Pass: 63273 / 77.68% Yes votes ...... 18181 / 22.32% No votes

See Also: Index of all Propositions

The issuance and sale of general obligation bonds is for the purpose of raising money for the District and represents a debt of the District. In exchange for the money received from the holder of the bond, the District promises to pay the holder a set amount of interest for a certain period of time, and to repay the loan on the maturity date.

The proceeds of these bonds of the District would be used to provide financing or refinancing for hospital and health care facilities' projects consisting of the acquisition, construction, and improvement of real property for hospital and health care purposes, including renovations and improvements to Grossmont Hospital and construction or acquisition of additional health care facilities.

The interest rate on any bond, which is established at the time of bond issuance, may not exceed twelve percent (12%) per annum. The final maturity date of any bond may be no later than forty (40) years after the date of the bond. The dates of sale and the amount of bonds sold at any given time will be determined by the District Board of Directors based upon need for construction funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of each sale, which in any event may not exceed the legal limit then in effect.

The proposition incorporates the bond accountability requirements of state law as well as establishment of an independent citizens' oversight committee.

Principal and interest on the bonds would be paid by revenue derived from an annual tax levied upon the taxable property within the District in an amount sufficient to pay the interest as it becomes due and to provide a sinking fund for payment of the principal on or before maturity. Article XIII A of the California Constitution exempts from the one percent property tax rate limitation ad valorem taxes to pay the interest and redemption charges on any bonded indebtedness for the acquisition or improvement of real property approved by the voters on or after July 1, 1978. The approval must be by two-thirds of the votes cast by the voters voting on the proposition. Legal authorization is contained in state law permitting healthcare districts to issue bonds at the interest rate, for the period of time, and for the specified purposes, subject to two-thirds voter approval.

A "yes" vote is a vote in favor of authorizing Grossmont Healthcare District to issue bonds for the purposes stated in the measure.

A "no" vote is a vote against authorizing Grossmont Healthcare District to issue bonds for the purposes stated in the measure.