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Carlsbad Unified board authorizes final Measure HH bond sale; trustees say tax impact remains under pledge
Summary
Trustees approved Resolution No. 14-24/25 to issue the final Measure HH general-obligation bonds (series C), with staff estimating roughly $87.9 million principal, a projected 4.33% true interest cost and a tax rate just under $30 per $100,000 of assessed value; the motion passed 5-0.
The Carlsbad Unified School District board on Nov. 20 adopted a resolution authorizing the issuance and sale of the district's final Measure HH general-obligation bonds — Series C — and approved related documents by a unanimous 5-0 vote.
Eric Dill, presenting the financing overview with municipal adviser Adam Bower, said the good-faith estimate for the remaining principal is about $87,875,000, with an estimated true interest cost of 4.33% and issuance costs of roughly $425,000. After those costs, Dill said, net proceeds are projected at just over $86.5 million and the total estimated principal-and-interest payment over time would be about $158 million, producing a payback ratio of about 1.8 to 1.
Dill emphasized the sale is expected to remain within the tax-rate pledge made to voters in 2018. "With the issuance of series C our estimate would be that we would still remain just under $30 per $100,000 of assessed value when our pledge in 2018 was $34 per $100,000," he said.
Trustee Williamson asked how district reserves factor into underwriters' evaluations; Dill said rating analysts review several years of financial history and place substantial weight on districts that maintain high reserves and, separately, that 'basic aid' status is also seen favorably. Adam Bower, the municipal financial adviser, supported those points during the presentation.
The board adopted Resolution No. 14-24/25 as amended (including correction of a percentage typo in the resolution) and directed staff to move forward with sale preparations and a target sale date of about Jan. 15, with closing by the end of the month, subject to market conditions and final credit-rating outcomes.
Why it matters: The action finalizes authorization to market the last series of Measure HH bonds approved by local voters and sets the district on a path to fund capital projects while stating projected tax impacts and debt-service estimates for taxpayers.
What’s next: Staff expects a credit rating decision in early December and will work with the underwriter on the negotiated sale timeline.
