PROPOSITION NO. 4

ESTABLISH A CAPITAL RESERVE FUND

The District is seeking voter authorization to establish a new reserve, Capital Reserve Fund – 2017. This fund shall be used to fund all or a portion of the costs of the acquisition, construction, reconstruction, expansion, renovation, alteration and improvement of the District’s buildings, facilities, grounds and property, including the purchase of furnishings, equipment, machinery and apparatus.

Renovations 2014 was helpful in repairing our buildings and infrastructure; however, a significant amount of work still needs to be completed. The District completed a new Building Conditions Survey, which is required every five (5) years. The survey indicated that the District needs to make approximately $35 million in additional repairs and upgrades for items identified with a useful life of 7 years or less. The proposed reserve will allow the District to offset the local share and tax impact

of future renovations, repairs and equipment needs. This fund shall not exceed $8,000,000.

Note: The creation of the reserve will have no impact on the tax levy.