Last month, voters in the Denair Unified School District overwhelmingly approved a plan to sell $34.3 million in bonds to pay for major facility upgrades. Monday, the district’s Board of Trustees took action to make some of those bonds immediately available to investors.
In the final count of the Nov. 5 vote prepared by the Stanislaus County Elections Office, Measure Z received 2,712, or 64.2%, “yes” votes and 1,511, or 35.8%, “no” votes. It took 55% for the measure to pass.
At a special board meeting Monday, Denair trustees unanimously agreed to accelerate the sale of the first series of bonds, valued at $12 million. There are two strategic reasons behind the decision, according to Denair Superintendent Terry Metzger.
The first has to do with how many bonds – collectively worth about $40 billion – were approved by California voters last month.
“There will be a lot of competition in February and March when most of these bonds go to market,” Metzger explained. “There is currently a very small supply of bonds available for investors and getting to the market now will likely provide favorable results for the district.”
The district’s bond advisors expect that Denair will be one of the few districts statewide trying to sell bonds between now and the upcoming holiday break, making it more likely that Denair can raise the money it needs at a lower interest rate, which ultimately means less cost to taxpayers.
The second key reason to sell some of the bonds now is that it makes the money available immediately to pay for urgent projects. Metzger cited the leaky gym roof at Denair High School and the relocation of the Denair Elementary Charter Academy kitchen to the gym as two examples.
The remainder of the Measure Z money – valued at about $22.3 million – will be raised in bond sales over the next couple of years, Metzger said. Those funds will pay for a range of much-needed improvements across the district, many of them at DECA, the district’s oldest campus. The DECA projects include:
- Construction of two new classroom wings
- Creation of a drop off/pick up and bus zone (like at DMS) on Madera Avenue for efficiency and safety
- Conversion of the old cafeteria into an administration building
- Security enhancements, including making DECA a single-point entry campus
Measure Z money also would be used to make Denair Charter Academy a single-point entry facility, Metzger said. At Denair High School, the 400 wing of portables would be replaced a permanent classroom building and other security upgrades will be completed. Denair Middle School, the district’s newest campus, also will receive some classroom upgrades and repairs.
As part of its passage, Measure Z includes a bond oversight committee. Metzger encouraged residents interested in serving on the committee to contact the district office.
