Property owners in the Castaic Union School District’s boundaries will have a higher tax rate under the fourth issuance of the district’s Measure QS bond authorization that voters approved in 2012.
Originally set at $19 per $100,000 of assessed value, L.A. County staff told the district that it would not recommend the financing structure to pay off the rest of the loan principal unless it increased the amount to be closer to $30 per $100,000 of assessed value, the maximum allowed under Proposition 39.
“For general obligation bonds issued by school districts in L.A. County, approval by the L.A. County Board of Supervisors is required after district approval and prior to bond pricing. During the review of the debt service schedule for the Series 2024 Bonds, county staff indicated they would not recommend the financing structure for BOS approval unless the district restructured future payments to be near the $30 per $100,000 of assessed value legal tax limit, rather than the district’s $19 projected limit,” reads a news release from the district. “Despite the finance team’s explanation that the same assumptions and restrictions that were used in previous bond sales were being implemented in order to maintain the $19 tax rate projection, the county mandated structuring up to the full $30 tax rate when applicable.”
For example, a home with an assessed value of $500,000 would be levied a tax of $150.
Voters approved the $51 million bond measure in 2012 for the district to use funds to “build up-to-date science labs/classrooms/facilities, provide modern computers/technology/equipment, replace inefficient and outdated heating/ventilation systems and update fire alarm/safety systems,” according to the ballot text.
According to Superintendent Bob Brauneisen, the following projects have been completed using Measure QS funds:
- Live Oak Elementary modernization.
- Castaic Middle School locker room upgrades.
- Northlake Hills Elementary new storage and bathroom construction.
- MPR audio/video installations at three school sites.
- Telephone system upgrades.
- Updating HVAC systems at sites.
- Updating fire alarm systems at sites.
- Painting of Castaic Middle School.
Irene Boden, assistant superintendent of business services, wrote in an email that the new rate will ultimately save taxpayers in the long run.
“Castaic has been prudent to draw on the bond when needed for projects that meet the bond covenants,” she wrote, adding that the bond draw from 2021 was refinanced for the 2024 draw, thereby lowering the interest rate.
The total amount of savings is just under $380,000, according to Boden, and the debt service schedule is still expected to be closed in 2050.
“The district will be able to sell the rest of Measure QS earlier than anticipated, which will preserve project funds from rising construction costs and allow more projects to be completed,” the release added.
