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Millbrae board authorizes $30 million Measure J Series A, directs staff to pursue bond refunding
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Summary
Trustees authorized staff to move ahead with a $30 million first series issuance under voter‑approved Measure J and approved a related resolution to pursue refunding of callable bond maturities to reduce interest costs; the board also approved a crossing‑guard MOU and school accountability report cards.
The Millbrae Elementary School District Board of Trustees on Feb. 3 authorized staff to proceed with the first series (Series A) issuance under Measure J and approved a related refunding resolution to pursue lower interest costs on certain callable maturities.
Blake Boerum of KNN Public Finance told trustees that voters approved Measure J for up to $95,000,000 and that the Series A par amount is structured at $30,000,000 as the initial draw. "Just as a reminder, voters approved that $95,000,000 under Measure J with a maximum tax rate of $30 per $100,000 of assessed value," Boerum said during the presentation outlining assumptions and a conservative AV growth projection.
KNN estimated the Series A interest cost at about 4.45 percent and outlined a tentative timeline: district staff and the bond team will meet with Moody's investor services this week; pricing would be locked in March with proceeds available to the district in early April. Boerum said the full Measure J program is expected to be drawn down in multiple series by about 2030–2031.
The board also authorized staff to pursue refunding opportunities for callable maturities (staff estimated roughly under $8,000,000 in eligible bonds) to achieve present‑value savings. KNN presented two scenarios: a larger refunding producing about $210,000 in present‑value savings under one set of assumptions and a more conservative, more efficient refunding producing about $158,000 in present‑value savings under another.
Votes and related business: Trustees approved the actions by voice vote. In the same series of business items the board also approved:
- An MOU with the City of Millbrae to reimburse the district up to $50,000 for crossing‑guard costs for the 2025–26 school year; and
- The district’s 2024–25 School Accountability Report Cards (SARCs), which staff said were posted to the California Department of Education website by the Feb. 1 deadline.
CBO Mary summarized that staff will continue to evaluate market conditions to ensure the refunding candidates produce taxpayer savings before finalizing any refunding transactions. Board members asked for ways to communicate the refunding and the Measure J sale to the public; Boerum suggested a community presentation and a short press release with final numbers once pricing is set.
Next steps: If the board’s authorizations remain in place, staff will meet rating agencies this week, finalize pricing in March and deposit proceeds into the district building fund in early April. The board will receive implementation details and final transaction numbers publicly before the sale closes.
