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ABC Unified board approves Measure BB Series C bond issuance to continue school modernizations
Summary
Trustees authorized up to $64.5 million in Measure BB Series C bonds and received a program update on completed and planned modernizations, inflation impacts and financing options to cover budget overruns.
The ABC Unified School District Board voted to authorize issuance of Measure BB Series C bonds, not to exceed $64.5 million, to continue modernization projects across district campuses.
In a presentation before the vote, bond program manager Rick Watorama summarized Measure BB work since voter approval in 2018, describing completed high-school modernizations, ongoing middle- and elementary-school projects and upcoming elementary phases through 2027–28. Watorama said the district is implementing access-control, intrusion systems, upgraded classroom technology and restroom and science-lab renovations required by state standards.
Trustees heard that construction inflation has increased hard costs by roughly 30% since the bond was authorized. Watorama said the district will use a combination of measures to manage budget overruns: interest earned on bond proceeds, capital facilities (developer) fees and, if necessary, reallocation of funds originally earmarked for a district-office modernization. The board’s finance staff told trustees the district is aiming to keep debt-service payback near a 2:1 ratio and expects average interest on the new series to be about 4.6% under a tax-exempt structure.
Deputy Superintendent and chief financial officer Tuan Lewin told trustees the district had issued about $128 million in prior Measure BB series and planned Series C as the third issuance to maintain construction cash flow. Lewin also described the competitive bidding approach the district will use and invited the board and the citizen oversight committee to observe the sale process.
The board approved two resolutions: one declaring the district’s intention to reimburse general-fund expenditures with proceeds if needed, and a second providing for the issuance and sale of Series C bonds. The motions passed by voice vote.
What’s next: Staff will finalize offering documents, meet with rating agencies and proceed with the competitive sale. The board will be notified of the sale results and the projected debt-service schedule once bids are received.
