Great News for Taxpayers: Millions less in interest costs, more money for facilities from Measure J Bond Sale & Refinancing

Natomas Unified’s second sale of Measure J school facility bonds has generated $38.88 million for school facility improvements – $1.1 million more than anticipated. These funds will continue to support the many current and future facility projects needed throughout the District as outlined in the NUSD Facility Master Plan.

 In addition to the Measure J Bond sale, two prior bonds from 2007 and 2008 were refinanced at a lower interest rate to save taxpayers $5.74 million over the remaining repayment period – $1.3 million more than anticipated.

 Government Financial Strategies inc., NUSD’s financial advisor, indicated that the following factors enabled the District to achieve higher bond revenue and lower bond costs this year than anticipated:

•   A previous California Board of Education waiver allowed NUSD to sell $38.88 million in bonds this year, rather than $28.5 million, based on the district’s bonding capacity. This provided more upfront funds for school projects.

•  The District’s continued positive credit rating generated a high interest by bond buyers.

•  Coupling the second Measure J bond sale with two other Bond refinancing maximized competitive bidding.

•  Competitive bidding produced potential savings of up to $1.75 million.

“Taxpayers, families, students and schools all win,” Superintendent Chris Evans said. “We continue to work hard to save taxpayers money while providing a high-quality education that prepares students for college and career.”

Measure J was a $129 million bond measure approved by NUSD voters in 2014 to fund numerous facility projects, including building new schools, renovating or expanding existing facilities, enhancing student safety, and creating 21^st century learning spaces.