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SWSD Sells Final Series from the Measure QS Bond Authorization, Locking in Debt Service $4.5 Million Less Than Expected

 In October, South Whittier School District sold the final series of general obligation bonds from its 2016 Bond Authorization, Measure QS, which was passed by voters with an 82.66% approval rate.  The $29 million facilities improvement bond measure was approved to upgrade, renovate, and modernization outdated and aging classrooms and school facilities throughout the District.  

 

To issue the final $9 million in bonds, the District took advantage of historically low interest rates due to the coronavirus pandemic and overall economic uncertainty.  Highlights from the successful bond sale include:

 

  • The bonds were sold at a True Interest Cost, or TIC, of 3.351772%
  • The term of the bonds was 30 years, like the other issuances from the authorization
  • Total interest costs for this bond sale is $8,661,800
  • Total repayment ratio is 1.96:1.00, or for every $1.00 borrowed, the District repays $0.96; state law prohibits a repayment ratio greater than 4.00:1.00

 

Perhaps most notably, the Tax Rate Statement estimated to voters at the time of the election that total debt service for all the bonds would be $59.4 million.  The actual total for all three bond sales was $54,893,376, or $4,506,624 less than expected. 

 

Superintendent Gary Gonzales stated, “With interest rates near historic lows, we wanted to take this opportunity to further our capital facilities improvements and save our community money, particularly in light of the downturn in the economy.”  

 

Classroom and facility improvement projects are expected to continue with this new funding in 2021 and 2022.

 

If you are interested in being involved or learning more about the bond program, please submit an application for our Bond Measure QS Citizens' Oversight Committee. Members receive in-depth information regarding projects and the overall bond program.