Welcome to The Bond Management Playbook, a resource designed to empower school district leaders with the tools, strategies, and insights necessary for e ective bond management. Bonds represent not only a financial commitment but a promise to your community to deliver projects that transform educational environments and improve outcomes for generations to come.
At School Leaders, we understand the challenges you face. Having worked directly with school district leaders across California, we’ve seen how e ective bond management can turn a voter-approved initiative into tangible successes. This playbook draws on decades of experience in facilities planning, bond program management, and educational leadership to provide you with actionable steps, real-world examples, and industry best practices.
Joe Dixon, Founder and Principal of School Leaders, brings an unparalleled depth of experience to this subject. Over his distinguished career, Joe has managed billions in school construction projects, recipient of the James L. Murdoch Lifetime Achievement Award, Chair of Coalition for Adequate School Housing, Chair of Californians for Quality Schools, Board Member of Green Schools, and core instructor for the School Facility Leadership Academy and Maintenance Academy. He oversees the successful implementation of numerous bond programs throughout the state, and now leads a team of facility experts, ranging from former facility directors, licensed architects, engineers, construction managers, and seasoned program managers. His leadership and expertise have shaped this playbook to meet your needs as a Superintendent or Chief Business O icial (CBO).
Through this guide, you’ll gain the confidence to navigate the complexities of bond management while ensuring accountability, transparency, and excellence every step of the way. Whether you’re leading a small district or managing a large school system, this playbook is your roadmap to success.
Managing a bond program goes beyond finances; it’s about leadership, accountability, and the ability to inspire confidence among stakeholders. For Superintendents and CBOs, bond management represents one of the most high-profile and impactful responsibilities of their roles. Yet, many leaders find themselves navigating this terrain without adequate preparation or resources.
This playbook was created to fill that gap, o ering:
• Step-by-step guidance on every phase of bond management, from planning to post-implementation.
• Insights from experts like Joe Dixon, who have turned challenges into success stories.
• Practical tools such as templates, checklists, and case studies to streamline your e orts.
Superintendents and CBOs will find this playbook particularly valuable as it addresses the most common pitfalls in bond management, such as misaligned priorities, insu icient oversight, and community skepticism. By following the strategies outlined here, you can ensure that every dollar is spent wisely and every project delivers on its promise.
This playbook is designed as a practical, user-friendly resource. It is structured to guide you through the lifecycle of bond management, providing the information and tools you need at each stage. From understanding the fundamentals of school bonds to implementing accountability measures and preparing for audits, every section is tailored to help you succeed.
Key features include:
• Clear and Concise Explanations: Complex topics like cash flow management and compliance are broken down into straightforward, actionable steps.
• Real-World Examples: Learn from case studies that highlight both successes and challenges, giving you a balanced perspective.
• Tools for Success: Access templates, reporting guides, and strategic planning resources to make your job easier.
The hands-on experience and strategic insights of School Leaders is woven throughout this playbook, ensuring that every recommendation is grounded in real-world application. As you work through the sections, you’ll find yourself equipped not only to be er manage your bond program e ectively but to exceed the expectations of your community and set your district up for l ong-term success.
The Bond Management Playbook is more than a guide—it’s a partnership. With Joe Dixon and the team at School Leaders by your side, you’re not just managing a bond; you’re creating a legacy of trust, innovation, and excellence for your district. Let’s get started.
In this section, we’ll cover the foundational knowledge you need to lead with confidence. From understanding what a bond is and how it works, to exploring di erent types of bonds, identifying key stakeholders, and navigating the regulatory landscape, this guide equips you to make informed decisions and maximize the impact of your bond program.
A Framework of Thinking is a structured approach to problem-solving and decision-making that provides a clear, systematic way to analyze situations, generate insights, and implement solutions. For education professionals, it aligns closely with the principles of pedagogy, as both prioritize a sca olded approach to understanding and applying knowledge. Just as pedagogy emphasizes guiding learners through intentional stages of discovery, reflection, and application, a Framework of Thinking helps leaders like superintendents organize complex tasks—such as managing a bond program—into manageable, actionable steps. This alignment ensures that decisions are thoughtful, informed, and reflective of best practices, fostering a culture of continuous improvement and collaborative learning within school districts.
Definition and Purpose
1. Vision and Alignment
• Key Question: What is our ultimate vision for this bond program, and how does it align with our district's strategic goals and community needs?
• Clarify the purpose and goals of the bond program.
• Align the bond program with the district's mission, long-term facility master plan, and educational goals.
• Ensure stakeholder alignment, including school board members, sta , and the community.
2. Stakeholder Engagement
• Key Question: Who are the key stakeholders, and how can we engage them e ectively throughout the bond program lifecycle?
• Identify internal and external stakeholders (students, sta , parents, taxpayers, etc.).
• Establish transparent communication channels for regular updates.
• Create opportunities for feedback and community involvement in decision-making.
3. Governance and Oversight
• Key Question: What governance structure is needed to ensure accountability and oversight of bond expenditures?
• Form a Citizens’ Oversight Commi ee (COC) as required by law.
• Develop clear roles and responsibilities for the board, administration, and oversight commi ees.
• Implement processes for regular reporting and audits.
4. Financial Stewardship
• Key Question: How do we ensure fiscal responsibility and transparency in managing bond funds?
• Develop a detailed bond spending plan with priorities and contingencies.
• Monitor expenditures against the budget and adjust as needed.
• Maintain strict adherence to the bond's legal restrictions and promises made to voters.
5. Project Planning and Prioritization
• Key Question: What are the key projects, and how should we prioritize them?
• Conduct a needs assessment to validate projects identified in the bond.
• Use objective criteria to prioritize projects (e.g., safety, equity, capacity needs, modernization).
• Build flexibility into the plan to adapt to unforeseen circumstances.
6. Vendor and Partner Selection
• Key Question: How do we select the right partners and vendors to execute the program e ectively?
• Establish clear procurement policies and selection criteria.
• Prioritize partners with experience in K-12 bond-funded projects.
• Ensure contracts include accountability measures, timelines, and penalties for non-performance.
7. Risk Management
• Key Question: What are the potential risks, and how will we mitigate them?
• Identify risks such as cost overruns, schedule delays, and community dissatisfaction.
• Develop contingency plans and allocate funds for unexpected costs.
• Monitor risks regularly and adjust strategies proactively.
8. Communication and Reporting
• Key Question: How will we communicate progress and maintain trust with stakeholders?
• Develop a communication plan tailored to various audiences (board, sta , public).
• Use multiple platforms (meetings, websites, newsle ers) for updates.
• Highlight successes and address challenges transparently.
9. Measuring Success
• Key Question: What does success look like for our bond program, and how will we measure it?
• Define success metrics (e.g., project completion on time and within budget, stakeholder satisfaction).
• Collect and analyze data regularly to track progress.
• Celebrate milestones and share outcomes with the community.
10. Long-Term Planning
• Key Question: How will we ensure the sustainability of investments made through the bond program?
• Develop a maintenance and operations plan for new and improved facilities.
• Allocate funds for training sta on new systems or technologies.
• Integrate bond program outcomes into the district's broader strategic plan.
A school bond is a financial tool that allows school districts to borrow money to fund capital improvement projects. These projects o en include constructing new facilities, modernizing existing structures, upgrading technology infrastructure, and addressing health & safety concerns. Bonds and interest are repaid over time through property tax revenue, making them a vital resource for long-term investments in education.
Definition and Purpose
• Definition: A bond is essentially a loan. School districts issue bonds to investors (bondholders) who provide the funds upfront. In return, the district commits to repaying the loan with interest over a specified period.
• Purpose: Bonds enable districts to address large-scale capital needs that cannot be funded with their annual operating budgets. By spreading the repayment cost over many years, bonds ensure that the financial burden is shared equitably across current and future taxpayers who benefit from the improvements.
How Bonds Work
• Approval: Bonds require voter approval. The district prepares a ballot measure outlining the proposed projects, costs, and expected benefits. For the measure to pass, it must meet the voter threshold (55% for Proposition 39 bonds; two-thirds for others).
• Issuance: Once approved, the district works with financial advisors and underwriters to issue the bonds, making them available for purchase by investors.
• Repayment: Bond repayments are made using property tax revenue generated within the district. The tax rate is calculated based on the amount needed to repay the bonds and interest over their term.
