The district's board of trustees received an update at its March 23 meeting about Measure L from Tim Carty with the UBS/Paine Webber underwriting firm.

In March of 2002, Saratoga voters passed the $19.9 million bond—Measure L. The first bond sale took place last year for $13 million of the $19.9. Bond sales can only be refinanced one time, Carty said, unlike a house mortgage. So he's carefully looking into the possibility of refinancing the first sale for substantial savings to the community of investors who purchased the bonds.

Carty said he's hoping to sell a second portion of the remaining bond money, given the district's cash-flow needs and that the bonds can comfortably be sold at the district's tax target, based on assessed valuation and growth.

The money from the sale will be used to complete the Redwood Middle School renovation and modernization project. In cooperation with the district's chief business official, Ellen Tipton, and Superintendent Lane Weiss, Carty is making plans to sell roughly $5.4 of the remaining $6.9 million by mid-April. Interest rates have dropped, Carty said, and the district wants to maintain its high credit ratings—at AA minus—given by Standard & Poor's and Moody's investor services.

"Our goal is to keep our ratings intact even though things are not good in Sacramento," Carty said.

He added that the Saratoga district's name and high credit ratings are well received in the investment community. The bonds are actually issued by the county on behalf of the district, Carty said, and are sold when the district needs the money. The remaining $1.5 to $2 million will be sold when necessary.

"We expect to have approximately $2 million-plus left over to use on future classroom additions at either Foothill or Argonaut [elementary schools]," Tipton said. "That decision will be made in the next fiscal year."

Board member John Waite questioned the high additional costs associated with the first sale, including payments to the bond insurance company, the underwriting firm, the rating agencies of S&P and Moody's as well as the bond council that are all involved in bond sale transaction. Carty said these costs are typical and are paid by investors rather than the school district.

"You get all of the $5.4 million," Carty clarified.

Later, Waite asked board members and Tipton to consider revising the district's budget to reflect the lowest spending or "minimum run rate" it takes to operate the district, without additional funding from organizations such as the Saratoga Education Foundation. SEF is a nonprofit organization of community members and parents concerned about state funding cutbacks in Saratoga public schools that generates revenue to assist the district.

Waite's ideal vision of the district includes not having to ask parents for classroom materials; managing without SEF funding; and offering small class sizes, appropriately staffed classes and adequate janitorial and landscaping services, to name a few. Referencing a budget that reflects the district's minimum spending levels, Waite said, would help keep the trustees focused on these priorities.

Weiss and Joyce Salisbury, superintendent of Lakeside Joint School District in the Los Gatos mountains, will also be looking into the possibility of signing an agreement to share educational services.

In February, Los Gatos Union School District board members unanimously voted to approve an agreement to provide educational services for seventh- and eighth-grade students from Lakeside, and now SUSD and Lakeside are considering a similar agreement.