District refinances Measure S bonds

May 4, 2020 Staff

Earlier this spring, March 10, Susanville School District successfully completed the ‘refunding’ (or refinancing) of $4.24 million of its outstanding Measure “S” bonds, which were approved by 66.5 percent of voters in 2008. Similar to replacing a 30-year home mortgage with a 15-year mortgage after a number of years, refunding school district general obligation bonds generally reduces tax rates by replacing existing 25-year bonds with new, lower interest rate, shorter term bonds. This refunding will save local taxpayers more than $1.2 million in total through 2033.

“Given the wonderful relationship we have with the greater Susanville community and the challenging economic times that may lay ahead due to the COVID-19 pandemic, of course we’ll do everything we can to be good stewards of local taxpayers’ investment,” said Board President James Hall. “The moment we saw the opportunity to reduce tax bills, we acted immediately to decrease the cost of Measure S – and our administration and the entire team did a great job getting it done, particularly at the moment we did.”

Prior to the process of issuing the refunding bonds, Standard & Poor’s also upgraded the District’s “A+” credit rating to “AA-”. This exceptionally strong rating for a rural California school district recognizes the district’s strong local economy, consistent financial operations with strong reserves, and low debt burdens.

The “AA-” rating also allowed the district to successfully conduct the sale of the 2020 GO Refunding Bonds at a time of exceptionally favorable market conditions, immediately prior to considerable volatility and interest rate increases due to COVID-19.

“Our timing for this refunding could not have been better,” said Superintendent Jason Waddell. “The board and I are incredibly excited to save local taxpayers this much money, especially when it may matter the most – and of course we’ll continue to do everything we can to make our community that much better, whatever new challenges we all may face.”

About Susanville School District

Susanville School District students are fortunate to live in a beautiful part of the State of California and be supported by a community that takes pride in the education and well-being of its children, despite campuses being closed. Now and as always, Susanville staff consists of caring, passionate educators that work exceptionally hard to help students, parents and their peers become active learners in an ever-changing world.

The district’s efforts are focused on creating incredible learning environments – even if they must currently be remote – where students flourish academically, grow socially and emotionally and learn to become life-long learners prepared to interact and persevere in the 21st Century. These efforts are even more important now, as everyone faces the practical, financial and personal challenges resulting from COVID-19.