Facilities
Administrative Regulation No. 7214
Regulation reviewed: May 1, 2014
Updated: May 13, 2025
GENERAL OBLIGATION BONDS
Election Notice
Whenever the Governing Board orders an election on the question of whether general obligation bonds shall be issued to pay for school facilities, the Superintendent or designee shall ensure that election notice and ballot requirements comply with Education Code 15120-15126 and 15272, as applicable, and the section "Ballot Materials" below.
At least 88 days prior to the date of the election, the Superintendent or designee shall deliver to the officer conducting the election the resolution calling the election, including the date and purpose of the election, the authority for ordering the election and the specification of the election order, the signature of the officer or the clerk of the Board authorized to make such designations, and all other applicable ballot materials. (Education Code 5322)
Ballot Materials
The ballot question to appear on the ballot shall not exceed 75 words and shall appear in the form specified in Elections Code 13119. (Education Code 5322)
The Superintendent or designee shall ensure that the ballot materials comply with applicable laws including a brief statement of the measure setting forth the amount of the bonds to be voted upon, the maximum rate of interest, and the purposes for which the proceeds of the sale of the bonds are to be used. (Education Code 15122)
In addition to the 75 word ballot question, a separate statement shall be included with the sample ballot, which includes the best estimate from official sources of all of the following: (Elections Code 9401)
1. The average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors
The estimate shall also identify the final fiscal year in which the tax is anticipated to be collected.
2. The highest tax rate that would be required to be levied to fund the bond issue, and an estimate of the year in which that rate will apply, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors
3. The total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold
The estimate may include information about the assumptions used to determine the estimate.
For bond measures requiring 55 percent majority of the voters, the Superintendent or designee shall ensure that the text of the ballot measure includes a statement that the Board will appoint a citizens' oversight committee and that annual independent audits will be conducted to assure that funds are spent only on school and classroom
improvements and for no other purposes. (Education Code 15272)
For bond funded projects that require state matching funds, the Superintendent or designee shall ensure the sample ballot contains a statement advising the voters that the project is subject to the approval of state matching funds and, therefore, passage of the bond measure is not a guarantee that the project will be completed. (Education Code 15122.5)
Arguments in support or in opposition of the bond measure shall be submitted in accordance with Elections Code 9160-9170.
Citizens' Oversight Committee
If a bond is approved under the 55 percent majority threshold pursuant to Proposition 39 to the California Constitution, Article 13A, Section 1(b)(3) and Article 16, Section 18(b), then the district's citizens' oversight committee shall consist of at least seven members, including, but not limited to: (Education Code 15282)
1. One member active in a business organization representing the business community located within the district
2. One member active in a senior citizens' organization
3. One member active in a bona fide taxpayers' organization
4. One member who is a parent/guardian of a district student
5. One member who is a parent/guardian of a district student and is active in a parent-teacher organization, such as the Parent Teacher Association or school site council
Members of the citizens' oversight committee shall be subject to the conflict of interest prohibitions regarding incompatibility of office pursuant to Government Code 1125-1129 and financial interest in contracts pursuant to Government Code 1090-1099. (Education Code 15282)
No employee, Board member, vendor, contractor, or consultant of the district shall be appointed to the citizens' oversight committee. (Education Code 15282)
Members of the citizens' oversight committee may serve for no more than three consecutive terms of two years each. They shall serve without compensation. (Education Code 15282)
The purpose of the citizens' oversight committee shall be to inform the public concerning the expenditure of bond revenues. The committee shall actively review and report on the proper expenditure of taxpayers' money for school construction and shall convene to provide oversight for, but not limited to, the following: (Education Code 15278)
1. Ensuring that bond revenues are expended only for the purposes described in California Constitution, Article 13A, Section 1(b)(3), including 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
for school facilities
2. Ensuring that, as prohibited by California Constitution, Article 13A, Section 1(b)(3)(A), no funds are used for any teacher and administrative salaries or other school operating expenses
In furtherance of its purpose, the committee may engage in any of the following activities: (Education Code 15278)
1. Receiving and reviewing copies of the annual, independent performance and financial audits required by California Constitution, Article 13A, Section 1(b)(3)(C) and (D)
2. Inspecting school facilities and grounds to ensure that bond revenues are expended in compliance with the requirements of California Constitution, Article 13(A), Section 1(b)(3)
3. Receiving and reviewing copies of any deferred maintenance proposals or plans developed by the district
4. Reviewing efforts by the district to maximize bond revenues by implementing cost-saving measures, including, but not limited to, the following:
a. Mechanisms designed to reduce the costs of professional fees
b. Mechanisms designed to reduce the costs of site preparation
c. Recommendations regarding the joint use of core facilities
d. Mechanisms designed to reduce costs by incorporating efficiencies in school site design
e. Recommendations regarding the use of cost-effective and efficient reusable facility plans
The district shall, without expending bond funds, provide the citizens' oversight committee with any necessary technical assistance and shall provide administrative assistance in furtherance of the committee's purpose and sufficient resources to publicize the committee's conclusions. The district shall also provide the citizens' oversight committee with responses to any and all findings, recommendations, and concerns addressed in the annual independent financial and performance audits within three months of receiving the audits. (Education Code 15280)
All citizens' oversight committee proceedings shall be open to the public and noticed in the same manner as proceedings of the Board. Committee meetings shall be subject to the provisions of the Ralph M. Brown Act. (Education Code 15280; Government Code 54952)
The citizens' oversight committee shall issue regular reports, at least once a year, on the results of its activities. Minutes of the proceedings and all documents received and reports issued shall be a matter of public record and shall be made available on the district's website. (Education Code 15280)
Reports
Within 30 days after the end of each fiscal year, the district shall submit to the County Superintendent of Schools a report concerning any bond election(s) containing the following information: (Education Code 15111)
1. The total amount of the bond issue, bonded indebtedness, or other indebtedness involved
2. The percentage of registered electors who voted at the election
3. The results of the election, with the percentage of votes cast for and against the proposition
By each January 31 following a bond issuance, the district shall submit an annual report to the California Debt Investment and Advisory Commission in accordance with Government Code 8855 and as specified in BP 3470 - Debt Issuance and Management.
