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Board hears Measure R update: $250 million remains; district eyes final issuance and possible refunding to save taxpayer dollars
Summary
KN&N and district staff told the board that of the $575 million authorized under Measure R (2020) $325 million has been issued and $250 million remains; staff flagged a projected final issuance in fiscal 2027, a negative outlook from rating agencies tied to general-fund reserves, and a 2026 refunding window that could save taxpayers roughly $1.8–3.1 million depending on scope.
The West Contra Costa Unified School District board on April 29 received an annual bond program report from KN&N public finance that outlined the status of voter-approved measures, an upcoming final issuance for Measure R, and potential savings from refunding older bonds.
Blake Beam of KN&N said the 2020 Measure R authorization was $575 million; to date the district has issued $325 million and has about $250 million of authorization remaining. KN&N projected the final Measure R series would likely be sold in fiscal year 2027 and that the district will work to structure repayments to stay within the $60-per-$100,000 tax-rate limit voters approved for that measure.
Beam cautioned that because the final sale is delayed, the county’s tax-rate calculation could show a notable drop this year unless the board acts to stabilize the levy. He previewed a short tax-levy resolution the board may consider soon to ask the county to include an estimated debt service amount so the district’s projected tax rate remains steady while the sale is scheduled.
The presentation also flagged potential refunding opportunities for outstanding bonds: KN&N identified roughly $40–60 million of maturities that meet the district’s refunding policy and estimated potential interest-cost savings of about $3.1 million (present-value savings roughly $1.88 million), depending on market conditions and the maturities chosen.
The firm noted the district’s credit ratings remain A1 (Moody’s) and A+ (S&P and Fitch), but that both Moody’s and Fitch recently adjusted the outlook from stable to negative. Rating agencies emphasized the need for the district to sustain general-fund balances above 10%, demonstrate structural budget balance absent one-time funds, stabilize enrollment trends, and materially reduce leverage and fixed costs.
Community members and the CBOC requested additional joint meeting time with KN&N to discuss Measure J (2005) funds and acceleration scenarios for older authorizations; members of the Citizens’ Bond Oversight Committee said a longer Q&A and joint session would give the committee more opportunity to examine options and tradeoffs.
What’s next: district staff and KN&N will return with a proposed short tax-levy resolution and, possibly, a future item to pursue refunding if market conditions remain favorable.
