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Underwriter outlines plan for up to $30M Measure G issuance and $8M refunding to save taxpayers about $1M in present value
Summary
RBC Capital Markets presented a financing plan including a not-to-exceed $30 million issuance under Measure G and a recommended refunding of certain 2018 bonds that could yield about $1 million in present-value savings; next steps include county board action, rating-agency review and investor marketing.
Catherine Jacobson, managing director at RBC Capital Markets, briefed the Pacifica School District board on March 11 about plans to issue the next tranche of Measure G bonds and to refund a portion of the 2018 debt. Jacobson said Measure G (approved by voters in March 2024) originally authorized $70 million; the district previously sold $10 million and has roughly $60 million remaining available under that authorization.
Jacobson described a proposed 2026 series not-to-exceed $30 million and provided estimates based on current market conditions: an approximate 4.75% borrowing cost, about $29.65 million in net project funds after issuance costs, and roughly $65 million in total repayment cost over time. She also described a separate refunding of approximately $8 million of outstanding 2018 bonds that could generate roughly $1 million in present-value savings, a present-value savings percentage of about 8.19% on the refunded par amount — above typical municipal guidelines.
She emphasized tax-rate management and voter commitments: the team modeled tax-rate impacts and said the planned layering of issuances would keep the district's property-tax rate under the $30 per $100,000 of assessed value target committed to voters for the next two years before dropping as earlier series amortize.
Jacobson outlined the process and timeline should the board proceed: county board-of-supervisors approval to allow new-money bonds, a rating-agency call in the next one to two weeks, issuance of the preliminary official statement to investors, and locking rates in late April. She also noted that refinancing-related costs are built into the bonds and that there is no general-fund obligation for the financing.
A motion to adopt the resolutions authorizing the issuance and sale of general obligation bonds and authorizing the refunding of general obligation bonds was made and seconded during the meeting; the transcript records those motions and seconds but does not include the vote result.
What happens next: If the board proceeds, staff will coordinate county approvals and rating presentations, then distribute a preliminary official statement to market the bonds and lock in interest rates.
