Duarte Unified approves $10 million Series C draw from Measure S, authorizes CEQA work and related contracts

The Duarte Unified School District Board of Education on Tuesday approved a $10 million draw from the voter-approved Measure S general obligation bond and authorized related environmental review and program contracts, voting unanimously to move the bond sale and supporting actions forward.

The board's action included a resolution authorizing the issuance of Duarte Unified School District Election of 2020 General Obligation Bond Series C; approval of an amendment to a CEQA contract with Michael Baker International for environmental review work; and acceptance of the annual Measure E and Measure S bond program audits for fiscal year 2023–24. The board also approved a services agreement with Enlighten for planning the early-childhood classroom relocation tied to bond-funded campus upgrades.

Financial adviser Jin Kim, appearing with the district’s bond team, told the board the Series C draw would cover remaining costs for a planned relocation of the district’s child development program and related facilities work. “We’re planning to take $10,000,000 this time around, which will maintain or keep $13,000,000 of remaining authorization for you,” Kim said, noting prior Measure S draws of $30 million and $26 million. Kim reiterated that the $79 million Measure S authorization approved by voters results in taxes only on amounts issued, not on the full authorization.

Nut graf: The vote clears the district to begin the bond sale process for Series C and to proceed with required environmental review and contracts so construction and relocations tied to Measure S can move forward. The board also accepted independent audits showing no findings for Measures E and S for the most recent fiscal year.

Board members raised questions about tax-rate planning, uses of bond funds, and administrative costs. Kim and the district’s legal counsel explained the maximum tax levy and Prop. 39 restrictions on bond spending: bond proceeds cannot pay teacher salaries, pensions or routine operations, and may only fund projects authorized by the ballot. Nick Heuer, the bond attorney present, summarized guidance on administrative salary charges to bond projects under Proposition 39 and an attorney general “but-for” test: if an employee would not have performed an activity but for the bond project, a portion of that employee’s time may be eligible as a bond administrative cost.

Board President Finley, Board Member Diaz and others asked about the district’s assessed-valuation assumptions and the $60 per $100,000 maximum tax rate included in the bond authorization. Kim said the district uses a 4% assessed-valuation growth assumption for planning and that the district will seek premium proceeds at sale if needed to reduce tax impacts.

The board approved the items with recorded unanimous votes. Motion language and outcomes as recorded in the meeting minutes: the CEQA amendment and related environmental analysis were approved prior to plan submission to DSA; the Series C bond resolution authorizing issuance passed; and the Measure E and Measure S audit reports for FY 2023–24 were accepted, each by 5–0 roll call. The Enlighten services agreement for planning the early-childhood classroom relocation also passed 5–0.

Ending: With the board's approvals completed, staff and the district’s bond team will proceed to a credit-rating process, finalize legal documents and conduct the nationwide sale of Series C bonds; proceeds will be deposited with Los Angeles County to be used on authorized projects. The board scheduled further planning presentations and a site walk-through so trustees and the public can review proposed campus layouts before final construction approvals are requested.