State Supreme Court Denies Petition for Review of Court of Appeal Decision in Borikas et al. v. Alameda Unified School District

On Wednesday, June 12, the California Supreme Court denial of review was filed. This denial leaves in place the Court of Appeal’s decision, which reversed in part and affirmed in part the trial court ruling in favor of the Alameda Unified School District. That decision, which is now final, validated parts of the former Alameda School District parcel tax.  It also directed the trial court to declare invalid parts of the voter approved Measure H that taxed large commercial and industrial property at a different rate than smaller commercial properties. Although reversing the trial court decision that favored the school district, the Court of Appeal ordered, “Each party to bear its own costs on appeal.”

The case will now return to the original trial court to determine whether to order the School District to refund some or all or none of the tax revenues collected from Borikas et al. during the three years Measure H was in effect (2008-2011).  Alameda eliminated its flat tax before the case was heard.  It replaced Measure H with a square foot tax on all properties (Measure A), in March 2011.

Read about Court of Appeal decision.

Read about the current Alameda square foot parcel tax.

PIEDMONT UNIFIED SCHOOL DISTRICT PRESS RELEASE
May 10, 2013

Application Process for Taxpayer Exemption from
School Support Tax for 2013-14 Fiscal Year

(Applicant must receive SSI/Disability) On March 5, 2013, voters in Piedmont passed Measure A which establishes a School Support Tax. This allows the possibility of exemption for those homeowners who reside on their property and qualify for Supplemental Security Income (SSI). Homeowners interested in applying for an exemption must apply in person or by mail to the Office of the Superintendent, Piedmont Unified School District, 760 Magnolia Avenue, Piedmont, CA 94611. To apply, homeowners must submit proof of their SSI determination in the form of their annual notification of eligibility sent by the Social Security Administration. The deadline for application for the 2013-14 fiscal year is 4:00 p.m. Monday, July 1, 2013. For any questions regarding this process, please contact the Assistant to the School Superintendent at 510-594-2614.

The language of Measure A, Administration of Tax, Section(d) Parcel Tax
Exemptions reads as follows:

Homeowners who are residing on their property and qualify for
Supplemental Security Income (SSI) may be exempt. This could
apply to adults who are blind or otherwise disabled, with limited
income and resources, as well as to people 65 years of age and
older without disabilities who meet the income limits prescribed by
SSI. Individuals seeking such exemption must submit an application
to the District, including proof that the individual has been
determined to be eligible for SSI by the Social Security
Administration, on or before July 1 of each tax year. The District
shall provide a list to the Tax Collector on an annual basis, on or
before a date established by the Tax Collector of each year, of the
parcels which the District has approved for the SSI Exemption, as
described herein.

The amount of the School Support Tax is $2,406 per parcel regardless of zone.  Applications must filed in a timely manner on or before July 1 of each tax year.  According to public comments regarding the March 2013 Measure A election, few homeowners in Piedmont will qualify for the exemption.

Local Control Funding Formula (LCFF), Governor’s May Budget Revise, and Shaping Our Future are on the agenda.

The Budget Advisory Committee meeting will be held Thursday, May 23,  3:30 – 5:00 p.m. in the Piedmont Unified School District Office Board Room at 760 Magnolia Avenue.   The Budget Advisory Committee is under the direction of the Superintendent.  The members of the Committee have not been announced.  There will be no broadcast of the meeting, but the public may attend and participate in the meeting.

The Measure A School Support Tax Subcommittee members will be selected from the  Budget Advisory Committee members.  According to the tax measure, the Subcommittee is responsible for advising the School Board annually on the need for levying the Measure A parcel tax.

If an additional meeting is deemed necessary, it will be held on June 6 at the same time and location.

“The Program/ Budget Advisory Committee is a standing committee with representatives from all stakeholders in the District. Its purpose is to review the District’s Budget, share the information with constituent groups and generate recommendations for Board consideration in the Budget development process. Members will be asked to serve in rotation for a one to two year cycle. Responsibilities will include attendance at meetings and sharing of information with their representative group and to represent the interests of all programs and services for the District as a whole.