Key Considerations
• Transparency and accountability are critical. Voters need to trust that bond funds will be used as promised.
• Clear communication about how the bond will benefit students and the community can build support and engagement.
School districts in California primarily rely on three types of bonds to finance capital projects. Each has distinct features, advantages, and voter requirements.
• Definition: These bonds are secured by property taxes within the district. They are the most common type of school bond.
• Use: Funds can only be used for capital projects, such as constructing or improving school facilities.
• Repayment: Repaid over time through a property tax levy.
Key Features: High voter confidence due to their direct benefit to the community, lower interest rates because they are backed by property taxes, and cannot be used for operational expenses like salaries.
• Overview: Approved in 2000, Proposition 39 reduced the voter approval threshold for school bonds from two-thirds to 55%.
• Requirements: A clear project list must be included in the bond measure. Mandatory independent audits and oversight commi ees ensure accountability. Funds must be used solely for facilities, not operational costs.
• Benefits: Easier to pass due to the lower threshold and emphasizes transparency, increasing voter trust.
Overview: These bonds, governed by older legislation, require a two-thirds voter approval threshold.
Di erences: No mandatory oversight commi ee, less stringent reporting, and requirements.
• Why Choose Proposition 46? Suitable for districts with strong community support or specific needs that align with its framework.
Proposition 2 was passed by voters in November 2024. This proposition provided $10 billion for capital projects across the state.
Allocation of Funds:
• K-12 Schools ($8.5 billion):
• Renovation and Modernization: $4 billion dedicated to updating existing facilities, including seismic retrofi ing and lead remediation.
• New Construction: $3.3 billion allocated for building new schools to alleviate overcrowding and accommodate growing student populations.
• Career Technical Education Facilities: $600 million to enhance vocational training spaces.
• Charter Schools: $600 million reserved for facility improvements in charter schools.
• Community Colleges ($1.5 billion): Funds designated for constructing new buildings, renovating existing structures, purchasing land, and acquiring necessary equipment.
Oversight and Accountability:
• Mandates independent audits and public hearings to ensure transparent use of funds
• Establishes a Citizens' Oversight Commi ee to monitor expenditures and project progress.
Voter Approval Threshold:
• Proposition 2 passed on the recent November 2024 ballot by voters.
Implications for School Districts:
• Funding Opportunities: Districts can apply for state matching funds to support local projects further leveraging available resources.
• Project Prioritization: Emphasis is placed on health and safety improvements, modernization e orts, and expanding access to career technical education.
• Community Engagement: Districts are encouraged to maintain transparency with stakeholders, providing regular updates on project status and fund utilization.
Understanding the provisions of Proposition 2 is crucial to extend the impact of your local bond program. By aligning district projects with the measure's objectives, educational leaders can enhance facilities, promote student success, and uphold public trust.
Voice of Experts: Understanding the nuances of these bond types is critical. Each has unique requirements and implications for district operations. We work with districts to identify the best fit for their needs and goals.
Managing a successful bond program requires collaboration among various stakeholders. Each group plays a vital role in ensuring transparency, accountability, and success.
• Role: Acts as the district’s CEO, overseeing all bond-related activities and ensuring alignment with the district’s vision and goals.
• Responsibilities:
• Communicating the bond’s benefits to the school board and community.
• Managing the administrative team responsible for implementation.
• Ensuring compliance with legal and regulatory requirements.
• Role: The financial steward of the bond program.
• Responsibilities:
• Developing budgets and financial reports.
• Coordinating with auditors and oversight commi ees.
• Monitoring cash flow to align funds with project timelines.
• Role: Provides governance and oversight.
• Responsibilities:
• Approving bond measures and related policies.
• Ensuring transparency and accountability to the community.
• Supporting the Superintendent and CBO in decision-making.
• Role: Voters and stakeholders who benefit from the projects funded by the bond.
• Responsibilities:
• Participating in bond oversight commi ees.
• Holding the district accountable for delivering promised results.
• Engaging with the district to stay informed about progress.
Voice of Experts: Building strong relationships with stakeholders to your bond programs success. Transparent communication and regular updates foster trust and encourage community support.
Navigating the legal landscape is a cornerstone of e ective bond management. Understanding the relevant regulations ensures compliance and protects the district from legal or financial risks.
California Education Code
• Key Provisions:
• Requires that all bond funds be used for capital improvements.
• Requires independent financial and performance audits.
• Mandates transparency in bond measure language and reporting.
Federal Treasury Regulations
• Tax-Exempt Bonds:
• Funds must be used for their intended purpose to maintain tax-exempt status.
• Misuse, such as using proceeds for operational expenses, can lead to penalties.
Executive Order S-02-07
• Accountability Measures:
• Front-End Accountability: Establishing clear criteria for fund use.
• In-Progress Accountability: Ongoing monitoring and reporting.
• Follow-Up Accountability: Auditing completed projects for compliance.
Voice of Experts: Compliance isn’t just about avoiding penalties; it’s about maintaining public trust. Our team specializes in guiding districts through these regulations, ensuring every project adheres to the highest standards of accountability.
Pre-Implementation: Preparing for Success
By understanding these fundamentals, you’re se ing the stage for a bond program that not only meets but exceeds expectations. School Leaders is here to support you every step of the way. Let’s build a legacy of trust, transparency, and success.
E ective bond management begins well before the first dollar is spent. The pre-implementation phase lays the groundwork for a successful bond program by establishing robust accountability structures, assembling a competent management team, developing a strategic plan, and engaging the community. This section provides a comprehensive guide to these critical preparatory steps.
Establishing a solid accountability framework is essential to ensure that bond funds are managed responsibly and transparently. California's Executive Order S-02-07 outlines a three-tiered accountability structure: Front-End, In-Progress, and Follow-Up Accountability.
1. Front-End Accountability
Purpose: To set clear criteria and processes before funds are allocated.
• Key Actions:
• Define Project Criteria: Establish specific objectives, scope, and expected outcomes for each project.
• Develop Performance Measures: Create benchmarks to assess progress and success.
• Establish Approval Processes: Develop and communicate clear roles, responsibilities, and pre-designated authority for each team member.
• Benefits:
• Ensures projects align with district goals and community needs.
• Provides a clear roadmap for implementation.
2. In-Progress Accountability
Purpose: To monitor and report on project progress and fund utilization during implementation.
• Key Actions:
• Regular Reporting: Regular Board and Community updates updates on project status, expenditures, and timelines.
• Performance Monitoring: Assess ongoing work against established benchmarks.
• Issue Resolution: Identify and address challenges promptly.
• Benefits:
• Maintains transparency with stakeholders.
• Allows for timely adjustments to keep projects on track.
3. Follow-Up Accountability
Purpose: To evaluate completed projects to ensure they meet objectives and funds were used appropriately.
• Key Actions:
• Conduct Audits: Perform financial and performance audits to verify compliance and e ectiveness.
• Public Reporting: Share audit results and project outcomes with the community.
• Lessons Learned: Document insights to improve future projects.
• Benefits:
• Reinforces public trust through demonstrated accountability.
• Provides valuable feedback for continuous improvement.
Implementing Accountability Structures
• Establish Oversight Commi ees: Form commi ees comprising community members, district sta , and experts to oversee the bond program.
• Develop Policies and Procedures: Create comprehensive guidelines for project management, financial controls, and reporting.
• Utilize Technology: Implement project management and financial so ware to track progress and expenditures.
• Engage External Auditors: Hire independent auditors to conduct objective evaluations.
By embedding these accountability structures into your bond program, you ensure responsible stewardship of public funds and build a foundation of trust with your community.
A successful bond program relies on a dedicated and skilled management team. This team is responsible for planning, executing, and overseeing projects to ensure they meet objectives and comply with regulations.
• Role: Oversees the entire bond program, ensuring alignment with district and community expectations.
• Responsibilities: Develop and implement the bond program plan, coordinate between stakeholders, including district leadership, contractors, and the community, and monitor project progress and address issues proactively.
• Role: Manage individual projects within the bond program.
• Responsibilities: Plan and execute specific projects from inception to completion, manage budgets, schedules, and resources, and ensure compliance with all relevant regulations and standards.
• Role: Manages the financial aspects of the bond program.
