Información En Español
PROP X - South Bay Union School District
PROP X About PROP X Proposed Scope of Work About South Bay Union School District In The News Program Documents Contact Us

General Obligation Bond Sales

This proposition authorizes the South Bay Union School District to issue and sell up to $59,400,000 in general obligation bonds. The sale of these bonds by the District will raise money for the District, and represents a debt of the District. In exchange for the money received from the bondholders, the District promises to pay the bondholders an amount of interest for a certain period of time, and to repay the loan on the maturity date.

Proceeds from the sale of bonds authorized by this proposition may be used by the District only for the construction, reconstruction and/or rehabilitation of its school facilities, including the furnishing and equipping of its school facilities, acquisition, or lease of real property for its school facilities and construction management by District personnel.

The interest rate on any bond, which is established at the time of bond issuance, cannot exceed 12% per annum. The final maturity date of any bond could be no later than 25 years after the date of bonds issued pursuant to the Education Code or not later than 40 years after the date of bonds issued pursuant to the Government Code. Principal and interest on the bonds would be paid by revenue derived from an annual tax levied on taxable property within the District in an amount sufficient to pay the interest as it becomes due and to provide a fund for payment of the principal on or before maturity.

California Constitution Article XIII A exempts from the one percent property tax rate limitation ad valorem taxes to pay the interest and redemption charges on any bonded indebtedness for the acquisition or improvement of real property, including the furnishing and equipping of school facilities, when approved by 55% of the voters if: (a) the proceeds from the sale of the bonds are used only for the purposes specified, (b) the District, by evaluating safety, class size reduction, and information technology, has approved a list of specific projects to be funded, (c) the District will conduct an annual, independent performance audit, and (d) the District will conduct an annual, independent financial audit. If a bond measure is approved by 55% of the voters, state law requires the governing board of the District to establish an independent citizens' oversight committee. The District has made this ballot proposition subject to these requirements.

Home | About Prop X & Y | Proposed Scopes of Work | About South Bay Union School District | In The News | Program Documents | Contact Us Copyright © 2013. All Rights Reserved.