El Monte City School District successfully sold the first $35 million of Measure ME bonds that were approved by voters back in 2024. During the sale, EMCSD was also able to refinance over $32 million of older bonds from Measures J (2004) and M (2014) to save money. Investor demand was extremely strong, with investors submitting over $418 million in orders for only $67 million of available supply, more than six times the amount offered. Because of this high demand, the District was able to secure lower-than-expected interest rates, reducing borrowing costs for taxpayers.
The Measure ME bonds were structured to stay within the voter-approved tax rate limit of $30 per $100,000 of assessed value. The final interest cost was 4.26%, which improved from earlier estimates and reduced overall repayment costs. The refinancing of older bonds will generate approximately $5 million in total taxpayer savings over time (about $4 million in today’s dollars).
“We are very pleased to report that sale and refinance,” shared Assistant Superintendent of Business Services Jose Herrera. “This financing reflects strong market confidence in our district and results in meaningful savings for our community. As the cost of living continues to rise for families and local households, saving $5 million for local voters and taxpayers is something we can all be proud of.”
Refunding bonds, much like refinancing a home mortgage, are used to pay off existing debt with new debt issued at lower interest rates. These lower rates reduce debt service payments, resulting in savings for taxpayers. Importantly, EMCSD’s refinancing was completed without extending the original bonds’ term.
Additionally, EMCSD received an A+ market rating from S&P 500 Global Ratings, which reflects a stable financial outlook. “The A-plus rating affirms the market’s confidence in our ability to manage our finances and long-term liability,” shared Mr. Herrera. Moving forward, EMCSD is looking to leverage $105 million worth of Measure ME funds to continue facility modernizations across its schools.
EMCSD is not only relying on taxpayer bonds to aid in modernization goals. Three years ago, EMCSD was awarded a Cal Fire Greening Schoolyards Grant worth $6 million that was split between three schools: Cortada, Gidley, and Shirpser. The grant funds are used to enhance outdoor learning spaces and create sustainable environments across these campuses. Cortada was the first school to complete their project, and they hosted a grand opening ceremony in the Spring. “When [the board] first started discussing our master facilities plan and strategic plan, we wanted to make sure our campuses were not only places of learning and academic excellence,” shared EMCSD Board President Lisette Mendez Garcia during the ceremony. “We wanted to make sure that our schools are about community and well-being, and reimagine outdoor spaces where [our kids] can find a space to be relaxed with their friends or take a walk around the track to feel energized for the day.”
Modernizations will continue across EMCSD over the next few years. EMCSD has been able to leverage facility-focused funding to add new furniture, address roofing needs, improve playground equipment, and modernize bathrooms and kitchens. The district is also looking to improve cafeterias and performance spaces as the district’s music and arts programs continue to grow in popularity.
