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San Benito High School's credit rating to save millions in bond measure interest

San Benito High School says it's low debt burden, fiscal solvency, and growing tax base is expected to lower borrowing costs and reduce property taxes related to the bonds for local residents and businesses by shortening the financing term.
The new multi-use field on campus will allow physical education classes and athletic teams to have year-round access to a safe, modern playing surface. Photo provided.
The new multi-use field on campus will allow physical education classes and athletic teams to have year-round access to a safe, modern playing surface. Photo provided.

This article was contributed by San Benito High School Communications Manager Adam Breen.

San Benito High School says the district’s recent sale of $43 million in voter-approved Measure U bonds to investors during a time of positive market conditions and investor demand will reduce debt service payments over the life of the bonds by about $9.6 million, compared to previous estimates. The lower interest rates, SBHS representatives say, were also made possible by the district’s low debt burden, fiscal solvency, and growing tax base, will substantially lower borrowing costs and reduce property taxes related to the bonds for local residents and businesses by shortening the financing term by a full year. 

The proceeds of the sale of the bonds will be used to fund the ongoing and upcoming construction, furnishing, and equipping of District facilities.

San Benito High School District Superintendent Dr. Shawn Tennenbaum thanked San Benito County voters for their continued support of the bond measures, which have resulted in ongoing campus facility and instructional upgrades, including the construction of the Career Technical Education and Visual and Performing Arts and Academic buildings. Bond proceeds are also funding upgrades to physical education and athletic facilities, including the aquatics center, varsity softball field, football stadium and track and multi-use field. A science and robotics building is slated for construction on the west side of campus and classroom renovations for special education students and ADA compliance upgrades were completed on the main campus this summer. 

“The leadership and guidance of Board of Trustees President Steve Delay and the entire board were instrumental in the bond sales,” Tennenbaum said, noting a strong “Aa3” credit rating for the district by Moody’s, which cited factors such as the district’s low debt burden, credit strength, and growing tax base when providing its rating.

The bonds were offered to investors during an order period that extended over several hours on the morning of July 24. The 30 separate institutional investors placing orders for the bonds represented a 33 percent increase in the number of institutional investors compared with the first series of Measure U bonds offered in April 2017.

 

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About:
San Benito High School District (education) (SBHSD)

Founded in 1875, San Benito High School is the largest, comprehensive high school in the county, serving nearly 3,000 students. Our mission is to educate all students to their highest potential so they will have the greatest range of personal options upon graduation.

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