NEW ISSUE Ratings: Moody's: Aaa Standard & Poor' s: AAA (See "BOND INSURANCE" and "RATINGS" herein) OFFICIAL STATEMENT DATED JULY 9, 1991 In the opinion of Rutan & Tucker, Costa Mesa, California, Bond Counsel, based on existing statutes, regulations, rulings and court decisions, interest on the Bonds is exempt from present California personal income taxes, and assuming compliance with certain covenants described herein, interest on the Bonds is excluded fromgross income for federal income tax purposes. Bond Counsel is further of the opinion that interest on the Bonds is not includable as an item of tax preference for purposes of computing the alternative minimum tax for individuals and corporations. Prospective purchasers should be aware, however, that interest on the Bonds is subject to inclusion for certain other income tax purposes. See "Tax Exemption" herein. MURRIETA VALLEY UNIFIED SCHOOL DISTRICT Riverside County, California $19,250,000 General Obligation Bonds Election 1989, Series B Dated: July 15, 1991 Due: September l, as shown below The Bonds are being issued under provisions of Title 1, Division 1, Part 10, Chapter 2, of the State of California Education Code, commencing with Section 15000, and pursuant to a resolution of the Board of Supervisors of Riverside County, adopted on June 25, 1991. The proceeds of the Bonds will be used to financethe construction of high school facilities. Interest on the Bonds will be payable semiannually on March 1 and September 1 of each year commencing on March 1, 1992. The Bonds will be delivered as fullyregistered Bonds in the denomination of $5,000each or any integral multiple thereof. Principal installments of the Bonds are payable at the corporate trust officeof Bank of America, NT&SA, San Francisco, California, Registrar/Transfer/Paying Agent ("The Paying Agent"). Interest on the Bonds is payable by check mailed to the registered owner or by wire transfer to owners of $1,000,000 or more par amount of the Bonds. The Bonds are subject to redemption prior to maturity as described herein. The Bonds are general obligations of the Murrieta Valley Unified School District (the "District"). The Riverside County Board of Supervisors has the power and is obligated to levy ad valorem property taxes for the payment of the Bonds and the interest thereon upon the property within the District. The payment of the principal of and interest on the Bonds when due will be insured by a municipal bond insurance policy to be issued by FGIC simultaneously with the delivery of the Bonds.
Service mark used by Financial Guaranty Insurance Company, a private company not Financial Guaranty Insurance Company affiliated with any U.S. government agency.
MATURITY SCHEDULE Bonds Bonds Maturing Principal Interest Maturing Principal Interest September l Amount Rate Yield September I Amount Rate Yield 1992 $ 90,000 9.25% 4.75% 2002 $ 900,000 6.40% 6.40% 1993 100,000 9.25 5.20 2003 1,075,000 6.40 6.50 1994 150,000 9.25 5.45 2004 ],150,000 6.50 6.60 1995 300,000 9.25 5.65 2005 1,175,000 6.50 6.65 1996 500,000 9.25 5.85 2006 l,255,000 6.60 6.70 1997 615,000 9.25 6.05 2007 1,510,000 6.60 6.75 1998 670,000 9.25 6.20 2008 1,525,000 6.70 6.80 1999 700,000 9.25 6.30 2009 1,780,000 6.75 6.85 2000 760,000 8.00 6.40 2010 1,980,000 6.80 6.90 2001 820,000 6.30 6.30 2011 2,195,000 6.25 6.90 The Bonds are offered when, as and if sold, authenticated and delivered, subject to the approval as to their legality by Rutan & Tucker, Costa Mesa, California, as Bond Counsel. It is anticipated that the Bonds in definitive form will be available for delivery in Costa Mesa, California, on or about July 23, 1991.
Dated: July 9, 1991 (This page intentionally left blank) MURRIETA VALLEY UNIFIED SCHOOL DISTRICT, CALIFORNIA County of Riverside, California
BOARD OF TRUSTEES
Austin Linsley, President David M. Hutt, Member Patty Julian, Member Evelyn Henning, Member James Keown, Member
RIVERSIDE COUNTY BOARD OF SUPERVISORS
Walt A bra ham, First District Melba Dunlap, Second District Kay Ceniceros, Third District Patricia Larson, Fourth District A. Norton Younglove, Fifth District
SCHOOL DISTRICT STAFF
Charles van de Wetering, Superintendent• Dr. Tate Parker, Superintendent•• Dr. Roland Werner, Assistant Superintendent for Business Services Thomas Tooker, Assistant Superintendent for Facilities Services Dr. Arvo Toukonen, Assistant Superintendent for Personnel Services
BOND COUNSEL
Rutan & Tucker Costa Mesa, California
REGISTRAR/TRANSFER AGENT /PAYING AGENT
Bank of America, NT&SA San Francisco, California
SPECIAL SERVICES
Community Systems Associates, Inc. Anaheim, California
FINANCIAL ADVISOR
Fieldman, Rolapp & Associates Irvine, California
* Retiring as Superintendent June 30. 1991. ** Superintendent as of July l. 1991. No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representations other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the District. This Official Statement does not constitute an off er to sell or the solicitation of an offer to buy nor will there be any offer or sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an off er, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts.
The information contained in this Official Statement has been prepared for the District under the direction of Fieldman, Rolapp & Associates, financial advisors to the District. The information set forth herein has been obtained from official sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness. The information and expression of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the District since the date hereof. All summaries are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provmons. Reference is hereby made to such documents on file with the District for further information in connection therewith.
The Official Statement is submitted in connection with the sale of the Bonds ref erred to herein and may not be reproduced or used, in whole or in part, for any other purpose.
This Official Statement has been deemed final by the District pursuant to Rule l 5c2-12 of the Securities and Exchange Commission promulgated under the Securities Exchange Act of 1934, as amended, except for information which is permitted to be excluded from the Official Statement under said Rule 15c2-12.
The District shall deliver, at closing, a certificate executed by an authorized representative of the District to the effect that as of the date of delivery the information contained in the Official Statement, and any addendum to the Official Statement relating to the District and the Bonds, is true and correct in all material respects, and that the Official Statement does not contain any untrue statement of a material fact, or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made valid.
ii TABLE OF CONTENTS
INTRODUCTION
Secured Property Tax ...... 1 Unsecured Property Tax ...... 2
THE BONDS
Authority for Issuance ...... 3 Amount and Purpose of the Bonds ...... 3 Description of the Bonds ...... 3 Optional Redemption ...... 4 Notice of Redemption ...... 5 Registration, Transfer and Exchange ...... 5 Mutilated, Destroyed or Stolen Bonds ...... 6 Estimated Sources and Uses of Proceeds ...... 7 Debt Service Table ...... ,...... 8
THE RESOLUTION
Funds and Accounts ...... 9 Investment of Funds and Accounts ...... 10
THE PROJECT
Project Description and Cost Estimate ...... 11 Estimated Project Costs ...... 12
MURRIETA VALLEY UNIFIED SCHOOL DISTRICT
General ...... 13 Management ...... 13 District Growth ...... 15 Second Month Population and Enrollment ...... 15 Projected School District Enrollment (K-I 2) ...... 17 Projected Required Facilities ...... 17 High Projection Estimated Enrollment ...... 18 Low Projected Estimated Enrollment ...... 19 Estimated Cumulative Schools Per Year...... 20 Employee Relations ...... 21 Retirement System ...... 21 Insurance ...... 21
iii DISTRICT FINANCIAL INFORMATION
District Budget and Financial Statements ...... 22 Statements of Revenues, Expenditures and Changes in Fund Balances ...... 23 Accounting Practices ...... 24 Sources of District Revenues ...... 24 Average Daily Attendance and Base Revenue Limits ...... 25 Secured Tax Levies and Delinquencies ...... 26 Assessed Valuation and Tax Rates ...... 27 Ten Largest Landowner Taxpayers ...... 27 District Obligations ...... 28 Outstanding Borrowings and Long Term Lease Obligations ...... 28 Direct and Overlapping Bonded Debt ...... 28
CONCLUDING INFORMATION
Tax Exemption ...... 30 Constitutional Tax Limitation ...... 30 Constitutional Limitation on Government Spending...... 31 Certain Legal Matters ...... 31 Covenants of the District Regarding Arbitrage and Rebate ...... 31 Absence of Litigation ...... 31 Insurance and Ra ting ...... 32 Additional Information ...... 32
APPENDIX A
General Economic Data
APPENDIX B
Form of FGIC Bond Insurance Policy
iv I KERNCOUNTY ������-,_. LOS ANGE LES COUNT' I
San Bernardino *
<;AN BERNAROINO CO �N�
Rancho California
RIVERSIDE COUNTY
SAN DIEGO COUNTY
0
Escondido
MURRIETA VALLEY UNIFIED SCHOOL DISTRICT LOCATION MAP
v (This page intentionally left blank) $19,250,000
MURRIETA VALLEY UNIFIED SCHOOL DISTRICT Riverside County, California General Obligation Bonds Election 1989, Series B
INTRODUCTION
This Official. Statement of the Murrieta Valley Unified School District (the "District"), in the County of Riverside, California, (the "County") is provided for the purpose of setting forth information concerning the District, and the issuance of General Obligation Bonds (the "Bonds") to be issued pursuant to Chapter 4 of Division 4 of Title 4 of the California Government Code (Sections 43600 et. Seq.), as amended (the "Bond Law") and pursuant to a resolution of the Board of Supervisors of the County of Riverside adopted on June 25, 1991.
Proceeds of the Bonds will be deposited with the Riverside County Treasurer-Tax Collector to be placed in the fund described in the section entitled "The Resolution".
The Bonds are secured by the full faith and credit of the Murrieta Valley Unified School District for which they are issued. The County Board of Supervisors must cause an annual ad valorem property tax to be levied on all taxable property within the District for payment of the Bonds.
The following information regarding the levy and collection of secured and unsecured property taxes is applicable to the District.
Secured Property Tax
State and County taxes are due and become delinquent each year in all counties of the Sta tc as follows:
First installment due November Jst. Delinquent after December 10th.
Second installment due February 1st. Delinquent after April 10th.
The entire tax may be paid at the time the first installment is due.
A penalty of ten percent () 0%) is added to the first installment if not paid on or before December 10th; and ten percent (10%) to the second installment if not paid on or before April 10th, together with five dollars cost also added for each described parcel. At the end of the first year of delinquency, property is sold to the State.
In redeeming property for dcl inquent taxes, penalties are added at the rate of one and one-half percent (1.5%) per month, with a $5.00 redemption fee on each separately valued parcel sold to the State. If not redeemed at the end of five years from July lst of the year first becoming delinquent, the property wilt be "tax deeded" to the State of California, and may thereafter be sold at public auction. Delinquent taxes may be paid in installments by paying twenty percent (20%) yearly increments of the amount to redeem; subsequent payments draw interest on the unpaid balance at the rate of one-half percent (l/2%) per month from the date of previous payment on property which was delinquent prior to June 15, 1974; a rate of 1.0 percent per month on property which was delinquent from June 15, 1974 through June 14, 1982; and a rate of one and one-half percent (l-1/2%) per month on property which was delinquent on or after June 15, 1982. Deeded property may not be placed on the installment plan. However, it can still be redeemed in full until sold at public auction.
Property tax deeded to the State for delinquent taxes may be purchased at public auction by individuals. The County Tax Collector must auction such property within two years after such property has been deeded to the State.
Unsecured Property Taxes
Taxes on property assessed on the unsecured property roll (s eparate from real estate) are billed as soon as assessed. Taxes on the rol1 as of July 31st, if unpaid, become delinquent on August 31st. Taxes added to the roll after July 31st, if unpaid, become delinquent the last day of the month following the month in which they were added. A ten percent ( 10%) penalty is attached to the taxes when they become delinquent and if unpaid at the end of the second succeeding month, a one and one-half percent (1-1/2%) penalty is added on the first day of each month until paid or court judgment is entered.
2 THE BONDS
Authority for Issuance
Murrieta Valley Unified School District held a General Obligation Bond Election on November 7, 1989. The qualified electors of the District authorized the sale of thirty-eight million five hundred thousand dollars ($38,500,000) in District Bonds. These Series B Bonds will be issued pursuant to Resolution No. 90/91-28 (the "Resolution") adopted on June 25, 1991, by the County Board of Supervisors and pursuant to Resolution No. 90/91-29 adopted on June 12, 1991, by the Board of Trustees of the District (the "Board").
Amount and Purpose of the Bonds
The purpose of the Bonds is to provide high school facilities, including site acquisitions, design, construction, and equipping of the Murrieta Valley Unified School District and other related improvements (the "Project"). The bond authorization has been set at not to exceed $38,500,000. $19,250,000 of the Election 1989, Series A Bonds were issued in August of 1990. Therefore, it is the desire of the Board to proceed at this time to issue Bonds in the amount of not to exceed $19,250,000, to commence phase two of the Project.
Description of the Bonds
The Bonds will be issued in the aggregate principal amount of $19,250,000. The Bonds shall be dated July 15, 1991, and interest thereon shall be payable semi-annually on March 1 and September 1 (" Interest Payment Date[s]"), commencing March 1, 1992. All Bonds shall bear interest from the Interest Payment Date next preceding the date of authentication unless: (i ) said Bonds are authenticated as of an Interest Payment Date, in which event they shall bear interest from the date thereof; of (ii) said Bonds are authenticated after the fifteenth day of the month preceding an Interest Payment Date and before such Interest Payment Date, in which event they shall bear interest from such Interest Payment Date; or (i ii) they are authenticated on or prior to February 15, 1992, in which event they shall bear interest from July 15, I 991.
