Financial advisor: Measure H bonds sold below budgeted cost after volatile market shifts

The district's financial advisor reported to the Galt Joint Union Elementary School District board on May 26 that the Measure H bond sale, held amid market volatility, produced a better-than-budgeted result and provided additional funds for facilities.

Lori Ranieri of the district's financial services adviser described the sale process and said the district followed Government Finance Officers Association best practices. She told the board that the district’s A+ rating, conservative budgeting for volatility and use of real‑time municipal market data helped the sale achieve favorable results despite market swings.

Ranieri explained the mechanics to trustees: the bonds carry fixed rates by maturity rather than a single blended mortgage‑type rate, and the district budgeted conservatively for spreads between A+ and triple‑A benchmarks. Because spreads narrowed and longer‑term rates were favorable during the sale week, the district’s true interest cost came in below the budgeted amount. Ranieri said the sale generated additional bond premium that will be deposited to the county fund and reduce net tax collections.

She described competitive interest from national broker‑dealers and banks (six bids) and said the premium and decreased cost of issuance left more funds available for projects. The adviser reported the district received bond proceeds on May 7 and said the next step is to begin spending the funds on authorized Measure H projects. Officials projected the next bond sale would be spring 2027, subject to project pacing.

Ranieri summarized the result in a colloquial image during the presentation: as market rates fell on the morning of the sale “we just stepped in and hit it, and we got a great hit,” she said, characterizing the timing and execution as favorable. The board did not take an action vote on the report; it was received as information.