GUEST COMMENTARY -- John M.W. Moorlach

Nov. 9 is approaching quickly for registered voters in the Huntington

Beach Union High School District. To help voters decide on bond measures,

I have focused on five specific areas I believe each school district in

the county should address:

* Set-aside fund

* Maintenance budget

* Issue debt incrementally

* Detailed schedule of use of proceeds

* An independent oversight committee

After conferring with staff and advisors, and reviewing documentation,

including the General Obligation Bond Resolution included with sample

ballots, Huntington Beach Union High School District’s $123-million

ballot measure received an A grade.

The time and energy devoted by district staff to this measure shows in

the materials. I was very impressed and respectful of the ideas and

recommendation that the district has implemented in its bond measure. I

firmly believe that registered voters in the district who intend to vote

in favor of the measure can do so with the confidence that it is being

pursued with the utmost professionalism and oversight.

Here is more detail in each of these areas:

* Set aside -- Each district should dedicate funds in their annual

budgets toward future major repairs and replacements. We should not have

to see another bond ballot measure again.

The district is establishing a repair and replacement reserve. They

intend to fund this reserve at a level equal to 4% of the district’s

general fund budget by 2007 but no later than 2010, which is the strongest statement that the district’s board of trustees can make. With

so many competing interests in the annual budget, this long-term

financial commitment manifests the board responsibility to maintain and

replace its capital infrastructure.

* Maintenance budget -- The district must not jeopardize its annual

maintenance budget in order to fund the repair and replacement reserve.

The district addresses this by guaranteeing that the maintenance budget

shall always be a minimum of 2.19% of the general fund budget in

subsequent years.

* Incremental issuance -- There are many reasons for not borrowing all

the funds up front, the major being the time between initiating and

completing capital improvement projects. This may cause the district to

pay interest on idle funds, instead of on structural improvements.

Accordingly, to have a cash draw down schedule that matches the

construction time lines, it is better to issue debt over the life of the

anticipated projects.

* Use of proceeds -- The school repairs [assessment] provides specific

descriptions, including the major repairs and replacement needs, code

compliance concerns, technology upgrades and instructional classroom and

building improvements. Two architectural firms have been retained by the

district to analyze overall costs and have provided well-documented

dollar amounts associated with the needs.

Specific financial data is being withheld to prevent unnecessary debates

over where and when the funds will be directed. There is no reason to

doubt that the district will apply funds in an appropriate manner. Also,

Senate Bill 50 implements an apportionment formula for state matching

funds, providing another level of accountability.

* Oversight committee -- The independent citizens’ oversight committee,

as established in the resolution, shows a unique concern to community

inclusiveness and independence by the board of trustees. The size of the

committee will provide for a broad perspective of thought, input and

assurance to the tasks at hand. The variety of disciplines and

perspectives provided by the associations permitted to appoint members to

the oversight committee enhances the ability to obtain the collective

wisdom, experience and insight from the community as a whole.

The resolution provides for a specific charter, purpose and mission for

the committee. It also addresses appointments, terms and termination

provisions. The attention focused on this specific criterion displays a

well-planned position that reflects a team-building perspective that is

highly commended.

A pocketbook issue like this ballot measure demands a well-thought-out

and fiscally prudent plan. The diversity of input and the cooperation

with the various constituencies within the district is reflected in this

bond measure.

This one has gotten straight A’s.

John M.W. Moorlach is the treasurer-tax collector for Orange County.