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Board moves to contract Key Analytics for bond tracking; advisers outline refunding that could save taxpayers about $2.7M
Summary
The board ratified a contract for Key Analytics to provide automated bond and project-tracking tools for Measure ABC; Isom Advisors presented a bond-refunding analysis recommending a level-savings refunding of 2017 bonds with an estimated $2.7 million taxpayer benefit if market conditions hold.
The Burbank Unified board on Feb. 5 ratified a professional-services agreement to contract Key Analytics for program tracking, reporting and compliance for Measure ABC and related capital-facility funds and heard a separate presentation from municipal advisors on a possible refunding of prior general‑obligation bonds.
District staff said Key Analytics will ingest files directly from the district’s financial system and produce reconciled, cumulative multi‑year reports that the district and the Bond Citizens’ Oversight Committee can publish to show project budgets, expenditures and compliance. Tarana Alam, managing director of Key Analytics, said the Keystone Solutions product eliminates manual entry and can produce weekly or biweekly uploads and quarterly board reports.
“Once that is done, we take those files…our analysts analyze those files without any manual entry and put it into a proprietary software called Keystone Solutions,” Alam said.
The board then received a refunding analysis from Isom Advisors. John Isom explained that Series 2017 general‑obligation bonds carry a redemption date of Aug. 1, 2026, and that if the board acts within a suitable window it can replace older higher‑rate bonds with new bonds at lower rates. Isom presented three structure options (level savings, deferred savings, upfront savings) and recommended a level-savings structure to provide taxpayers an immediate and steady reduction in debt service. Based on current markets he estimated a net present‑value benefit of about 7.8% — roughly $2.7 million in taxpayer benefit — noting those savings are paid to property owners as lower debt-service burden and that fees for the transaction would be paid from bond proceeds.
Isom emphasized that refunds only go forward if savings meet a standard (commonly 3% net present value) and that the board’s decision would begin a multi-step process requiring a bond counsel resolution, potential rating-agency review, underwriting and a pricing/closing sequence.
Board members asked about system integration, contract process, frequency of data uploads and public visibility of the reports; staff said the software will run from the district’s BEST financial system and that uploads can be weekly or biweekly with quarterly board reporting. The board approved the Key Analytics ratification and discussed bringing a resolution on refunding at the next board meeting if desired.
Next steps: staff will finalize the Key Analytics agreement, place a refunding resolution on the Feb. 12 agenda if the district chooses to proceed, and continue coordinating with the SFOC and bond counsel on timing and reporting.