The Bonds will mature on September 1 of the years and in the principal amounts set forth on the cover hereof.
The Bonds are issuable as fully registered bonds in denominations of $5,000 or any integral multiple thereof. Principle of and any redemption premium on the Bonds will be payable in lawful money of the United States of America upon surrender thereof at maturity or on the earlier redemption thereof at the principal corporate trust office of the Paying Agent in lawful money of the United States of America and mailed on the Interest Payment Date to the owner thereof at his or her address as it appears on the books of registration, or at such address as may have been filed for that purpose, as of the last day of the month preceding such Interest Payment Date. Interest on the Bonds is payable by wire transfer to registered owners of $1,000,000 or more par amount of the Bonds.
For a description of the Bond funds and accounts, your attention is directed to the section of this Official Statement entitled "The Resolution."
3 Legality for Investment
By statute, the Bonds are legal investments in California for all trust funds and for funds of all insurance companies, commercial banks, trust companies, and state school funds. The Bonds are also eligible as security for deposit of public moneys in California.
Sale in California and Other States
No opinion is offered as to the eligibility for sale or registration of these Bonds in states other than California. Registration or filing, where required, is the responsibility of the purchaser in the event other revenues of the District are insufficient for such purpose of the Bonds.
Payment of Debt Service
The District intends to pay debt service on these Bonds, as well as on the previously issued Series A bonds, from the proceeds of ad valorem tax levies. The first year tax rate required to pay debt service on the Series A and the Series B Bonds, based on the 1990-9 1 assessed valuation of $2,310,51 0,744 is estimated to be approximately $0.13 per $100 assessed valuation.
Optional Redemption
Bonds maturing on or before September 1, 1999, are not subject to optional redemption prior to their respective stated maturity dates.
All bonds may be redeemed pr ior to maturity at the option of the District from any source of funds on any Interest Payment Date commencing September 1, 1999, as a whole or in part in inverse order of maturity and by lot within a single maturity, at the redemption prices set forth below. For the purposes of such redemption, Bonds will be deemed to consist of $5,000 portions, and any such portion may be separately redeemed. The Bonds called prior to maturity at the option of the District will be redeemed at the following redemption prices, expressed as a percentage of the principal amount thereof, together with accrued interest to the date of redemption:
Redemption Dates Redemption Premium
September I, 1999 or March I, 2000 102.0% September I, 2000 or March l, 200 1 101.5 September l, 2001 or March 1,2002 101.0 September 1, 2002 or March 1, 2003 100.5 September I, 2003 and thereafter 100.0
4 Notice of Redemption
The Paying, Transfer and Registration Agent shall mail notice of any redemption of Bonds, postage prepaid, not less than thirty (30) nor more than sixty (60) days prior to the redemption date (i) to the respective registered owners thereof at the addresses appearing on the bond registration books, (ii) to the Securities Depositories "as defined in the Resolution", and (iii) to one or more of the Information Services "as defined in the Resolution". Notice of redemption to the Securities Depositories and the Information Services shall be given by first-class mail. Each notice of redemption shall (a) state the date of such notice; (b) state the name of the Bonds and the date of issue of the Bonds; (c) state the redemption date; (d) state the redemption price; (e) state the dates of maturity of the Bonds and, if less than all of the Bonds of any such maturity are to be redeemed, the distinctive numbers of the Bonds of such maturity to be redeemed, and in the case of Bonds redeemed in part only, the respective portions of the principal amount thereof to be redeemed; (f) state the CUSIP number, if any, of each maturity of Bonds to be redeemed; (g) require that such Bonds be surrendered by the owners at the principal corporate trust office of the Paying Agent in San Francisco, California; and (h) give notice that further interest on such Bonds will not accrue after the designated redemption date.
The actual receipt of the notice of redemption by the Owner of any Bond shall not be a condition precedent to redemption, and failure to receive such notice will not affect the validity of the proceedings for redemption of such Bonds or the cessation of interest on the date fixed for redemption.
A certificate by the Paying Agent that notice of call and redemption has been given to the registered Owners of the Bonds as provided for in the Resolution shall be conclusive as against all parties, and no Owner whose Bond is called for redemption may object thereto, or object to cessation of interest on the fixed redemption date, by any claim or showing that he failed to receive actual notice of call and redemption.
When notice of redemption has been given substantially as provided for in the Resolution, and when the amount necessary for the redemption of the Bonds called for redemption is set aside for that purpose in the fund designated "Murrieta Valley Unified School District General Obligation Bonds, Election 1989, Series B Redemption Fund" (the "Redemption Fund"), the Bonds designated for redemption will become due and payable on the date for redemption thereof, and upon presentation and surrender of the Bonds at the place specified in the notice of redemption the Bonds shall be redeemed and paid at the redemption price out of the Redemption Fund and no interest will accrue on such Bonds or portions of Bonds called for redemption after the redemption date specified in said notice, and the Owners of such Bonds so called for redemption after such redemption date may look for the payment of principal, interest, and premium, if any, of such Bonds or portions of Bonds only to said Redemption Fund. All Bonds redeemed shall be canceled by the Fiscal Agent and shall not be reissued.
All unpaid interest payable at or prior to the date fixed for redemption will continue to be payable to the respective registered Owners of such Bonds or their order, but without interest thereon.
Registration, Transfer, and Exchange
There will be kept by the Paying Agent, books for the registration and transfer of the Bonds and, upon presentation for such �urpose, the Paying Agent will, under such reasonable regulations as it may prescribe, register or transfer, or cause to be registered or transferred, on sa id register, Bonds as provided in the Resolution.
The transfer of any Bond may be registered only upon such books of registration upon surrender thereof to the Paying Agent, together with an assignment duly executed by the Owner of such Bond or his or her attorney or legal representative, in satisfactory form to the Paying Agent. Upon any such registration of transfer, a new Bond or Bonds shall be authenticated and delivered in exchange for such Bond, in the name of the transferee, of any denomination or denominations authorized by the Resolution, and in an aggregate principal amount equal to the principal amount of such Bond or Bonds so surrendered. In all cases in which Bonds shall be exchanged or transferred, the Agent will authenticate at the earliest practical time, Bonds in accordance with the provisions of the Resolution. All Bonds surrendered in such exchange or registration transfer shall forthwith be canceled.
Bonds may be exchanged at the principal corporate trust office of the Paying Agent in San Francisco, California, for a like aggregate principal amount of Bonds of the same maturity, subject to the terms and conditions provided in the Paying Agent's system of registration, including the payment of certain charges, if any, upon surrender of such Bonds. Upon such exchange, a new registered Bond or Bonds of any authorized denomination or denominations of the same maturity for the same aggregate principal amount will be issued in exchange the ref or.
The Paying Agent will not be required to make such exchange or registration of transfer of Bonds during the fifteen (15) days immediately preceding any date upon which Bonds are to be selected for redemption, nor will the Agent be required to exchange or register the transfer of any Bond selected for redemption.
Mutilated, Lost, Destroyed or Stolen Bonds
In case any Bond shall become mutilated or be destroyed, stolen, or lost, the Paying Agent will authenticate a new Bond of like maturity and principal amount in exchange for and upon the surrender of such mutilated Bond or in lieu of and in substitution for such Bond destroyed, stolen or lost, upon the owners paying the reasonable expenses and charges in connection therewith, and in the case of a Bond destroyed, stolen, or lost, his or her filing with the Agent of evidence satisfactory to it and the District that such Bond was destroyed, stolen, or lost, and of his ownership thereof, and furnishing the Paying Agent and the District with indemnity satisfactory to them.
Ownership of Bonds
The person in whose name any Bond is registered on the registration books of the Paying Agent will be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal and redemption premium, if any, of such Bond, and the interest on any such Bond will be made only to or upon the order of the owner thereof or his or her legal representative. All such pa yments will be valid and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid.
Security
The Bonds are general obligations of the Murrieta Valley Unified School District and are secured by the full faith and credit of the District and the taxing power of the County of Riverside. The Board of Supervisors of the County must annually at the time 6 of making the levy of taxes for County purposes, levy a tax for that year upon the property in the District for the interest and redemption of all outstanding Bonds of the District. The tax must not be less than sufficient to pay the interest on the Bonds as it becomes due and to provide a sinking fund for the payment of the principal on or before maturity and may include an allowance for an annual reserve, established for the purpose of avoiding fluctuating tax levies. The tax shall be sufficient to provide funds for the payment of the interest on the Bonds as it becomes due and also such part of the principal and interest as is to become due before the proceeds of a tax levied at the time for making the next general tax levy can be made available for the payment of the principal and interest.
All monies derived from such taxes and all other monies allocated and designated for payment of sa id Bonds and the interest thereon, together with the proceeds of the sale of the Bonds designated as premium and accrued interest, shall be placed in a fund of the District designated "Murrieta Valley Unified School District General Obligation Bond Interest and Sinking Fund" (the "Debt Service Fund"), and until all of said Bonds and all interest thereon have been fully paid the monies in said fund shall be used for no other purpose than the payment of said Bonds and the interest thereon.
Estimated Sources and Uses of Proceeds
The proceeds to be received from the sale of the Bonds are anticipated to be applied as follows:
Estimated Sources and Uses of Funds Sources: Par Amount of Bonds $ I 9,250,000.00 Accrued Interest 30,126.44 Premium $1.676.80 Total Sources: $19,281,803.24
Uses: Building Fund (including costs of issuance]) $ I 9,251,676.80 Accrued Interest 30. 126.80
Total Uses: 2 $19. 81.803.24
I. Includes estimated expenses for professional fees. printing and mailing fees, Paying Agent fees. etc .. of approximatelv $138,500. . 7 MURRIETA VALLEY UNIFIED SCHOOL DISTRICT
GENERAL OBLIGATION BONDS ELECTION 1989, SERIES B
DEBT SERVICE TABLE
Period Annual Date and Year Principal Interest Total Debt Service
March I, 1992 $851,072.06 $851,072.06 September I, 1992 $90,000 677,845.00 767,845.00 $1,618,917.06 March I, 1993 673,682.50 673,682.50 September I, 1993 100,000 673,682.50 773,682.50 1,447 ,365.00 March 1, 1994 669,057.50 669,057.50 September I, 1994 150,000 669,057.50 819,057.50 1,488,11 5.00 March I, 1995 662,120.00 662,120.00 September I, 1995 300,000 662,120.00 962,120.00 1,624,240.00 March I, 1996 648,245.00 648,245.00 September 1, 1996 500,000 648,245.00 I,1 48,245.00 I,796,4 90.00 March I, 1997 625, 1 20.00 625, 1 20.00 September I, 1997 615,000 625, 1 20.00 1,240,120.00 1,865,240.00 March 1, 1998 596,676.25 596,676.25 September 1, 1998 670,000 596,676.25 1,266,676.25 1,863,352.50 March 1, 1999 565,688.75 565,688.75 September I, 1999 700,000 565,688.75 1,265,688. 7 5 1,831,377.50 March 1, 2000 533,313.75 533,313.75 September I, 2000 760,000 533,313.75 1,293,313.75 1,826,62 7 .50 March 1, 200 1 502,913.75 502,913.75 September l, 2001 820,000 502,9 13.75 1,322,913.75 1,825,827 .50 Marc h l, 2002 477,083.75 477,083.75 September l, 2002 900,000 477,083.75 1,377,083.75 1,854,167 .50 March I, 2003 448,283.75 448,283.75 September I, 2003 1 ,075,000 448,283.75 1,523,28 3. 7 5 1,971,567.50 March I, 2004 413,883.75 413,883.75 September I, 2004 I,1 50,000 413,883.75 1,563,883.75 1,977,767.50 March 1, 2005 376,508.75 376,508.75 September I, 2005 1,175,000 376,508.75 1,551,508.75 1,928,0 1 7.50 March 1, 2006 338,321.25 338,321.25 September I, 2006 1,255,000 338,321.25 1,593,321 .25 1,931,642.50 March I, 2007 296,906.25 296,906.25 September I, 2007 1,510,000 296,906.25 1,806,906.25 2, l 03,812.50 March 1, 2008 247,076.25 247,076.25 September I, 2008 1,525,000 247,076.25 1,772,076.25 2,019,1 52.50 March I, 2009 195,988.75 195,988.75 September I, 2009 1,780,000 195,988.75 1,975,988.75 2,171 ,977.50 March I, 20 10 135,913.75 135,913.75 September I, 20 10 1,980,000 135,9 13.75 2,1 1 5,913.75 2,251,827.50 March I, 20 11 68,593.75 68,593.75 September I, 20 11 2. 195.000 68,593.75 2,263,593. 75 2,332,1 87.50
TOTAL � 1 9,25Q,OOO � 1 8.4 79.672.06 i37, 729,672.06 8 THE RESOLUTION
The following is a summary of certain provisions of the Bond Resolution ("Resolution") and does not purport to be complete. Reference is hereby made to the Resolution for further information. Copies of the Resolution will be available from the Clerk of the Board of Supervisors upon request.
Funds and Accounts
There are established pursuant to the Resolution the following Funds and Accounts: Building Fund, Debt Service Fund, Redemption Fund, and Rebate Account.