Policy Reference Disclaimer: These references are not intended to be part of the policy itself, nor do they indicate the basis or authority for the board to enact this policy. Instead, they are provided as additional resources for those interested in the subject matter of the policy.
State References Description
CA Constitution Article 13A, Section 1 Tax limitation
CA Constitution Article 16, Section 18 Debt limit
Ed. Code 15100-15254 Bonds for school districts and community college districts
Ed. Code 15264-15288 Strict Accountability in Local School Construction Bonds Act of 2000
Ed. Code 17577 Sewers and drains
Ed. Code 47614 Charter school facilities
Ed. Code 5322 Resolution calling election
Ed. Code 7054 Use of district property; campaign purposes
Elec. Code 1090-1099 Prohibitions applicable to specified officers
Elec. Code 1125-1129 Incompatible activities
Elec. Code 13119 Forms of Ballots; ballot order
Elec. Code 15372 Elections official certificate
Elec. Code 324 General election
Elec. Code 328 Local election
Elec. Code 341 Primary election
Elec. Code 348 Regular election
Elec. Code 356 Special election
Elec. Code 357 Statewide election
Elec. Code 53506-53509.5 General obligation bonds
Elec. Code 53580-53595.5 Bonds
Elec. Code 54952 Definition of legislative body; Brown Act
Elec. Code 9160-9170 Ballot label; support and opposition listings
Elec. Code 9400-9405 Bond issues
Gov. Code 6500-6539.9 Joint powers agreements
Gov. Code 8855 California Debt and Investment Advisory Commission
Federal References Description
17 CFR 240.10b-5 Prohibition against fraud or deceit
17 CFR 240.15c2-12 Municipal securities disclosure
Management Resources References Description
Attorney General Opinion 87 Ops.Cal.Atty.Gen. 157 (2004)
Attorney General Opinion 88 Ops.Cal.Atty.Gen. 46 (2005)
Attorney General Opinion 99 Ops.Cal.Atty.Gen. 18 (2016)
Court Decision Taxpayers for Accountable School Bond Spending v. San Diego Unified
School District (2013) 215 Cal.App.4th 1013
Court Decision San Lorenzo Valley Community Advocates for Responsible Education v. San Lorenzo Valley Unified School District (2006) 139 Cal.App.4th 1356
CSBA Publication California's Challenge: Adequately Funding Education in the 21st Century, December 2015
CSBA Publication Legal Guidelines: Use of Public Resources for Ballot Measures and
Candidates, Fact Sheet, February 2011
CSBA Publication Bond Sales - Questions and Considerations for Districts, Governance Brief, December 2012
Debt & Investment Advisory Commission Publication California Debt Financing Guide, rev. March 2022
Gov. Finance Officers Association Publication Types of Legal Counsel, Best Practice, September 2018
Management Resources References Description
Gov. Finance Officers Association Publication Selecting and Managing the Method of Sale of Bonds, Best Practice, March 2021
Gov. Finance Officers Association Publication Debt Management Policy, Best Practice, March 2020
Gov. Finance Officers Association Publication Investment and Management of Bond Proceeds, Best Practice, March 2022
Gov. Finance Officers Association Publication Selecting and Managing Municipal Advisors, Best Practice, February 2014
Gov. Finance Officers Association Publication Understanding Your Continuing Disclosure Responsibilities, Best Practice, March 2020
Gov. Finance Officers Association Publication Refunding Municipal Bonds, Best Practice, March 2019
Gov. Finance Officers Association Publication An Elected Official's Guide to Debt Issuance, 3rd Ed., 2008
Website CSBA District and County Office of Education Legal Services
Website Government Finance Officers Association
Website Municipal Security Rulemaking Board, Electronic Municipal Market Access
(EMMA)
Website California Debt and Investment Advisory Commission
Website Department of General Services, Office of Public School Construction
Website California Department of Education
Website CSBA
Cross References Description
0420 School Plans/Site Councils
0420 School Plans/Site Councils
0440 District Technology Plan
0440 District Technology Plan
0450 Comprehensive Safety Plan
0450 Comprehensive Safety Plan
1113 District And School Websites
1113 District And School Websites
1113-E(1) District And School Websites
1160 Political Processes
1220 Citizen Advisory Committees
1220 Citizen Advisory Committees
1230 School-Connected Organizations
1230 School-Connected Organizations
1330.1 Joint Use Agreements
1340 Access To District Records
1340 Access To District Records
3460 Financial Reports And Accountability
3460 Financial Reports And Accountability
3470 Debt Issuance And Management
3580 District Records
3580 District Records
6151 Class Size
7110 Facilities Master Plan
7210 Facilities Financing
7213 School Facilities Improvement Districts
9270 Conflict Of Interest
9270-E(1) Conflict Of Interest
9320 Meetings And Notices
9323.2 Actions By The Board
9323.2-E(1) Actions By The Board
9324 Minutes And Recordings