School Board OKs Bond Measure on Fall Ballot

With a unanimous vote, the Newark Unified Board of Education authorized the district to call for an election asking voters to approve the issuance of bonds totaling up to $63 million.

The approval came during a special board meeting held Tuesday night in which consultants recommended the go forward with placing a bond measure on November’s ballot.

All board members were present at the meeting.

TBWB Strategies partner Charles Heath maintained his confidence that Newark voters would likely approve a bond measure based on the consultant firm’s analyses.

The results included a poll conducted by Godbe Research that found 61 percent of voters would vote "yes" on a school bond measure.

If approved, the district can, according to the ballot’s text:

“update aging classrooms, libraries, and science labs to meet earthquake/fire/safety standards; improve access for students with disabilities; remove asbestos, lead and hazardous materials; and improve energy/operational efficiency to maximize funding for instructional programs; by issuing $63 million in bonds at legal rates, with independent oversight, no money for administrators’ salaries, and all funds staying in Newark.”

As part of the consultant firms' studies, an architectural firm has identified approximately $152 million in needed facility upgrades.

Once upgraded, the district could potentially save up to $500,000 a year “through energy, maintenance and operational efficiencies,” according to TBWB Strategies. Those savings would benefit the district’s general fund.

Heath said Tuesday the district has the ability to issue between $55 million and $63 million in bonds, based on a tax rate of $39 per $100,000 assessed value. The range is based on the assumption of annual growth in assessed values of 3.5 percent to 4.5 percent.

An assessed value is the dollar value of a property for tax assessment purposes, not necessarily its current market value, which Heath said is often higher than the assessed value.

During a , Janice Peters of KNN Public Finance noted that in the past decade, Newark averaged an annual growth in assessed values of 4.26 percent.

The 4.5 percent represents an annual growth in assessed values that includes the proposed addition of 1,200 homes to be built in the city’s development area off of Stevenson Boulevard, which was approved by the City Council in 2010. (Area 2, better known as the , has yet to be approved.)

The board’s decision came after public comments that asked for more time to decide on whether the school district should seek a bond issuance.

“What I’m asking for is, you have new people sitting [on the management team]. Let us get to know them. Let us get to trust them. Let the economy recover. Give us another year,” said resident Cindy Parks, whose children attended Newark schools.

But while resident Margaret Jean Mikel said she was skeptical at first, she expressed support of the measure during public comment. She said after meeting with Superintendent Dave Marken, she felt this was one way the district and Newark can rebuild the schools’ stature.

“We’re going to have to work. We’re going to have to be positive… We have no choice,” she said. 

Board President Charlie Mensinger said while he has heard both favorable and opposing arguments for the measure, pursuing a bond measure allows the district to have an “influx in revenue” so they can reduce cuts.

“We can complain. We can be negative, but in the end, this is about the kids. This is about our schools. We are desperate right now,” Mensinger said. “We haven’t made these cuts without deep consideration… we made them because we had to."

All board members echoed this sentiment, and board member Jancis Schaefer added that each cut has been painful.

“We know what every cut represents. We know Sacramento will never come to our aid,” Schaefer said. “People know what they want here … The question is: Do we want to [pass a bond measure]?”

A bond measure needs 55 percent voter approval to pass.

Going forward, the campaign for the measure will be the responsibility of an independent team made up of volunteers. That team has yet to be formed. No public funds can go toward campaigning for the bond issue.