School Bond (Measure SOS) Update
PVP WATCH’S CONCERNS ON SCHOOL BOND (MEASURE SOS)
PVP Watch understands and supports the need for a school bond to remedy our public schools’ deferred maintenance and aging buildings. One can visit PVPUSD schools and the needs are apparent and visible. We have summarized our concerns for our readers to consider when voting in November.
PVPUSD HAS A CREDIBILITY AND TRUST ISSUE
Preliminary results from our survey show that 70% of respondents agree that the school facilities need improvement. But overall, 64% will vote NO on Measure SOS in November. The key reasons:
They do not trust the District.
Insufficient details were provided about the project costs and priorities.
The PVPUSD board and District must earn the trust of Palos Verdes voters that bond funds will be spent appropriately and wisely.
The previous bond, Measure PV, failed in 2020 by 63% to 37% for similar reasons - voters did not have confidence in the PVPUSD board and District management. This new bond, Measure SOS, has not addressed the fundamental issues that caused voters distrust.
MEASURE SOS ISSUES
We have identified several issues with bond Measure SOS:
What has the PVPUSD board and District accomplished in the last 4 years to improve their credibility?
The list of projects associated with the bond is generic and does not show costs and priorities.
The District described the bond as a 20-year bond. We requested clarification and were told the bond would consist of a series of 4 smaller bonds to be issued between 2025 and 2032, extending the term of the bond from 20 years to 27 years. This means homeowners will pay taxes for a longer duration, maybe over 27 years.
The principal and interest for a 20-year $298 million bond at 3.75% is $522 million. The bond resolution stated the amount to be $455 million.
The District assumes home assessment values in Palos Verdes to increase by 4% annually for the next 27 years. In light of the recent landslides in Portuguese Bend, Rolling Hill Estates, Rolling Hills, Rancho Palos Verdes, and nearby areas, this assumption is uncertain.
The disclaimer on page B-1 of the resolution stated that the numbers in the bond were “projections and estimates only”, and “are not binding upon the District”. We understand that no one can forecast economic variables exactly. We prefer to see reasonable ranges quoted instead of “approximately… may vary…” etc. We would be more confident in the bond if the District describes what may be expected in favorable and unfavorable scenarios.
PVP WATCH RECOMMENDATIONS
PVPUSD must build trust with PV residents if it intends to pass any bond measure. It can start by addressing the issues listed above. In addition, consider:
Issue smaller bonds with shorter durations. Our survey shows that voters will likely support this approach. The district can demonstrate transparency and the ability to deliver on its promises with smaller bonds and still accomplish its long-term goals.
Retain an experienced project manager capable of managing complex projects of hundreds of millions in scope.
Provide a higher level of independence and authority to the citizen review committee. Authorize the committee to review and approve projects and expenses exceeding $1 million. Select a 50/50 mix of bond supporters and opponents for committee members.
Publish quarterly public reports that show the status of approved projects, costs incurred, and timing for completion approved by the project manager and the citizen review committee.
Publish bi-annual public reports that show the inflow and outflow of funds associated with the bond, and a 5-year forecast of these funds.
SUMMARY
PVP Watch agrees that our schools need funds and bonds usually make good sense. However, the board and the District must demonstrate to voters that they are diligent and transparent caretakers of the District’s funds with which they are entrusted.
If, and when, this occurs PVP Watch will support future PVPUSD District bond requests.
ACTION
We encourage our readers to carefully read the District's resolution on Measure SOS, consider the facts we have presented, and vote their preference.
Your Voice
We would like to hear your opinion on this bond. We invite you to take a 2-minute survey by clicking the link below:
https://www.surveymonkey.com/r/ZXNB97W
This survey will be closed end of datSeptember 27, 2024. No additional responses will be accepted after this date.
We would like to hear from you.
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