• Responsibilities: In collaboration with the Project Manager, develop and monitor budgets, oversee fund disbursement and accounting, and prepare financial reports for stakeholders.
• Role: Ensures all projects comply with legal and regulatory requirements.
• Responsibilities: Monitor adherence to state and federal laws, including the California Education Code, oversee environmental and safety compliance, and coordinate with external auditors and regulatory agencies.
• Role: Acts as the primary point of contact between the district and the community.
• Responsibilities: Communicate project updates and gather community feedback, organize public meetings and information sessions, and address community concerns and questions.
A highly qualified team is essential to the success of the bond program. In addition to role specific knowledge, each team member should possess these universal skills and the ability to e ectively collaborate and communicate with Sta , Community, and other stakeholders.
Leadership and Management:
• Ability to lead diverse teams and manage multiple projects simultaneously.
• Strong decision-making and problem-solving skills.
Technical Expertise:
• General knowledge of construction management, architecture, or engineering.
• Familiarity with educational facility standards and requirements.
Financial Acumen:
• Experience in budgeting, financial reporting, and fund management.
Developing a Strategic Plan
At School Leaders, we believe a robust strategic plan is the backbone of any successful bond program. A strategic plan ensures that every aspect of your bond program is thoughtfully planned, e iciently executed, and aligned with your district's goals.
A clear vision is critical to gaining stakeholder support and maintaining focus throughout the bond program. Your goals should define the purpose and outcomes of the projects funded by the bond.
Steps to Se ing Goals:
• Identify Needs: Conduct a through facility needs assessment to understand the district’s most pressing infrastructure and modernization requirements.
• Engage Stakeholders: Collaborate with district leaders, teachers, parents, and community members to ensure the identified needs reflect their goals and priorities.
• Align with District Vision: Ensure the bond program supports the district's long-term educational and operational objectives.
Examples of Clear Goals:
• Modernize outdated classrooms to support 21st-century learning.
• Construct new facilities to alleviate overcrowding.
• Enhance safety features, including seismic retrofi ing and security systems.
• Improve energy e iciency to reduce operational costs.
A realistic and detailed timeline is essential for tracking progress and keeping projects on and meeting your commitment to the community.
Key Components of a Timeline:
• Pre-Implementation Phase: Time allocated for planning, approvals, and securing contractors.
• Implementation Phase: Construction schedules, milestones, and contingency planning.
• Post-Implementation Phase: Time for audits, final reporting, and project evaluation.
Best Practices:
• Use project management tools to create, manage, and share.
• Build in reasonable bu ers to account for potential delays, such as weather, supply chain issues or unforeseen conditions.
• Throughout the course of the project, regularly review and adjust timelines to ensure alignment with real-world conditions.
At the beginning of your program, it is critical to work with your stakeholder groups to define the metrics for success. These metrics provide a way to measure the e ectiveness and impact of your program.
Examples of Metrics:
• Percentage of projects completed on time and within budget.
• Improved student outcomes tied to modernized facilities.
• Community satisfaction as measured through surveys and feedback.
• Reduction in operational costs through energy-e icient upgrades.
Voice of Experts: Use metrics to communicate progress and success to stakeholders, reinforcing trust and support for future initiatives.
Community Engagement
Community engagement is not a one-time e ort—it’s an ongoing commitment to transparency and collaboration. A well-informed and engaged community is more likely to support your bond program and future funding measures.
Communication and Transparency are the mechanisms to build community trust in your program. Trust is earned through consistent communication, accountability, and delivering on promises.
Strategies for Transparency:
• Frequent Updates: Share progress reports, financial summaries, and project milestones through newsle ers, websites, and public meetings.
• Accessible Information: Ensure documents, budgets, and timelines are easily available to the public.
• Oversight Commi ees: Establish independent citizen oversight commi ees to monitor and verify fund usage.
• Frequent Project Tours: Project tours are a tangible way for community groups to see the benefits and success of your bond program.
Benefits of Transparency:
• Strengthens community confidence in district leadership.
• Reduces misinformation and builds a positive narrative around the bond program.
Clear and e ective communication ensures stakeholders understand the purpose, benefits, and progress of your bond projects.
Best Practices for Communication:
• Tailor Messages: Customize communication for di erent audiences, including parents, sta , and local government.
• Use Visuals: Infographics, charts, and videos are powerful tools for conveying complex information in an easily digestible format.
• Host Public Forums: Provide opportunities for community members to ask questions and share feedback.
Examples of Key Messages:
• “This project will modernize 50 classrooms, benefiting over 3,000 students.”
• “Our bond program has funded $10 million in safety upgrades, including fire alarm and seismic systems.”
• “We are on track to complete construction of the new elementary school by June 2025, staying within the $25 million budget.”
Engagement e orts should reflect the diversity of your community, ensuring all voices are heard and represented.
Strategies for Inclusive Engagement:
• Partner with local organizations to reach underrepresented groups.
• Translate materials into languages spoken in the community.
• Use social media to connect with younger demographics.
Voice of Experts: Successful engagement requires listening as much as sharing. Use surveys, focus groups, and town halls to gather input and adjust your approach based on community feedback.
By developing a comprehensive strategic plan and commi ing to transparent, e ective community engagement, you set the stage for a successful bond program that not only delivers tangible results but also earns the lasting trust and support of your community. School Leaders is here to help you navigate these critical steps, ensuring your bond program is both impactful and inspiring.
Bond Fund Management
Managing bond funds e ectively is crucial to delivering on the promises made to your community and stakeholders.
At School Leaders, we emphasize three core aspects of fund management: ensuring the proper use of proceeds, maintaining strong cash flow alignment, and implementing robust tracking and reporting mechanisms. This section equips you with the knowledge and tools to manage funds responsibly and transparently.
The proper use of bond proceeds is governed by strict regulations and public expectations. Mismanagement, whether intentional or accidental, can lead to legal consequences, loss of public trust, and project delays, and cost overruns.
Capital Improvements vs. Operating Expenses
• Capital Improvements: Bond proceeds must be used for physical infrastructure projects that have a lasting impact on the district. Examples include:
• Constructing new school buildings.
• Renovating and modernizing existing facilities.
• Installing safety systems such as fire alarms or seismic retrofits.
• Upgrading HVAC systems for energy e iciency.
• Operating Expenses: Operating Expenses are prohibited from being funded with bond proceeds. Examples of Operating Expenses include:
• Salaries for teachers or administrators.
• Routine maintenance and repairs.
• General district operating expenses.
• Key Regulation: California law, particularly under Propositions 39 and 46, explicitly limits bond proceeds to capital expenditures. Misuse can lead to audits, penalties, or even repayment demands.
Avoiding Common Pitfalls
• Interfund Borrowing: (Eliminate RISKS) Borrowing bond funds to cover short-term operating deficits can violate state and federal laws.
• Risks include:
• Loss of tax-exempt status for bonds.
• Penalties from the IRS or state agencies.
• Erosion of public trust due to perceived mismanagement.
• Best Practice: Develop a robust cash flow management strategy (see Section 2).
• Over-Allocation: Overestimating project estimates or failing to timely reallocate unused/unneeded funds can lead to ine iciencies and delays to other priority projects.
• Solution: Regularly review project budgets and timelines to identify surplus funds for reallocation to other capital projects.
•Inadequate Documentation:
• Failure to document how funds are spent can result in compliance issues during mandated audits.
• Solution: Implement a comprehensive tracking and reporting system (see Section 3).
Aligning bond funds with project timelines ensures that funds are available when needed without violating regulations. E ective cash flow management minimizes the risk of delays or caused by a lack of available resources..
Aligning Funds with Project Timelines
• Develop a Cash Flow Plan:
• Align bond fund proceeds with project milestones.
• Use detailed construction schedules and accurate cost estimates to predict when funds will be needed.
• Monitor Progress Regularly:
• Conduct monthly reviews of project timelines and expenditures.
• Adjust disbursement schedules as needed to avoid over- or under-funding projects.
• Engage Financial Advisors:
• Partner with experts to optimize the timing of bond issuances, ensuring funds are available when needed without incurring excessive carrying costs.
Include Bond Anticipation Notes (BANS)
• Definition: TRANs are short-term notes issued by districts to cover temporary cash flow shortages, secured by anticipated revenue.
• Advantages:
• Low-interest rates.
