Riverside County supervisors today are expected to approve the sale of $40 million in bonds to pay for improvements to facilities and fund technology and other programs within the Temecula Valley Unified School District.
The bond issuance follows Temecula-area voters’ approval in November of Measure Y, which authorizes the district to spend up to $165 million to cover expenses for a range of projects.
On Jan. 22, the Temecula Valley Unified Board of Education voted to issue $40 million in Measure Y general obligation bonds.
The county has to sign off on the proposal because the treasurer-tax collector is responsible for arranging the issuance.
According to the Office of the Treasurer-Tax Collector, the IOUs will be sold in $5,000 denominations. Interest rates on the notes will be set at auction, but are not to exceed 6 percent, county documents state.
Interest payments will be made semiannually. Los Angeles-based investment banking firm Stone & Youngberg has been hired to handle the sale, collecting a 1.1 percent fee for serving as underwriter.
According to a TVUSD Measure Y fact sheet, bond proceeds will be used to purchase new computer systems, upgrade classrooms, increase local schools’ offerings of programs focused on science, math and high technology, as well as “repair and replace roofs, floors, walkways, lighting, electrical and plumbing systems.”
The bonds will be backed by property taxes.