Amounts shall be deposited to and withdrawn from the Funds and Accounts established under the Resolution, and shall be applied, as described below.
Building Fund. The Resolution creates a building fund (the "Building Fund"), which shall be used to pay for the costs of construction and acquisition of the Project, costs of issuing the Bonds and related costs of the Project. The proceeds from the sale of the Bonds will be paid to the County Treasurer to the credit of the fund designated "Murrieta Valley Unified School District Building Fund". Upon the completion of the payment of the Project costs, the District shall transfer monies on deposit in the Building Fund, to the extent monies are not then encumbered to pay Project costs, to the Debt Service Fund (defined below). Interest on the moneys held in the Building Fund shall be retained in a separate sub-account and shall be utilized either for the same purpose as other moneys in the Building Fund or, upon direction of the District, transferred to the Rebate Account (defined below).
Redemption Fund. Prior to the first optional redemption of Bonds, if any, there will be established by the County Treasurer a redemption fund, to be designated the "Murrieta Valley Unified School District General Obligation Bonds, Election 1989, Series B Redemption Fund," (the "Redemption Fund"). Prior to or on the date any Bonds are to be redeemed, there must be set aside in the Redemption Fund monies available for the purpose and sufficient to redeem the Bonds, including principal and premium, if any, designated in such notice of redemption. Said monies must be set aside in the Redemption Fund solely for the purpose of, and shall be applied on or after the redemption date to, the payment of principal of and premium on the Bonds to be redeemed upon presentation and surrender of such Bonds and shall be used only for that purpose. Any monies in the Redemption Fund following redemption of the Bonds designated in such notice of redemption shall be transferred to the general fund of the District; provided, however, that if said moneys are part of the proceeds of refunding bonds, said moneys shall be transferred to the fund created for the payment of principal and interest on such refunding bonds. Any interest due on or prior to the redemption date on the Bonds to be redeemed shall be paid from the Debt Service Fund, as described below.
Debt Service Fund. The accrued interest and any premium received by the County from the sale of the Series B Bonds shall be kept separate and apart in the fund hereby created and established by the County Treasurer to be designated the "Murrieta Valley Unified School District General Obligation Bond Interest and Sinking Fund" (the "Debt Service Fund") for the Series B Bonds and used only for payments of principal and interest on the Series B Bonds. Interest earned on the investment of moneys held in the Debt Service Fund shall be retained in the Debt Service Fund and used by the County to pay principal and interest on the Series B Bonds when due. Any excess proceeds of the Series B Bonds not needed for the authorized purposes set forth herein for which the 9 Series B Bonds are being issued shall be transferred to the Debt Service Fund and applied to the payment of principal and interest on the Series B Bonds at the request of the District. If, after payment in full of the Series B Bonds, there remain excess proceeds, any such excess amounts shall be transferred to the general fund of the District.
Rebate Account. There shall be established by the County Treasurer a fund to be known as the "Murrieta Valley Unified School District Rebate Account" (within the "Building Fund") into which monies shall be deposited at the direction of the District to comply with the provisions of the federal tax code with respect to the rebate of "arbitrage", if any, required to be made as a condition for the continued exclusion of interest on the Series B Bonds from gross income for purposes of federal income tax purposes.
In-vestment of Funds and Accounts
Monies in any of the funds and accounts in which investments are authorized shall be invested and reinvested by the County Treasurer in securities and obligations permitted by law and shall be subject to restrictions on the income realized from such investments as provided in the Resolution.
10 THE PROJECT
Project Description and Cost Estimate
The Project includes the design and construction of public high school facilities and the acquisition of land. The high school will have the capacity to house 2,400 students, with core facilities and infrastructure designed for a maximum of 3,000. The total Project cost of construction of the initial high school is estimated to be $38,500,000, which will be funded by General Obligation Bonds, approved by a voter election held in November 1989, authorizing a total bond amount of $38,500,000.
Series A Bonds in the par amount of $19,250,000 were issued in August of 1990 to finance Phase I of the Project which included:
acquisition of 75 acre site mass grading and general sitework construction of on-site improvements
Series B Bonds in the amount of $19,250,000 are now being issued to finance Phases II and III of the Project which include:
construction of permanent facil ities including classrooms, gymnasium, administration building, library, parking, on-site roadways, and playfields. construction of performing arts center, central quad area and landscaping.
Following are cost assumptions to date for Phases I and II. The total current Project costs, less anticipated contributions from 1952 Bond Act funds and/or developer fees, will total $38.5 million. Other Project costs in excess of Bond proceeds will be funded by developer fees.
II MURRIETA VALLEY UNIFIED SCHOOL DISTRICT GENERAL OBLIGATION BONDS, SERIES A & B ESTIMATED PROJECT COSTS
Estimated � I. CONSTRUCTION COSTS
Property ($108,900/acre) $ 8,100,000 Appraisals 20,000 Escrow 5,000 Surveys 25,000 Plans 2,000,784 Plan check fees 186,046 Printing 25 ,000 Construction 21,840,000 Sitework 6,486,410 Utility fees 874,627 Tests 296,013- Inspection 240,000 Equipment & Fixtures 600,000 Contingency ( 1.5%) 434,420
TOTAL $4 1,1 33,300
II. TOTAL SERIES A & B FINANCING COSTS $ 340,000
Contribution from 1952 Act Bonds and/or Developer Fees ($2.633,300)
TOTAL PROJECT COST $38.500,000
12 MURRIETA VALLEY UNIFIED SCHOOL DISTRICT
General
The District is a political subdivision of the State of California. The District was established in 1885 , as the "Murrieta School District" and on July 1, 1989 the District completed proceedings to reorganize as a unified school district within the same boundaries under the name "Murrieta Valley Unified School District". The District receives 8. 07% of the personal property tax of Elsinore Union High School District ("Elsinore") and all of the personal property tax on such sites located within its boundaries. The District has also, in connection therewith, assumed a minimal amount of outstanding debt of Elsinore. The District provides public education within a 125 square mile unincorporated area in Riverside County (the "County"). The administration headquarters of the District are located at 41885 Ivy Avenue, Murrieta, California.
The District currently operates five elementary schools, one middle school, and one high school with a total enrollment of 4,220. Enrollment has been increasing steadily since 1987. The District has been the fastest growing school district in the State for the past two years, and expects approximately a 50% increase in enrollment by the end of the 1990-91 school year. See "District Growth" herein.
The Murrieta Valley Unified School District currently accomodates 9th grade students. Pursuant to an InterDistrict Attendance Agreement with Temecula Valley Unified School District ("TVUSD") as part of the unification process, the District has agreed with TVUSD that TVUSD will enroll and provide education services to District students in grades IO to 12, with such enrollment being phased out by June 30, 1993. Thereafter, the District will have full responsibility for the education of students residing within the District in grades 9 to 12. The purpose of Series A and B Bonds is to fund the acquisition of land and the design and construction of the District's high school and to purchase land for additional school facil ities.
Management
The Board of Trustees. The governing board of the District is the Board of Trustees of the Murrieta Valley Unified School District (the "Board"). The Board consists of five members who are elected at large to four-year terms at elections. The current Board was elected in 1988 as part of the unification of the school District. The Board members' terms will expire in 1991. If a vacancy arises during any term, the vacancy is filled by any remaining board members and if there is no majority, by a special election. Each December, the Board elects a President and a Clerk to serve one-year terms. The year in which each of the members of the Board were first elected and the year in which the current term for each of the members of the Board expires is set forth below.
13 Board of Year Year Trustees Elected Term Expires
Austin Linsley, President 1988 1991 David M. Hutt, Member 1988 1991 Patty Julian, Member 1988 1991 Evelyn Henning, Member 1988 1991 James Keown, Member 1988 1991
District Superintendent. Administrative Personnel and Professional Consultants:
The District Superintendent is appointed by the Board and reports to the Board. The Superintendent is responsible for management of the District's day-to-day operations and supervises the work of other District administrators. Information concerning the Superintendent and the primary administrati ve personnel is set forth below.
Mr. Charles van de Wetering, District Superintendent, was an elementary school teacher and teaching principal, and came to Murrieta from a position as principal in San Ysidro, California. Replacing a teaching principal, he became the District's first Superintendent/Principal in 197 l. In 1984 he became the full-time Superintendent, when the District enrollment permitted hiring of a principal for the District's one school. Mr. Van de Wetering will be retiring from this position as of June 30, 1991, and will be succeeded as Superintendent by Dr . Tate Parker.
Dr. Tate Parker. Superintendent, was hired effective July 1, 1991, replacing Charles van de Wetering who retired from the district. He came to Murrieta from Chula Vista Elementary School District in San Diego County where he held the position of Assistant Superintendent for Educational Services. In addition to his duties as Assistant Superintendent, he also supervised the operation of 15 elementary schools and a special education center. Dr. Parker has an extensi ve background in curriculum, special ed ucat ion, and school planning.
Dr. Roland Werner, Assistant Superintendent for Business Services, has a 20 year background in school business administration and began his career as a business consultant for the San Diego County Office of Education. He was subsequently a business manager for Ramona Uni fied School District and a school facilities planner for Tri ttiopo & Associates, AJA, before joining Murrieta Valley Unified School District on January l, 1990.
Mr. Thomas M. Tooker, Assistant Superintendent for Facility Services, was hired in January 1987 as a consultant and facilities planner, to work with the District's LeRoy Greene state applications. He brought to the District experience both in the education field, as a teacher, and in construction management. The District's rapid growth has made faci lities a top priority. Currently there arc 9 state applications on file, Phase I of the project is under construction, and several school sites in the planning stage. On July I, 1989, he was promoted to his present posi tion as Assistant Superintendent for Facilities Services. He now directs maintenance, operations and transportation, as well as all phases of the construction program.
Dr. Arvo W. Toukonen, Assistant Superintendent for Personnel Services, came to the District in July 1989. With previous experience at this level, he quickly assumed responsibility for negotiations, recrui tment, processing job applications, hiring all employees, and supervising the Di strict's job fair and various in and out of state recrui tment cfforts. Background experience for Dr. Toukonen includes former service at 14 all educational levels: assistant superintendent/personnel, high school principal, junior high principal, elementary principal, and high school teacher.
As a result of the unification of the District, and the District's rapid growth in enrollment, the District has sought and entered into contracts for services offered by professional and technical consulting firms in order to expeditiously and cost-effectively respond to the capital facility, financing and State application needs of the District. The following firms have contracts for services with the District, related to this financing:
a) Ralph Allan & Associates, Santa Ana, California, Architect
b) Rutan & Tucker, Costa Mesa, California, Legal Counsel
c) Community Systems Associates, Inc., Anaheim, California, Facilities Planner & Financing Strategist
d) Fieldman, Rolapp & Associates, Irvine, California, Financial Advisor
e) Project Management Consortium, Inc., Anaheim, California, Project Manager
The District currently employs approximately 250 full-time certificated professionals and 200 classified employees. The student/teacher ratio is 30 to I.
District Growth
The District has experienced significant area population and student enrollment growth in the past years. Prior to the 1987-88 school year, the District's student population growth was low and relatively stable. However, beginning with the 1987-88 school year, the population of the District increased by approximately 27%, and by approximately 74% in 1988-89, as compared to an increase for the State of California for the same period of approximately 4.3%. Total enrollment within the District increased approximately 114% during the 1988-89 school year, over the preceding year. The table below sets forth the population and second month enrollment for the District for the school years 1984-199 1.
SCHOOL DISTRICT SECOND MONTH POPULATION AND ENROLLMENT 1984 THROUGH 1991
Second Month Second Month Total Pooulation 1 Enrollment CK-8} 1990-9 1 22,800 4,009 1989-90 14,04 1 2,469 1988-89 6, 119 1,076 1987-88 3,520 619 1986-87 2, 781 489 1985-86 2,525 444 1984-85 2, 195 386
Source: Murrieta Valley Unified School District.
1. Estimated based upon an assumed .422 K-8 students per dwelling unit and 2.4 persons per dwelling unit. 15 During 1990-91 the District has experienced a levelling off of development activity, however the District expects to continue to experience relatively strong growth in population in the next decade as a result of continuing residential development in the District. The County of Riverside, having jurisdictional responsibilities for the approval of residential developments, approved in fiscal year 1989-90 over 25,000 residential dwelling units included within approved subdivisions, tract maps, and specific plans within the County. The County of Riverside is regularly approving additional major developments, subdivisions, and specific plans within the District, resulting in potentially a substantially greater number of residential units to be developed than presently projected.
The County of Riverside has adopted the Southwest Area Community Plan ("SWAP"), a comprehensive master plan which incorporates, in part, the boundaries of the District. The Plan projects a capacity of residential units within the District of approximately 64,000-80,000 dwelling units.
