Bond refunding to save Lindbergh taxpayers up to $1 million, CFO says

Staff Report

A resolution authorizing the sale of more than $6 million in general obligation bonds to refund bonds issued in 2001 was scheduled to be considered earlier this week by the Lindbergh Board of Education.

The Board of Education was scheduled to consider the resolution Tuesday night — after the Call went to press. As proposed, the sale of the bonds, also scheduled Tuesday, was expected to save district taxpayers from $600,000 to $1 million, according to Chief Financial Officer Pat Lanane.

Board members voted unanimously in August to approve a resolution authorizing the hiring of a financial adviser and bond counsel to begin the refunding process.

WM Financial Strategies is serving as financial adviser to the district while Gilmore & Bell is serving as bond counsel.

This week’s sale of $6,055,000 in bonds will be used to refund bonds totaling $6,835,000 that were issued Aug. 1, 2001.

Of the amount issued in 2001, bonds totaling $5,985,000 currently are outstanding.

The district will save taxpayers money by selling the bonds and buying new bonds at a lower interest rate.

Moody’s Investors Services renewed Lindbergh’s bond rating at Aa1 — the best a school district can have. Moody’s cited the Prop L tax-rate increase and Lindbergh’s budget reductions as evidence of the district’s sound financial management and fiscal responsibility.

“Moody’s expects that the district’s financial operations will remain sound due to the presence of healthy operating-fund balances and a history of prudent financial management,” a press release from the financial firm stated.

The refunding of the 2001 bonds does not benefit the district, only the taxpayers, according to Lanane.

“… We know that it’s going to be a savings,” he said. “That’s assured. Will it be $600,000 or will it be closer to $1 million?

“Even $600,000 on $6 million, that’s unbelievable. So it’s one of those happy situations of not whether it will be a good thing for taxpayers, but rather how good will it be?”