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On March 6, the Sequoia Union High School District, SUHSD, began issuing its first series of Measure W bonds and also received an upgrade to the highest bond rating, Aaa, from credit rating agency Moody’s, according to a press release by the school district.
Measure W passed with 63% voter approval in November 2022, authorizing a $591 million bond to repair and upgrade SUHSD classrooms and infrastructure.
The district’s bond rating upgrade was received due to its strong economic base, sound reserves and liquidity and community-funded status, according to the release. The Aaa rating is judged to be of “highest quality with minimal risk,” according to Moody’s rating scale and definitions chart. This will allow the district to borrow money at a lower interest rate, saving taxpayer dollars.
SUHSD states that it received more than $605 million in orders, which is over four times the amount of bonds the district was offering. The high demand of both bonds allowed Superintendent Crystal Leach and Assistant Superintendent of Business Services Christine Gong to negotiate lower borrowing rates.
The initial rate of 4.37% for the 2022 Series 2024 Bonds is now at just under an interest cost of 4%. The district was also able to secure $5,395,087 in taxpayer savings for the 2024 Refunding Bonds over time, which exceeds the initial minimum saving threshold of $2,000,000.
“We’re excited to share this news with the community as it showcases the fiscal strength and responsibility of the district,” Leach said in the release. “This rating signals we’re one of the top school districts in the state from a financial standpoint, and it means we can get the most value out of our bonds for our students.”
SUHSD is one of nine K-12 school districts in the state to receive the Aaa bond rating from Moody’s.
Currently, the district is looking for applicants to serve on the Measure W Citizens’ Bond Oversight Committee. Applications are due on Wednesday, March 13, and more information can be found at seq.org/cboc.
Updates on Measure W projects will be regularly posted through the district website, newsletters and on social media.