• Quick access to funds without risking bond compliance.
• Disadvantages:
• Interest rates will erode purchasing power of revenue.
• Best Use:
• Covering payroll or other expenses until property tax revenues are received.
County Superintendent Loans
• Districts can request short-term loans from their county o ice of education.
• These loans o en have favorable terms and repayment conditions.
Constitutional Advances:
• School districts can request advances on property tax revenue from the county treasurer.
• Limited to 85% of anticipated tax revenues for the fiscal year.
Transparency is a cornerstone of e ective bond fund management. Robust tracking and reporting mechanisms ensure compliance, foster trust, and provide clear insights into project progress.
Leveraging Tools Like the Bond Accountability Website
The Bond Accountability Website, established by California’s Executive Order S-02-07, is a critical resource for tracking and reporting bond expenditures.
• Features:
• Access to project-level funding data, including timelines, expenditures, and audits.
• Information on projects at di erent stages: Front-End, In-Progress, and Follow-Up.
• Benefits:
• Enhances transparency by providing public access to data.
• Simplifies compliance with audit requirements.
• Best Practices:
• Ensure all project data is updated regularly on the platform.
• Train sta on using the system e ectively to maintain accuracy.
Establishing Protocols for Regular Reporting
• Monthly Financial Reports:
• Provide detailed updates on fund allocations, expenditures, and remaining balances.
• Share these reports with the Board, District Leadership, oversight commi ees, and the public.
• Performance Reports:
• Highlight key project milestones, challenges, and solutions.
• Use visuals such as charts and infographics to make reports accessible.
• Annual Audits:
• Conduct independent financial and performance audits.
• Share results publicly to reinforce accountability.
• Oversight Commi ee Engagement:
• Schedule regular meetings with citizen oversight commi ees to answer questions and address concerns.
• Include diverse community representation to build trust and inclusivity.
Key Metrics for Tracking and Reporting
• Financial Metrics:
• Percentage of bond funds disbursed vs. allocated.
• Percentage of Overhead Costs vs. Construction Costs.
• Performance Metrics:
• Number of projects completed on time and within budget.
• Progress on key deliverables (e.g., classrooms modernized, square footage added).
• Community Metrics:
• Stakeholder satisfaction measured through surveys or feedback.
• A endance at public meetings and forums.
E ective bond fund management is about more than balancing the books—it’s about delivering results that meet the needs of students, sta , and the community. By adhering to the principles outlined in this section, you can ensure responsible stewardship of public funds while building a legacy of trust and achievement. At School Leaders, we’re here to support you every step of the way, from planning to reporting and beyond.
Implementation: Managing Projects
E ective project management is crucial to the successful implementation of school facility bond programs. This phase involves navigating procurement laws, selecting appropriate contracting methods, overseeing project execution, and managing risks. By adhering to best practices in these areas, school districts can ensure that projects are completed on time, within budget, and in compliance with all legal requirements.
Procurement is the process of acquiring goods and services necessary for project completion. In the context of school facility projects, this includes selecting and retaining contractors, architects, engineers, and purchasing materials. Understanding the various procurement methods and their respective advantages and disadvantages is essential for making informed decisions.
Common Procurement Methods in California School Facilities:
• Design-Bid-Build (Hard Bid):
• Process:
• The district hires an architect to design the project.
• Construction documents are prepared and put out for competitive bidding.
• The contract is awarded to the lowest responsible bidder.
• Pros:
• Clear separation between design and construction phases.
• Competitive bidding can lead to lower initial costs.
• Cons:
• Potential for adversarial relationships between designer and contractor.
• Longer overall project timelines due to sequential phases.
• Limited flexibility and/or costly to implement changes once construction begins.
• Legal Considerations:
• Must comply with California Public Contract Code requirements for competitive bidding.
• Requires adherence to prevailing wage laws.
• Lease-Leaseback (LLB):
• Process:
• The district hires an architect to design the project.
• The district solicits for Lease-Leaseback developer to construct project.
• The district leases property to a developer/contractor.
• The contractor constructs or renovates facilities and leases them back to the district.
• At the end of the lease term, ownership reverts to the district.
• Pros:
• Allows for selection based on qualifications and best value, not just lowest bid.
• Potential for faster project delivery through overlapping design and construction phases.
• Greater collaboration between district and contractor.
• Cons:
• May face legal challenges if not properly structured.
• May not provide the lowest initial cost at time of project award.
• Requires careful negotiation of lease terms to protect district interests.
• Legal Considerations:
• Governed by California Education Code Section 17406.
• Recent legal precedents necessitate strict adherence to statutory requirements.
• Construction Management Multi-Prime (CM Multi-Prime):
• Process:
• The district acts as its own general contractor.
• The district hires an architect to design the project.
• Hires multiple prime contractors for di erent trades (e.g., electrical, plumbing).
• A construction manager coordinates the work of all prime contractors.
• Pros:
• Direct control over subcontractors and project schedule.
• Potential cost savings by eliminating the general contractor's markup.
• Cons:
• Increased administrative burden on the district.
• Higher risk of coordination issues among multiple contractors.
• Legal Considerations:
• Requires compliance with public bidding laws for each prime contract.
• Necessitates robust contract management to mitigate risks.
• California Multiple Award Schedules (CMAS):
• Process:
• The district procures goods and services from pre-approved vendors at negotiated prices.
• Utilizes contracts established by the California Department of General Services.
• Pros:
• Streamlined procurement process with reduced administrative e ort.
• Access to competitively priced goods and services.
• Cons:
• Limited to vendors and products available on the CMAS list.
• May not be suitable for all project needs.
• May not be provide the lowest cost for all project needs.
• Legal Considerations:
• Must ensure compliance with CMAS terms and conditions.
• Requires verification that purchases meet district-specific requirements.
• Piggyback Contracts:
• Process:
• The district leverages existing contracts awarded by other public agencies.
• Allows for procurement without undergoing a separate bidding process.
• Pros:
• Saves time and resources by utilizing established contracts.
• Beneficial for standard products and services.
• Cons:
• Limited flexibility to negotiate terms specific to the district's needs.
• Potential legal challenges if not properly justified.
• May not be suitable for all project needs.
• Legal Considerations:
• Must comply with California Public Contract Code Section 20118.
• Requires documentation that the original contract was competitively bid and is suitable for the district's use.
• Selecting the Appropriate Procurement Method:
• Project Complexity: Complex projects may benefit from methods like LLB or CM Multi-Prime, which allow for greater collaboration and flexibility.
• Time Constraints: Accelerated timelines might favor procurement methods that enable concurrent design and construction phases.
• Budget Considerations: Hard bid (Design-Bid-Build) o en appears cost-e ective initially due to competitive bidding but o en result in change orders and additional costs during construction.
• Lease-Leaseback can reduce unforeseen expenses through collaboration during pre-construction phases.
• CM Multi-Prime may allow cost savings by bypassing a general contractor’s markup, but the administrative burden can increase district overhead costs.
• District Resources and Expertise:
• Districts with experienced project management teams may find CM Multi-Prime advantageous due to the control it o ers.
• Smaller districts or those without dedicated facilities sta might prefer CMAS or piggyback contracts for simplicity and reduced administrative e ort.
• Risk Tolerance:
• Hard bid places significant risk on the district if issues arise, as disputes between contractors and designers can result in lengthly legal disputes.
• Lease-Leaseback shares risk between the district and the contractor, promoting collaboration to resolve issues.
• CM Multi-Prime places more coordination responsibility and risk on the district.
Develop a Comprehensive Procurement Plan:
• Identify the most suitable delivery method based on the specific project's size, complexity, timeline, and budget.
• Consult with legal and procurement experts to ensure compliance with California procurement laws.
Evaluate Vendors Thoroughly:
• If allowed by your chosen procurement method, use a combination of qualifications, past performance, and cost-e ectiveness to select vendors.
• For Lease-Leaseback or CM Multi-Prime, prioritize contractors with experience in educational projects and a strong track record of collaboration.
Create Detailed Contracts:
• Specify roles, responsibilities, timelines, and penalties for delays or non-compliance.
• Include provisions for dispute resolution to mitigate risks during construction.
Engage Legal Counsel Early:
• Ensure all contracts comply with California Education Code, Public Contract Code, and prevailing wage laws.
