Pleasanton Unified School District (PUSD) sold the second issuance of Measure I-1 bonds at 2.64% on Aug. 20, which will save taxpayers money.
It was a dramatic drop in the interest rate in only one week. When the school board approved the sale at its Aug. 13 meeting, the interest rate was at 3.1%, but there was a prediction by the district’s financial department that the rate would go down, and the district should prepare for it.
Several factors helped create the favorable drop for PUSD, said a district spokesman. One factor is that the district carries a higher reserve than the 3% minimum required by state law for school districts. Another was past economic performances and the continued rise in the district’s tax base. Also, Moody’s Investors Service gave it a very high rating.
The district had $90 million worth of bonds to sell, but potential investors liked the district’s credentials so much that the offering received $224 million in orders.
Taxpayers have been paying $49 per $100,000 of assessed property valuation for Measure I-1; for example, a homeowner with property valued at $1 million pays about $490 annually. However, that amount is expected to drop with the lower interest rate. The district did not have an estimate about how much lower that would be.