Manteca Unified property taxpayers are paying 44 percent less than the $135.82 per $100,000 of assessed value they were told they’d likely pay between three school bond measures.
The district recently issued and sold the last of the $260 million in bonds voters approved in 2020.
The property tax rate for the three bond repayments assessed against property owners in Manteca, Lathrop, southwest Stockton, and rural areas is now set at $76.40 per $100,000 of assessed valuation.
Based on ballot information at the time of each election, voters were promised the combined three bonds would cost them $135.82 per $100,000 of assessed value.
That reflects a savings of $59.42 per $100,000 of assessed value for a 44 percent savings.
Assistant Superintendent Victoria Brunn credits the reduced expense to taxpayers to the district’s stellar credit rating of AA2 for Moody’s and AA- from S&P that landed them lower bond rates plus increased assessments from new growth.
Going forward, when the district has the opportunity to refinance the bond series that range from 2.89 percent to 5.11 percent to save money, they will do so to further reduce the cost per $100,000 of assessed valuation.
In doing so, the new bonds can’t be 30 year issuances as new bonds by state law must retain the same original payoff date.
The last bonds sold were at 5.11 percent.
The district would have paid in the mid-6 percent range or higher had it not been for the credit rating that took into account balanced budgets over multiple years, strong reserves, solid financial practices, and a growing tax base.
An example of the fiscal impact on homeowners are as follows:
*On a home with a typical $200,000 assessed value (not market value) where ownership typically has not changed since 1999 or were purchased during the Great Recession between 2008 and 2012 when many resale homes sold for $200,000 or less, that means a property tax bill for the three school bonds will be $152 per $100,000 of assessed valuation as opposed to the projected $272.
*On a new home in the past three years where the average price closing escrow was $700,000, the combined tax assessment revenue will be $535 per $100,000 of assessed valuation instead of the projected $951.
The bonds were:
*$66 million in 2004 through Measure M to primarily build Lathrop High.
*$159 million in 2014 through Measure G for modernization projects.
*$260 million in 2020 through Measure A for modernization projects.
They represent more than just a $485 million local investment in school facilities.
The state — between Measure A and G — will ultimately “reimburse” or “match”, depending upon the perspective, $118.8 million for modernization projects.
The state will not pay the reimbursement or match to local districts from revenue derived from a statewide school bond until local districts do the work. Basically, the only way the work can be funded is through local approved general obligation bonds.
The bottom line when current and planned work is completed with the last school bond issues and the state reimbursement, $537.8 million worth of modernization projects will have been completed.
That is in addition to $80 million in funds for three new schools being financed with recently issue community facilities district bonds being paid back by new growth within those districts.
The state will match that $80 million with $60 million expected to cover the cost of two new elementary schools in southwest Manteca and one in Lathrop.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
