MDUSD board approves up to $40 million COP financing, selects eight‑year structure

The Mount Diablo Unified School District Board of Education voted unanimously on Nov. 12 to approve a resolution authorizing the issuance and sale of 2026 certificates of participation (COPs) not to exceed $40,000,000, adopting the board’s recommended option C, an eight‑year repayment structure.

District chief financial staff and outside advisors told trustees the proposed COP would supplement ongoing modernization projects and fund specific priorities including athletic facilities at College Park High School, an aquatic center replacement at Pleasant Hill Middle School, roofing work at several campuses (Holbrook, Valley Verde, Glenbrook, Mount Diablo High and the Dent Center) and campus safety and security improvements. Adrian Vargas introduced the financing plan and Rachel Chang Kwai, the district’s finance advisor, cautioned that the figures presented were preliminary: “Again, these numbers are preliminary and estimated based on current market condition,” she said.

The presentation showed a range of structure options. Advisors said the district seeks roughly $30,000,000 in project funding and modeled annual debt service ranging from about $2.3 million up to more than $5 million depending on term length. Rachel Chang Kwai explained that the district’s general obligation bonds carry a Moody’s Aa3 rating with positive outlook, while COP ratings typically sit below GO levels; she estimated a blended interest cost under option C near 4.9% (preliminary) and noted the district is monitoring market conditions and a targeted January 2026 pricing window to lock rates.

Trustees asked about current municipal benchmarks and credit ratings; Vargas and Chang Kwai said county disclosures and a letter of recommendation from Contra Costa County were completed and that the financing team expected a credit rating back before moving to the market. Trustee McDougall requested the current COP rating and was told outstanding 2018 COPs were rated two notches below the GO rating.

Trustee Nzewi moved to approve resolution 25/26‑34 adopting option C; Trustee Mason seconded. The motion passed on a 5‑0 vote. The student trustee was advised not to vote on the financing item.

Next steps in the timeline presented by district staff include finalizing post‑sale activities and closing the financing so funds would be available for projects by mid‑February should market conditions permit.