TAX RATE STATEMENT FOR BOND MEASURE S

An election will be held in the San Lorenzo Valley Unified School District on November 7, 2000 to authorize the sale of up to $18.5 million in general obligation bonds of the District to finance the acquisition and improvement of real property for school purposes. If such bonds are authorized and sold, the principal thereof and interest thereon will be payable from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with sections 9400-9404 of the Election Code of the State of California.

1. The best estimate of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the first sale of bonds based on a projection of future assessed valuations is $.026 per $100 of assessed valuation in Fiscal Year 2001-2002.

2. The best estimate of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the last sale of bonds if the bonds are sold in series, and an estimate of the fiscal year in which that rate will apply, based on a projection of future assessed valuations is $.026 per $100 of assessed valuation in Fiscal Year 2011-12.

3. The best estimate of the highest tax rate that would be required to be levied to fund the bond issue and an estimate of the fiscal year in which that rate will apply, based on a projection of future assessed valuations, is again $.026 per $100 of assessed valuation, which is projected to be the same in every fiscal year.

Attention of all voters is directed to the fact that the foregoing is based upon projections and estimates only, which are not binding upon the District. The actual tax rates and years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold at any given sale, and the actual assessed valuation over the term of the repayment of the bonds. The actual time of sales of said bonds and the amount sold at any given time will be governed by the needs of the District and other factors (including market rate variations in the interest rate on general obligation bonds). Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined in the assessment and equalization process.

If approved by at least two-thirds of those voting on it, this measure will permit up to $18,500,000 of bonds to be issued on behalf of the San Lorenzo Valley Unified School District. These bonds would constitute a debt of the District.

The money raised through sale of the bonds could be used by the School District for the purposes stated in the ballot question.

If issued and sold, the term of the bonds cannot exceed twenty-five years, and the rate of interest paid on the bonds will be limited by State law.

Payment of interest on the bonds (and principal, when applicable) would be financed by a tax levied on real property within the School District. The Tax Rate Statement for Bond Measure S which is printed in this voter information pamphlet provides additional information about the tax, as required by law. The precise effect of the bonds upon the property tax rate within the District would only be determined after sale of the bonds.

A "yes" vote on Measure S is a vote to approve the bonds.

A "no" vote on Measure S is a vote against approving the bonds.

Dated: August 28, 2000

SAMUEL TORRES, JR., COUNTY COUNSEL

By Jane M. Scott, Assistant County Counsel