No one is pleased with this financing outcome, but giving the circumstances in my view it was necessary. As a result, the 22,000 PUSD students who attend the 24 oldest schools in the SFID now have equitable and appropriate learning facilities that have been improved to provide another 30-plus years of service to our students and community.

"Just to add a little “kicker,” note that the Nuveen argument is made using an illustration involving “a home that is worth $300,000 in 2017,” even though the median value of a home in the district today is nearly $500,000. So the actual numbers are (of course) far worse than advertised. But even then, the “monthly contributions to the annual levy” according to that analysis go from $5.04 to $74.49 over the life of the bond, and that’s a fifteen-fold increase. If you think that’s a reasonable increase, you must work for the underwriter or want to buy more of these bonds."

"When studying the debt structure of a bond, one should always take into consideration that particular issuer’s overall debt structure and other key credit characteristics. In the case of Poway USD, the media attention paid to this bond misses the fundamental nature of the bond by ignoring the premium generated at sale, doesn’t take into consideration the district’s overall debt structure, gives little weight to the public policy dilemma of intergenerational fairness and fails to properly an¬alyze the affordability of the improvement district’s debt. We believe a more complete analysis of the situation – as we’ve outlined here – better “appreciates” the nature of this capital appreciation bond."