The District has filed litigation entitled Murrieta Valley Unified School District v. County of Riverside, challenging (a) the adequacy of Environmental Impact Report No. 217 prepared on the Southwest Area Communi ty Plan Amendment No. 52; and (b) the adequacy of the General Plan of the County of Riverside. The Petition for Writ of Mandate seeks (a) to vacate and set aside the approval of Resolution No. 89-536 approving Comprehensive General Plan Amendment No. 52 and certifying Environmental Impact Report No. 217 with respect to that portion of the SWAP area included within the boundaries of the Murrieta Valley Unified School District; (b) obtain a temporary restraining order, preliminary injunction, and permanent injunction enjoining the County and their agents, employees, officers, attorneys, representatives, and each of them, from doing or causing to be done, directly or indirectl y, by any means, an y act in furtherance of or pursuant to the SWAP with the boundaries of the Murrieta Valley Unified School District, including without limitation the processing or approval of zone changes, specific plans, or development project approvals, until the legal violations alleged have been fully cured and remedied; (c) an order pursuant to Government Code Section 65754 that the County bring their General Plan into compliance with the requirements of Government Code Section 65300 et. �- within 120 days and, pursuant to Government Code Section 65755; (d) an order suspending the authority of the County to grant zone changes, subdivision map approvals, reside ntial building permits, and other development project permits with in the boundaries of the Murrieta Valley Unified School District to the extent that such actions are based upon the SWAP until the legal violations alleged have been fully cured and remedied; and (c) that the Court except and exempt from any mandate and injunctive relief to be granted, any property or development project which adequately mi tigates its impacts upon the District.
A demurrer was filed by the County of Riverside, and on April 2, 1990 the demurrer was sustained. The District filed an appeal to the demurrer. The appeal was made and won by the District.
Several major residential projects within the District's boundaries are currently under development. The largest of these projects have been controlled by specific plans approved by the County of Riverside and include, for example, Alta Murrieta, California Oaks, Rancho Las Brisas, Joaqui n Ranch, Bear Creek, Dutch Village and Walker Basin. Additionally, specific plans arc being regularly considered by Riverside County. As of Jul y I, 199 1, the Ci ty of Murrieta will be incorporated and will take responsibility for specific plan related concerns wi th respect to development wi thin the ci ty's boundaries.
16 As a result of continuing residential development in the District, the District anticipates significant growth in the student enrollment in the District during the next decade. The District annually prepares long-range projections of enrollment based on such anticipated growth. The table below sets forth the projected average enrollment in the District for the next four school years assuming the County approved development plans and growth in the population base. The United States Department of Education, Center for Education Statistics projects that public school fall enrollment in grades K-8 is expected to increase 6. 1 % over the five year period from 1988-1 992.
SC HOOL DISTRICT PROJECTED SCHOOL DISTRICT ENROLLMENT (K-12)
Total School District Year End Enrollment
1993-94 9,500 1992-93 8,000 1991-92 5,800
Source: Murrieta Valley Unified School District.
To accommodate the projected growth in the District's enrollment, the District has estimated, based on projected enrollment and projected development approved within the District as of March, 199 l, that it will require approximately 8 permanent or relocatable school facilities for the period 1991-I 992, as follows:
SCHOOL DISTRICT PROJECTED REQUIRED FACILITIES
School Elementary High Year Schools Schools (9-12)
1993-94 12 I 1992-93 10 1/2 1991-92 7 1/2
Source: Murrieta Valley Unified School District.
The District will begin phasing in the education of high school students in 1990-91. By the beginning of the 1993-94 school year, the District will require one high school.
In order to provide for future high school level student enrollments, the District placed on the November, 1989, general election ballot a measure to seek approval of a $38.5 million General Obligation Bonds authorization to acquire property and construct the District's fi rst high school. The election ballot measure was successfully passed.
Additionally, to accommodate increasing enrollments in the interim, the District is negotiating with land developers within the District for the creation of Mello-Roos community facility districts and fees in excess of development fees pursuant to "Impact Mitigation and Reimbursement Agreements" and is seeking voter approval for funds under the School Building Aid Law of 1952 to provide funds for the acquisition of sites and construction of school facilities prior to occrf ancy of specific developments within the District. Additionally, the District is committed to begin a District-wide year round program in J 992-93.
The District has determined that the County of Riverside has approved developments representing over 28,500 units which are in some stage of pre-development implementation. The preliminary development phasing schedule, as provided by developer representatives, would indicate the following projected development activity and estimated enrollments over the next eight (8) years:
HIGH PROJECTION ESTIMATED ENROLLMENT
Dwelling fur. ll.nl.ll Population K-5 H 9-12 Billll 1991 14,206 35,514 4,654 1,526 I,171 7,350 1992 )6, 779 41,947 5,603 1,982 1,512 9,096 1993 20,002 50,004 6,804 2,506 1,936 11,246 1994 23, 716 59,289 8,087 3,136 2,491 13, 714 1995 27,320 68,294 9, 301 3,742 3,139 16,182 1996 30, IOI 75,252 9,975 4,524 3,776 18,275 1997 31,824 79,559 10,297 5,049 4,499 19,845 1998 34,144 85,359 10,892 5,521 5,204 21,616
Source: Community Systems Associates, Inc., July, 1991.
The District has observed that the recent historical growth in enrollment lags behind development phasing schedules by 12-18 months. This would result in the following projected development activity and estimated enrollments over the next eight (8) years:
18 LOW PROJECTION ESTIMATED ENROLLMENT
Dwelling Year Units Population K-5 6-8 9-12 Total
1991 l 0, 711 26,777 3,636 1,236 1,002 5,874 1992 14,206 35,514 4,899 1,726 1,322 7,946 1993 16,779 41 ,947 5,833 2,155 1,688 9,676 1994 20,002 50,004 6,886 2,752 2,139 11, 776 1995 23, 716 59,289 8,143 3,326 2,734 14,203 1996 27,320 68,294 9,301 3,971 3,353 16,626 1997 30, IO1 75,252 9,975 4,605 4,098 18,678 1998 31,824 79,559 10,297 5,105 4,770 20,172
Source: Communi ty Systems Associates, Inc., July, 1991.
19 The District has developed an interim conceptual Master Plan strategy for a twenty-eight (28) school district, and is preparing a capital facilities plan for the implementation of these facilities. In the interim, the District maintains a monthly Facilities Report which tracks the construction of the required school facilities and which estimates the costs of facilities required at the various school sites, existing and planned.
The conceptual long-range Master Plan of twenty-eight schools includes: (1) three high schools containing 2,400 students each; (2) six middle schools consisting of 750 students each; (3) four K-8 elementary schools consisting of 800 students each, two of which would be optional facilities; and (4) fifteen elementary schools consisting of 600- 800 students each, depending on the school location and configuration. The Conceptual Master Plan is not a mandatory program of the District, but rather a guide for future planning, considering the growth of the District.
The timing and sequence of project implementation are based upon three characteristics: 1) availability of revenue sources; 2) time required for pre-construction activities, including but not limited to State approvals, construction documentation preparation, land acquisition, and construction bid process, etc.; and 3) time required for construction of facilities. Generally, a high school requires three to four years from site designation to occupancy. Elementary and middle schools require two to three years from site designation to occupancy.
Staging will also be affected by the implementation of "Impact Mitigation and Reimbursement Agreements" executed between the District and developers of particular residential developments, which may require the District's prioritization of a capacity facility to coincide with private development activities.
Based upon the high and low projections of student enrollment, pursuant to previously approved development projects and as previously discussed herein, it is projected that the required cumulative number of schools that the District will necessitate in any one year (assuming a standard enrollment program) will be as follows:
ESTIMATED CUMULATIVE SCHOOLS PER YEAR
Hi&h Proiection Low Proiection Year K-5 H 9-12 K-5 6-8 9-12
1991 7.76 2.04 .49 6.06 l.65 .42 1992 9.34 2.64 .63 8. 16 2.30 .55 1993 11.34 3.34 .81 9.72 2. 87 .70 1994 14.48 4. 18 1.04 11.48 3.67 .89 1995 15.50 4.99 l.31 13.57 4.43 1.14 1996 16.62 6.03 l.57 15.50 5.30 l.40 1997 17.16 6.73 l.87 16.62 6. 14 l.71 1998 18.15 7.36 2. 17 17.16 6.81 l.99
Source: Community Systems Associates, Inc., July, 1991.
Further, the number of required schools will be based upon the District's decision to implement double session schools and year-round schools as a facilities utilization method to expand the capability of the District's capital facilities.
20 Employee Relations
As of June 30, 1990, the District employed approximately 250 certificated employees and approximately 200 classified employees.
The majority of the District's teachers, staff and employees are the subject of collective bargaining arrangements. The Murrieta Teachers Association ("MTA"), an affiliate of the National Education Association, represents 55 of the teachers and staff employed by the District. MTA and the District are currently parties to a collective bargaining agreement expiring on June 30, 1992 relating to salaries and conditions of employment. The California School Employees Association, Chapter 223 ("CSEA"), currently represents approximately 56 employees of the District, of which two-thirds are part-time employees. CSEA and the District are currently parties to a collective bargaining agreement expiring on June 30, 1992 relating to salaries and conditions of employment.
Retirement System
The District participates in the State of California Teachers Retirement System ("STRS"), which covers full-time certificated District employees. The District also participates in the Public Employees Retirement System ("PERS") of the State. The District's contributions to STRS and PERS for fiscal year 1988-89 were $133,377 and $58,042 respectively.
The District's employer contributions to STRS and PERS meet the required contribution amount sufficient to satisfy the plan's funding requirements as determined by the STRS and PERS actuaries. The District has no present liability for any unfunded portions of the STRS plan and with respect to PERS, has paid through its funded contribution the amortization of its portion of unfunded liability. At the present time, both STRS and PERS have had substantial unfunded liabilities. The amounts of the respective unfunded liabilities varies from time to time depending upon actuarial assumptions utilized, rates of return on investments, salary scales and levels of contribution. The District is unable to predict what the amounts of unfunded liabilities will be in the future, or the amounts of the contribution which school Districts such as the District may be required to make.
Insurance
The District participates in joint powers insurance agreements with the following entities: the Western Riverside County Self-Insurance Program for Employees (WRSIPE), Riverside Schools Insurance Authority (RSIA) and the Inland Empire School Insurance Authority (IESIA).
The RSIA provides property and liability insurance for its member school Districts. The District pays a premium commensurate with the level of coverage requested. The WRSIPE provides Workers' Compensation Insurance and the IESIA provides health, dental, vision, and life insurance services for their member school Districts on a fee for services basis. Each of such entities is governed by a board consisting of a representative from each member District. Each governing board controls its own operations, including selection of management and approval of operating budgets, independent of any influence by the District beyond the District's representation on the governing board. Member Districts share surpluses and deficits proportionately to their participation in the group.
21 DISTRICT FINANCIAL INFORMATION
The District's audited financial statements for the fiscal year ending June 30. 1990 are attached hereto as Appendix A. The financial statements should be read in their entirety. The information set forth herein does not purport to be a summary of the District's financial statements.
District Budget and Financial Statements
As required by law, the fiscal year of the District begins on July I of each year and ends on June 30 of the following year.
A tentative budget for the for thcoming fiscal year must be approved by the Board and filed with the County Superintendent of Schools on or before July I, as required by law. The final budget must be approved by the Board on or before September 15th, after a public meeting. After approval of the final budget the District's administration submits quarterly budget revisions for Board approval .
The District is required by provisions of the California Education Code to maintain a balanced budget each year, where the sum of expenditures plus the ending fund balance cannot exceed revenues plus the carry-over fund balance from the previous year. The Cali fornia State Department of Education imposes a uniform budgeting format for each school District in the State of Cali fornia.
The statement set forth below summarizes the District's 1990-91 adopted budget and compares the 1990-91 adopted budget to the 1989-90 revenues, expenditures, changes in fund balances and ending fund balance.
22 MURR JET A SCHOOL DISTRICT 1990-91 BUDGET General Fund
Statement of Revenues, Expenditures and Chanaes in Fund Balances
1989-90 1990-91 Actual (1) Budaet (2) Description Total General Fund Total General Fund A. REVENUES
l. Revenue Limit Sources $9,348,937 $13,994,008 2. Federal Revenue 66,984 102,995 3. Other State Revenues 1, 1 83,688 1,697,726 4. Other Local Revenues 327,043 586,832 TOTAL REVENUES $10,926,652 $16,381 ,561 5. B. EXPENDITURES
I. Certificated Salaries 4,509,912 7,926,453 2. Classified Salaries I,725,270 2,565,971 3. Employee Benefits 1,437,593 2,884,322 4. Books and Supplies 570,0 17 1,530,606 Services, Other Operating 628,332 1,286,811 5. Expense 6. Capital Outlay 396,814 314, 770 7. Other Outgo 83,990 1.019,516 8. TOTAL EXPENDITURES $9,351 ,928 $17,528, 449
C. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES AND USES (A5-B8) $1,574, 724 ($1,146,888)
D. ENDING FUND BALANCE $2,390,847 $2, 1 23,709*
Source: Murrieta Valley Unified School District (1) 1989-90 Audited Financial Statement (2) I 990-9 I Adopted Budget, 2nd Interim Report * includes other financing sources and uses and prior year's ending fund balance.
23 Accounting Practices
The accounting practices of the District conform to generally accepted accounting principles as applicable to all local governments and in accordance with policies and procedures of the California School Accounting Manual of the California Department of Education. According to Section 41010 of the State of California Education Code, this manual is to be followed by all California school Districts.
The District's accounting is organized on the basis of fund groups, with each group consisting of a separate set of self-balancing accounts containing assets, liabilities, fund balances, revenues and expenditures. The major fund classification is the General Fund which accounts for all financial resources applicable to the general operations of the District which are not required to be accounted for in another fund.
District expenditures are generally accounted for on a modified accrual basis. Expenditures are recognized in the accounting period in which the liability is incurred, except for interest on long-term debt, which is recognized when due. Revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current fiscal period. Substantially all revenues are susceptible to accrual. Property taxes levied are recorded as revenue is received. Revenues from specific states are recognized when qualified expenditures have been incurred.
