News & Insights

Bond valuation

Making your bond program work

Why timing and planning matter

When your community passes a school bond, it’s a big win. But just because the voters said “yes” doesn’t mean all the money shows up on day one. Bond dollars are usually issued in phases (called “series”) over time. That’s why cash flow (when money is available) matters just as much as how much money you were approved to spend.

To keep your construction projects moving forward, you need to match bond valuation (i.e., how much you can borrow and when) with your cash needs. If that doesn’t line up, projects can be delayed—or worse, not delivered as promised.

Why property values matter

In California, bond money comes from property taxes. But there’s a cap on how much tax you can collect to pay back those bonds, e.g., $60 per $100,000 of assessed value. That means your ability to issue more bonds depends on how much your community’s property values grow over time.

If values grow quickly, great! You can issue more bonds sooner. But if growth is slow, you may have to wait. That can throw off your construction schedule unless you’ve planned carefully.

Some districts may also assume that property values will grow fast, or that they would never decline. But if they do, or values grow too slowly, it can lead to problems: delayed projects, broken promises, or even tax increases. That’s why it’s safer to build your plan using conservative projections based on data, not hope.

Planning your projects in phases

Since bond money comes in stages, your building projects need to do the same. You might start with your most urgent needs—like safety repairs or ADA upgrades—and schedule bigger projects, like a new gym or science wing, later when more funding is available.

This means you’ll want your facilities master plan and your bond financing plan to work hand-in-hand. When the timing is off, schools can end up with bills due before the money arrives—and that often leads to loans or costly short-term fixes.

Also, keep in mind California’s rule that limits how much total bond debt a district can carry (usually 2.5% of total property value). If you hit that cap, you’ll need to wait until your tax base grows or apply for a waiver.

A success story: San José–Evergreen Community College District

When voters in the San José–Evergreen Community College District approved Measure X in 2016, they authorized $748 million for new buildings and upgrades. But the district didn’t spend it all at once. Instead, they rolled out projects in phases.

Brailsford & Dunlavey worked closely with the district to build a schedule that matched when funds would be available. We helped them prioritize projects, avoid funding gaps and keep promises to taxpayers. Today, the district is delivering real results—from renovated labs to new campus facilities—without going over the promised tax rate.

A lesson learned: Mountain View Whisman School District

In Mountain View, the district allocated a portion of its bond funds to  build housing for teachers—a critical need in an area that lacks affordable housing for employees. But the project costs went from $56 million to $90 million, which caused other planned educational facility upgrades, such as science labs and classroom renovations, to be placed on hold.

The project is now under state audit, and is a reminder that even well-intended plans can go sideways without careful financial management and transparency.  (Source: San Francisco Chronicle, March 2024)

Six tips for smarter bond management

1. Create a bond plan early: Start with a clear roadmap of what gets built when. This helps set realistic expectations.
2. Be conservative with forecasts: Don’t assume property values will rise quickly or construction costs will remain stable. Plan for slower growth and a conservative construction budget so you’re not caught off guard.
3. Match projects to funding: Time each group of projects (Series A, B, C, etc.) to when funding will be available.
4. Track your tax base: Monitor annual property value reports and adjust your timing if needed.
5. Communicate clearly: Be open with your board and your community when plans shift. Trust is built through transparency.
6. Bring in experts: Program managers like B&D can help with modeling, timelines, and forecasting—so you avoid surprises.

Let’s build the future—together

A bond measure is more than a vote—it’s a promise. And keeping that promise means being a steward of the funds you have been given having a smart plan for how and when to use the funds.

At B&D, we’ve helped school districts across California deliver successful bond programs. From San José to the Central Valley and down to Southern California, we know what works—and how to avoid costly missteps.

If your district is launching a new bond or needs help managing an existing one, let’s talk. We’d love to help you turn community support into facilities that will result in real progress and positive student outcomes for your students.

Mark Newton is a senior vice president at Brailsford & Dunlavey, with almost 30 years of experience in managing PK-14 development projects and bond programs in California. He can be reached at mnewton@bdconnect.com. Brailsford & Dunlavey is a leading development advisory and program management firm with expertise in the planning and delivery of school projects and district-wide programs across the United States. For more information, visit bdconnect.com.