The Lucerne Valley Unified School District is on the verge of paying off a 30-year, multi-million-dollar loan used to finance classroom construction, more than a decade early.
The School Board recently voted unanimously to make a nearly $2.1 million payment on Aug. 1, to clear the nearly $6.9 million loan in the form of Certificates of Participation, which was taken out in 2008.
Director of Government Financial Services Keith Weaver led the district through the journey to pay off the loan nearly 13 years ahead of schedule, according to school officials.
Founded in 2022, Government Financial Services is a joint power authority that assists member agencies with financial planning projects and supports specialized and debt-reduction projects.
“The strategic planning that has been done to do this is tremendous by our board,” Superintendent Peter Livingston said. “To be debt free has been a goal we set and we accomplished. This will support our ongoing support of our students and staff. We had a vision a few years ago and we have successfully accomplished it.”
Soon after hiring Livingston in 2016, the Lucerne Valley Unified School District made the plan to pay off nearly $5.4 million in “nagging” loan debt, the district said.
Taking financial action
Two months later, the lease-purchase, which had financed energy efficiency projects such as school air conditioning and football stadium lighting in 2017, was fully repaid.
In September 2022, Weaver presented to the board a continuation of the debt management plan, which resulted in the first deposit of $500,000 toward repaying the Certificates of Participations in 2023.
Additional similar deposits were made in the years that followed.
The school district’s sources of debt had stood at approximately $1.6 million for the lease-purchase projects and $6.8 million for the Certificates of Participations, the district said.
Seeing the finish line
At the beginning of fiscal year 2023-24, the school district set aside funds into the existing Certificates of Participation payment account for prepayment totaling $1.2 million, and through maturity, the investment will earn more than $130,000.
Weaver said the first date the District can pay off the Certificates of Participation is Aug. 1, 2026, and with that comes several huge benefits, including:
‘Excellent fiscal stewardship’
As of May 21, 2026, the school district had approximately $1.3 million on deposit. Under the plan, the school district will transfer approximately $2.1 million to the trustee bank and fully pay off the COP on August 1.
“It’s a tremendous accomplishment,” Weaver said. “It’s really, really excellent fiscal stewardship by the board. Great work.”
Assistant Superintendent of Business Olga Fisher said the district budget reserve of nearly 8% is “well above the state-mandated minimum of 3%,” which means the district is in ideal shape to use a portion of its reserves for the COP payment.
“I definitely appreciate you guys working with us and guiding us along the way and answering my questions,” Fisher said about working with Weaver.
‘Cautious fiscal approach’
Contrary to the Lucerne Valley Unified School District’s cautious fiscal approach, some districts have accumulated seemingly insurmountable debt, the district stated.
Comparing large versus small school district debt is like “comparing apples and oranges,” according to the district.
District officials cited large debt burdens by the Los Angeles, Oakland and Long Beach unified school districts, which include bonds issued for school construction and renovation projects along with pension obligations and retiree health benefits.
“Despite the billions spent, large districts often don’t have much to shout about in other areas,” the LVUSD said. “While the Lucerne Valley USD has a high school graduation rate over 90%, the Long Beach USD has a graduation rate of approximately 85%, the Los Angeles USD has a rate of 80%, and the Oakland USD has a graduation rate of only 76%.”
“Our district is truly in a strong place fiscally to serve our community and continues to invest in projects that make it stronger,” Livingston said. “Kudos to our board for setting the vision and allowing us to carry it out.”
Daily Press reporter Rene Ray De La Cruz may be reached at RDeLaCruz@VVDailyPress.com. Follow him on X @DP_ReneDeLaCruz.
This article originally appeared on Victorville Daily Press: Lucerne Valley school district on verge of paying off massive loan
Reporting by Rene Ray De La Cruz, Victorville Daily Press / Victorville Daily Press
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By Rene Ray De La Cruz, Victorville Daily Press | USA TODAY Network