The Budget is fluid and therefore under constant “revision” as revenues and expenditures are clarified. The Program/Budget Advisory Committee is a vehicle to disseminate information to as many parents, students, staff and community members as possible. The Committee is advisory in nature and will not have decision-making responsibilities.”

For further information or comments contact: 

Superintendent Constance Hubbard, chubbard@piedmont.k12.ca.us

Sandy Spiker, Adm. Asst. to Supt., sspiker@piedmont.k12.ca.us, 594-2614

 ~~~~~~~~~~

School Board Members:

Richard (Rick) Raushenbush, President, rraushenbush@piedmont.k12.ca.us

Andrea Swenson, Vice President, aswenson@piedmont.k12.ca.us

Sarah Pearson, spearson@piedmont.k12.ca.us

Ray Gadbois, rgadbois@piedmont.k12.ca.us

Roy Tolles (E. Leroy), rtolles@piedmont.k12.ca.us

School Board Acts on Outstanding School Bonds – 

Repayment options for Bond Anticipation Notes (BANs) were considered by the School Board at its May 8 meeting, and use of funds for modernization needs was deemed to be the best option.

Superintendent Hubbard explained that the Bond Appreciation Notes (BANs) held by the District must be converted to bonds by 2015, and now is the earliest opportunity to do this; furthermore, it is the best time to convert while interest rates are low.  She noted the need to determine whether to set aside any modernization funds to pay down interest on the notes prior to the issuance of the bonds so the total amount to be financed can be determined.

Assistant Superintendent Brady noted $56 million in bond debt was approved by voters under the Seismic Safety Bond Program. The District structured the debt very carefully, working with Kelling, Northcross and Nobriga (KNN) on how to secure the money while remaining compliant with the law.  The money was borrowed in “pieces” as it was needed.

Ruth Alahydoian of KNN explained that the $12 million in BANs have a five-year term and must be repaid in 2015, but can be repaid now.  She presented a chart showing the bonds issued and their maturity and repayment ratio (the ratio of debt service vs. principal borrowed).  She showed that without counting the BANs, the repayment ratio is 1.82:1, which according to her was favorable; by comparison the repayment ratio for a 30-year mortgage is 2.0:1.

According to the draft May 8 School Board minutes:

Bond repayment needs to be payable based on the tax rate and cannot exceed $60 per $100,000 A.V. (assessed property value). The State Senate is reviewing Assembly Bill 182, which has passed the House. This legislation was written in response to some school bonds that had extreme repayment ratios and repayment periods as long as 40 years. The key provisions of AB 182 are to limit bond repayment to 25 years and maximum interest rates to 8%, to limit the ratio of debt service to principle for each series of bonds to 4:1, and to make CABs (Capital Interest Bonds) callable in 10 years. If it passes the Senate, AB 182 will not go into effect until December, 2013, and will provide waivers for districts such as Piedmont, which issued CABs under a different set of circumstances.

Ms. Alahydoian reviewed the options for the district.

Option 1 is to issue CABs at current interest rates. Interest on these CABs is paid as older bonds are paid off; the sooner a CAB is paid off, the less interest is owed. Although they would mature in 25 to 40 years, chances are they would be refinanced. At current rates, the repayment ratio under this option would be 5.6:1.

Option 2 is to use approximately $1.7M of the modernization funds on hand to cover accrued interest and reduce the overall cost of the
CABs. This would result in a repayment ratio of 4.04:1.

Option 3 is more complicated, though it could be a very viable alternative: to restructure already issued bonds (Series A & B) along with the BAN replacement (Series E). This is not a perfect scenario as the repayment period is more than 25 years and the District would have to reissue some CABS, but it would reduce the repayment ratio to 4.26:1 and might help the District over the long term. This only makes sense if it would result in lower interest rates for Series A & B bonds.

Ms. Alahydoian does not anticipate any issue exceeding debt capacity, which is 2.5% of total assessed property value. The District is well within its debt capacity. As debt is paid down, capacity grows even if assessed value does not. The assumption is also that property values will grow over time at a 5% average, due to approximately 2% in annual increases and additional property being taxed.  Resolutions are scheduled to be  brought back to the Board at the next meeting (or subsequent meeting) to approve issuance of Series E Bonds for replacement of the BANs and to approve refunding (for the purpose of restructuring) of Series A & B bonds.

