The second and final portion of the $11.76 million general obligation bond to finance construction at Yosemite High School was sold in July, 2000 in Sacramento at an interest rate below the market rate.
"The low interest rate means a savings for the taxpayers," District Superintendent Bill McCabe explains. "The tax levy for the district’s bond will be less than we had anticipated and less than we told the voters before they passed the measure."
The $4.76 million portion of the bond sold with an interest rate of 5.37 percent. Two other school districts sold bonds the same day for 5.39 percent.
"We are very pleased by this," Mr. McCabe continued, "we are pleased to be able to tell the voters that the bond is going to cost them less than we had thought."
Solomon Smith Barney purchased the YHS bond. There were seven bids ranging from 5.37 percent to 5.44 percent.
The sale of the bond took place in Sacramento at the offices of the district’s financial advisors, Government Financial Strategies, Inc.
"We have worked with this firm from the beginning of the bond process," Mr. McCabe said, "and we credit them with our successful bond sales. They have done an excellent job of getting us a favorable rating and they have marketed us well."
YHS is rated as a triple B-plus by Standard and Poor. Steve Carney, the district’s director of business services, says this is a typical rating for a rural school district.
The district sold its first portion of the bond, $7 million, in August of 1998 at a rate of 4.755070 percent, which was the lowest rate Government Financial Strategies, Inc. had ever seen.
The district must spend the funds from the bonds sold last week within three years. Until the funds are used, they will be in a government security account drawing about six percent interest.
The money from the sale last week will be used for the performing arts center. The plans for the center are currently at the state architect’s office in Sacramento for approval. That process will take from four to six months.
Mr. McCabe told the district trustees at last week’s board meeting that construction should start on the center about next July.
Money from the $7 million sale in 1998 has been used for the projects that have been completed and that are currently underway.
Three buildings have been completely renovated and are now in use as the library/media center, science classrooms and laboratories and the administration building.
Construction is underway to expand the locker rooms at the high school and work is moving forward on the multi-purpose room / cafeteria.