at time of building permit, is $5,400 per dwelling unit, or such greater or lesser amount per residential dwelling unit as is determined at the Public Hearing, exclusive of certain senior citizens housing, and such other changes, amendments or exclusions as are considered and included as a result of the information and testimony presented at such Public Hearing, as may be determined by the Board of Trustees. All interested persons are invited to appear and present information, testimony and evidence in writing or in person at the Public Hearing relative to the above-described proceedings. BOARD OF TRUSTEES OF THE CARLSBAD UNIFIED SCHOOL DISTRICT EXHIBIT C (2 of 2) .. ARGUMENT IN FAVOR OF PROPOSITION "A" FILE COPY Our overcrowded schools are burstinq at the seams. Housing developments will continue to appear throughout our community as a result of building permits already issued. This overcrowding problem must be solved. A steady increase in school enrollments is the result. Proposition "A" WILL NOT INCREASE YOUR TAXES. on NEW HOUSING ONLY. residential dwellings are EXEMPT. Lottery money CANNOT be used to build schools. available. It places a one-time tax Senior housing projects and additions to existing The School District simply does not have the money to build new schools. State Bond Aid is not Proposition "A" would replace the $5,447 developer fee which was in effect prior to January 1, 1987. Vote YES on Proposition "A". Thank you. Unified Kchob1 District Board of Trustees Chai'$erson, Carl sbad Unifiecl&h;ol District Citizens for School Facilities * BOWIE, ARNESON, KADI & DIXON A PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION ALEXANDER BOW1 E' JOAN C. ARNESON TERRY E. DIXON WILLIAM J. KADI WENDY H. WILES PATRICIA B. GIANNONE ROBERT E. ANSLOW ROBIN C. FLORY CAROL J. GRAHAM KENNETH R. WElSS 'A PROFESSIONAL CORPORATION 4920 CAMPUS DRIVE, SUITE A NEWPORT BEACH, CALIFORNIA 92660 AREA CODE 714 TELEPHONE 851-1300 (8001 423-6054 FAX (714) 851-2014 REF. OUR FILE January 26, 1988 Mr. John H. Blair Assistant Superintendent, Business Services Carlsbad Unified School District 801 Pine Avenue Carlsbad, CA 92008 Re: Campaign Activities of District Trustees and Employees for the June 7, 1988 Special Tax Election Dear Mr. Blair: You have requested that our firm provide the Carlsbad Unified School District ("District") with some guidance as to permissible campaign activities of the District in regard to an election on the proposed special tax proposition ("Special Tax Proposition"). In general, California law prohibits the use of District funds, services, supplies or equipment for the purpose of urging the passage or defeat of any school measure of the District, However, the law does permit Trustees and employees to take certain actions within prescribed limitations, such as providing objective information and making public appearances. The California law setting forth permissible campaign activities of school districts, governing boards and employees is found in sections of the Education Code and case law developed over time. The following is a brief overview of the rules contained in those statutes and cases and how the rules are applicable in certain factual situations. Prohibition Against Use of District Funds Section 35160 of the Education Codel, contained in the general provisions regarding powers and duties of a district's governing board, provides the governing board of a school district with the authority to initiate and carry out a program that is not otherwise inconsistent with or 'A11 references in this letter are to the Education Code unless otherwise noted. .r. BOWIE, ARNESON, KADI & DIXON A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS Mr. John H. Blair Page 2 preempted by another law and not in conflict with school district purposes. Section 7054, contained in the general provisions regarding public school personnel, is such another law and specifically prohibits the use of district funds, services, supplies or equipment "for the purpose of urging the passage or defeat of any school measure". Thus, under no circumstances may the District use District money or property to advocate the passage or defeat of the Special Tax Proposition in the election. This prohibition includes indirect uses of funds or property, such as use of an administrator's or other employee's time, or the use of District vehicles or drivers to transport District Trustees to meetings, rallys, etc. to present partisan views. Case law also mandates this rule. Mines vs. Del Valle (1927) 20 Cal. 273 held that it was illegal for the City Council of Los Angeles to provide City funds to advocate the passage of a public utility bond issue. The more recent case of Stanson vs. Mott (1976) 17 Cal. 36: 206 noted that the Director of the California Department of Parks and Recreation could not use Department funds to advocate electorate approval of a State park bond issue. Although the District may not spend District funds to hire campaign consultants, independent political committees can be organized to campaign on behalf of the Special Tax Proposition. However, these committees may not have the free use of District facilities, equipment or services. Activities by District Trustees and Employees Section 35174 permits the governing board of any school district, or any individual member of the board, to (1) prepare and disseminate information, or (2) make public or private appearances for the purpose of urging the passage or defeat of a school measure. The information prepared and disseminated must not advocate the Special Tax Proposition