USD Eyes BABs, QSCBs

Maricopa County Unified School District No. 48 may issue $118 million of requested debt as taxable Build America Bonds or zero-interest qualified school construction bonds if voters approve the issue in November.

David Peterson, assistant superintendent for facilities and business services, said at a voters forum last week that the district’s tax rate could be lowered if the low- or no-interest rate bonds are issued instead of conventional general obligation debt.

If the bonds are not approved, Patterson said, the tax rate could decline even more. In any event, approval of the bonds would not require an increase in the district’s tax rate, he added.

A recent poll found almost 70% of Scottsdale residents in favor of the school bond proposal.

The district, which serves Scottsdale, would use the proceeds of the five-year bonds to build four middle schools and make mechanical and electrical upgrades and renovations to nine elementary and middle school sites.

Superintendent Gary Catalani said the district wants to reduce the number of students per classroom.

Voters approved a property tax override in 2009 that was designed to solve the overcrowding problem.

However, Catalani said the district had to use the money to fund its all-day kindergarten program when the state did not do so.

The renovations will save an estimated $610,000 in operating costs a year, the district said.

Maricopa County USD 48’s general obligation debt is rated Aa1 by Moody’s Investors Service and AA by Standard & Poor’s.

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