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hi I'm Ron Bennett from school Services of California the Board of Trustees of the Poway Unified School District has requested that I facilitate some public meetings to help the public understand some opportunities to refund some capital appreciation bonds that were issued by the district in 2008 in addition to the public meetings that are held in The District in the interest of spirited transparency the board would also like to make this presentation available to you on the web and so that's what we're doing right now so the purpose of this presentation is very simple number one we want provide taxpayers with information relevant to the potential refunding number to we want taxpayers have an opportunity to provide input to the board about what they think about that refund and then finally we want to provide of forum for public input and a preference ballot so that you can explain and if so you can understand the explanation and then you can express an opinion on what you think the board should do so this meeting is adjourned as a regular board study session and Open Session that allows all board members or some board members to be present there are no action items agendized but the board anticipates that if there's any app and to be taken it would be taken at some subsequent meeting there for the board will not be able to respond to any concerns that are addressed in this section at this meeting those concerns would be addressed at a subsequent meeting please fill out a speaker card if you wish to speak after the short presentation will be an opportunity for you to do so so what is this opportunity to refund the capital of Russia ation bonds back in 2008 the district issued capital of Fusion bombs to allow it to finish its facilities program in Manor that gave students an excellent set of facilities to use but over time options become available to make the issuance of those bonds cheaper show Dale Scott and company has made a proposal to the district that would require that the district go out into the open market purchase some of those capital appreciation bonds that were issued back in 2008 and then take those bonds and refund them but essentially refinancing him as you would on a home mortgage and then issue current ad for spawns to replace them capital appreciation bonds carry a high-cost because extend out to props 40 years and the interest accrues for a very long time current interest bonds begin repayment immediately and are paid off in the first twenty years of that 40 year. And therefore and it responds carry a load lower total cost when we look at the 20% that would be acquired they would be refunded with current interest bonds current your taxes would go up a long-term taxes and savings to the taxpayers would also go up and when I say long-term the taxes wouldn't go up the taxes would go down that the savings would go up so as the taxpayers review whether or not they think that this is a good idea one of the things you need to know is that all savings go to the taxpayers and there must be a savings or the district would not legally be able to do the refunding so the board's going to focus on a lot of other factors other than public opinion but the board. want public opinion to be a factor that influences their decision as to whether or not to move ahead with the refunding and that's why we've set up the sections in the community face-to-face and why we have this one on the web for those who are unable face-to-face sessions the property tax impact is pretty clear when the district issues any kind of bonds it estimates with the tax rate will be in the future based on current assessed valuation Frozen assessed valuation and the 2% increase the top 13 allows property taxes to go up each year overall tax rates however are influenced by other things so recently we had a housing downturn assessed values actually went down tax rates went up that will happen through the 20 or 40 year life of a bond so there will be fluctuations whether the cabs are refunded or not the if the cabs are refund been over and above any other increase that would be experienced in the community tax rates would go up and I'll talk about how much in just a moment but I do want you to understand that the tax rates are going to fluctuate what are the cabs are refunded or not but over and above any other fluctuation if we were to acquire 10% of the Cavs the tax rate would go up another $7 per $100,000 of assessed valuation if we were to acquire up to 20% of the cabs in the open market and refund them then we estimate that it would be something less than $14 per $100,000 of assessed valuation fit current taxes go up the board as I mentioned a moment ago is authorized to approve the refunding if and only if there is an overall savings to taxpayers over the life of the issue so what are the potential savings to taxpayers is it after we take the cost of the Cavs and we subtract the cost of the current interest bonds the savings are substantial over the life of the bonds 10% refunding would result in a savings about forty six and a half million dollars to the taxpayers in the community 20% refunding would be twice that about 93 million dollars of the savings is computed by taking into account all costs over the life of the bonds so we would shift the bonds from a 40-year window into the first twenty years of that 40-year window and as a result one of the complaints that districts have heard about cabs is that the people who are here 20 40 years from now are paying a tax but if we switch the current interest bonds then that tax is being paid by the people who are enjoying the facilities now so that is a consideration as well in the dish listen to refund so we have a ballot the ballot is here for you be available online through the website you can download it after you watch this presentation you can express your preference from Ballot or you can attend a community meeting and you can get a pallet there and you can express your preference there remember that the preference is not binding on the board this is not an election but it is an effort by the board to be transparent and to take into account the views of the taxpayers who will actually pay the tax so what are your choices choice one on the ballot is I don't support refunding the the cabs will let the types of stay as they are now they will fluctuate normally the taxes for the cabs will be paid the last 20 of the 40 year. The second choice would be to take it back to the voters and the next opportunity to do would be in 2016 the third option would be to refund up to 10% of the Cavs and the fourth option to refund up to 20% of the Cavs this is all dependent upon Dale Scott and Company being purchase set amount of capital appreciation Bonds in the open market but they've been able to do so for other districts with substantial savings we think they can repurchase these bonds for Poway as well so now if this was a face-to-face session we would be going into the public comment. Then we would be asking each speaker to limit their time to 3 minutes turn in their balance when they leave but whether you're able to attend a face-to-face subsection in the community or whether this is the only session you're able to reach reach out to we appreciate your participation we appreciate your input the board wants to know what you think about the refunding board meeting on October 13th will be a public comment period at that board meeting where the public can also Express their views so with that I want to thank you for taking the time to be interested in your public schools and in doing the job we can for the children of tomorrow thank you very much

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