A few terms come up often in conversations about school bonds. These are the most important ones to understand.

General Obligation Bond. A bond approved by voters and repaid through a dedicated property tax collected within the district. This is the type of bond California school districts typically use for facility projects.

Series. A portion of the total authorized bond amount that is issued, or sold to investors, at a specific time. Districts usually issue bonds in several series over time rather than all at once.

Assessed Value. The taxable value of a property as determined by the County Assessor. This is the figure used to calculate property taxes, and it is typically lower than market value under Proposition 13.

Tax Rate. The amount charged per $100,000 of assessed value to repay the bond. For California unified school districts under Proposition 39, the maximum allowable rate is $60 per $100,000.

Interest Rate. The cost of borrowing money. Lower interest rates reduce the total amount repaid over the life of the bond.

Credit Rating. An independent evaluation of a district's financial health. A strong credit rating helps the district borrow at lower interest rates, reducing costs to taxpayers.

Refinancing (Refunding). Replacing existing bonds with new ones at lower interest rates to reduce overall repayment costs. This is similar to refinancing a home mortgage when rates drop.

Citizens' Oversight Committee. An independent committee of community members required by Proposition 39 to review bond spending and confirm that funds are used only on approved projects.

A school bond follows a clear process set by California law:

Step 1 — Identify needs. The District identifies facility needs through a Facilities Master Plan and community input.

Step 2 — Place on the ballot. The Board of Education votes to place a bond measure on the ballot. Voters see the bond amount, the project list, and the estimated tax rate.

Step 3 — Voter approval. Under Proposition 39, the bond must receive 55% voter approval to pass.

Step 4 — Bonds issued in phases. If approved, the District sells bonds in several series over time, only as funds are needed for projects.

Step 5 — Project work begins. Property owners begin paying the bond tax as bonds are issued, and projects on the approved list move forward.

Step 6 — Ongoing accountability. Independent oversight and annual audits are required by law for the life of the bond.

Step 7 — Refinancing opportunities. If interest rates decline, the District may refinance bonds to reduce costs for taxpayers.

A few facts about how bond financing actually works are worth knowing:

• Voter approval authorizes a maximum bond amount. It does not require the District to issue all of those funds at once.

• Bonds are typically issued in phases, or series, based on project timelines and actual funding needs.

• The total amount issued will not exceed what voters approved.

• Interest costs may vary depending on market conditions at the time each series of bonds is sold.

• If interest rates fall after bonds are issued, the District may refinance to lower long-term costs to taxpayers

California law strictly limits how bond funds can be spent. Bond proceeds may only be used for projects on the bond project list approved by voters.

Bond funds CAN pay for:

• Repairing or replacing aging roofs, plumbing, electrical, and HVAC systems

• Modernizing classrooms and learning spaces

• Constructing new buildings to replace those past their useful life

• Improving safety, security, and accessibility

• Upgrading technology infrastructure

• Modernizing science labs, athletic facilities, and arts spaces

Bond funds CANNOT pay for:

• Teacher or administrator salaries

• Pensions or employee benefits

• Routine maintenance or daily operations

• educational programs or classroom supplies

• Any project not on the voter-approved list

If the Board places a bond on the November 2026 ballot at the size currently under discussion, the estimated tax rate is shown below. This rate is well below the maximum rate allowed by California law for a unified school district, which is $60 per $100,000 of assessed value.

What does $36 per $100,000 actually mean for me?

The bond tax is based on your home's assessed value, not its market value. Assessed value is the figure the County Assessor uses for your property tax bill. Under Proposition 13, assessed value usually rises slowly over time and is typically lower than what a home would sell for today.

Here are examples of the estimated annual bond tax at different assessed values:

How to estimate your own cost: Find your assessed value on your annual property tax bill or the Monterey County Assessor website. Divide it by $100,000, then multiply by $36. That is the estimated bond tax you would pay per year.

California's Proposition 39 includes four built-in safeguards. These apply for the entire life of the bond:

Independent Citizens' Oversight Committee. A committee of community members reviews bond spending and confirms that funds are used only on approved projects. The committee must be appointed within 60 days of the election results being certified.

Annual independent performance audit. An outside auditor checks that bond funds were spent only on listed projects.

Annual independent financial audit. An outside auditor confirms the financial records are accurate and complete.

Annual public report. Every year, the Board receives and publishes a report showing how much was spent, on what, and the status of each project.

Why can't the District just use its existing budget?

The District's operating budget pays for staff and educational programs across our schools. It is not large enough to cover major facility work like replacing aging buildings or full classroom modernization. The District spends approximately $3 million per year on maintenance, but the scope of needed repairs is far larger than the operating budget can support.

How long does a bond last?

Bonds are typically repaid over 20 to 30 years, similar to a home mortgage. The repayment period is set when the bonds are sold, and the tax to repay them ends when the bonds are fully paid off.

Why now?

Some of our school buildings date to the 1940s and 1950s. Our oldest building dates to 1939. Roofs, plumbing, electrical, and HVAC systems are reaching the end of their useful life across multiple sites. The cost of waiting tends to grow as buildings age and repair work becomes more complex.

Does the State pay for any of this?

State matching funds may be available for some projects, but they generally require local matching dollars first. A local bond is what makes State matching funds accessible.

Will the bond tax appear on my property tax bill?

Yes. If a bond passes, the bond tax appears as a separate line item on your annual property tax bill from the Monterey County Tax Collector.