School District Wins the Lottery
On January 14 the District learned it “won the lottery”: it has been awarded the right to issue $10 million in low-cost school construction bonds known as QSCBs. As a result, Piedmont taxpayers will pay almost $40 million less in interest costs than would have been required if the District had issued regular bonds to complete the final phase of its $56 million construction and remodeling project. (The federal government subsidizes QSCBs, paying a portion of the required interest, resulting in savings to Piedmont taxpayers.) See PowerPoint presentation.
The District had applied for these special QSCBs last year, but did not “win”. This, together with delays in State matching funds, led to uncertainty about funding sources to finish construction, and led to the School District obtaining a $10 million bridge loan from the County of Alameda in 2010.
The School District will be receiving almost $5 million in state matching funds in just a few weeks. Receipt of an additional $6 million, anticipated this Fall, will allow the District to proceed with the final phase of its project, Beach School.
More details: School Board News – January 25.
