FAQs
Q: How are San Marino Unified School District schools doing?
San Marino Unified School District (SMUSD) is nationally and globally recognized as a leader in academics, arts, and athletics with high-quality teachers and strong academic programs that help students succeed in college and in the workforce. We are proud of our community schools, all of which have been recognized with state and national awards for excellence.
Q: What challenges are San Marino schools facing?
SMUSD is forward-thinking and values the support of our community as we work together to maintain student achievement and high-quality learning in our schools. Some San Marino schools were built over a century ago, and as a result, are aging and need basic safety, and educational updates and improvements. This past year, schools were flooded due to the heavy rains, and some classrooms didn’t have sufficient heat on some days or air-conditioning on others.
Q: How is San Marino Unified School District planning to address these issues?
To address the needs facing our schools, the SMUSD and the Facilities Advisory Committee (FAC), are working in close collaboration with LPA, a well-respected school architecture, design, and engineering expert, to assess the condition of every classroom in the District and provide long-term facilities master planning for our four schools.
Thus far, the FAC and LPA have reviewed each campus and met with parents and educators from each school site to identify specific needed facility repairs and upgrades, hear feedback, and prioritize improvements based on urgency and importance. You can review our process at any time, and see photos from our school sites by visiting our website at: https://www.smusd.us/apps/pages/FacilitiesMasterPlanning
Q: SMUSD Considering Options for Funding Repairs & Improvements
Because the State does not provide funding for facilities, our District has limited resources to maintain safe, modern learning environments. That is why the SMUSD Board of Education is considering all options for locally-controlled funding to update our schools and continue our tradition of excellence in education. While no decisions have been made, one option being considered is a General Obligation (GO) bond, which would not increase local taxes, but simply extend the current rate for as long as bonds are outstanding.
Any measure considered would be subject to strict fiscal accountability including ensuring that every dollar would only be used in SMUSD schools, public disclosure of spending, annual audits, and independent citizen oversight.
Q: Specifically, what could this bond measure do?
If passed, this locally controlled funding could be used to:
- Modernize classrooms, labs, and technology to support college and career readiness
- Repair classrooms to fix damaged ceilings, leaky roofs, and electrical systems
- Address and prevent flood damage, including fixing outdated plumbing
- Upgrade fire safety, security cameras, heating and air conditioning, and ensure safe drinking water
Q: How much would a proposed bond measure cost?
Without increasing tax rates, any proposed bond measure would extend the current rate previously approved by voters at $60 per $100,000 of assessed (not market) valuation for as long as bonds are outstanding. The assessed value is based on the original purchase price of a home and is often lower than market value, particularly for those residents who have owned their homes for a long time.
Q: How do I know funds would be used responsibly?
Any proposed bond measure would include fiscal accountability protections:
- All money raised would stay local and be spent in San Marino Unified School District to support our students
- No funds could be taken away by the State or spent in other districts
- By law, no money from any bond measure could be used for administrators’ salaries or benefits
- It would require a clear system of accountability, including a Citizens’ Oversight Committee and independent audits to ensure the money is spent properly
Q: I don’t have children attending local schools. How does this impact me?
Even if you don't have children attending local schools, investing in quality education yields benefits for the entire community. Well-maintained and high-performing schools enhance local property values and prepare the next generation of leaders, innovators, and workers essential to our community's growth.
Q: What level of support does a potential bond measure need to pass?
A potential measure would need to be supported by 55% of voters for it to pass. If placed on the November 2024 ballot, all registered voters living in the San Marino Unified School District would be eligible to vote on the measure.
Q: More Information and Feedback
SMUSD values and respects the input of our San Marino community and welcomes feedback and questions as we explore all options to update and modernize our local schools. Planning for the future of our schools is a community-wide endeavor. If you have questions or input that you would like to share, please don’t hesitate to reach out to Dr. Michael Lin (626-299-7000 x1390). To learn more, please visit our website at https://www.smusd.us/apps/pages/FacilitiesMasterPlanning
At the time of each bond issuance, the bond financing team works with District staff to determine the appropriate amount and timing of each bond series. A general guiding timeframe for determining the project amount is 2-3 years of expenditures as the IRS requires at least 85% of tax-exempt bond proceeds to be spent within 3 years. The District facilities team will have a sense of the project cashflow expenditures during this 2-3 year timeframe and that informs the sizing of the current bond issuance (and when the subsequent issuance will be sold and that estimated amount).
Q: How is the bond sale process executed to ensure the bonds can be repaid in the required time frame without exceeding the collection limits required by Prop 39?
The bond amortization schedule is determined by a few financing constraints: (1) the issuance amount (informed by the estimated spending need (generally for a 2-3 year period) within IRS guidelines), (2) the financing term (a function of the useful life of the project to be financed (i.e. longer financing terms for longer life projects like classrooms vs shorter terms for shorter life projects like technology in adherence with IRS useful life rules), (3) tax rate limits ($60 per $100,000 of assessed value under Proposition 39), (4) interest rates achieved on the financing (function of overall market environment and District credit ratings, among many other factors) and (5) projected assessed valuation growth. Because the annual tax rate is approximately calculated as annual bond debt service divided by that year's assessed valuation, conservative assessed value growth projections are critical to ensuring tax rate limits are not exceeded. Additionally, the Los Angeles County Auditor-Controller builds in an assumption of property tax delinquencies in calculating its tax rates and this deliquency factor is accounted for. So a bond financing will be structured to deliver the needed bond proceeds and based on the then-current interest rate environment, the bonds are structured such that the amortization (when divided by projected assessed valuations) will be projected not to exceed tax rate limits.
Q: How are the previous two points affected by a change in interest rates, and how does this impact projects?
Bond interest rates are only fixed for each series of bonds when that series is sold to investors. As such, there is uncertainty of the future rate environment in which each series of bonds will be sold. Similar to how facilities plans build in an amount for contingencies, when bond programs are prepared they are built under the assumption of higher than market interest interest rates and more conservative than historical assessed valuation growth. At the time of each bond sale, the District's project needs, interest rate environment and assessed valuation data are analyzed to size the amortization and structure of the bond series. If interest rates are lower than projected, either (a) more proceeds than anticipated could be accessed sooner, (b) a lower tax rate than anticipated could be projected or (c) a shorter financing term than anticipated could result. If interest rates are higher than projected, in order to maintain tax rate limits, either (a) less bond proceeds could be accessed than anticipated on a certain schedule or (b) a longer financing term (still within IRS guidelines) may be necessary to account for higher annual interest costs.
