Residents won't have to delve as deeply into their pockets as they might have expected come tax time. The Los Altos School District earned the highest bond rating in the state for an elementary district - which could represent savings of hundreds of thousands of dollars to taxpayers over the life of the bond.
In a report to the school district, financial advisers from Kelling, Northcross & Nobriga, said the AA rating assigned by Standard & Poor's put the district in an advantageous position for the sale of $40 million bonds last Jan. 26.
Only six other school districts in the state - Lafayette, Mill Valley, Montecito Union, Orinda Union and Sausalito - share the AA rating.
"The high bond rating is welcome news," said Randy Kenyon, superintendent of business services for the Los Altos School District. "Not only is it a great validation of the careful way the district and the board of trustees have managed funds, it has the potential to save a lot of money over the years for the taxpayer."
Kenyon said the district's excellent financial management, strong local support and tax base, low student-to-teacher ratio, budget reserves and financial flexibility provided by the parcel tax and the Los Altos Educational Foundation, were all contributing factors for the district's high rating.
The bonds represent the first issuance from the $94.7 million bond measure that voters approved with a 75 percent majority last November.
Bond proceeds will finance the renovation and construction of all eight district schools. The district anticipates issuing the remaining $54.7 million of authorized bonds in equal portions of $27.35 million in 2001 and 2003.
"With this rating, we are steps closer to our goal of having all new construction and modernization completed in six years," said Superintendent Marge Gratiot.
The district's long range planning committee - which includes teachers, parents and community members - has been working to develop the implementation of the bond program and will make a recommendation to the board of trustees March 15.
For more information, call the district office at 941-4010.