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Financial advisor outlines Measure H bond issuance steps, estimates first series up to $28 million
Summary
A representative from CFW briefed the board on the certified Measure H Proposition 39 bond, explaining the multi‑series issuance process, estimated timing and factors that will affect how much of the bond authorization can be sold in the first series.
Kush, a representative of financial adviser CFW, briefed the Southern Kern Unified School District Board of Trustees on next steps to issue the Measure H general obligation bond the voters approved in November.
"Congratulations on the passage of the Measure H Bond," Kush said. He explained the typical steps: board consideration of a proposed bond structure and resolutions to authorize a sale, obtaining a credit rating, circulating a preliminary official statement to investors, pricing the bonds and closing the transactions.
Kush said the voters authorized $59,000,000 in bond capacity but cautioned that not all proceeds are typically sold on day one because legal and market constraints require a realistic spend‑down plan. "Not all of those bond proceeds are going to be available on day 1," he said, noting the statutory requirement to show a reasonable expectation that bond proceeds can be spent within three years for each series sold.
Discussing timing and amounts, Kush said the district could expect to close a first series in April, subject to market conditions, and estimated it might raise up to about $28,000,000 in the initial series while preserving the option to sell later series as property values and needs dictate. He noted that increased assessed value in the district could allow the district to accelerate later series and that the board decides the phasing.
Kush described the oversight committee required under Proposition 39 and said the board will need to appoint committee members after advertising. He also discussed anticipated credit ratings in the A to A-minus range and said the district—s financial position has strengthened relative to prior cycles.
Trustees asked about the timing of later series; Kush said the next series is currently projected around 2028 but could be accelerated if assessed valuation growth continues at recent high rates.
This was an informational briefing; no bond resolutions were acted on at the meeting. Kush said the adviser's next step is to return with formal resolutions and a proposed schedule for rating agency meetings and sale parameters.