• Avoid legal challenges by proactively addressing potential ambiguities in procurement methods like Lease-Leaseback.
No one procurement method is best for all projects. Selecting the appropriate procurement method and adhering to best practices, districts can maximize e iciency, reduce costs, and ensure the success of their facility projects.
Project oversight is critical to maintaining control over scope, cost, and timeline.
E ective oversight requires active monitoring, regular communication with stakeholders, and the use of data-driven decision-making tools.
Monitoring Scope
• Define Clear Project Parameters:
• Implement a formal and authority for scope changes, ensuring alignment with the district’s goals. 1 2 3 4
• Outline the project’s scope, including deliverables, timelines, and budget, before work begins.
• Communicate these parameters clearly to all stakeholders, including contractors and oversight commi ees.
• Manage Scope Creep:
• Avoid unauthorized changes that increase costs or delay timelines.
Cost Monitoring
• Regular Budget Reviews:
• Compare actual expenditures to budgeted amounts on a monthly basis.
• Identify and address discrepancies promptly to to avoid project delays and budget shortfalls.
• Change Order Management:
• Track and evaluate all change orders to determine their impact on the budget and the cause of the change.
• Require justification and approval for any cost increases.
Timeline Monitoring
• Establish Milestones:
• Break the project into smaller phases with specific milestones to track progress.
• Use these checkpoints to identify so that schedule recovery mitigations can be implemented.
• Hold Regular Progress Meetings:
• Schedule weekly or bi-weekly meetings with contractors and project managers to review progress and address issues.
Using Data for Informed Decision-Making
• Adopt Project Management So ware:
• Tools like Procore or Primavera can streamline tracking of budgets, schedules, and documentation.
• Centralize and standardize communication and and documentation to improve e iciency.
• Leverage Reporting Tools:
• Generate regular reports for district leadership and oversight commi ees, highlighting key metrics such as percentage completion, budget utilization, and variance from the schedule.
• Use KPIs to Measure Success:
• Key Performance Indicators (KPIs) such as cost per square foot, percentage of work completed on time, and stakeholder satisfaction provide actionable insights.
E ective oversight ensures that projects remain on track and that any issues are resolved before they escalate, saving time and money.
Risk management is an ongoing process that identifies potential challenges and implements strategies to mitigate them. Successful risk management ensures projects are completed without unnecessary delays, legal issues, or financial losses.
Identifying Risks
• Legal Risks:
• Non-compliance with procurement laws or prevailing wage requirements.
• Disputes over contracts or project scope.
• Financial Risks:
• Budget overruns due to unanticipated costs or mismanagement.
• Inadequate contingency funds for unforeseen circumstances.
• Operational Risks:
• Delays caused by contractor disputes, supply chain issues, or weather.
• Quality control problems resulting in subpar construction.
Mitigating Risks
• Legal Compliance:
• Work closely with legal counsel to ensure all contracts and procurement methods comply with California laws.
• Conduct training sessions for district sta on compliance requirements.
• Financial Controls:
• Establish strict protocols for approving expenditures and monitoring budgets.
• Project contingency funds (typically 10–15% of the project budget) to address unexpected costs.
• Allocate a Program-Wide reserve (Typically 5%) to ensure unforeseen issue can be resolved
• Operational Strategies:
• Develop a risk management plan that identifies potential issues and outlines response strategies.
• Use construction management professionals to oversee day-to-day activities and coordinate between stakeholders.
Contingency Planning
• Scenario Planning:
• Anticipate potential delays, cost overruns, and other challenges.
• Develop action plans to minimize impact on the project’s timeline and budget.
• Crisis Management:
• Establish a response team to handle emergencies such as contractor disputes or natural disasters.
• Communicate promptly with stakeholders to manage expectations during crises.
By proactively identifying and addressing risks, districts can safeguard their bond programs from legal, financial, and operational setbacks, ensuring successful project completion.
The implementation phase of a bond program is where plans become reality. By selecting the right procurement method, maintaining rigorous oversight, and managing risks e ectively, districts can deliver high-quality projects that meet the needs of students and the community. At School Leaders, we’re commi ed to supporting districts through every step of this process, ensuring your projects are executed with excellence and integrity.
Post-Implementation: Closing the Loop
The post-implementation phase is critical for ensuring the long-term success of bond-funded projects. This phase focuses on evaluating outcomes, maintaining transparency, and safeguarding the investments made by the community. At School Leaders, we guide districts through the final steps of bond management, emphasizing auditing, reporting, and maintenance to reinforce trust and ensure sustainability.
Audits are essential for verifying that bond proceeds have been used in accordance with voter-approved purposes and applicable laws. A thorough audit process not only ensures compliance but also reinforces public confidence in district leadership.
Preparing for Follow-Up Audits
• Understand Audit Requirements:
• California law mandates regular financial and performance audits for school bond programs, particularly under Proposition 39.
• Audits should assess whether funds were spent exclusively on capital projects as outlined in the bond measure.
• Engage Qualified Auditors:
• Hire independent auditors with expertise in public school bond programs.
• Ensure they are familiar with California Education Code requirements and federal regulations for tax-exempt bonds.
• Organize Documentation:
• Maintain comprehensive records of all expenditures, including contracts, invoices, and receipts.
• Keep project timelines, budgets, and change orders readily accessible.
• Conduct Pre-Audit Reviews:
• Perform internal reviews before the o icial audit to identify and address potential discrepancies.
• Verify that all expenditures align with the bond’s stated purposes.
Ensuring Expenditures Align with Voter-Approved Purposes
• Capital Projects Only:
• Bond funds must be used exclusively for capital improvements such as construction, renovation, and modernization.
• Operating expenses, (except for those exclusively for project management sta ), and routine maintenance are strictly prohibited.
• Adherence to Legal and Ethical Standards:
• Follow California Education Code and Public Contract Code regulations.
• Avoid any practices that could jeopardize the tax-exempt status of bonds, such as interfund borrowing.
• Oversight Commi ees:
• Regularly update citizen oversight commi ees to ensure independent verification of expenditures.
• Use their feedback to improve compliance practices.
Transparency in final reporting is critical for demonstrating accountability and celebrating the success of completed projects. Clear and accessible reports help districts maintain public trust and build support for future initiatives.
Documenting Successes and Lessons Learned
• Comprehensive Project Summaries:
• Include an overview of each project funded by the bond, highlighting key achievements and challenges.
• Provide metrics such as total costs, completion dates, and project impacts (e.g., square footage added, student capacity increased).
• Visual Aids:
• Use before-and-a er photos, infographics, and charts to make reports engaging and easy to understand.
• Highlight measurable outcomes, such as energy savings from sustainability upgrades or improved safety features.
• Lessons Learned:
• Identify challenges encountered during the bond program and how they were resolved.
• Use these insights to refine future bond planning and implementation processes.
Sharing Outcomes with the Public and Stakeholders
• Public Meetings and Forums:
• Host events to present final reports and celebrate project completions with the community.
• Invite stakeholders to tour completed facilities and see the results firsthand.
• Digital Platforms:
• Publish final reports on the district’s website and share updates via social media.
• Use interactive tools, such as maps or timelines, to showcase project progress and outcomes.
• Annual Reports:
• Include a summary of bond program achievements in the district’s annual report to keep stakeholders informed.
A bond-funded project is only as successful as its long-term sustainability. Establishing robust maintenance plans ensures that investments continue to benefit students and the community for years to come.
Establishing Maintenance Plans for Funded Projects
• Inventory and Assess Facilities:
• Create a comprehensive inventory of all bond-funded assets, including buildings, equipment, and systems.
• Conduct condition assessments to identify maintenance needs and prioritize tasks.
• Develop Preventive Maintenance Programs:
• Schedule regular inspections and upkeep to extend the lifespan of facilities and reduce repair costs.
• Include tasks such as HVAC servicing, roof inspections, and fire safety system checks.
• Allocate Su icient Funding:
• Set aside a portion of the general fund or establish a dedicated maintenance reserve to cover ongoing costs.
• Explore additional funding sources, such as grants or energy savings programs, to support maintenance e orts.
Building Sta Capacity
• Train Maintenance Personnel:
• Provide specialized training on new systems or technologies installed as part of the bond program.
• Ensure sta are equipped to handle routine repairs and troubleshoot issues.
