Debt Service Fund - General Obligations Bonds RESTRICTED FUND*

Transcription

1 Fiscal Year Debt Service Fund - General Obligations Bonds RESTRICTED FUND* Debt Service Fund - General Obligations Bonds Total in Fund for : $31,152,639 When the District sells bonds to finance a voter approved bond levy, an account is set up to repay the debt associated with the sale. The Debt Service Fund - General Obligation Bonds account receives the money that is allocated from our taxpayers to repay the debt associated with the voter-approved construction bond. On November 3, 1998, the voters of the District approved a $177.1 million general obligation bond measure for the construction and improvements of our schools. In June 1999, the District issued the entire amount of bonds approved. This saved taxpayers approximately $55 million as a result of decreasing the length of the issue from 30 to 20 years. In February 2004, the District advance refunded all the General Obligation Bonds, Series 1993B (approved by voters in March 1992) and the entire callable portion of the District s General Obligation Bonds, Series This resulted in a net savings to local taxpayers of $19.4 million, with a present value savings of $8.4 million. In April 2008, the District did a current refunding of $24,215,000 of the Series callable portion of the outstanding 1998 Refunded Bonds, maturing on June 1 in the years 2009 through This resulted in a net Present Value savings of $1,362,000 to the District s taxpayers. In November 2008, District voters approved a $242.1 million construction bond, and in February 2009, the District issued $178,715,187 of those bonds. Average rate per thousand and total interest cost are projected lower than amounts discussed with voters. The District anticipates selling the remainder of the bonds within the next two years. Currently, the District is repaying the 2004 Refunding Issue, 2008 Refunding Issue and 2009 General Obligation Bond Issue. TOTAL DISTRICT BUDGET - ALL FUNDS (refer to page 7.10) Debt Service Fund: General Obligations Bonds $31,152,639 * Restricted Fund: The Debt Service Fund - GOB is a restricted account under Oregon law. The fund may only be used as specified by law. It cannot be spent on instructional programs or general operations of the school district. 10.1

2 Debt Service Fund-General Obligation Bonds Account Code and Description Prior Years' Actuals Budget Next Year FTE Budget Proposed Approved Adopted FTE ESTIMATED RESOURCES Taxes to be Levied, Outstanding Bond Issues $27,598,724 $28,046,639 $28,046,639 $28,046,639 Less: Uncollectible Taxes ($950,000) ($1,040,000) ($1,040,000) ($1,040,000) 1111 Total Current Year Taxes, Debt Service $23,607,863 $23,423,275 $26,648,724 $27,006,639 $27,006,639 $27,006, Prior Year Taxes $624,085 $962,577 $950,000 $1,040,000 $1,040,000 $1,040, Interest Earned $972,116 $829,475 $500,000 $206,000 $206,000 $206, Miscellaneous $0 $32,122 $0 $0 $0 $ Long Term Debt Financing $0 $ Beginning Balance Unreserved Balance $8,677,994 $7,718,268 $2,400,000 $2,900,000 $2,900,000 $2,900,000 Net Working Capital, July 1 $8,677,994 $7,718,268 $2,400,000 $2,900,000 $2,900,000 $2,900,000 TOTAL ESTIMATED RESOURCES $33,882,059 $32,965,716 $30,498,724 $31,152,639 $31,152,639 $31,152,639 ESTIMATED REQUIREMENTS Debt Service 610 Principal on Bonds Outstanding Issue of April 2008 (Refunding) $3,260,000 $5,805,000 $3,800,000 $430,000 $430,000 $430,000 Issue of June 1999 $6,845,000 $7,585,000 $8,550,000 $0 $0 $0 Issue of March 2004 (Refunding) $7,315,000 $7,940,000 $8,285,000 $18,340,000 $18,340,000 $18,340,000 Total Principal Requirements $17,420,000 $21,330,000 $20,635,000 $18,770,000 $18,770,000 $18,770, Interest on Bonds Outstanding Issue of February 2009 $0 $0 $0 $3,448,601 $3,448,601 $3,448,601 Issue of April 2008 (Refunding) $1,502,566 $951,775 $953,600 $801,600 $801,600 $801,600 Issue of June 1999 $1,044,788 $736,762 $395,436 $0 $0 $0 Issue of March 2004 (Refunding) $6,196,438 $5,909,538 $5,614,688 $5,232,438 $5,232,438 $5,232,438 Total Interest Requirements $8,743,792 $7,598,075 $6,963,724 $9,482,639 $9,482,639 $9,482,

