Earlier this summer, AUSD sold  $162 million in bonds to help pay for critical school construction projects approved by voters under the 2022 Measure B. Part of the sale will also refinance older bonds, which will save local taxpayers money.

Funds from Measure B are being used on a range of significant projects across AUSD, including:

• The new Encinal Jet’s athletic field
• A new gymnasium for Encinal
• The new Wood Middle School campus
• A new Otis campus
• Improvements to Alameda High School’s Kofman Auditorium
• A new swim center for Alameda High School

More than 50 investors participated in the sale and wanted more bonds than AUSD had available — about $742 million in orders for only $162.6 million in bonds. This is a sign that investors consider AUSD to be financially healthy and its bonds to be a safe investment. Because of that strong demand, AUSD was able to secure an interest rate of only 4.14% for the borrowed funds. This will help keep the amount taxpayers need to pay over the long term low.

The money will be used for both new Measure B construction projects ($95 million) and re-financing older bonds (about $67 million). This re-financing locks in more than $12.1 million in taxpayer savings over the life of those bonds, or $933,000 per year.

The new bonds received strong credit ratings from independent agencies. Standard & Poor, for instance, rated the bonds as “AA”; Moody’s gave a rating of Aa2. Both ratings indicate the agencies believe AUSD has a strong capacity to meet its financial commitments. Moody’s also upgraded AUSD’s financial outlook from “stable” to “positive.” The agencies specifically highlighted Alameda’s strong community support for schools, the city’s reputation as a desirable place to live, and AUSD’s solid financial management.

Barclays Capital Inc. led the bond sale. Samuel A. Ramirez & Co., Inc. served as co senior manager, and BofA Securities, Inc. and Siebert Williams Shank & Co. served as co managers.

For more information about the District’s current and upcoming facility projects, visit AUSD's Measure B web page.