• Leverage Technology:
• Use maintenance management so ware to schedule tasks, track work orders, and monitor equipment performance.
• Integrate these systems with facility management plans for greater e iciency.
Engaging the Community
• Promote Ownership and Stewardship:
• Encourage community members to take pride in new or improved facilities.
• Organize events, such as open houses or student-led tours, to foster a sense of shared responsibility.
• Communicate Long-Term Benefits:
• Highlight how well-maintained facilities support student success, improve safety, and enhance property values in the community.
The post-implementation phase is about more than closing out a bond program—it’s about ensuring the longevity and impact of the projects funded. By prioritizing audits, transparent reporting, and proactive maintenance, districts can honor their commitments to voters and build a legacy of trust and excellence. At School Leaders, we are commi ed to supporting districts through every stage of bond management, from initial planning to sustained success.
“Manage community and stakeholder expectations e ectively.”
— Joe Dixon
CASH Chair (2013-2015), Asst Superintendent Santa Ana USD (Retired), Core Instructor School Facility Leadership Academy (SFLA)
Comprehensive Facilities Master Plan: Develop a detailed Facilities Master Plan to assess and prioritize infrastructure needs, ensuring that bond funds are allocated effectively.
Community Engagement: Conduct extensive outreach efforts, including public meetings and informational campaigns, to inform and involve stakeholders, fostering transparency and trust.
Strategic Project Selection: Select projects based on their potential to enhance educational outcomes, such as upgrading science labs and technology infrastructure to support modern learning environments.
Financial Oversight: Establish a Citizens’ Oversight Committee to provide independent monitoring of bond expenditures, ensuring accountability and adherence to voterapproved purposes.
“Celebrate the story you’re building together.”
— Kristen Coates, Ed.D Ed.D. Deputy Superintendent, Business Services and Facilities, Elk Grove Unified School District
Phased Implementation: Execute bond-funded projects in phases to allow for manageable planning and execution while enabling adjustments based on lessons learned from earlier phases.
Modernization of Facilities: Make significant improvements to existing school facilities, including classroom renovations and the addition of new educational spaces, to enhance the overall learning environment.
Community Partnerships: Collaborate with local businesses and organizations to provide additional resources and support, amplifying the impact of bond-funded projects.
Cost Savings Measures: Refinance a portion of bonds when possible to achieve taxpayer savings, demonstrating fiscal responsibility and maximizing the value of public funds.
“Plans should guide and shape your bond program.”
— Je Vincent, PhD UC Berkeley Center for Cities & Schools
Strategic Planning Amid Challenges: Prioritize projects that address critical infrastructure needs, ensuring that limited resources are used effectively, even in times of financial constraints.
Stakeholder Involvement: Engage teachers, parents, and community members in the planning process to align projects with the community’s educational priorities and expectations.
Leveraging State Funds: Secure additional funding through state programs to supplement bond revenues and expand the scope of facility improvements.
Transparency and Reporting: Provide regular updates and transparent reporting on project progress and expenditures to maintain public trust and demonstrate accountability.
Successful bond program management requires strategic planning, community engagement, financial oversight, and adaptability in the face of challenges. By implementing these key principles, organizations can maximize the impact of bond funds, ensure accountability, and foster public trust.
Lesson #1: Non-DSA Projects: Quick Wins for School Districts
Non-DSA projects allow school districts in California to implement impactful upgrades without the delays associated with DSA (Division of the State Architect) approval, provided they do not involve structural changes or safety systems. These projects can be implemented at every site to build community trust and demonstrate immediate progress while larger DSA-regulated projects are underway.
Examples of Non-DSA Projects
• Cosmetic Upgrades:
• Repainting exterior or interior walls.
• Enhancing landscaping and adding decorative features.
• Outdoor Enhancements:
• Upgrading playground equipment that does not require anchoring into structural systems.
• Classroom Improvements:
• Adding modular furniture or portable storage units.
• Installing whiteboards, technology equipment, or shelving.
• Replacement of Classroom Flooring
• Lighting and Fixtures:
• Replacing or upgrading non-structural lighting fixtures.
• Installing energy-e icient bulbs or LED retrofits.
Key Benefits of Non-DSA Projects
• Faster Implementation:
• Non-DSA projects bypass the extensive review and approval process, allowing districts to execute changes more quickly.
• Lower Costs:
• Streamlined regulations reduce administrative expenses and compliance costs.
• Visible Impact:
• These projects improve the aesthetic and functional appeal of school facilities, reinforcing community support for bond programs.
• Flexibility:
• Districts can address unique site needs without waiting for larger projects to proceed.
Considerations for Non-DSA Projects
• Ensure projects do not involve structural alterations, fire safety systems, or accessibility features regulated by DSA. Review latest information from DSA contained in Interpretation of Regulation IR #A-22.
• Work with legal counsel or facilities consultants to verify compliance with California Education Code and building standards.
• Coordinate with maintenance and operations sta to integrate non-DSA improvements with long-term facilities plans.
Lesson #2 Lack of Clear Vision and Goals
• Mistake: Failing to establish a clear vision and set of goals for the district can lead to misaligned projects and ine icient use of funds.
• Avoidance Strategy: Develop a comprehensive strategic plan that outlines specific objectives, timelines, and success metrics. Engage stakeholders in the planning process to ensure alignment with the district's educational. Ensure strategic plan is presented to the Board of Education for approval..
Lesson #3 Inadequate Community Engagement
• Mistake: Not involving the community can result in a lack of support and trust, potentially leading to failed bond measures.
• Avoidance Strategy: Maintain transparency and public trust by e ectively communicating project scope, progress, and budget. Utilize various communication channels and hold public meetings to keep the community informed and involved.
Lesson #4 Poor Financial Oversight
• Mistake: Mismanagement of bond funds, such as using them for operating expenses instead of capital improvements, can lead to legal issues and loss of public trust.
• Avoidance Strategy: Ensure proper use of bond proceeds by strictly adhering to legal guidelines that restrict funds to capital improvements. Avoid interfund borrowing and implement robust financial tracking systems.
Lesson #5 Insu icient Cash Flow Management
• Mistake: Failing to align funds with project timelines can cause delays and increased costs.
• Avoidance Strategy: Develop a detailed cash flow management plan that aligns funding with project milestones. Consider alternatives to interfund borrowing, such as Tax and Revenue Anticipation Notes (TRANs), to manage short-term cash flow needs.
Lesson #6 Inadequate Tracking and Reporting
• Mistake: Lack of regular reporting and transparency can erode stakeholder confidence and lead to compliance issues.
• Avoidance Strategy: Leverage tools like the Bond Accountability Website to establish protocols for regular reporting. Maintain detailed records and provide accessible updates to stakeholders.
Lesson #7 Non-Compliance with Procurement Laws
• Mistake: Navigating procurement laws improperly can result in legal challenges and project delays.
• Avoidance Strategy: Stay informed about procurement laws and select vendors through appropriate methods. Evaluate the pros and cons of each procurement method to ensure compliance and project e iciency.
Lesson #8 Lack of Project Oversight
• Mistake: Inadequate monitoring of project scope, cost, and timeline can lead to overruns and unmet objectives.
• Avoidance Strategy: Implement robust project oversight mechanisms, including regular progress reviews and data-driven decision-making processes. Engage experienced project managers to oversee daily operations.
Lesson #9 Poor Risk Management
• Mistake: Failing to identify and mitigate risks can result in unforeseen challenges and financial losses.
• Avoidance Strategy: Conduct thorough risk assessments to identify potential legal, financial, and operational risks. Develop mitigation strategies and contingency plans to address these risks proactively.
Lesson #10 Neglecting Post-Implementation Audits
• Mistake: Overlooking follow-up audits can lead to undetected issues and missed opportunities for improvement.
• Avoidance Strategy: Prepare for follow-up audits by ensuring expenditures align with voter-approved purposes. Document successes and lessons learned, and share outcomes with the public and stakeholders.
Lesson #11 Failure to Maintain Infrastructure
• Mistake: Not establishing maintenance plans for funded projects can result in premature deterioration and increased costs.
• Avoidance Strategy: Develop comprehensive maintenance plans for all funded projects. Allocate resources for ongoing upkeep to preserve the longevity and functionality of facilities.