For a further description of the District's accounting practices, see Appendix A "Audited Financial Statements of the District for the Fiscal Year Ended June 30, 1990 - Notes to Financial Statements."
The District's independent auditor is currently B.R. Sharp and Company, Riverside, California.
Sources of District Revenues
State Funds. The Ca lifornia Constitution requires that from all State revenues there shall first be set apart the moneys to be applied by the State for the support of the public school system and public institutions of higher education. California school Districts receive a signi ficant portion of their funding from State appropriations. As a result, decreases in State revenues can significantly affect appropriations made by the State Legislature to school Districts. The District has no control over the level of state funding it receives. Approximately forty-five percent (45.7%) or $7,296,000 of the District's 1990-9 1 actual General Fund revenues consists of funds from the State.
Annual State apportionments of basic and equalization aid to school Districts for general purposes arc computed up to a revenue limit per unit of average daily attendance ("ADA"). Generally, such apportionments will amount to the difference between the District's revenue limit and the District's local property tax allocation. Revenue limit calculations arc adjusted annually in accordance with a number of factors designed primarily to provide cost of living increases. In addition, revenues among categories of Ca lifornia school Districts are equalized, as for example, unified school Districts such as the District.
24 The following average daily attendance figures include currently enrolled students.
SCHOOL DISTRICT AVERAGE DAILY ATTENDANCE AND BASE REVENUE LIMITS
A.D.A. Fiscal Total Average Base Revenue Year Daily Attendance Limit (for K-8) 1990-91 4,060 (K-9) $3500.00 (approx.) 1989-90 2,610 $341 7.42 1988-89 I,13 8 $2864.47 1987-88 639 $2761.47 1986-87 509 $2678.75 1985-86 447 $2508.69 1984-85 428 $2343.52
Source: Murrieta Valley Unified School District.
The 1990-9 1 State budget included a statutory inflation allowance of 3.0 percent.
TAX COLLECTIONS. Taxes arc levied for each fiscal year on taxable real and personal property which is situated in the County of Riverside as of the preceding March 1. Real property which changes ownership or is newly constructed is revalued at the time the change occurs or the construction is completed. The current year property tax rate is applied to the reassessed value, and the taxes are then adjusted by a proration factor that reflects the portion of the remaining ta x year for which taxes are due.
For assessment and collection purposes, property is classified either as "secured" or "unsecured" and is listed accordingly on separate parts of the assessment roll. The "secured roll" is that part of the assessment roll containing State-assessed property and real property having a tax lien which is sufficient, in the opinion of the assessor, to secure payment of the ta xes. Other property is assessed on the "unsecured roll."
Property taxes on the secured roll are due in two installments, on November 1 and February 2 of each fiscal year, and if unpaid, become delinquent after December 10 and April I 0, respectively.
Ta xes on property assessed on the unsecured roll are billed as soon as assessed. Taxes on the roll as of July 31, if unpaid, become delinquent on August 31. Taxes added to the roll after July 31, if unpaid, become delinquent the last day of the month following the month in which they were added.
The District's share in property taxes is established by State constitutional and statutory law. Each fiscal year the District receives $1.00 per $1,000 of assessed valuation on the secured property rolls.
Property taxes are generally distributed by the County of Riverside to the District as follows: 30% by December 31, 20% by January 31, J 0% by April 30 and the remainder by June 30.
The following table shows a summary of the debt service levy portion of secured property taxes collected by the County of Riverside within the District for the last six fiscal years. 25 MURRIETA VALLEY UNIFIED SCHOOL DISTRICT SECURED TAX LEVIES AND DELINQUENCIES FISCAL YEARS 1983-84 TO 1988-89
Percent Current Levy Current Levy Fiscal Secured Delinquent 1 fill Tax Ledes June 30 June 30 1988-89 $13,144 $ 920.36 .06% 1987-88 -0-2 1986-87 54,690 4,150.00 7.59% 1985-86 26,841 3,050.00 11.37% 1984-85 43,669 6,813.00 15.60% 1983-84 41,058 5,511.00 13.42%
Source: California Municipal Statistics, Inc.
J. Debt senice levy only. 2. No levy was made in this year due to the availability of restricted tax collections from preceding years in amounts suffi nt to pay debt service in full. �t MURRIETA SCHOOL DISTRICT Auditor's Net Assessed Valuation and Tax Rates1 1984/85 to 1990/91
Fiscal Secured Taxable AV Unsecured Taxable AV Total Yw: Tax Rate (Secured} Tax Rate (Unsecured) Taxable AV2
1990/91 ---3 $2,310,510,744 .00384 $7,949,006 $2,318,459, 7 50 1989/90 .00384 1,259,967,908 .0016 7,385,923 1,267,353,831 1988/89 .0016 819,312,026 .0000 4,421,163 823,733,189 1987/88 .0000 583,6 11,710 .0 120 3,235,929 586,84 7 ,639 1986/87 .0120 452,063,842 .0069 2,114,369 454,178,211 1985/86 .0069 391,400,680 .0114 1,618,745 393,019,425 1984/85 .01 149 380,155,968 .01258 1,903,873 382,059,841
Source: County of Riverside Auditor Controller's office
1. Fund No. 3-4501. Ta x Rate Area 82-00. 2. Includes Homeowner's Exemption. 3. Not yet available.
MURRIETA VALLEY UN IFIED SCHOOL DISTRICT Ten Largest Landowner Taxpayers Fiscal Year 1989-90
Tax Taxpayer Liability
1. California Oaks Company $ 929,872.88 2. Won Yoo 560,700.10 3. Pardee Construction 520,482.30 4. First Nationwide Network Mortgage Co. 510,847.20 5. Winchester 635 418,435.34 6. Rancho California Development Co. 377,263.44 7. Acacia Construction Inc. 347,914.56 8. FN Projects Inc. 334,201.48 9. Manley Partners 305,890.56 I 0. Anden Group 264,044.54
TOTAL $4,569,652.40
Source: County of Riverside Auditor/Controller's office.
27 District Obligations
Develope r Fees. In addition to the voter-approved special taxes, the District also levies developer fees pursuant to legislation adopted by the California State Legislature in 1986. That legislation authorizes school Districts to levy developer fees on all new residential, commercial and industrial construction. The District is currently levying fees in the amount of $1.58 per square foot for residential development and $0.26 per square foot for commercial and industrial development.
In the calendar year 1989, the District collected developer fees of approximately $6.5 million. The District estimates it will collect developer fees of approximately $750,000 in the 1990-91 fiscal year.
Outstanding Borrowings and Long Term Lease Obligations, The District has never defaulted on the payment of principal or interest on any of its indebtedness. The District has authorization to issue $38,500,000 General Obligation Bonds based on a successful election held November 1989.
The District has entered into various operating leases for equipment that require various monthly payments for lease terms generally not exceeding five years. Expenditures for rent under leases for the year ended June 30, 1989, amounted to $220,635. Commencing with fiscal year 1990-91, lease obligations will be $350,000 annually for buses, and $750,000 for lease payments due to Certificates of Participation executed and delivered in August, 1989 and $110,000 for Xerox lease purchase.
Direct and Overlapping Bonded Debt. Contained within the District are numerous overlapping local agencies providing public services. These local agencies have outstanding debt issued in the form of general obligation, lease revenue and special tax and assessment bonds. The direct and overlapping debt of the District is shown in the following table. Self-supporting revenue certificates, tax allocation certificates and non bonded capital lease obligations are excluded from the debt statement. None of the overlapping authorized but unissued debt, excluding the Certificates of Participation executed and delivered by the District in August, 1989, is attributable to debt of the District. As of June 30 , 1990, the share of State School Building Aid repayable by the District is estimated to be $0.
28 MURRIETA VALLEY UNIFIED SCHOOL DISTRICT DIRECT AND OVERLAPPING DEBT (AS OF JULY 1, 1990)
1990-91 Assessed Valuation: $2,337,259,559 (after deducting $8,898,827 redevelopment tax allocation increment)
0/o Applicable Debt 7 /1/90 DIRECT AND OVERLAPPING BONDED DEBT: Riverside County Board of Education 4.813% $ 444,480 Riverside County Building Authorities 4.813 26,120,439 Metropolitan Water District 0.292 2,044,058 Murrieta School District Authority 100 158,000 Murrieta Valley Unified School District 100. 19,250,000(1) Murrieta Valley Unified School District Certificates of Participation 100. 8,583,080 Eastern Municipal Water District Certificates of Participation and Improvement Districts 2.906-85.176 9,859,363 Elsinore Valley Municipal Water District Certificates of Participation 1 6.20 I 8,151,533 Rancho California Water District Certificates of Participation 35.296 32,588, 796 Rancho California Water District, Rancho and Santa Rosa Div isions 1.906 & 94.20 I 32,020,255 Murr ieta Fire Protection District Certi ficates of Participation 100. 3,390,000 Murrieta County Water District Community Facilities District #88-1 & I.A. #2 100. 12,055,000 Riverside County Community Fae iii ties District #85-1 A, 85-2 100. 48,160,000 Other Special Districts Various 214,581 1915 Act Bonds 100. 10.985,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $214,024,585(2) Less: Rancho California Water District Certificates of Participation 32,588,796 Elsinore Valley Municipal Water District Certificates of Participation 8.151.533 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $173,284,256
(I) Exel udes issue to be sold. (2)Excludes tax and revenue anticipation notes, revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.
Ratios to Assessed Valuation: Direct Debt ($27 ,991,080) 1.20% Total Gross Debt 9.16% Total Net De bt 7.41%
ST A TE SCHOOL BUILDING AID REPAY ABLE AS OF 6/30/90: $0
Source: Californ ia Municipal Statist ics, Inc. 29 CONCLUDING INFORMATION
Tax Exemption In the opinion of Rutan & Tucker, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest paid with respect to the Bonds is exempt from personal income taxes imposed by the State of California, is excluded from gross income for federal income tax purposes and is not an item of tax pref erene e for purposes of the federa l alternative minimum tax imposed on individuals and corporations; however, Bond Counsel notes that, with respect to corporations (as defined for federal income tax purposes), interest paid with respect to the Bonds will be included in determining corporate adjusted net book income (adjusted current earnings for taxable years ending after December 31, 1989), a portion of which may increase the alternative minimum taxable income of such corporations.
Bond Counsel's opinion as to the exclusion from gross income of interest with respect to the Bonds is subject to the condition that the District comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds to assure that interest paid with respect to the Bonds will not become ineluctable in gross income for federal income tax purposes. Failure to comply with such requirements could cause interest paid with respect to the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to comply with all such requirements. Bond Counsel has not underta ken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring after the date of issuance of the Bonds may affect the tax status of interest paid with respect to the Bonds. Although Bond Counsel has rendered an opinion that interest with respect to the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest paid with respect to the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status and other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. Accordingly, all potential purchasers should consult their tax advisors before purchasing any of the Bonds. Constitutional Tax Limitation
Article XIIIA of the State Constitution limits property taxes - except taxes required to meet debt service on bonds approved by the electorate prior to the July 1, 1978 effective date of the amendment - to one percent of market value. Market value is required to be based on 1975/76 values, except for newly constructed property and property which changes ownership which must be valued as of the date construction is completed or the date of the ownership change. Market values may be increased by up to two percent per year over the base year to reflect inflation.
Because taxes to meet debt service on bonds previously approved by the electorate are specifically excluded from the tax rate limitation, Article XIIIA should have no effect on the security of the Bonds currently being offered for sale.
Article XJIJA also provides that no additional taxes on property or property transfers may be imposed and that other additional taxes may be imposed by the State only with a two-thirds majority approval by the Legislature and by local governments only with the approval of two-thirds of the electorate. 30 Constitutional Limitation on Governmental Spending
Article XIIIB of the State Constitution provided that, beginning in 1980/8 1 fiscal year the State and its political subdivisions, including the District, have an annual "appropriations limit" and they will not be able to spend certain moneys in an aggregate amount higher than the "appropriations limit". The spending of certain moneys are excluded, however, from the "appropriations limit", including debt service on indebtedness existing or authorized as of January I, 1979, or bonded indebtedness subsequently approved by the voters. In general terms, the District's "appropriations limit" is based on certain 1978/79 spending authorizations, and it will be adjusted annually to reflect changes in consumer prices and in the District's population. Among other provisions of the Article are: if District revenues in any year exceed the amounts permitted to be spent, the excess will have to be returned by revising tax rates or fee schedules over the subsequent two years; and the "appropriations limit" may be changed by a vote of the District's electors for a period of not more than four years.
Since expenditures for debt service on voter-approved indebtedness are specifically excluded from the spending limitations, Article XIIIB will have no direct effect on the security of the Bonds currently being offered for sale.
Certain Legal Matters
The legal proceedings in connection with the issuance of the Bonds are subject to the approval of Rutan & Tucker, Costa Mesa, California, Bond Counsel. The opinion of Rutan & Tucker attesting to the validity of the Bonds will be supplied free of charge to the original purchases of the Bonds. A copy of the legal opinion will be printed on each Bond.
Covenants of the District Regarding Arbitrage and Rebate
The District has covenanted to take all actions necessary to comply with the provisions of the Internal Revenue Code of 1986, as amended, with respect to arbitrage and rebate of investment earnings to the United States of America.
