July 12, 2024

Lindbergh Schools sold $55 million of Prop R 2024 General Obligation Bonds during a competitive sale on Tuesday, July 9.

The competitive sale included 5 bidders in all, and resulted in a 4.18% True-Interest-Cost. Hilltop Securities was the low bidder. As a result of the competitive bidding and low interest rates, the District was able to sell the bonds at a 109.6% premium, which will provide $60,426,346 for use toward Prop R 2024 capital improvements.

Chief Financial Officer Joel Scheible said there was about .11 percent difference between the lowest and highest bids, but that small percentage difference equals about $1 million in savings to taxpayers over the 19-year term of the bonds.The bonds have a  call date of March 1, 2032. This date marks the beginning of the call period, during which the district has the right to redeem and refinance the bonds from bondholders.  

The Board of Education approved a resolution on June 20 authorizing and directing the issuance, sale and delivery of the bonds. Following the sale on July 9, funds are scheduled to be transferred to district accounts on July 23.

This is the first of three scheduled bond sales for the $150 million bond issue, which was approved by voters in April. The next $75 million is scheduled to be sold in late 2025, and the final $20 million will be issued around December 2026.

In April, Lindbergh voters approved Prop R, a $150 million no-tax-rate-increase bond issue that will support building equity across elementary schools, much needed middle school renovations, safety upgrades districtwide and a PK-12 agricultural STEM learning center on the Concord Farmers Club site. Prop R required 57.15 percent for approval.