District financial advisers outline $150 million Measure A Series A bond plan, pricing timeline

Desert Sands Unified School District financial advisers presented details on the district's proposed issuance of Measure A general obligation bonds and an associated potential refunding at the Jan. 21 board meeting.

Adam Bauer of Feldman Rollup and Associates, accompanied by Kristen Gehr of Piper Sandler, told the board the district is considering a $150 million Series A issuance from the Measure A authorization voters approved March 5, 2024, and discussed market conditions, interest-rate indices and a tentative schedule for pricing and closings.

The advisers said the bonds are tax-exempt municipal bonds (interest exempt from federal and state income tax) and noted that the tax-exempt municipal-market index (MMD) and recent Fed actions influence pricing. Bauer said the district has robust assessed-value growth and that the transaction before the board on Jan. 21 focused only on Series A; future series will be revisited as conditions change. The presentation explained the distinction between traditional (KIB) bonds and capital appreciation (CAB) bonds and showed that the district's current plan is to use primarily KIBs.

Key points presented to the board: - Amount and use: advisers described Series A as $150,000,000 in new-money bonds for Measure A projects (the full voter authorization is larger, advisers said). The item before the board on Jan. 21 concerned Series A; additional series or refinancing will be considered later. - Market/timing: advisers showed a 10-year and 30-year municipal-market index history and said a pricing date around March 6 was planned, with a March 20 closing for new-money bonds and a possible May 6 closing if a refunding proved feasible and market conditions yielded sufficient taxpayer savings. - Refunding caveat: Bauer said a refunding would be pursued only if the refinancing savings were sufficient; rising short-term and long-term rates since mid-2022 were noted as a factor in current market calculus. - Fiscal details: staff and advisers said new-money transactions would provide funds on closing (advisers answered board clarifying questions that refunding transactions generate no new funds), and that the district has reserves and historical trends supporting the budget assumptions in the petition materials.

Board members asked clarifying questions about timing and the cash flow effect of refundings; Bauer reiterated that refundings produce no new funds and that new-money proceeds would be available after the March closing if the district proceeds. The presentation was informational; board members did not take an immediate vote on issuance that evening and were told future board action would follow the advisers' schedule should the district choose to proceed with pricing and sale.