Absence of Litigation
At the time of delivery of and payment for the Bonds, Rutan & Tucker, District's General Counsel, on behalf of the District will certify that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or regulatory agency, against the District affecting their existence or the titles of their respective offices or seeking to restrain or to enjoin the sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Resolution, or in any way contesting or affecting the validity or enforceability of the Bonds, the Resolution or any action of the District contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or contesting the powers of the District or its authority with respect to the Bonds or any action of the District contemplated by any of said documents, nor, to the knowledge of the District, is there any basis therefor.
31 Ratings
An insurance commitment has been obtained from Financial Guaranty Insurance Company ("FGIC"). Based on the insurance commitment, Moody's Investors Service and Standard & Poor's Corporation will assign their municipal bond ratings of "Aaa" and "AAA", respectively, to the Bonds on the understanding that the standard policy of Financial Guaranty insuring timely payment of principal and interest on the Bonds will be issued by Financial Guaranty, upon delivery of said Bonds. The ratings issued reflect only the views of such rating agencies, and any explanation of the significance of such ratings should be obtained from such rating agencies. There is no assurance that such ratings will be retained for any given period of time of that the same will not be revised downward or withdrawn entirely by such rating agencies if, in the judgment of such rating agencies, circumstances so warrant. The District undertakes no responsibility either to bring to the attention of the owners of the Bonds any downward revision or withdrawal of any rating obtained or to oppose any such revision or withdrawal. Any such downward revision or withdrawal of the rating obtained may have an adverse effect on the market price of the Bonds.
Bond Insurance
Concurrentl y with the issuance of the Bonds, Financial Guaranty Insurance Company, doing business in California as FGIC Insurance Company ("Financial Guaranty"), will issue its Municipal Bond New Issue Insurance Policy for. the Bonds (the "Policy"). The Policy unconditionally guarantees the payment of that portion of the principal of and interest on the Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by the District. Financial Guaranty will make such payments to Citibank, N.A., or its successor as its agent (the "Fiscal Agent"), on the later of the date on which such principal and interest is due or on the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail, from an owner of Bonds or the Paying Agent of the nonpayment of such amount by the District. The Fiscal Agent will disburse such amount due on any Bond to its owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the owner's right to receive payment of the principal and interest due for payment and evidence, including any appropriate instruments of assignment, that all of such owner's rights to payment of such principal and interest shall be vested in Financial Guaranty. The term "nonpayment" in respect of a Bond includes any payment of principal or interest made to an owner of a Bond which has been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction.
The Policy is non-cancellable and the premium will be fully paid at the time of delivery of the Bonds. The Policy covers failure to pay principal of the Bonds on their respective stated maturity dates, or dates on which the same shall have been duly called for mandatory sinking fund redemption, and not on any other date on which the Bonds may have been accelerated, and covers the failure to pay an installment of interest on the stated date for its payment.
Financial Guaranty is a wholly-owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding company. The Corporation is a wholly-owned subsidiary of General Electric Capital Corporation ("GE Capital"). Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty is domiciled in the State of New York and is 32 subject to regulation by the State of New York Insurance Department. As of March 31, 1990, the total capital and surplus of Financial Guaranty was approximately $445,300,000. Copies of Financial Guaranty's financial statements, prepared on the basis of statutory accounting principles, and the Corporation's financial statements, prepared on the basis of generally accepted account principles, may be obtained by writing to Financial Guaranty at 175 Water Street, New York, New York 10038, Attention: Communications Department. Financial Guaranty's telephone number is (212) 607-3000.
Additional Information
Insofar as any statements made in this Official Statement involve matters of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representations of fact. No representation is made that any of such statements made will be realized. Neither this Official Statement nor any Statement which may have been made verbally or in writing is to be construed as a contract with the owners of the Bonds. Neither the members of the Board of Trustees nor the officers or employees of the District are liable personally on the Bonds by reason of their issuance.
The execution and delivery of this Official Statement have been authorized by the District.
Dr. Tate Parker Superintendent Murrieta Valley Unified School District
33 (This page intentionally left blank) APPENDIX A
GENERAL ECONOMIC DATA (This page intentionally left blank) MURRIETA AREA AND RIVERSIDE COUNTY GENERAL ECONOMIC DATA
The Murrieta Valley Unified School District is located in Riverside County. The following information generally relates to Riverside County although where possible, reference is made in particular to the Murrieta area.
General Background The Murrieta Valley has been attractive to newcomers since the original party of Spaniards claimed it as a potential mission site in 1797 and Don Juan Murrieta arrived and raised sheep in 1870. Don Juan had originally settled in Merced when he made his fortune raising sheep. With two partners, in July 1873, he purchased the Temecula and Pauba Ranches (52,000 acres) from Vincent de la Vega of San Francisco for $52,000. Murrieta Jived on this ranch for many years before selling his interests to the Temecula Land and Water Company.
The valley today has many horse ranches that breed and train thoroughbreds, quarterhorses, and many other horses.
Murrieta is located off the 15 freeway near the intersection of the 15 and 215 freeways. Surrounding unincorporated areas include Temecula, Rancho California, Murrieta Hot Springs and Lake Elsinore.
Organization
I. Murrieta Murrieta is an unincorporated town governed by the Riverside County Board of Supervisors. Approximately 22,800 people reside in the town. (As of July I, 1991, the town of Murrieta will become the incorporated City of Murrieta.)
II. Riverside County Riverside County is a general law county divided into five supervisorial districts on the basis of registered voters and population. The County is governed by a five member Board of Supervisors who serve alternating four year terms. The chairman is elected by the Board members.
County administration includes appointed and elected officials, boards, commissions, and committees which assist the Board of Supervisors.
The County provides a wide range of services to residents, including police and fire protection, medical and health services, education, library services, judicial institutions, and public assistance programs.
Some municipal services are provided by the County on a contract basis to incorporated cities within its boundaries. These services are designed to allow cities to contract for certa in municipal services such as police and fire protection without incurring the cost of creating city departments and facilities. Services are provided to the cities at cost by the County. Geography and Climate
I. Murrieta In general, the climate in Murrieta is typical of Southern California except that it is warmer in the summer and has less fog than the coastal region. Summer daytime temperatures average 80-90 degrees, with a few days reaching 100; however, the summertime heat experienced by most inland valleys is tempered in Murrieta by a moderately brisk coastal breeze which clears the air and cools the late afternoon and evening temperatures.
II. Riverside County Three distinct geographical areas characterize Riverside County. Over two-thirds of the land is desert, which is warmer and dryer than the western third of the County. The County enjoys, for the most part, the typical mild Southern California climate. Located in the western third of the County are the San Jacinto Mountains and the Cleveland National Forest. The climate varies widely between the western valley area, in which most of Riverside's population lives, and the remaining portion comprised of deserts and mountains.
Population
I. Murrieta Completion of the California Southern Railway connecting Los Angeles, Riverside and San Diego brought approximately 800 residents to the Murrieta area in 1890. Today Murrieta has a population of over 22,800.
II. Riverside County
Substantial population growth is occurring in Riverside County. The County's population was 1,110,000 as of January I, 1990. Population for the County and Cities in Riverside County is shown in the following table: RIVERSIDE COUNTY ANNUAL POPULATION ESTIMATES (January 1)
City 1986 1987 1988 1989 1990
Banning 17,000 I 7,200 I 7,900 19,150 20,950 Beaumont 7,825 8,000 8,525 9,150 9,975 Blythe 7,775 7,775 8,075 8,150 8,425 Cathedral City 19,200 23,550 26,750 29,050 3 I,750 Coachella 12,850 13,650 14,100 14,550 14,950 Corona 44,900 47,050 52,200 61,000 70,000 Desert Hot Springs 1 8,250 9,125 I 0,400 10,650 11,200 Hemet 29,300 30,350 32,050 33,350 35,650 Indian Wells 1 2,100 2,290 2,400 2,590 2,720 Indio 29,700 30,950 33,050 34,300 36,000 14,950 15,950 Lake Elsinpre 10,900 12,250 12,800 La Quinta 7,175 8,200 9,275 10,200 11,850 Moreno Valley2 65,400 79,300 90, 700 101,300 114,900 Norco 22,900 23,200 24,750 25,200 25,350 Palm Desert 1 16,350 . 17,100 18,100 19,450 20,650 Palm Springs 1 3Ll00 31,500 31,900 31,950 32,100 Perris 9,725 l I ,250 12,400 l 5, 150 18,900 Rancho Mirage 8,000 8,150 8,525 8,900 9,275 Riverside I 92, I 00 I 99,000 206,000 209,700 218,500 San Jacinto I 0,500 11,750 I 3,200 13.750 15,300
Total Incorporated 553,050 59 1 ,640 633,200 672,600 724,400
Total Unincorporated 285,600 294,700 312.900 345.600 385.600
Total County 838,650 886,340 946,100 1,014,800 1,110,000
Source: State Department of Finance.
Effective Buying Income
The Riverside-San Bernardino Metro area ranks in the top 50 metro areas nationally for effective buying income. Effective Buying Income is designated by Sales & Marketing Management as personal income less personal tax and nontax payments. Personal income is the aggregate of wages and salaries, other labor income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner-occupants of nonfarm dwellings), dividends paid by corporations, personal interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state, and local), nontax payments (such as fines, fees, penalties), and personal contributions for social insurance. Effective Buying Income is a bulk measurement of market potential. It indicates the general ability to buy and is essential
I. Population in desert resort areas of Riverside County doubles during winter months which is not reflected in population estimates. Housing records disclose the areas invo!l'ed have a large n11mher of second homes. 2. Incorporated Decemher 3. 1985. in comparing, selecting, and grouping markets on that basis. The median Effective Buying Income for the Riverside-San Bernardino County rose 12.41% from 1985 to 1988.
The following table demonstrates the growth in estimated median Effective Buying Income for the County and the two principal cities in the County:
RIVERSIDE-SAN BERNARDINO METRO AREA ESTIMATED ANNUAL MEDIAN HOUSEHOLD EFFECTIVE BUYING INCOME
Year 1986 Year 1987 Year 1988 Effective Percentage Effective Percentage Effective Percentage Buying of households Buying of households Buying of househol Income under $20,000 Income under $20,000 Income under $20.00 City of Palm Springs $22,703 26.3% $25,208 23.9% $24,884 24.2% City of Riverside 26,569 21.8 29,645 19.5 29,157 19.7 County of Riverside 23,481 25.0 26,191 22.8 27,135 23.0
Source: "Survey of Buyer Power," Sales & Ma rketing Management Magazine.
The following table demonstrates the growth in estimated annual median effective buying income for the of the Riverside-San Bernardino County area and the State of California:
RIVERSIDE-SAN BERNARDINO METRO AREA ESTIMATED ANNUAL MEDIAN HOUSEHOLD EFFECTIVE BUYING INCOME
Effective Buying Percent of Households Income Under $20,000
County 27,135 21.5% State 30,088 19. l
County $27,489 21.4% State 30,537 18.9
County $25, 165 23.1% State 28,227 20.4
County $24,138 23.9% State 26,557 25.9
Source: "Survey of Buying Power," Sales & Marketing Management Magazine. Employment
The County is a part of the Riverside-San Bernardino-Ontario Primary Metropolitan Statistical area ("PMSA") which includes all of Riverside and San Bernardino counties. In addition to varied manufacturing employment, the PMSA has large and growing commercial and service sector employment, as reflected in the table below:
RIVERSIDE, SAN BERNARDINO, ONT ARIO PMSA LABOR MARKET SURVEY (In thousands)
INDUSTRY � 198S llli 1987 1988 1989 Agriculture 20.2 22.6 22.7 23.7 23.3 23.4 Construction 26.4 37.9 45.6 52.6 51.9 65.2 Finance, Ins. & Real Estate 19.8 22.0 24.5 26.9 26.6 28.7 Government 108. 1 118.4 122.0 124.2 124.3 137.7 Manufacturing: Nondurables 18.2 19.5 21.5 24.6 24.4 25.6 Durables 40.7 46.5 54.3 58.7 59.0 62.8
Subtotal 58.9 66.0 75.8 83.3 83.4 88.4
Mining 1.2 1.3 1.2 1.2 1.2 1.4 Reta ii Trade 105.1 112.6 126.8 139.8 136.6 142.2 Services 104.7 118.8 135. l 148. 4 147.9 159.3 Transportation & Public Util. 26.0 29.3 31.4 31.7 31.4 33.0 Wholesale Trade .lil ,J.2l 21.3 22.0 � 26.7 TOTAL 487.2 548.6 606.4 653.8 648.6 794.4
From 1984 through 1989 , total employment rose 63.1%, while population increased 39.3% in Riverside County. As of January I, 1990, unemployment in the PMSA was 5. 7%, compared to 5.3% for the United States.
Source: California State Department of Finance.
Riverside County
The County Department of Economic and Community Development was established as a means of attracting new business to the area. There are currently numerous industrial parks at various locations within the County, and the Department of Economic and Community Development reports substantial amounts of land which have been designated for light, medium or heavy industrial use. Most of the industry lies in the western portion of the County, from Coachella Valley to the West.
A variety of manufacturing firms are housed in the County. The firms are involved in the manufacture of such products as aerospace and aircraft parts, electronic components and systems, mobile homes and recreational vehicles, irrigation equipment and frozen food products. Description of some of the larger firms are given in the following paragraphs. Rohr Industries, with approximately 3,535 employees, is the County's largest industrial employer and is involved in the manufacture of aerospace and aircraft parts. Production is about 75% commercial and 25% defense oriented. Rohr has three facilities in the County with the main facility in Riverside. Commercial work includes parts for the Airbus, Boeing and Douglas parts for tankers and navy patrol aircraft.
