Dear Community Member,
For the past 15 months, the El Monte City School District has refunded $44,500,00 of outstanding General Obligation Bonds. This has saved taxpayers $4,730,000 over the lifetime of the bonds. The refunding, which is similar to refinancing a home mortgage, pays off existing debt by borrowing money at a lower interest rate. These savings are passed on to the taxpayers.
As a result of favorable market conditions, and historically low interest rates, the savings achieved through the refunding far exceeds the District’s expectations. The refunding bonds were sold with interest cost of 2.75 percent and 3.3 percent compared to over 5 percent of past rates.
The District works with a financial team to manage the issuance of bonds. The underwriting is led by RBC Capital Markets. Stradling Yocca Carlson & Rauth serves as Bond and Disclosure Counsel. KNN Public Finance, a Division of Zions Public Finance, Inc. serves as Financial Advisor.
The District’s General Obligation Bonds are currently rated Aa3 by Moody’s Investors Services and A+ by Standards and Poor’s. These ratings place the District in the upper medium tier rating of the California School District Credits. Main factors include:
• Prudent financial management and stability of management
• Diverse local economy
• Modern debt ratios
The District has proven to effectively manage voter approved bond measures through planning and fiscal prudence. The results are demonstrated in an array of capital facility projects like Durfee Elementary School. With community partners, El Monte City School District will continue to improve the quality of education for our deserving students.
Dr. Maribel Garcia