May 16, 2003
If homeowners are pleased with today’s low interest rates, the Long Beach Unified School District is delighted with the low 4.51 percent interest rate it will pay on its latest school bond issue. The entire block of $60 million in LBUSD bonds was sold in one day. One reason for the low interest and the high demand for the bonds is the high Aa3 bond rating.
Although the State of California’s bond rating is expected to deteriorate as a result of the state budget crisis, the school district received the same high rating it received a year ago because of its sound financial condition. The excellent rating and low interest rate will allow taxpayers to save millions in bond interest and will provide more funds to use for construction and modernization of schools.
The bonds were approved as part of the $295 million Measure A approved by voters in 1999. They are matched by state funds and can be used only to build or renovate schools.