Value Delivered:

Local voters approved $91.1 million in General Obligation bonds for the Menlo Park City School District in June 2006. KNN Public Finance structured the competitive sale of the first bond series of $35 million.
   
Strategic Implementation:

Timed to correspond with the school district's construction schedule, the Series 2007 bonds were structured to remain below the estimated maximum tax rate of $28 per $100,000 AV and to leave room for the issuance of three additional bond series over the next 5-6 years. KNN recommended a competitive sale to minimize interest cost and underwriter's compensation. The firm also assisted the school district in preparing for rating meetings with Standard & Poor's (S&P) and Moody's Investor Service.
   
Results:

The Menlo Park City School District achieved multiple savings with the Series 2007 GO bonds sale. The bonds were issued during a 20-year low for interest rates. The district's ratings were upgraded to "AA+" by S&P, S&P's second highest California school district rating, and to "Aa2" by Moody's, Moody's highest California school district rating. The strong agency ratings attracted robust retail and institutional investor interest. A total of 10 underwriters placed bids for the 2007 series. The Menlo Park City School District achieved $734,411 in future value interest cost savings between the best and worst bids. The competitive sale process, which yielded a $7.95 per $1,000 par value underwriting cost, saved the District's taxpayers approximately $160,000 in underwriter cost over a nearly identical negotiated sale executed the next day.