An election will be held in the Gavilan Joint Community College District (the “District”) on November 6, 2018, to authorize the sale of up to $248,000,000 in bonds of the District for the projects described in the bond measure. If such bonds are authorized, the District expects to sell the bonds in one or more series.
Principal and interest on the bonds will be payable only from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with sections 9400-9404 of the California Elections Code. Such information is based upon assessed valuations available from official sources and projections based upon experience within the District, and other demonstrable factors. Based upon the foregoing, the following information is provided:
(1) The best estimate from official sources of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on estimated assessed valuations which are projected based on experience within the District or other demonstrable factors, is $0.023 per $100 of assessed valuation ($23 per $100,000 of assessed valuation). The final fiscal year in which the tax is anticipated to be collected is Fiscal Year 2052-53.
(2) The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue, based on estimated assessed valuations which are projected based on experience within the District or other demonstrable factors, is $0.025 per $100 of assessed valuation ($25 per $100,000 of assessed valuation). The estimated year in which that rate would apply is Fiscal Year 2019-20.
(3) The best estimate from official sources of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is $472,870,026 ($248,000,000 of principal and $224,870,026 of interest). This estimate is based on assumptions regarding future interest rates and the term, timing, structure and amount of each series of bonds.
Voters should note that such estimated tax rates are specific to the repayment of bonds issued under this authorization and are and will be in addition to tax rates levied in connection with other bond authorizations approved or to be approved by the District or any other overlapping public agency.
Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on official tax rolls of Santa Clara County and San Benito County, not on the property’s market value. Property owners should consult their own property tax bills to determine their property’s assessed value and any applicable tax exemptions.
Attention of all voters is directed to the fact that the foregoing information is based upon the District’s projections and estimates only, which are not binding upon the District. The actual tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The dates of sale and the amount of bonds sold at any given time will be determined by the District based on need for construction funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of each sale. Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined by the Santa Clara County Assessor and the San Benito County Assessor in the annual assessment
and the equalization process.
Dated 7/24/18, signed by:
Vice President, Administrative Services
Gavilan Joint Community College District