In November 2000, the voters of the State of California approved Proposition 39 authorizing the issuance of general obligation bonds by California public school districts and community colleges, under certain circumstances and subject to certain conditions. In November 2004, a general obligation bond proposition (Measure E) of the Fillmore Unified School District was approved by the voters of the District. Measure E authorized the District to issue up to $10,000,000 of general obligation bonds to finance various capital projects, and related costs, as specified in the bond measure provisions of Measure E.
In 2005, the District issued Series 2005A bonds, with proceeds to be used to finance the repair, renovation and upgrading of certain District property and facilities; and pay all necessary legal, financial, engineering and contingent costs of issuance of the bonds.
Pursuant to the requirements of Proposition 39, and related state legislation, the Board of Education of the District established an Independent Citizens' Oversight Committee and appointed its initial members. The principal purpose of the Independent Citizens' Oversight Committee, as set out in state law, is to inform the public as to the expenditures of the proceeds of the bonds issued pursuant to the Measure E bond authorization. The Independent Citizens' Oversight Committee is required to issue at least one report annually as to its activities and findings.
Section 1(b)(3)(C) of Article XIIIA of the California Constitution requires the District to conduct an annual independent performance audit to ensure that the proceeds of the bonds deposited into the Bond Building Fund have been expended only for the authorized bond projects.