By recognizing and addressing these common mistakes, school districts can enhance the e ectiveness of their bond management programs, ensuring that projects are completed successfully and in alignment with community expectations.
Je Vincent, PhD, Center for Cities + Schools, University of California, Berkeley
“Foundational to any school bond program is a local educational facility master plan. These plans should be cra ed through robust local engagement, so the school district and community members have a common sense of purpose and vision. When done well, facility master planning can save money, lead to more equitable outcomes, and realize important school and community benefits. Plans should guide and shape your bond program, not the other way around.”
Alan Reising, CASH Chair (2021-2024), Long Beach USD Asst Superintendent Facilities & Operations (Retired), President - The Reising Group
“In school construction, success can only be achieved by forming beneficial partnerships with experienced construction firms that understand the unique needs of educational projects. Surround yourself with the right team, form strong connections, build trust, and your shared vision will come together to create lasting impacts for your community.”
Dr. Steve McLaughlin, Superintendent Fullerton Joint Union High School District
“Understand the specific language and structure of bond programs, aligning closely with CBOs and facilities teams. Learn from past successes, prioritize stakeholder engagement, and maintain a focus on optimizing learning environments. Be present, collaborative, and willing to adapt as part of the process.”
Kristen Coates, Ed.D. Deputy Superintendent, Business Services and Facilities, Elk Grove Unified School District
“When planning a bond, don’t leave it to chance—poll again. If initial results are within the margin of error, invest in a tracking poll. The right questions build a clear picture of community confidence. A good poll is your compass.
Plan a bond with precision—use a scalpel, not a sledgehammer. Tailor communication and key projects to address the unique needs of each area. Targeted messaging builds trust and highlights the bond’s true impact.
A er the Bond: Once a bond program passes, the key to success is gratitude and transparent communication. Thank your community for their trust, share updates on progress, and highlight the impact of their support. Celebrate the story you’re building together—one milestone at a time.”
“Be prepared to complete visible projects at every site, focusing on non-DSA where possible. Time your bond issuance carefully to avoid burdening constituents with a big tax bill, understand the rules for accessing state and federal funds, and always manage community and stakeholder expectations e ectively."
This organizational structure represents the comprehensive approach School Leaders employs to ensure the successful management of school facility bond programs. Our team is strategically assembled to complement the district’s existing sta while addressing gaps in expertise and capacity. By integrating specialized roles such as Program Manager, Financial Analyst, and Compliance O icer, alongside collaborative relationships with district leadership, this structure ensures every aspect of the bond program is managed e iciently, transparently, and in alignment with the district’s educational goals. This cohesive framework allows us to deliver on promises made to the community while fostering trust and long-term success.
1.Program Manager (Consultant Lead)
Role: Serves as the primary point of contact with the school district. Oversees the entire bond program, ensuring projects stay on budget, on time, and align with district goals.
Responsibilities:
• Collaborate with the Chief Business O icer (CBO) on budget and funding strategies.
• Coordinate with the district's Facility Construction Manager and Maintenance & Operations (M&O) Director.
• Manage the consulting team and oversee all deliverables.
• Provide regular updates to the district board and stakeholders.
2.Project Manager(s)
Role: Manages individual projects within the bond program, ensuring alignment with the overall strategy.
Responsibilities:
• Develop project schedules, budgets, and scopes of work.
• Coordinate with architects, engineers, and contractors.
• Monitor construction progress and resolve issues promptly.
• Ensure compliance with state and local regulations, including DSA (Division of State Architect).
3.Financial Analyst / Bond Specialist
Role: Provides financial oversight and ensures bond funds are used e iciently and transparently.
Responsibilities:
• Assist the CBO in bond fund allocation and reporting.
• Track expenditures and project cost forecasts.
• Prepare financial reports for the district and community.
• Ensure compliance with state and federal funding requirements.
4.Educational Planner
Role: Aligns facility projects with the district’s educational goals and ensures the bond addresses future needs.
Responsibilities:
• Work with district leadership to assess enrollment trends and program needs.
• Ensure project designs support modern teaching methods and future flexibility.
• Engage stakeholders (teachers, students, and community) in planning discussions.
5. Compliance & Reporting O icer
Role: Ensures that all reporting requirements are met and that the bond program is transparent to stakeholders.
Responsibilities:
• Oversee compliance with CEQA, DSA, and other regulatory agencies.
• Prepare reports for bond oversight commi ees.
• Assist with public communication about bond progress.
6. Communications Specialist
Role: Manages communication with stakeholders to build trust and support for the bond program.
Responsibilities:
• Develop and distribute updates to parents, sta , and the community.
• Coordinate public meetings and presentations.
• Manage media relations and handle inquiries about the bond.
7. Support Sta (Administrative Assistant)
Role: Provides administrative support to the consulting team and ensures smooth operations.
Responsibilities:
• Schedule meetings and coordinate documentation.
• Maintain records and filing systems.
• Assist with invoice processing and other clerical tasks.
Chief Business O icer (CBO): Collaborates with the Program Manager and Financial Analyst to align the bond program with the district's budget and long-term financial goals.
Facility Construction Manager: Works with Project Managers to oversee construction progress and resolve field issues.
Maintenance & Operations Director: Provides input on project scopes to ensure facilities are maintainable and meet operational needs a er completion.
Resources and Tools
E ective bond management requires access to reliable resources, practical tools, and further knowledge. This section highlights essential references, templates, and reading materials to help school district leaders execute bond programs with confidence and precision.
Understanding and leveraging available resources is critical for navigating the complexities of bond management. Here are some essential references for school districts:
Bond Accountability Website:
• Overview: Created under Executive Order S-02-07, this website provides comprehensive data on bond-funded projects, including timelines, expenditures, and audits.
• Key Features:
• Access to project-level funding data.
• Transparency tools for public and district use.
• Information on compliance with accountability measures.
• Access: California Bond Accountability Website
Relevant Laws and Regulations:
• California Education Code:
• Governs the permissible uses of bond proceeds, including restrictions on operating expenses.
• Outlines requirements for financial and performance audits.
• California Public Contract Code:
• Details procurement requirements, including competitive bidding and contractor qualifications.
• Federal Treasury Regulations:
• Ensure tax-exempt bond proceeds are used for their intended purposes, maintaining compliance with federal standards.
Guidance Documents:
• California Debt and Investment Advisory Commission (CDIAC) publications:
• Provide best practices for managing bond funds and avoiding compliance pitfalls.
• Fiscal Crisis & Management Assistance Team (FCMAT) manuals:
• O er insights into budget management and financial reporting for districts.
Templates and checklists streamline processes, improve organization, and ensure compliance with regulations. School Leaders recommends using the following tools:
Strategic Plan Templates:
• Define project goals, timelines, and success metrics.
• Include sections for stakeholder input and approval processes.
Reporting Forms:
• Financial reporting templates for tracking expenditures, remaining balances, and fund disbursements.
• Progress reports detailing project milestones, completion percentages, and delays.
Project Tracking Tools:
• Checklists for monitoring project phases, from pre-implementation to post-construction audits.
• Contractor evaluation forms to assess performance and adherence to timelines.
Audit Preparation Checklists:
• Ensure all necessary documentation is available for financial and performance audits.
• Include records such as contracts, invoices, change orders, and oversight commi ee reports.
For district leaders seeking to deepen their knowledge, the following resources provide valuable insights and guidance:
Books and Publications:
• "Guide to Local Government Finance in California" by Michael Multari and Michael Coleman: Explains California’s complex school finance system, including bond funding.
• "Facilities Planning for School Leaders" by C. Kenneth Tanner: Covers principles and practices of school facilities planning, including the role of bonds.
Online Resources:
• California State Treasurer’s O ice: O ers resources on bond issuance and management best practices.
• EdSource: Provides articles and analysis on California school finance, including bonds and capital improvements.
Workshops and Webinars:
• CSBA (California School Boards Association) workshops:
• Focus on governance and oversight responsibilities for bond programs.
• CASBO (California Association of School Business O icials) webinars:
• Provide training on financial management, compliance, and project oversight
Conclusion
E ective bond management is vital for enhancing educational facilities and fostering community trust. By adhering to the strategies outlined in this playbook—such as comprehensive planning, stakeholder engagement, and transparent communication—school district administrators can navigate the complexities of bond programs with confidence. These best practices aim to ensure that bond initiatives not only meet immediate infrastructural needs but also contribute to the long-term success and equity of the educational environment.