if District funds are involved, but must be factual and unbiased. For example, the District may include an item explaining the Special Tax Proposition in the school newspaper or a parent- newsletter. A message reminding constituents to vote on the Special Tax Proposition contained in regular District publications would also be permissible, as long as the message was simply a reminder to 'vote', and not to 'vote yes'. District Trustees may give speeches, or attend events, for the purpose of urging the passage or defeat of the +' +' I. BOWIE, ARNESON, KADI & DIXON ... A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS Mr. John H. Blair Page 3 Special Tax Proposition. This type of campaign activity is permitted because of the guarantee of freedom of speech and assembly under the First Amendment of the United States Constitution. However, the right is limited by the prohibition that the Trustees cannot expend public funds to advocate a partisan viewpoint. If a Trustee travels in a District owned vehicle or is driven by a District employee to speak at a gathering or organization regarding the Special Tax Proposition, the Trustee may not advocate approval of the Proposition but must restrict his or her role to that of disseminating information - a discussion of the terms of the Proposition, why the election was called and the cost to the electorate. The Trustee may state the official position of the District, or state his or her own personal view, but may not advocate that the group vote a certain way on the Special Tax Proposition. Section 35174 also recognizes that school district administrators may appear before citizens groups requesting an appearance to discuss and explain an election proposition and to answer questions about the fiscal impact of the election proposition. In contrast to the Trustees, however, during business hours District administrations are restricted to making requested appearances only, and may not advocate but only explain the Special Tax Proposition. However, First Amendment rights also guarantee District administrators and employees the right to undertake campaign appearances and activities during non-business hours to advocate the Special Tax Proposition as long as no District funds are directly or indirectly used for the appearance or activity. Fund Raising Although the District may not use public funds to advocate approval of the Special Tax Proposition, Trustees and employees are not prohibited from raising money to pay for campaign expenses. However, they must raise money on behalf of an independent committee and not on behalf of the District. Fund raising activities should be strictly confined to after-business hours and no District funds or property may be used in the course of such fund raising. District Trustees and employees are free to contribute their own personal funds to any independent campaign committees that are formed to aid the passage or defeat of , ' I 1.. '- BOWIE, ARNESON, KXDI & DIXON A PARTNERSHIP INCLUDING PROFESSiONAL CORPORATIONS Mr. John H. Blair Page 4 the Special Tax Proposition. Trustees and employees should not be required by the District to make contributions to independent campaign committees. Potential Liability of Trustees and Officials for Improper Expenditures School district officials are personally subject to both civil and criminal liability if they use public funds for improper purposes. Using District funds for campaign purposes after receipt of this opinion letter advising against such expenditures could constitute failure to use due care in expending public funds and could subject individual Trustees and officials to civil liability. Stanson v. Mott, supra. Section 424(2) of the Penal Code provides the basis for criminal liability for improper expenditure of District funds, and states in part: Each officer of this state, or of any county, city, town or district of this state, and every other person charged with the receipt, safekeeping, transfer or disbursement of public moneys, who...: 2. Loans the same or any portion thereof; makes any profit out of, or uses the same for any purpose not authorized by law (emphasis added);... is punishable by imprisonment in the state prison for two, three or four years, and is disqualified from holding any office in this State. "Public moneys" includes all moneys belonging to the public agency; all bonds and proceeds thereof; and, all other evidence of indebtedness. Penal Code Section 426. Furthermore, in contrast to civil liability, a good faith authorization of an illegal expenditure of public funds is not a defense to a criminal charge. People v. Battin (1978) 77 Cal. App. 3d 635. ,'I *,. BOWIE, ARNESON, KADI & DIXON r- A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS Mr. John H. Blair Page 5 Recommendations We recommend that District Trustees and employees do not use District funds for any purpose that might be interpreted as advocating the passage or defeat of the Special Tax Proposition. This should be given a broad interpretation - use of District money, use of District equipment (i.e. automobiles, Xerox machines) and use of District supplies (i.e. postage). If employees are invited to speak at local organizations during business hours they should be careful not to advocate a particular position on the Special Tax Proposition but merely to give the group the District's position on the Special Tax Proposition and election information. If you have any additional questions, please do not hesitate to call. Very truly yours, BOWIE, ARNESON, KADI & DIXON 6/&& Patricia B. Giannone PBG/cs cc: Alex Bowie