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Bank of America explains El Segundo Unified bond measures and tax‑rate outlook
Summary
Bank of America presented an overview of El Segundo Unified’s general obligation bond measures, how assessed valuation and maturing measures drive tax rates, and the district’s strong credit rating; board members asked questions about timing and tax‑rate anomalies.
At its Feb. 10 meeting, the El Segundo Unified School District Board of Education heard a detailed explanation of the district’s general obligation (GO) bond program from Jin Kim of Bank of America.
Kim reviewed the allowable uses of GO bond proceeds (modernization, safety and security, construction and technology) and reiterated prohibited uses — "you cannot use GO bond money to keep the lights on, pay utility bills, administrative salaries or pensions," he said. He also described the statutory accountability features, including the citizens' bond oversight committee that monitors that bond money is spent only on voter‑approved projects.
Kim walked the board through the district’s four outstanding measures — C, E, M and ES — grouping C/E/M together as related projects and noting Measure ES was passed in 2018 and remains on the roll for roughly 25 more years. He explained that assessed valuation and the stock of outstanding bonds determine local tax rates and that some measures were structured to phase in and out so rates shift as one measure falls off and another phases in.
Kim gave the current aggregate tax rate for all four measures as $80.36 per $100,000 of assessed valuation and displayed a regional comparison and a historical range for the district (about $65 to $116 over recent years). He also reviewed the district’s credit rating (noted as Aa2 and Aa‑) and attributed it to local affluence, stable management and good fiscal stewardship, including past refinancings.
A board member asked why measures with similar principal amounts can show different tax rates; Kim said that phasing decisions and timing of when measures begin or end explain apparent anomalies and that assessed valuation trends also matter.
The board thanked Kim for the clear presentation and noted the materials would be useful for public transparency as measures come on and off the tax roll.
