To see the complete presentation please visit:   

EXCERPT:    More than two years after a citizen lawsuit was filed asking for contractors to return millions of dollars paid by the Sweetwater Union High School District, the district itself has joined the effort, seeking $26 million.

Sweetwater's motion for summary judgment:   

EXCERPT:   School districts usually pay to fix up schools and build new ones by floating bonds and repaying them over a long period, often as much as 25 years. Now the San Juan District is considering repaying its debts much faster to save on interest costs. ...  

     There is general agreement that the district will transition to a "pay-as-you-go" model in the future that uses only two- and three-year bonds, he said.

      The reduced costs associated with selling three-year bonds will allow 99 percent of the money raised to be used for construction, compared with 66 percent of the money generated by 25-year bonds, said Kent Stephens, the district's chief financial officer, in a report to the board.

     Michael Day, president of the California League of Bond Oversight Committees, a watchdog group, says San Juan Unified is a trailblazer. Using a "pay-as-you-go" model is "rare right now," he said. "If this passes, there will be a lot of them (school officials) talking about it."

     The hybrid approach would cost the district 11 cents in interest for each dollar borrowed. Traditional 25-year financing generally costs the district 34 cents on the dollar, while issuing two- and three-year bonds costs the district a penny for each dollar borrowed.   "It's a phenomenally good deal," Day said. "The reduction in cost is substantial." 

     San Juan Unified already has dipped its toe into the short-term bond pool. Last year, the district sold $20 million in two-year bonds to finance facilities projects authorized by Measure N, approved by voters for $350 million in 2012. The debt, including $300,000 in interest, will be paid by August 2015.

     School bonds have been under scrutiny since Poway Unified School District turned to expensive capital appreciation bonds to raise $105 million, ultimately costing San Diego County taxpayers $1 billion over 40 years. Locally, Folsom Cordova used capital appreciation bonds to finance $514,000 at the cost of $9.1 million....

      Masuoka said taxpayers would be more likely to support the bond if they knew almost all the proceeds would go to school facilities and upgrades. The school district has passed three bond measures, Masuoka said. "If we had been doing this from Day One, we would have no debt and significantly more infrastructure built." ...  

To read the complete article, please visit: