By Jason Islas
Staff Writer

August 3, 2012 -- The Santa Monica-Malibu School Board voted 6 to 1 Wednesday to place a $385 million bond measure on the November ballot that would help pay for district construction costs.

The bond measure, which requires 55 percent of voter approval and could cost homeowners an average of $185 a year in taxes, would pay for repairs to district buildings as well as other infrastructure costs.

“There are concerns that with the elimination of redevelopment agencies, the City would need money for capital improvements,” said Neil Carrey, chair of the Economic Feasibility Committee.

The district had been counting on monies from a joint use agreement with the City bankrolled with Earthquake Redevelopment Funds, which ended when Gov. Jerry Brown dissolved California's 400 redevelopment agencies.

At the moment, Santa Monica High School is working on a number of capital improvement projects, including a new $54 million Science and Technology building and a $16 million project to replace several classrooms at Lincoln Middle School, District officials said.
 
Another $30 million will be needed to make improvements to buildings at Malibu High School and build a new library.

Money from a bond measure can only be used for capital improvements, as opposed to a parcel tax, which can be used for operating costs, such as salaries for administrative staff and faculty.

The Board opted not to put a parcel tax on the November ballot because after the District's Economic Feasibility Committee determined that mustering the two-thirds vote necessary would be difficult, according to Carrey.

The last bond measure, Measure BB, was approved by Santa Monica and Malibu voters in 2006 for $268 million.

“Even though we all agree that the need for operational funds is vital,” said Carrey, “Sacramento does not give money for capital improvements.”

Once a bond measure is passed by the voting public, the district is then able to borrow the amount of money -- in this case $385 million -- from the financial markets, said SMMUSD Chief Financial Officer Jan Maez.

After the rate for repayment is determined, homeowners will pay an amount “calculated on the assessed valuation of their property,” as opposed to a parcel tax which is just a flat rate applied to all properties in the City, Maez said.

The maximum rate that homeowners can pay, according to state law, is $60 for every $100,000 of value.

“The district is trying to maintain a rate of $30 per every $100,000,” said Maez.

Overall, the Board supported the measure.

“A very important component is the tech upgrades that this bond would allow,” said School Board member Oscar de la Torre.

He also added that the Board “included language in the resolution that would ensure that contracting opportunities for local businesses will expand as part of our project plan.”

Only School Board member Ralph Mechur voted against putting the measure on the ballot because he believes there should be “additional planning and preparation.”

The measure, he said, should have been put on the 2014 ballot.

“Since the Board voted to put this on the ballot,” Mechur said,” we all should be supporting it.”