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District reports strong results on $136 million Measure N bond sale
Summary
Elk Grove Unified presented results of a $136 million Measure N bond sale, reporting an AA2 Moody’s rating, a competitive sale on March 24, and a winning bid by Morgan Stanley with a true interest cost of 4.665%, improving projected levy metrics for taxpayers.
District finance staff and outside advisors briefed the board on the March 24 sale of $136 million in Measure N general obligation bonds. Lori Ranieri of Government Financial Services summarized the competitive sale: the district received six bids, Morgan Stanley was the winning underwriter and the transaction produced a true interest cost of 4.665 percent, beating the district’s budgeted assumption of 5.32 percent.
Ranieri said the district’s commitment to finance best practices and the timing of being the only California competitive offering on the day helped attract bidders and favorable pricing. The district’s credit rating from Moody’s remained AA2; Ranieri described that as an affirmation tied to local economic strength and enrollment projections.
The presentation said premium proceeds will reduce overall tax levies; projected maximum and average tax levy estimates were updated slightly lower than election estimates. District leaders said the funds were received and will be used for the capital projects authorized by Measure N; the next anticipated bond issuance is planned for spring 2028.