Board Member Ray Gadbois noted that if some of the modernization money is used to pay down the interest, it will not result in a substantial reduction to taxpayers for 20-25 years and will reduce the District’s ability to perform modernization projects currently under consideration. He summed up the Board’s opinions by stating converting the BANs to bonds as quickly as possible since interest rates are likely to rise and in the event interest rates go down, they can be refinanced. In regard to Option 2 (paying down the debt with the $1.7M), taxpayers would see no benefit for a long time because of the bond structure; we are unlikely to get more modernization money from the State, and we have modernization needs that will benefit students and the community now and in the long term; therefore it makes sense to use the $1.7M on modernization projects.

Superintendent Hubbard will ask Ruth Alahydoian to prepare two resolutions: one for sale of the BANs as soon as possible and one to structure the sale to include refinancing of Series A and B bonds. The sale will not include any use of the modernization funds, which will be retained for identified school modernization projects,  rather than repaying existing bonds.

Public Misses Out on Background of Issues –

Public meetings in Piedmont must meet the California Brown Act, known as a “sunshine” law. The City of Piedmont and the Piedmont Unified School District regularly provide required notice and agendas of meetings, and most City Commission, School Board, and City Council meetings can be viewed by the public at home via KCOM or live streaming through the City’s website.  These meetings are informative and important to public policy decisions.

A number of other public meetings, however, are not broadcast, primarily because the City Council Chambers at City Hall is the only public space equipped for KCOM broadcast.  Additionally, for some meetings, there are no minutes taken, audio recordings, or records kept.  Nonetheless, recommendations arising from these meetings often are the foundation of decisions by the City Council and the School Board.

Brown Act qualifying meetings typically not recorded or broadcast are:

City Budget Advisory and Financial Planning Committee

The Budget Advisory and Financial Planning Committee was formed by the City Council to review and provide comment on five year projections contained in the City’s annual budget proposal, the proposed funding and expenditures from several long term funds, and the proposed mid-year budget adjustments. It also provides a financial review of new programs in excess of $250,000 per year. Click here to read the committee’s charge.

Council Liaison: John Chiang (H) 655-2959

Members: Mary Geong, Steven Hollis, Bill Hosler, Tom Lehrkind, Tim Rood

City CIP (Capital Improvement Projects) Review Committee  –

The CIP Review Committee makes recommendations to the City Council regarding the expenditure of the capital budget (construction, repair or rehabilitation of city facilities).

Council Liaison: Robert McBain (H) 547-0597
Staff Liaisons: Chester Nakahara (W) 420-3061 & Mark Feldkamp (W) 420-3064

Members: John Cooper, Ryan Gilbert, Nancy Lehrkind, Jeffrey St. Claire

City Council Budget Work Session –

The City Council meets with the City staff and discusses the staff proposed budget for the coming fiscal year. Summary minutes are approved by the City Council. 

Council: Mayor John Chiang, Vice Mayor Margaret Fujioka, Council members, Garrett Keating, Jeff Weiler, and Bob McBain

School District Budget Advisory Committee –

Under the direction of the Superintendent, a Program/Budget Advisory Committee reviews the financial health of the District’s General Fund budget, shares information with constituent groups, and makes recommendations for Board consideration in the budget development process. Members of the committee include representatives from each school site, employee associations (APT for teachers and CSEA for classified staff), administration, support groups, the community at-large, and the Board of Education. Members serve for one to two years. Those interested in serving on the standing committee should contact the Superintendent’s office.

List of members are not publicly released.

School Support Tax Advisory Subcommittee –

The committee  was required to be established by approval of  the SCHOOL SUPPORT TAX MEASURE A, MARCH 5, 2013 ELECTION.  This is a new committee and therefore has no  broadcast or recorded history.

