PRESS
RELEASE
310.450.8338, ext. 221 19 OCT 2007
SMMUSD Receives Increased
Bond Rating from Aa3 to Aa2
After a
successful meeting in San Francisco regarding the sale of the district’s first
series of Measure “BB” bonds, the Santa Monica-Malibu Unified School District
has received an increased bond rating from an already high Aa3 to an Aa2.
In
mid-September, Superintendent Dianne Talarico, Board of Education President
Kathy Wisnicki, Deputy Superintendent Tim Walker, and Interim CFO Steve Hodgson
traveled to San Francisco to meet with Moodys Investors Service, one of the
premiere bond rating agencies in the nation.
Following the meeting, and after conducting their own due diligence,
Moodys elected to raise the district’s rating from an Aa3 to an Aa2, placing
the district in the ranks of other impressive districts that hold the coveted
Aa2 rating, such as the Beverly Hill USD, Newport-Mesa USD, and Palo Alto USD.
“It is
very unusual for a school district to improve on its bond rating,” said
Superintendent Talarico. “It is much
more common for districts to have to fight to keep their rating from falling.”
Moodys
cited the following reasons for raising SMMUSD’s bond rating:
·
The district’s dramatically improved
finances
·
The fact that SMMUSD’s COP dept is no
longer being paid out of the district’s general fund
·
The strong tax base of the communities of
Santa Monica and Malibu
·
The uncommonly strong community support
“I take
this as a strong affirmation of the strength of our Malibu and Santa Monica
volunteer community,” stated PTA Council President Rebecca Kennerly. “We know that parent and community
involvement improves not only the educational experience of our students, but
enhances our communities as a whole. It
is extremely gratifying to see a financial rating service put a number to all
of that extraordinary effort.”
This
upgrade will save the district’s taxpayers over the life of this first series
of bonds, and additional savings on future bond sales to follow.
Measure
“BB” is a $268 million construction bond affirmed by the voters in November
2006, with focus on improving the health, safety, and technology of Santa
Monica and Malibu schools. Construction
is anticipated to commence in 2008-2009.
####
SANTA
MONICA-MALIBU UNIFIED SCHOOL DISTRICT
1651 16TH
Street, Santa Monica, CA 90404
ph:
310.450.8338; fax: 310.581.1138
www.smmusd.org