School Bond Information

Debt service requirements to maturity as of June 20, 2009

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When bond propositions are approved by voters, for arbitrage purposes the District sells bonds based on a projected 2-year cash flow need. Currently, $10.98 million of authorized bonds from the April 2007 election and $22.89 million of authorized bonds from the April 2008 election remain unsold. When bonds were sold in December 2008, it was anticipated that based on the projected construction schedules the remaining $33.87 million of authorized bonds would be be needed during the next 24 months.

The outstanding total debt service below is a combination of many bond sales that have occurred in the past. A majority of the bonds were sold for a period of 20 years. The number of years remaining on prior bond sales range from 1 to 20 years, represented by the declining amount due in the latter years of the schedule below.

As each year of annual debt payments are made, the total outstanding principal amount remaining is reduced. For example, after the $46.63 million of principal is paid in FY 2008-09 and no new bonds are sold, the remaining principal owing will be reduced from $819.215 million to $772,585 million.

Annual amounts for each fiscal year below will not change unless one of the following occurs:

• If any of the existing outstanding bonds are refinanced at lower interest rates, the total debt (principal & interest) will be reduced.
• When new bonds are sold (generally for 20 years), the amount of principal and interest in each of the next 20 years will increase.

Bond payments are similar to fixed rate home mortgage payments. Although with each payment a portion of the principal is paid, the amount of the total payment remains approximately the same. Over time within each payment, the principal amount paid increases and the interest amount paid decreases, but the total payment amount remains approximately the same.