Arcadia Unified Secures $5.7M in Taxpayer Savings

Ina year filled with unfavorable financial figures for many, the Arcadia UnifiedSchool District has secured $5.7 million in silver-lining savings for Arcadiataxpayers. Capitalizing on low interest rates and the district’s exceptionalcredit rating, Arcadia Unified took action to refinance its current bonds andonce again created savings for taxpayers.

“Withinterest rates falling to historic lows, we were grateful to use thisopportunity to create savings for our taxpayers while also being able to getmore than we planned for out of these bond dollars,” said Arcadia UnifiedSuperintendent of Business Services Dierk Esseln, who heads the district’sbusiness and fiscal services teams. 

ArcadiaUnified’s refinanced bonds are those from Measure I, which was originallypassed by Arcadia voters in November 2006. Measure I, or the ArcadiaNeighborhood Schools, Health, Safety and Repair Measure, authorized $218million of general obligation bonds to be spent solely for the improvement andmodernization of Arcadia Unified’s schools, classrooms, and facilities. 

Todate, every project on the district’s original capital improvement list hasbeen completed, with every Arcadia Unified school receiving upgrades toclassrooms and campuses. Upgrades have included improved technology andrenovations in every classroom in the district; increased safety features, suchas additional security lighting and fencing; landscaping and sidewalk repairs;new phone and master bell systems; the Arcadia Performing Arts Center; improvedutility and power infrastructure; new library and media centers; electronicmarquees at every school; enhanced student support and services facilities; andseveral additional needed restorations and repairs district-wide. 

“Ourtheme for this school year is ‘opportunity,’” shared Arcadia UnifiedSuperintendent Dr. David Vannasdall. “While this year has been rough on us allfor many reasons, we are doing our very best to find all of the opportunitieswe can to help make the most of this time, and this is a prime example ofthat.”

Whilelow interest rates started the refinance conversation, a key component to thedistrict’s ability to take advantage of the low rates is its high creditrating, explained Assistant Superintendent Esseln, who advised that an integralpart of the refinance process involved a review of the district’s credit ratingby two industry-leading credit rating agencies, S&P Global Ratings (S&P)and Moody’s Investors Service (Moody’s).

S&Pand Moody’s affirmed the district’s bond ratings of AA and Aa1, respectively,citing reasons for the exemplary ratings as Arcadia Unified’s prudent fiscalpractices and strong financial position with healthy reserves. Of Californiaschool districts that have issued rated bonds so far this year, only 27%received as high a rating from S&P and only 10% received as high a ratingfrom Moody’s, according to the district’s bond refinance report. 

ArcadiaUnified had the same superior credit rating when it underwent a similar bondrefinance of Measure I bonds in 2017, which resulted in taxpayer savings of over $80 million.

Anotherpositive result of Arcadia Unified’s exceptional bond rating, coupled with acompetitive bidding environment and cost management, was a gain of over $260,000in more funds for district facilities modernization than budgeted. Projects thatwill be worked on with these additional funds include, but are not limited to,upgrades to technology network cabling; district-wide playground, field shadestructures, lighting, and building controls; modernization for the kitchens andlocker rooms of each of the district’s middle schools; a Stagecraft Building tocomplement the Arcadia Performing Arts Center; and updates to Arcadia High’slocker rooms, stadium field rooms, and weight room.

In addition to its sound fiscal practices, Arcadia Unified was recently named in the top 1% best school districts in the nation, according to Niche. Arcadia Unified has also achieved the rare feat of being named to the prestigious AP® District Honor Roll in consecutive years for 2017 and 2018. Likewise, each Arcadia Unified elementary and middle school has been recognized over the years as California Distinguished Schools by the California Department of Education. For more information about the Arcadia Unified School District, visit www.ausd.net. 

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