The Pleasanton Unified School District (PUSD) has received credit ratings of Aa2 from Moody’s and AAA from Fitch for its first issuance of Measure I1 general obligation bonds. The District’s rating placed PUSD in a strong position leading into its first Measure I1 bond issuance.
Moody's Investors Service and Fitch Analytics are leading providers of credit ratings, research, and risk analysis. Moody’s credit ratings range from ‘C’ to Aaa’ with numerical modifiers 1, 2, 3 for each rating Aa through Caa. The District’s Moody’s credit opinion states “The Aa2 GO rating reflects the district's large and growing tax base benefiting from its Bay Area location and very strong residential wealth measures. It further reflects the district's healthy financial position, maintained through conservative budgeting.”
Through various District-wide measures over the past two years, strong fiscal oversight, and Board support, PUSD eliminated the need for an anticipated $3.2 million in cuts by 2019-2020 based on current information. The District’s conservative budgeting has been a collaborative effort that has spanned multiple years and included the elimination of the District food budget in 2016-2017, increased efficiency at the District Office, and continued commitment to reduced legal expenses. With rising state mandated pension contributions, steady declines in one-time fund allocations, and uncertain future state and federal funding for education, PUSD is committed to maintaining its strong fiscal standing.
The District’s bonds received the highest possible rating from Fitch Analytics, whose credit opinions range from ‘C’ to ‘AAA’. The rating is based on the District’s property tax base, including total assessed property valuation in the District, which has risen from $21.1 billion in 2016-2017 to $22.4 billion in 2017-2018.
“These strong ratings are a testament to the District’s collaborative efforts towards long-term financial stability and fiscal stewardship on behalf of our Pleasanton community,” said Deputy Superintendent of Business Services Micaela Ochoa.
A high credit rating means investors will charge lower interest rates on bond debt, which translates to lower taxes for district property owners.
“We look forward to receiving bond proceeds to begin the much needed improvements at our schools,” said Superintendent David Haglund. “We would like to thank the Pleasanton community for their incredible support and are excited to share future updates on our progress.”
Disclaimer: This is for informational purposes only. It is not an offer to sell or a solicitation of an offer to buy the District’s bonds mentioned herein. The purchase of bonds may be purchased only through a broker after the review of the official statement for the bonds.