[img]2830|right|||no_popup[/img]Four months after winning voter approval in last June’s bond improvements election, the School District has completed a highly successful sale of its $26.5 million general obligation bonds, series A.
The bonds were well-received in the market, and the timing of the sale could not have been better.
The District entered the bond market one day after the lowest interest rate levels of the year to date.
Foci on Federal Reserve policy, on mixed economic data, on uncertainty in Europe, and other geopolitical issues created the bottom interest rate.
“We were incredibly fortunate,” said Mike Reynolds, the District’s assistant superintendent for business.
“Our original projections for the interest owed over the life of these bonds was $50 million.
“Because of the timing, though, taxpayers will only owe $40 million.
“We were extremely fortunate to have the expert assistance of both Keygent Advisors and our bond counsel, Stradling Yocca Carlson & Rauth.”
The bonds received strong ratings from both Moody's, which assigned an AA2 rating to the bonds, and Standard & Poor's, which assigned its “AA-” rating.
In June, Culver City voters overwhelmingly approved Measure CC, which authorized the sale of $106 million in bonds to repair all of the District’s school sites, based on a prioritization list created by the District and community members. A citizens’ oversight committee will be formed to ensure that funds from the measure are spent properly.
For more information about Measure CC and the bonds that were sold, see http://www.ccusd.org/apps/pages/index.jsp?uREC_ID=212970&type=d
Mr. Maleman may be contacted at gmaleman@aol.com
