School Bond Information

Debt Service Requirements to Maturity as of August 31, 2007

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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, $20 M of authorized bonds from the April 2007 election remain unsold. When bonds were sold in August 2007, it was anticipated that based on the projected construction schedules only $65 M of the $85 M of bonds authorized by the voters in April 2007 would 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 $44.080 M of principal is paid in FY 2007-2008 and no new bonds are sold, the remaining principal owing will be reduced from $833.455 M to $789.375 M. Assuming the voters approve the $43.710 M of school bonds in the April 2008 election and these bonds are sold next year, the amount of outstanding principal will increase to $833.085 M.

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.