Bond Refunding Results in Tax Payer Savings
On May 5, 2026, Fremont Unified School District (“District”) successfully closed its general obligation refunding bonds (“Bonds”) and locked in nearly $3.2 million in taxpayer savings.
Prior to the sale, the District updated its credit profile with Moody’s Investor Service. The Bonds were assigned a very strong credit rating of ‘Aa2,’ two levels below the highest possible rating of ‘Aaa.’ In assigning this rating, Moody’s noted the following credit strengths of the District:
- “District's healthy, growing local economy within the San Francisco Bay Area”
- “Very strong resident income”
- “General fund reserves are solid”
- “Expectation that the district will continue to make necessary budget reductions… in line with enrollment declines to maintain an adequate financial position”
The District’s strong credit rating allowed the Bonds to attract a broad base of participating investors. While the District had $44.8 million in Bonds to sell, it received $131.5 million in total investor orders (2.9x demand).
The investor base for the Bonds included separately managed accounts, institutional investors, money managers, and bond funds. The Bonds garnered interest from 6 unique investors which included top tier investors such as: Vanguard, American Century, Payden & Rygel, and Brown Brothers.
The Bonds achieved an all-inclusive interest cost of 3.14%, and replaced prior District bonds that carried an interest cost of 3.95%. This 0.81% reduction in borrowing cost (without extending the original repayment term in August 2038) results in taxpayer savings of $3,199,868, exceeding the original $1.4 million estimate provided to the Board in October 2025.
Since 2012, the District has now saved taxpayers over $55.9 million:
- 2012 Refunding Bonds: $18,418,513
- 2012 Refunding Bonds, Series B: $11,176,305
- 2021 Refunding Bonds: $8,581,702
- 2021 Refunding Bonds, Series B: $13,711,253
- 2025 Refunding Bonds: $819,105
- 2026 Refunding Bonds: $3,199,868
