Campbell Union High School District Saves Taxpayers More Than $10 Million Through Bond Refinancing

Campbell Union High School District (CUHSD) will save local taxpayers more than $10 million by refinancing a series of bonds first sold in 2010. Credit rating agency Moody’s Investors Service lent its support for the move by awarding the district a AA+ grade.

“As a result of the June 28 bond refinance, the district lowered property taxes by $10.7 million dollars,” said Brett McFadden, CUHSD’s chief business officer. “When coupled with another refunding bond sale from December 2015, the district has generated more than $13 million in tax payer relief during the past 7 months.”

The district first received authorization to sell about $30 million worth of bonds in 2010 as part of Measure G, which voters approved in 2006.

The money was used to erect a network of solar arrays across the district and to complete the construction of performing arts centers at five high school campuses.

Solar power has helped the district save about $1 million a year on electricity; its utility bill currently hovers around $900,000 annually.

Today’s bond refinance resulted in a present value savings of 25%.

The industry standard for savings from a bond refinance is generally 3%.

CUHSD’s sound financial practices previously prompted Moody’s Investors Service to upgrade the district’s credit rating from AA (Aa2) to AA+ (Aa1).

AA+ is the second best rating that an organization or country can receive to demonstrate its credit worthiness.

Less than 10% of school districts in California have received such a score.
“Providing an outstanding and well-rounded education for Campbell high school students is our top priority,” said CUHSD Superintendent Robert Bravo. “This high credit rating is good news for us, as we move ahead with a bond measure for 2016 to ensure that our students have everything they need to focus on their learning.”

The district is seeking to provide students with a safe, modern learning environment by reinvesting in school infrastructure.

This includes essential improvements such as revamping antiquated heating, ventilation, and air conditioning (HVAC) systems, which resulted in the closure of several schools last fall.

The district’s credit rating has risen steadily over the past two years thanks to good financial decisions and strong fiscal reserves.