Courtesy of San Benito High School:
San Benito High School 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, which 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 that the board’s fiscal stewardship result in 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, which is evidence of greater investor demand for the District’s bonds.