$72.5 million will be refunded bringing additional $10 million
to district
Morgan Hill – The way the Morgan Hill Unified School District conducts its business has earned it the highest possible rating for its bond.
The “superb” rating will help with the sale of the bond and possibly save the district money, according the Deputy Superintendent Bonnie Branco.
School bonds, which must be approved by taxpayers, are sold to investors by brokers to raise funds for school districts. The investors receive money from taxes collected from property owners within the boundaries of the district.
The bond the district is refunding is the $72.5 million bond voters approved in 1999 to pay for the construction of Barrett Elementary School and Sobrato High School and the renovation of Live Oak High School.
School trustees voted during their June 20 meeting to refund the bond, which would bring in an additional $10 million to the district. The projected tax rate beginning fiscal year 2006-07, due to refunding the bond, is $65.73 per $100,000 of assessed property value.
The nature of the bond dictates that the money generated by refunding be used for the original purpose of the bond. Trustees have said the money will be used to continue the renovation work at Live Oak.
School district bonds are given ratings based on the financial condition of the district, including past history. The district’s bond received a “superb” rating, which is the highest rating, Tognazzini said. She said the rating is better than most districts in California receive.
Trustee Peter Mandel, who accompanied Tognazzini and Superintendent Alan Nishino to San Francisco to get the bond rating, said the broker explained that part of what is considered in the bond rating is how the district responds to financial challenges.
The budget cuts of several years ago are a prime example, he said.
“There was a good spirit of mutual cooperation to try and deal cooperatively and constructively with all the challenges the district was facing,” he said. “It’s very important not only how the district handled it but how the unions joined in.”
Nishino said he wanted to congratulate everyone in the district for their sacrifices during the budget-cutting years that kept the district afloat and now may bring in more money because of the high bond rating.
“This district could have gone under…Not just the board but everyone making tough decisions made a difference,” he said.
The additional money coming to the district through the refunding may not be enough to complete all the renovations needed at Live Oak, Nishino said, due to rising construction costs.
Tognazzini said plans for several projects at the school are being drawn so costs can be brought to the board. Topping the list of remaining projects are the boys’ locker room, the Little Theater and a new security system for the campus.
Earlier work at Live Oak High included the construction of a new gym, called the “practice gym,” a new library and counseling center, a new football field and track and the complete renovation of four classroom buildings.