Bournes, Inc. is an electron ics and precision instruments manufacturer. With an estimated employment of 85 0, the company ranks as one of the largest industrial employers in the County. Some of the products Bourns manufactures are potentiometers for computers, respiratory and respiration control equipment, transducers for the electronics industry and radio and television receivers.
March Air Force Base, located nine miles southeast of Riverside, was established in 1918 and is the oldest military base on the west coast and one of the oldest in the United States. The base is a Strategic Air Command (SAC) facility, and home base of the 22nd Bomb Wing. With the closure of George Air Force base and Norton Air Force base, which is scheduled beginning 1991, it is expected that total military and civilian employment will increase steadily at March Air Force Base. It is also expected that as the number of military personnel increases, ancillary civilian employment gains in the local area are virtually assured. Growth in military employment has heretofore meant new jobs in the private sector, and it is assumed that the anticipated changes at March AFB will generate a substantial number of civil ian employment opportunities over the next five years.
Deutsch Company is involved in the manufacture of electronic connective devices, which are sold to military and aerospace clients in support of weapons, aircraft and the space shuttle program. The company has three facilities in the County, is headquartered in Los Angeles and has been established in the County since 1955.
Another military-oriented organization in the County is the Fleet Analysis Center. It has four offices in four different countries. The Corona office has about 700 employees, of wh ich two arc military personnel. The center's total annual payroll is approximately $44,000,000.
Some of the largest non-manufacturing employers in the County and their March 1987 employment estimates include the following: County of Riverside (7,534 including temporary employees), University of California at Riverside (3,774), Riverside Unified School District (2,43 1 ), and the City of Riverside (2,200). Employment estimates were provided by the County Department of Economic and Community Development. The following tables sets forth those employers located in the County that employ more than 600 employees:
RIVERSIDE COUNTY MAJOR EMPLOYERS No. of Company Location Product/Service Employees
Military March Air Force Base Riverside U.S. Air Force Defense Facility 1,276 Fleet Analysis Center Corona Weapon & Test System Analysis 950
Industrial/Manufacturing Rohr Industries, Inc. Riverside/ Aerospace and aircraft 3,535 Moreno Valley Subcontractors Fleetwood Industries Riverside Mobile Homes/Recreational 1,7 10 Vehicles Deutsch Company Banning/Hemet Electronic Connective Devices 1,400 Bourns, Inc. Riverside/ Electric components 85 0 Romo land and systems The Toro Company Riverside Irrigation Equipment 720 Skyline Hemet/ Recreational Vehicles and 700 San Jacinto Manufactured Housing Fred's Ce ntre Brands Riverside/ Frozen Foods 600 Moreno Valley/ Hemet/Corona
Agricultural Sunworld International Indio Growers, Packers 1,500 Royal Citrus Co. Riverside Growers, Packers 689 Sunrise CoachelJa Growers, Packers 650
Retail
Stater Bros., Inc. County-wide Supermarket 2, 100 K-Mart County-wide Department Store 1,578 Dayton-Hudson Corp. County-wide Department Store 1,390 The Vons Co. County-wide Supermarket 1,227 Alpha Beta Co. County-wide Supermarket 1,200 Lucky Stores County-wide Supermarket 664 Safeway Stores County-wide Supermarket 631
Utilities
GTE California County-wide Phone Company 1,604 Pacific BelJ Riverside/Corona Phone Company 605 No. of Company Location Product /Service Employees
Health Servi�e� Desert Hospital Palm Springs Hospital 1,652 Eisenhower Medical Rancho Mirage Hospital 1,650 Center Riverside General Riverside Hospital 1,489 Hospital Hemet Valley Hospital Hemet Hospital 1,200 Riverside Community Riverside Hospital 1,100 Hospital Parkview Community Riverside Hospital 623 Hospital
Public Service
Riverside County County-wide County Government 7,534 (excluding Riverside General Hospital) University of Riverside University 3,774 California, Riverside Riverside USO Riverside School, K-12 2,431 City of Riverside Riverside City Government 2,200 Corona-Norco USO Corona-Norco School, K-12 1,900 U.S. Postal Service Federal Government 1,464 Desert Sands USO Desert Sands School, K-12 1,390 Moreno Valley USO Moreno Valley School, K-12 1,329 Jurupa USO Jurupa School, K-12 1,200 California Rchabili- Norco State Correctional 1,200 tation Center Institution Coachella Valley USO Coachella School, K-12 l, 150 Valley Riverside Community Riverside Junior College 1,024 College Palm Springs USO Palm Springs School, K-12 99 1 Alvord USO Riverside School, K-12 950 Hemet USO Hemet School, K-12 900
Q1hQ
Marriott Corp. County-wide Hotel/Resorts 3, 188 Landmark Land Co. Moreno Valley I Development/Resorts 1,719 Beaumont/ Coachella The Press-Enterprise County-wide Newspaper I, 113 Security Pacific County-wide Banking 1,050 National Bank Consolidated Freight- Mira Loma/ Trucking 621 ways Hemet/Indio
Source: Riverside Press-Enterprise, 1988. Commercial Activity
Commercial activity has proven to be an important factor in the County's economy. Between 1984 and I 989, taxable retail sales rose approximately 50% while total taxable sales rose approximately 55%.
Much of the County's commercial act1v1ty is concentrated in central business districts or in small neighborhood commercial centers in the cities. There are six conventional regional shopping centers: Riverside Plaza, Tyler Mall (Riverside), Palm Springs Mall, Indio Fashion Mall, Hemet Valley Mall and Palm Desert Town Center. There are some 20 area centers distributed throughout the cities and 17 in other areas of the County. In addition, all major retail auto dealers are represented in the Riverside Auto Center.
The County is served by a number of major banks. They include: Security Pacific, Bank of America National Trust and Savings Association, First Interstate and Wells Fargo. There are at least 37 savings and loan associations in the County, with Great America Federal, California Federal and Coachella Valley (Subsidiary of Financial Federation Inc.) having the largest number of branch offices.
Taxable Transactions
Riverside County
Commercial activity is an important contributor to Riverside County's economy. The following table shows the County's taxable transactions for 1984 through June 1989.
RIVERSIDE COUNTY TAXABLE TRANSACTIONS as of December 31 (000)
Taxable Number of Transactions Permits
19892 $4,261,440 27,341 1988 7,549,881 26,076 1987 6,740,82 l 25,259 1986 5,958,886 24,776 1985 5,402,546 23,618 1984 4,873,946 22,548
Source: State Board of Equalization.
The following table sets forth taxable transactions in the County for the years 1984 through June 30, 1989 for specific categories:
2. Figures are through 2nd quarter. 1989. RIVERSIDE COUNTY TAX ABLE SALES TRANSACTIONS (In thousands)
1984 1985 Jru 1211 1211 12121 Apparel Stores $ 162,057 $ 179,457 $ 195,899 $ 217,639 $ 262,428 152,361
General Merchandise Stores 437,948 562,936 511,636 631,426 678,815 333,634
Drug Stores 83,248 91,036 101,321 110,426 129,454 67,600
Food Stores 45 1, 104 476,97 1 523,108 516,791 544,908 304,572
Package Liquor Stores 52,038 54,740 54,912 63,938 66,403 33,385
Eating and Drinking Places 444,494 488,347 543,532 603,764 651,868 365,692
Home Furnishing and Appliances 152,561 169, 128 186,467 216,742 256,814 131,386
Building Materials & Farm Implements 39 1,645 432,828 530,930 627,312 766,539 394,423
Service Stations 430,919 460,025 394,750 459,971 516,933 298,723
Automobile, Boat Motorcycle, Plane Dealers & Parts Outlet 743,589 816,528 l,403,6 10 1,080, 157 1,228,343 370,042
Miscellaneous 3053 13 5 242,404 622,462 335.605 384.282 562.882 TOTAL ALL OUTLETS $4,873,946 $5,40 I,764 $6,688,895 $6,735,948 $7,549,881 $4,261,440
Source: State Board of Equalization.
1. Through 2nd quarter of 1989. TAXABLE VALUES 1989-90 (in millions of dollars)
Assessed % change value from 1989-90 1988-89
Banning $ 444.92 l 7.3 Beaumont 253.69 21.2 Blythe 149.27 6.1 Cathedral City 1, 1 78.08 17.2 Coachella 229.87 12.5 Corona 3, 194.84 29.9 Desert Hot Springs 332.47 6.2 Hemet 1, I 09.92 13.3 Indian Wells 1,330.55 15.6 Indio 923.20 8.6 Lake Elsinore 642.14 21.2 La Quinta 980.01 21.1 Moreno Valley 3,594.84 27.4 Norco 643.46 10.2 Palm Desert 2,728.18 13.8 Palm Springs 3,461.66 3.9 Perris 583.72 47. l Rancho Mirage 2,069.24 10.0 Riversi de 7,195.45 13.6 San Jacinto 363.17 19.3
Source: Riverside County Assessor's Office. TAX ABLE VALUES 1989-90 (in millions of dollars)
Assessed % change value from Unified School Districts 1989-90 1988-89
Alvord $2,04 1.83 16.8 Banning 522.48 1.7 Beaumont 644.07 22.5 Coachella Valley 955.35 11.9 Colton 30.89 14.9 Corona/Norco 4,674.69 24.8 Desert Center 34.45 -1.0 Desert Sands 7,435.67 14.1 Hemet 3, 181 .78 12.3 Jurupa 1,826.39 12.4 Moreno Valley 3,50 1.67 24.5 Palm Springs 7,36 1 .35 7.7 Palo Verde 408.92 4.2 Riverside 5,988. 92 15.1 San Jacinto 545.59 16.6 Yuca ipa 140.52 11.3 Lake Elsinore 2,025.60 20.2 Menifee 923.77 24.1 Murrieta 1,254.43 55.0 Nuview 209.79 14.3 Perris 502.67 30.6 Romoland 263.90 21.4 Temecula 2, 131.43 33.5 Val Verde 756.40 49.0 Total $47,362.55 17.3
Source: Riverside County Assessor's Office.
Development
I. Murrieta
Murrieta is now experiencing a boom in both commercial development and housing construction. Shopping opportunities are increasing at a rapid pace., The older part of town is being rejuvenated by several new stores and restaurants. Three large shopping centers are planned along the eastern side of the 1-15 freeway with several storefronts to be ready by I 990.
Murrieta Hot Springs Road is targeted for close to 70,000 square feet of retail shopping centers which is slated for 1990 occupancy.
Downtown commercial development will get a boost with a 242 square foot shopping center and an additional 50 acres slated for development.
This commercial growth is planned because housing starts and developments have increased dramatically. It is estimated that by the end of 1989 over 2,000 new homes will have been completed by several area developers. Over 8,600 homes and apartments total are planned with much of it already underway.
Land sales have recently become attractive with major developers purchasing major tracts for home construction and long term development.
II. Riverside County
The value of building permits issued in Riverside County in 1989 totaled $3,439,848,000. The following tables provide a five year summary of building permit valuations and number of new dwelling units authorized in the County (in both incorporated and unincorporated areas) since 1985. The high for single family building permits occurred in 1988. The Moreno Valley area in the western region of the County and Coachella Valley in the central region are both centers of economic activity and are currently experiencing the greatest growth rate in housing.
BUILDING PERMIT VALUATIONS COUNTY OF RIVERSIDE As of December 31 ($000)
1985 1986 1987 1988 1989 Residential Single Fam. Dwel. $ 708,568 $1,181,307 $1,325,633 $2,839,667 $2,533, 132 Multi-Fam. Dwel. 328,701 382,65 1 170, 106 264,640 185,217 Alterations/ Adds 42.1 19 47.027 48,722 59.747 72.J15 Total New Residential $1,079,388 $1,610,985 $1,544,462 $3, 1 64,055 $2, 790,665
Non-Residential New Commercial $ 267, 721 $ 227,942 $ 279,737 $ 252,120 $306,983 New Industry 68,03 1 92,975 77,8 16 101,219 136,338 New Other 206, 178 210,241 100,260 126, 147 117,555 Alterations/ Adds 71,(254 �5.184 61.504 Ql ,Q75 88.JQ7 Total Non-Residential $ 613,584 $ 586,343 $ 519,316 $ 540,56 1 $ 649,183
Total Bldg. Permit $1,692,972 $2,197,327 $2,063,778 $3, 704,6 16 $3,439,848 Valuation
Source: California Constrnction Trends, Security Pacific Bank; 1985-1987: California Building Permit Activity, Economic Sciences Corporation; 1987-1989.
Transportation
Several major highways and railroads traverse Riverside County. Ontario International Airport is located 18 miles northwest of the City of Riverside.
The Riverside Freeway (U.S. 91) extends in an east-west direction from the City of Riverside west and connects with both the Orange County freeway network and South Los Angeles County freeway network. Interstate IO traverses the width of the County and links the County to the Los Angeles freeway network on the west. Interstate 215 extends north and east to Las Vegas, Nevada, and south to San Diego. The Pomona Freeway (U.S. 60) provides an alternate to Interstate 10 and also links to the Los Angeles freeway network. Freight service to major west coast and national markets is provided by three transcontinental railroads, the Santa Fe, Union Pacific, and the Southern Pacific.
