The South Bay Union School District (SBUSD) recently closed the sale of refunding bonds that will save local taxpayers more than $3 million. Dale Scott & Company (DS&C) served as the financial advisor to help the district refund the bonds and take advantage of lower interest rates.
“As a South Bay resident for more than 35 years and a SBUSD teacher for 25 years, I know firsthand the importance of taxpayer support in helping to prepare our children for the global economy,” said Barbara Elliott-Sanders, President of the South Bay Board of Trustees. “At the same time, we must prudently manage our finances. Every dollar counts, and we are pleased to return these savings to local taxpayers.”
SBUSD refunded $14.2 million of Proposition X general obligation bonds (Series A) approved by voters in 2008, resulting in a total savings to taxpayers of $3,107,245.
“Ours is a student-focused District and the academic and social success of our students is paramount in our community,” said Katie McNamara, South Bay superintendent. “Our students benefit from Proposition X funds, and local taxpayers will benefit from the savings we were able to secure through this bond refunding.”
The interest rate of the new bonds was cut by more than half, down to an average of 2.14 percent from 5.53 percent.
“The South Bay Union School District has taken a proactive approach to save taxpayer money,” said Dale Scott, President of DS&C. “The District’s action coincided with favorable market conditions, which will benefit both the District and local taxpayers.”
The refunding process included a review by credit rating services. South Bay received a rating of A1 from Moody’s Investors Service and a rating of A+ from S&P Global Ratings. These top ratings reflect the District’s solid governance, financial solvency, and the stable assessed value of our community.