Bond underwriters like the financial moxie of the Manteca Unified School District.

And because of that, MUSD taxpayers will save millions of dollars over the course of the coming decades retiring $377 million in bond debt.

“It is important to Superintendent Clark Burke and the board that taxpayers’ best interests are served,” noted Victoria Brunn, the district’s chief financial officer and chief communications officer.

The district has done that by:

*keeping reserve balances at 3 percent or above for positive certification.

*maintaining 3 percent reserves for economic uncertainty.

*having a cash flow on hand equal to 75 percent of one month’s cash flow.

*meeting the state requirement for positive three year budgeting.

The end result is Moody Ratings assigned an Aa2 rating to the district’s $130 million general obligation bond issuance earlier this month.

That means the remaining $130 million of the $260 million Measure A bonds were able to be issued at lower interest rates. The end result over 30 years will be more than $1 million in interest savings.

The same is true for an existing $20 million bond that was refinanced in a manner that will save hundreds of thousands of dollars in interest.

The Aa2 rating — the third highest an entity can be assigned by Moody’s — reflects what the bond rating firm views as an increase of the district’s financial outlook that they upgraded from positive to stable.

It also helps the district has a growing tax base.

It is why the ultimate cost to a homeowner for debt service on the $260 million Measure A bond will be significantly lower than the $60 per $100,000 assessed valuation outlined in the 2020 ballot measure.

Growth such as the City of Manteca adding 1,306 homes last year spreads out the cost of bond  retirement over more taxpayers.

The end result is a lower per $100,000 assessment that can keep dropping if growth continues.

“The ($60) per $100,000 assessment was the highest the bond payment could go,” Brunn said.

The district’s solid financial position with a growing tax base, healthy reserves, and prudent budgeting along with fixed costs and liabilities that are moderate and manageable also led to lower interest rates for $34 million in community facilities district bonds issued from a CFD south of the 120 Bypass that were also issued.

The CFD bond proceeds will help pay to build two new elementary schools over the next two years — one on Tinnin Road and the other in southwest Manteca northwest of Woodward Avenue and McKinley Avenue. The CFD bond will be combined with state school bonds.

The bond proceeds could also help add additional classrooms at Sierra High.

The balance of the Measure A bonds that were sold will finance a wide array of modernization projects with the bulk being at Manteca High and East Union High.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com