The Subcommittee is an independent subcommittee of the PUSD Budget Advisory Committee (“BAC”). The BAC serves as a community forum for interested community members to receive up-to-date information about the District’s budget. All stakeholder groups, including the Parent and Support Clubs, Employee Associations (APT, CSEA and APSA), Piedmont Educational Foundation, and the community at large, are invited to participate in the BAC.

Members of the Subcommittee shall be active members of the BAC so that they will have current information and understanding of the District budget. However, the Subcommittee will operate independently of the BAC and report directly to the Board of Education.  In addition to the budget information provided to the BAC, the Subcommittee may request additional information relating to the budget or School Support Tax from the Assistant Superintendent for Business Services, who will be the primary point of contact for the Subcommittee.

The Subcommittee shall serve in an advisory capacity to the Board of Education to help review and project the financial needs of the PUSD with respect to the levy of the voter approved School Support Tax. The Subcommittee shall conduct an independent examination of the District’s budget and related documents prior to making formal recommendations in its annual report to the Board.

The scope of work for the Subcommittee shall be limited to advice on whether and to what extent to levy the School Support Tax.

At this time appointments to the Subcommittee have not been made.

Procedures to be followed for Brown Act qualifying City and School meetings include:

Agendas and notices:

Legislative bodies of local agencies covered by the Brown Act must post an agenda for their meetings in a place that is freely accessible to members of the public at least seventy-two hours before the meeting. It also requires the legislative body to mail a copy of the agenda to anyone who has requested notice in writing. (A fee may pertain.)

Documents used during a meeting:

All public participants are entitled to inspect any writing or document distributed to members during a meeting. If a document was prepared by the governmental body itself, you are entitled to inspect it at the time of the meeting. If a document was prepared by someone else, you are entitled to inspect it after the meeting.

Documents distributed to a legislative body:

Distributed documents including emails, letters, memos, staff reports, consultant reports and other written methods are available to the public when requested.

 

The Piedmont School Board will meet on Wednesday, May 8, starting at 7:00 p.m. in the City Council Chambers.

A number of  important issues are on the agenda: consideration of repaying the District’s Bond Anticipation Notes and the District modernization programs, new world language text books, teacher contract negotiations, and awards.

For more information click on the following:

Staff reports for the meeting.

Agenda

The Piedmont School Parcel Tax Advisory Committee will hold its final meeting on Friday, April 26, at 4 p.m.  in the Piedmont Unified School District Administration Office, 760 Magnolia Avenue, Piedmont.

 Since the current school parcel taxes Measures B and E are being replaced by the recently approved Measure A (approved by Piedmont voters in March 2013), the Advisory Committee, which was appointed by the School Board in 2009, has completed its charge, and its members will no longer serve.

Aside from the agenda below, no staff reports have been provided, and the meeting will not be videotaped or broadcast on KCOM.  Interested individuals must attend the meeting in person to hear the discussion. 

AGENDA

A. Call to Order Chair Ken Jensen

B. Establish Quorum (at least 4 members) Chair

C. Introduction / Welcome Chair / All

D. Approval of Minutes of Meeting of 12/11/2012 Chair/ All

E. Remarks by the Superintendent Constance Hubbard

F. Final Comments by Members of the CAC Chair/All

a. Chair Ken Jensen

b. Former Chair Jon Elliott

c. Other members of CAC

F. [G.] Discussion of 2013 CAC Report Content Chair / All

G. [H.] Adjournment Chair

• Draft Minutes for meeting of 12/11/2013 (to be handed out at meeting)

Teacher Contract Openers, Measure A Tax Review Subcommittee, Modernization Plans, Next Year School Calendar – all on agenda – 

The Piedmont Unified School District Board will consider the following items, among others, at its April 10 meeting in City Council Chambers, 120 Vista Avenue, starting at 7:00 pm.
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