Proactive, informed, and ethical leadership is the cornerstone of successful bond programs. By embracing best practices, school district leaders can ensure that bond funds are used e ectively, projects are completed e iciently, and the trust of the community is upheld.
Key Leadership Practices:
• Transparency: Maintain open communication with stakeholders through regular updates and accessible reports.
• Accountability: Ensure compliance with all legal and ethical standards, demonstrating integrity in every decision.
• Collaboration: Engage a wide range of stakeholders, including community members, contractors, and oversight commi ees, to foster shared ownership of project outcomes.
Voice of Experts: Leadership is about more than managing funds—it’s about building a legacy of trust and excellence that reflects the district’s commitment to its students and community.
The successful implementation of a bond program sets the stage for future funding opportunities. By demonstrating fiscal responsibility, delivering promised outcomes, and maintaining strong community relationships, districts can position themselves for continued success.
Building Public Trust:
• Share successes widely, celebrating the positive impact of completed projects on students and the community.
• Address challenges transparently, showing how lessons learned will improve future programs.
Preparing for Future Bonds:
• Use insights gained from current programs to refine processes, enhance accountability, and build a track record of success.
• Engage the community early in discussions about future needs and funding strategies.
At School Leaders, we are commi ed to supporting school districts throughout every stage of bond management. From planning to post-implementation, we provide the expertise, resources, and tools necessary for success. Together, let’s build a brighter future for our students and communities—one project at a time.
School Leaders is a premier consultancy connecting school districts with top-tier experts in education leadership, facilities management, and operational e iciency. Founded by industry veteran Joe Dixon, we provide strategic solutions tailored to the unique challenges of K-12 institutions.
We empower school administrators with expert guidance to enhance operations, maximize funding, and drive sustainable growth in education.
Integrity: Transparency and trust in every engagement.
Excellence: Decades of hands-on experience delivering best-in-class solutions.
Collaboration: Partnering with district leaders to drive meaningful change. Innovation: Data-driven strategies for optimized district performance.
Student-Centered Approach: Enhancing learning environments and student outcomes.
Unlike traditional consulting firms, we work alongside administrators, providing real, actionable solutions rooted in firsthand experience and data-driven insights. Whether you're managing a major capital project, optimizing resources, or seeking strategic direction, School Leaders is your trusted partner.
For more information, visit SchoolLeaders.com.
The appendices provide supplemental information to enhance understanding and ensure the playbook is as comprehensive and user-friendly as possible. This section includes a glossary of commonly used terms in bond management and a list of frequently asked questions to address common concerns.
Glossary of Terms
Understanding key terms is essential for navigating the complexities of bond management. Below is a glossary of terms frequently encountered in the planning, implementation, and oversight of school facility bonds:
Apportionment: Allocation of bond funds by the state for specific school projects.
Bond Accountability Website: A platform providing transparency and tracking for state-funded bond projects, including expenditure data and project timelines.
Capital Improvements: Projects that enhance or build physical assets, such as constructing new facilities or modernizing existing ones.
Change Order: A formal document authorizing changes to the original scope, cost, or timeline of a project.
Contingency Funds: Reserve funds set aside to cover unforeseen expenses during a project.
Design-Bid-Build: A project delivery method in which design and construction are completed sequentially by separate entities.
Lease-Leaseback (LLB): A delivery method where a contractor constructs or renovates a facility and leases it back to the district, transferring ownership upon project completion.
Performance Audit: An independent review to determine if a bond-funded project meets its intended goals.
Proposition 2: A $10 billion bond measure passed in November 2024 that provides $8.5 billion for K-12 school construction and modernization and $1.5 billion for community college projects.
Tax and Revenue Anticipation Notes (TRANs): Short-term borrowing instruments used by districts to manage cash flow shortages.
Unfunded Approvals: Projects approved by the State Allocation Board but awaiting funding from bond sales.
This section addresses common questions from superintendents, Chief Business O icials (CBOs), and stakeholders about bond management, helping to clarify complex topics and resolve potential concerns.
1. General Questions
• What is a school bond? A school bond is a financial tool that allows districts to borrow funds for capital projects, repaid over time through property taxes.
• Why can’t bond funds be used for salaries or operational costs? California law restricts bond proceeds to capital improvements to ensure funds are invested in long-term infrastructure rather than recurring expenses.
• What is Proposition 2, and how does it benefit school districts? Proposition 2, passed in November 2024, allocates $8.5 billion for K-12 schools and $1.5 billion for community colleges. It funds construction, modernization, safety upgrades, and vocational education facilities.
• What happens if a project exceeds the budget? Districts typically use contingency funds to cover unforeseen costs. If these are insu icient, the district may need to seek additional funding or scale back the project.
2. Planning and Implementation
• How are contractors selected for bond projects? Contractors are selected through various procurement methods, such as competitive bidding (Design-Bid-Build), Lease-Leaseback, or CMAS contracts. Each method has specific legal and procedural requirements.
• How can I ensure my project stays on schedule? E ective project oversight, regular progress reviews, and contingency planning can help mitigate delays. Using project management so ware can also enhance coordination.
• What is a citizen oversight commi ee? A group of community members tasked with monitoring the use of bond funds, ensuring they are spent in accordance with voter-approved purposes.
3. Auditing and Compliance
• What is the purpose of a performance audit? To verify that bond-funded projects achieve their intended goals and comply with legal and financial requirements.
• How do I prepare for an audit? Maintain detailed records of expenditures, contracts, and project milestones. Conduct internal reviews to ensure documentation is complete and accurate.
• What are the consequences of non-compliance? Non-compliance can lead to penalties, legal challenges, loss of public trust, and potential repayment of funds.
4. Long-Term Considerations
• How do we maintain facilities funded by bonds? Develop a preventive maintenance plan, allocate su icient funding, and train sta on new systems and technologies.
• How can we build support for future bonds? Demonstrate transparency and accountability during the current bond program. Share successes widely and engage the community in discussions about future needs.
5. Technical Questions
• What distinguishes Proposition 2 from earlier school bond measures? Proposition 2 provides a substantial investment of $10 billion for education, emphasizing modernization, safety, and career technical education facilities. It builds on previous bond measures like Propositions 39 and 46 but focuses on addressing current infrastructure challenges.
• What is the Bond Accountability Website, and how do I use it? It is a state-run platform for tracking bond-funded projects, providing detailed data on expenditures and project status. Use it to maintain transparency and meet reporting requirements.
6. Community Engagement
• How do we keep the community informed? Use a combination of public meetings, newsle ers, social media updates, and the district website to share progress reports, financial summaries, and project milestones.
• What role do community members play in bond programs? Community members serve on oversight commi ees, provide feedback during planning phases, and participate in public forums to ensure transparency and accountability.
Conclusion
This glossary and FAQ section are designed to support district leaders, stakeholders, and community members in understanding and navigating the complexities of bond programs. By providing clear definitions and answers to common questions, we aim to foster greater transparency, trust, and confidence in the bond management process. At School Leaders, we remain commi ed to empowering districts to succeed at every stage of their bond journey.
Contact Information School Leaders www.SchoolLeaders.com Jay@Dixonssh.com
Disclaimer
This Bond Management Playbook is provided for informational purposes only and does not constitute legal, financial, or professional advice. While every e ort has been made to ensure the accuracy and completeness of the information herein, the authors and publishers assume no responsibility for any errors, omissions, or outcomes resulting from the use of this material. Readers are encouraged to consult with appropriate professionals to address specific concerns or situations related to bond management.
This playbook does not establish an a orney-client relationship between School Leaders and the reader. Readers are advised to consult with qualified legal counsel to obtain advice tailored to their specific circumstances and to ensure compliance with applicable federal, state, and local laws and regulations.
School Leaders expressly disclaims any and all liability with respect to actions taken or not taken based on the contents of this playbook. We are not responsible for any errors or omissions, or for the results obtained from the use of this information.
By using this playbook, you acknowledge and agree that School Leaders is not liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to or use of this playbook.
For specific legal advice, please contact a licensed a orney who can provide guidance based on your individual situation.
The Bond Management Playbook: A Superintendent and CBO’s Guide to Maximizing Your District's Bond Success
Copyright © 2025 by Jay Dixon
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