The Pleasanton Unified School District is proud to announce that the interest rates achieved through the August 20, 2019 sale of the second issuance (Issuance B) of Measure I1 funds came in $7.2 million lower than original estimates, saving Pleasanton taxpayer dollars. The $90 million Measure I1 Issuance B bonds achieved a low all-inclusive interest cost of 2.64 percent resulting in total debt service of $122.9 million. When the Bonds were approved by the Board on August 13, 2019, the estimated all-inclusive interest cost (based on July interest rates) was 3.1%, for an estimated debt service of $130.1 million, representing a difference of $7.2 million.
“We are committed to acting as strong financial stewards with the funds entrusted to us by the Pleasanton voters,” said Superintendent David Haglund. “The funds from Measure I1 are helping to address significant facilities improvements which will benefit our students and strengthen our schools and broader community we serve.”
To Pleasanton property owners, Measure I1 translates to approximately $49 per $100,000 of assessed property valuation. With the low interest rates obtained by the District for the Measure I1 Issuance B sale, this will mean a lower dollar amount per $100,000 of assessed valuation.
Prior to the Measure I1 Issuance B sales, PUSD secured a very strong credit rating of ‘Aa2’ with a positive outlook from Moody’s Investors Service. This further positions the District for a future rating upgrade. PUSD’s strong credit ratings were due in part to its healthy financial position, including the District’s approach to maintaining reserves for times of economic uncertainty. The credit rating was also thanks to the strength of the Pleasanton community’s large and growing tax base and strong socioeconomic profile.
PUSD’s issuance B bonds attracted significant investor demand which contributed to overall interest rates being lowered from estimates shared the day prior. While the District had $90 million in Bonds to sell, it received $224.98 million in orders from a broad investor base which included retail investors, insurance companies, banks, bond funds, and separately managed accounts.