Thursday, March 26, 2026

PUSD Eyes Bond Refinancing That Could Save Taxpayers Up to $13.4 Million

Financial advisor presents two options for replacing higher-interest 2016 bonds at Thursday board meeting

The Pasadena Unified School District could save taxpayers between $11.6 million and $13.4 million by refinancing two bond series issued a decade ago, the district’s financial advisor will tell the Board of Education at its meeting Thursday.

Dale Scott & Company, the San Francisco-based municipal advisory firm that has served as PUSD’s financial consultant since 2019, is scheduled to present a debt management strategy outlining two refinancing alternatives for $150.26 million in outstanding principal on bonds first issued in May 2016.

The process — similar to a homeowner refinancing a mortgage at a lower rate — would replace older debt carrying an average interest rate of 3.89% with new bonds at estimated rates of 2.57% to 2.61%, according to the presentation.

If realized, the savings could reduce property tax levies for homeowners and businesses within the district, which spans Pasadena, Altadena, Sierra Madre, and unincorporated areas of Los Angeles County. The bond debt is separate from the district’s general fund budget, which faces a projected $29 million deficit and is undergoing significant cuts.

The two bond series targeted for refinancing — the 2008 Election, Series 2016 bonds with $92.3 million outstanding and the 2016 Refunding, Series B bonds with $65.55 million outstanding — become eligible for early repayment on August 1, 2026, according to the presentation. That call date creates a narrow window to lock in current market rates.

Under Alternative A, described as “Refunding with Level Savings,” the district would realize an estimated $11,626,908 in net savings spread evenly across the remaining life of the bonds, according to DS&C. Under Alternative B, “Refunding with Backloaded Savings,” the estimated net savings rise to $13,407,914, with the bulk of the savings concentrated later in the repayment schedule, according to the presentation.

Both estimates are based on market interest rates as of March 13, 2026, and are subject to market volatility, the presentation states. The presentation does not indicate which alternative district staff will recommend.

If the board authorizes the refunding at its April 23 meeting, DS&C’s proposed timeline calls for requesting a credit rating in early May, meeting with the rating agency in late May, locking interest rates in mid-June, and closing the transaction by late June, according to the presentation.

PUSD currently carries $606.24 million in outstanding general obligation bond debt across seven series, backed by four voter-approved measures dating to 1997. The most recent, Measure R, authorized $900 million for school renovations and was approved in November 2024 with 65.31% of the vote. Of that amount, $850 million remains unissued. The district also has $126.3 million in unissued bonds from the 2020 Measure O authorization.

The district’s total assessed valuation — the tax base used to calculate bond levy rates — stands at $56.9 billion for fiscal year 2026, a 0.3% increase from the prior year, according to the presentation, which cites California Municipal Statistics. DS&C’s tax rate projections assume 3.75% annual growth in assessed valuation going forward.

The board meeting begins at 4:30 p.m. Thursday in the Elbie J. Hickambottom Board Room, Room 236, at the PUSD Education Center, 351 S. Hudson Ave., Pasadena. Meetings are broadcast on KLRN-TV, Charter Cable Channel 95, AT&T U-Verse Channel 99, and are streamed live on the internet. Written public comments may be emailed to publiccomment@pusd.us.

In a sedparate but related item, the board is also expected to consider the appointment of Arik Avanesyans as the district’s new Chief Business Officer, a position that oversees the bond program, budget, and business operations. Avanesyans would join PUSD from the Newhall School District effective July 1, pending board approval.