Ontario International Airport, 18 miles northwest of the City of Riverside, provides service to approximately 50 cities in the United States and Mexico. The airport has the runway capacity to serve wide-bodied jet airplanes. As of August, 1989, there were 14 airlines located at Ontario International Airport with 120 daily flights serving approximately 4.8 million passengers. Cargo volume for 1988 was approximately 286,411 tons.
The Southern California Rapid Transit District provides intercommunity and metro bus service. Local bus service is provided by the Riverside Transit Agency within the Cities of Riverside, Corona, Perris, and Hemet. Sunline provides local bus service throughout the Coachella Valley including the Cities of Palm Springs and Indio.
Easy access to job opportunities in the County and nearby Los Angeles and Orange Counties is important to the County's employment picture. Several major freeways and highways provide access between the County and all parts of Southern California. The Riverside Freeway (State Route 91) extends southwest through Corona and connects with the Orange County freeway network in Fullerton. Interstate 10 traverses the width of the County, and the western-most portion links up with major cities and freeways in the eastern part of Los Angeles County and the sou thern part of San Bernardino County. Interstate 15 and 215 extend north, and then cast, to Las Vegas, and south to San Diego. The Pomona Freeway (lJ.S. 60) provides an alternate (1- 10) eastwcst link to Los Angeles County.
Currently the County is served by Southern California Rapid Transit District, providing intercommunity and metropolitan bus scrv ice.. Transcontinental bus service is provided by Greyhound lines and Continental Trailwa ys.
Local bus ser vice is provided by the Riverside Transit Agency within the City of Riverside and Moreno Valley to Hemet. The City of Riverside also provides local bus service throughout Coachella Valley, including the Cities of Palm Springs and Indio. Freight service to major west coast and national markets is provided by three transcontinental railroads - Santa Fe, Union Pacific and Southern Pacific. Truck service is provided by several common carriers, making available overnight delivery ser vice to major California cities.
The County seat in the City of Riverside is within 20 miles of the Ontario International Airport in neighboring San Bernardino County. This airport is operated by the Los Angeles Department of Airports. Five major airlines schedule commercial flight service at Palm Springs Municipal Airport. Commuter service operates at Blythe (County operated). Major County-operated, general aviation airports included those in Thermal, Desert Center and Hemet. Riverside, Corona and Banning Municipal Airports serve general aviation needs only. There is also a military airport at March Air Force Base. Environmental Control Services
Water Supply -- The County obtains a large part of its water supply from groundwater sources. As in most areas of Southern California, this groundwater resource is not entirely sufficient to meet demand and is supplemented by imported water. At the present time the means used are aqueducts, including the Colorado River Aqueduct, the All American Canal, and the California State Water Project. The two largest water districts in the County, the Western Municipal Water District and the Eastern Municipal Water District, were formed for the primary purpose of supplying supplemental water to the cities and agencies within their areas.
Flood Control -- Primary responsibility for planning and construction of flood control and drainage system within the County is provided by the Riverside County Flood Control and Water Conservation District and the Coachella Valley Storm Water Unit.
Sewage -- There are ten wastewater collection and treatment agencies in the west County area, eight in the central County area, eleven in the Coachella Valley are and six in the Palo Verde area. Most residents in the rural unsewered areas of the County rely upon septic tanks and leach fields as an environmentally acceptable method for sewage disposal. Recreation in Riverside County
Although the area is considered primarily a winter resort area, off-season convention business is increasing in Palm Springs. The present economy of the area is based on tourism, retail trade, and services reflecting the recreational oriented nature of these communities. The Community of Coachella is a highly productive agriculture region growing dates, cotton, citrus fruit, and table grapes.
Large portions of the County are located in the San Bernardino National Forest, Cleveland National Forest, and Joshua Tree National Monument. Idyllwild, located in the San Jacinto Mountains is a mountain recreation area offering limited winter sports, camping, fishing, and mountain resort hotels. The area is also a favorite for artists. The Idyllwild School of Music and the Arts of the University of Southern California provides a summer educational f es ti val which draws dancers, actors, musicians, and other artists to its campus.
The County is also one of Southern California's leading inland water recreation areas. State Parks, Lake Perris, Skinner and Vail Lakes, Lake Elsinore, the Salton Sea, the Colorado River and many other smaller lakes provide swimming, boating, water skiing, and fishing opportunities for visitors.
Agriculture
Agriculture remains a leading source of income in the County. The County ranked fifth among the 58 California counties in 1989 in terms of total value of agricultural production and fifth in term of total crop production. Principal crops are grapes, grapefruit, cotton, alfalfa, dates and lemons. The value of County agricultural crops and products has exceeded one billion dollars in each of the last two years.
Three areas in the County account for the major portion of agricultural activity: the Allcssandro District in the western portion of the County, the Coachella Valley in the central portion and the Palo Verde VaJley near the County's eastern border. While the County is one of the nation's leading citrus producers, its expanding dairy industry is increasing in importance.
The value of agricultural production in the County of 1985 through 1989 is presented in the table below: RIVERSIDE COUNTY VALUE OF AGRICULTURAL PRODUCTION
1985 1986 1987 1988 1989 Citrus Fruits $155, 1 83,700 $162,62 1 ,200 $145,650,500 $177,529,900 $144,633,100
Trees and Vines 155, 1 60,900 1 72, 1 03, 700 162,855,000 219,401,700 175,450,700
Vegetables, Me Ions, Miscellaneous 114,062,200 1 39, I 04,000 165,476,500 203, 192,600 185,787,300
Field & Seed Crops 74,979,800 76,05 1 ,000 80,249,000 83,696,700 77,61 4,300
Nursery 44,985,400 49,235,700 54, 1 34,300 68,231 ,600 61,579,400
Apiary 1 ,805,000 2,679,000 1,028,400 1 ,896,300 1,710,000
Aquaculture Products 1,398,700 3,1 50,000 2, 795,600 3,346,700 3,364,000
Total Crop Valuation $547,575, 700 $604,944,600 $6 12, 1 89,300 $757,295,500 $650, 1 38.800
Livestock and Poultry Valuation $389,505, I 00 $385,025,900 $358,551 ,800 $4 1 5,435,900 $442,642,300
Grand Total $937,080,800 $989,970,500 $970, 7 41,1 00$1,1 72, 731,400$1,092,7 81,10 0
Source: Riverside County Agricultural Commissioner. (This page intentionally left blank) APPENDIX B
FORM OF BOND INSURANCE POLICY I it1;i11,·1,d l ,11i1r:u11, I 11-u r:i "' , ( <>lllf 'i\11\ !-:".-, \\ at•T ,rr,·,·t
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A GE Capital Company
Municipal Bond New Issue Insurance Policv
Issuer: Policy Number:
Control Number:
Bonds: Premium:
Finaneial (;uaranty lnsuram·e Company 1 --Finaneial Guaranty"",. a '.°'jew oonsideration of the payment ·o r the premium and subject to the t ms of t and irrevocably agrees to pay to Citibank, N.A .. or its succ
benetit of Bondholders, that portion of the prineipal ·'Bonds") which shall becoml:' Due for Paymen
Finan<'ial Guaranty will make such wtfflllllw";;'I. te st h · 1pal or inteff'St becorne,S Due for Pa yment or on .h Financial Guaranty shall have received Notice of l\m•.lml"will disburseto the Bondholder . ent but is unpaid by reason of . gent, in form reasonably satisfactory to it. of of the principal or interest Due for Payment and
ml�•lls of assipiment. that all of the Bondholder's rights to
or Payment shall thereupon vest in Financial Guaranty. Upon
a ty shall become the owner of the Bond, appurtenant coupon or right to on such Bond and shall be fully subrogate><:I to all of the Bondholder's rights ndholder's right to payment ther«><1f
non-cancellable for any reason . Thr premium on 1h1s Policy is not ,-.,fundable for any rrason, the payment of the Bonds prior to their maturity. This Policy does not insure against loss of any p payment premium which may at any time be payable with respect to any Bond .
I \s used herein. the term · ·&mdholder"' means. as lo a partirnlar &md. the person othi>r than the Issuer who, at the time of Nonpayment, is entit:led under the terms of sueh Bond to payment thereof. ''Due for Payment" me.ans, when referring to the principal of a Bond. the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any e..ar:l ier date on which payment is due by reason of call for redemption ( other than by mandatory sinking fund redemption ). accrleration or other advancement of maturity and me.ans. when referring to interest on a
SM: St'rvt<'t' mark 11,;;,d by Financial (;uaranty l11sura11cr Compam 11rnln· li1·1'11,.,...from ib parenl t�>mpany. FGIC Corporation
Form 9000 8/()() Pagt> I of :2 I in .. 11,·!Cil l.11ara111, l11-urc11w,·
( < 1ll 1j •ii II\
1-:; \\;i1 ,·r "'m·,·t '\,·,, \1 1rk. '\ \ IOIJ:\l\--tq-2 212 (11!-:-.l()I)( I :lrn 1 Ci J-000 I
A GE Capital Company
Municipal Bond New Issue Insurance Policy
Bond tht> stati>d datf' for paymt>nt of intt'rf'st . ··'.\lonpaymt>nt.. in rt's1wet of a Bond mt>ans tht> failure of tht> . lssuf'r to havt> providt'd sufficienl funds to tht> payingag ent for paymt>nt in full of all principal and intert>st
Dut' for Pa ynwnt on such Bond. ··:\lotin•" nwans tt>lt>phonic or tt'lt>graphie noti<'t>. subsequently confirmt>
In Witness Wht>reof, Finanrial Guaranty has ca ust>d this Po liey to be affixt'd signed by its duly authorizt>d ijflicers in facsimile to becomt' t>ffertivt> and bi by virtut' of the countt>rsignaturt> of it'i duly authorized rt>prest>n
President
Authorized Representative
ges that it has agret>d to rwrform tht' dutit>s of Fiscal .\.wnt undt>r this Policy .
Authorized Officer
SM: Servicf' mark uSftl hy Finanl'ial Guarantv lnsuram'f' Company undt>r lict>nSI' from its part>nt eompany, FGIC Co11)oration
Form 9()()0 8/()0 1 Fi11aJll'1al Cuarunr\ I11�11ra11n· ( .1 1111pall\ r !-:'.-> \' att>r Strt't't FGIC� \"ew York. \"\' IO
A GE Capital Company
Endorsement To Financial Guaranty Insurance Cornpany Insurance Policv
Policy Number: Control Number:
It is further understood that the term ··Nonpayment" in rt>spect of a Bond ind110t'II- a or intt'rest made to a Bondholder by or on bt>halfof the issuer of such Bond w · as bee reco such Bondholder pursuant to the United State,s Bankruptcy Codt' by a trust in b kruptcy · ace dan with a final, nonappealable order of a court having compett'nt juri: ·ction.
In Witness Whereof, Financial Guaranty has caused th. · :ndo and to bt> si ed by its duly authorized offirers i gn
Senior Vice President
Authorized Representative
owledged as or the Effective Date written above:
Authorized Officer
Citibank, N.A., as Fiscal Agent
SM: �rvi1·1• mark ui;t·d by Finarl<'ial Guaranty lnsuram•t> Company umk-r lil't'llst' from it� pari>nt l'ompany, FCIC Corporation Form E-0002 8/()()\ P t> 1 of 1 ag h11.111, 1.d ( ,il.11',tlll', 111,111.1!1, . ( .t tl llf '"II\
EXHIBIT B (To be printed on the Bonds ) STATEMENT OF INSURANCE Financial Guaranty Insurance Company , doing business in California as FGIC Insurance Company ("Financial Guaranty") has issued a policy containing the following provisions with respect to the Murrieta Valley Unified School District , California General Obligation Bonds , Election 1989, Series B {the "Bonds") , such policy being on file at the principal office of the Registrar/Transfer/ Pay ing Agent , as paying agent (the "Paying Agent" ): Financial Guaranty hereby unconditionally and irrevocably agrees to pay for disbursement to the Bondholders that portion of the principal of and interest on the Bonds which is then due for payment and which the issuer of the Bonds (the "Issuer") shall have failed to provide . Due for payment means, with respect to the principal, the stated maturity date thereof, or the date on which the same shall have been duly called for mandatory sinking fund redemption, but not any earlier date on which the payment of pr incipal of the Bonds is due by reason of acceleration , and with respect to interest, the stated date for payment of such iutex�st . Upon receipt of telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail, from a Bondholder or the Paying Agent to Financial Guaranty that the required payment of principal or interest has not been made by the Issuer to the Paying Agent , Financial Guaranty on the due date of such payment or within one business day after receipt of notice of such nonpayment , whichever is later , will make a deposit of funds , in an account with Citibank , N.A. , or its successor as its agent {the "Fiscal Agent'' }, sufficient to make the portion of such payment not paid by the Issuer . Upon presentation to the Fiscal Agent of evidence satisfactory to it of the Bondholder's right to receive such payment and any appropriate instruments of assignment required to vest all of such Bondholder's right to such payment in Financial Guaranty, the Fiscal Agent will disburse such amount to the Bondholder . As used herein the term "Bondholder" means the person other than the Issuer who at the time of nonpayment of a Bond is entitled under the terms of such Bond to payment thereof. The policy is non-cancellable for any reason.
FINANCIAL GUARANTY INSURANCE COMPANY , doing business in California as FGIC Insurance Company