LCUSD Refinances Bonds, Saves Taxpayers $600k

The following information was released by LCUSD Superintendent Wendy Sinnette.

The La Cañada Unified School District, taking advantage of historically low interest rates, successfully refinanced $11.82 million in previously issued and outstanding voter-approved general obligation bonds last week. The direct, net savings to taxpayers, none of which goes to the District, will amount to $616,073 over the remaining life of the bonds.

The bonds refinanced were select callable maturities of the District’s 1999 and 2004 Bonds.  The net present value savings is 3.87% of the refunded principal.  

Several factors led to the successful refinancing:  the District’s strong credit rating, the community’s affluence and stable tax base, the community’s longstanding history of financial support for its public schools, conservative and resourceful fiscal management by the District, and outstanding student performance. An industry-leading rating agency affirmed La Cañada USD’s bond rating at “AA” one of only a select few school districts in California to be rated so highly.

The 2004 Measure B received a 63.5% voter-approval from voters. In 1999, voters approved Measure A by an overwhelming 80.5%.

School facility modernization and construction projects at included: renovation and modernization of classrooms, science labs, band rooms and the choral room; renovation of the Social Science, Science, Math Resource Center, and Language Arts Resource Center; renovation of eight restrooms; upgrading heating, ventilation and cooling systems; exterior painting; renovation of student courtyard; and installation of a new elevator in Building B to meet Americans With Disabilities Act requirements.

At the elementary sites, Measures A and B funded projects, such as: classroom modernizations; fire alarm upgrades; the installation of keyless lock systems; new multipurpose rooms atand ; and a new conference room at PCY.  Other modernization projects undertaken were upgraded security features at all campuses and sound proofing walls at .

“Our community is dedicated to providing students with the highest quality education and the Governing Board is dedicated to ensuring taxpayer dollars are spent wisely.

"This was a great opportunity to save taxpayers a significant amount of money that will be put back into the local economy,” Sinnette said.