3 Debt Service Fund-General Obligation Bonds TOTAL DEBT SERVICE Account Code and Description Prior Years' Actuals Budget Next Year FTE Budget Proposed Approved Adopted FTE $26,163,792 $28,928,075 $27,598,724 $28,252,639 $28,252,639 $28,252, Business Services 380 Professional Services $0 $31,204 $0 $0 $0 $0 Total Professional Services $0 $31,204 $0 $0 $0 $0 TOTAL SUPPORT SERVICES $0 $31,204 $0 $0 $0 $ Unappropriated Ending Fund Balance 820 Reserve for Future Years* $7,718,267 $4,006,437 $2,900,000 $2,900,000 $2,900,000 $2,900,000 TOTAL FUND BALANCE $7,718,267 $4,006,437 $2,900,000 $2,900,000 $2,900,000 $2,900,000 TOTAL ESTIMATED REQUIREMENTS $33,882,059 $32,965,716 $30,498,724 $31,152,639 $31,152,639 $31,152,639 * Under normal circumstances, the District receives its first tax revenue in late November for the current year's operations. Bond obligations due and payable to November 15 must be met from sources other than current year tax revenues. Consequently, these requirements are incorporated in the levy the previous year One purpose of the Reserve is to identify those obligations and when combined with the estimated requirements for principal and interest, provide an estimate of the total Debt Service requirements for the year. The District is operating well within its legal bonding capacity as specified by ORS as detailed below: True cash value of taxable property within School District 24J/32, Marion/Polk County, Oregon for fiscal year is $26,364,418,048 Bonded debt limit based on 7.95% of true cash value $2,095,971,235 Bonded Debt at end of fiscal year ($302,960,187) Legal Bonding Capacity Remaining $1,793,011,048 Percent of Limit Issued 14.45% Debt limitations apply to general obligation bonds only. The limitation does not apply to pension obligations or other debt secured by the full faith and credit of the District. Debt Management: The District has never defaulted on a debt obligation. The District has not used bond proceeds for operational purposes. 10.3

4 Debt Service Fund SCHEDULE OF OUTSTANDING BONDS AND ANNUAL PRINCIPAL RETIREMENT AS OF JUNE 30, 2009 Date Annual Annual Outstanding of Interest Interest Maturity Callable Interest Principal Bonds Issue Amount of Issue Rate Dates Date Date Payment Retirement June Refunding Issue $149,625, % 6/15/2010 5,232, ,760, $106,855, % 6/15/2010 3,350, % 6/15/ , % 6/15/2011 4,354, ,000, % 6/15/2012 3,854, ,000, % 6/15/ , % 6/15/2013 3,329, ,910, % 6/15/2013 1,000, % 6/15/2014 2,751, ,925, % 6/15/2014 2,050, % 6/15/2015 June ,133, ,605, % 6/15/2015 1,000, % 6/15/2016 1,763, ,065, % 6/15/2017 1,359, ,465, % 6/15/ , ,085, % 6/15/ , ,645, Refunding Issue $21,575, % 12/15 & 6/15 6/15/ , , $17,390, % 6/15/ , ,965, % 6/15/ , ,140, % 6/15/ , ,335, % 6/15/ , ,520, $178,715,187 12/15 & 6/15 6/15/2010 3,448, $178,715,187 6/15/2011 2,765, ,700, % 6/15/2012 2,620, ,970, /15/2013 2,421, ,515, /15/2014 2,216, ,090, /15/2015 1,987, ,310, /15/2016 1,219, ,000, /15/2017 1,424, ,013,

5 Debt Service Fund SCHEDULE OF OUTSTANDING BONDS AND ANNUAL PRINCIPAL RETIREMENT AS OF JUNE 30, 2009 Date Annual Annual Outstanding of Interest Interest Maturity Callable Interest Principal Bonds Issue Amount of Issue Rate Dates Date Date Payment Retirement June % 6/15/ , ,189, % 6/15/2019 1,509, ,640, % 6/15/2020 1,691, ,458, % 6/15/ ,402, ,517, % 6/15/ ,603, ,006, % 6/15/ ,713, ,606, % 6/15/ ,850, ,199, % 6/15/ ,047, ,752, % 6/15/ ,254, ,320, % 6/15/ ,485, ,884, % 6/15/ ,636, ,558, % 6/15/ ,861, ,178, % 6/15/ ,106, ,803, Total Existing Debt $207,838,364 $302,960,187 $302,960,

6 Fiscal Year Debt Service Fund - PERS Pension Bonds RESTRICTED FUND* TOTAL DISTRICT BUDGET - ALL FUNDS (refer to page 7.10) Debt Service Fund - Public Employee Retirement System (PERS) Bonds Total in Fund for : $22,509,998 This fund accounts for the District s refinancing of its accrued Public Employee Retirement System (PERS) liability. Efficient management of taxpayer money: The District was able to issue bonds in the amount of $203,429,763 in 2002 and 2004 to extinquish its unfunded actuarial liability (UAL) with PERS, resulting in a savings to the District of approximately $10,600,000 for the fiscal year. The savings allowed the District to lower its assessed associated payroll cost (APC) applied to salaries across all funds by approximately 5% for the fiscal year. The reduced PERS cost will allow the District to fund additional programs and services. A sufficient ending balance will be retained within the fund in order to provide a reserve for variances in the annual debt service payment, a buffer against increase in PERS costs, differences between the estimated versus actual data used in the sale of the bonds, and for potential legal settlement issues that could result from existing and future challenges to the PERS system. The repayment of these bonds will be made by the State of Oregon on behalf of the District from its State School Fund allocation. Debt Service Fund PERS Bonds: $22,509,998 * Restricted Fund: The Debt Service Fund - PERS is a restricted account and may only be used for retirement of PERS Bond Debt. Savings from the refinancing are annually budgeted as a transfer to the General Fund. 10.6

7 Debt Service Fund-PERS Pension Bonds Account Code and Description Prior Years' Actuals Budget Next Year FTE Budget Proposed Approved Adopted FTE ESTIMATED RESOURCES 1510 PERS Bond Interest $61,675 $0 $50,000 $0 $0 $ Services Provided to Other Funds $18,628,464 $10,526,749 $12,031,119 $12,541,787 $12,541,787 $12,541, Beginning Fund Balance $5,856,814 $10,081,417 $10,081,416 $9,968,211 $9,968,211 $9,968,211 TOTAL ESTIMATED RESOURCES $24,546,953 $20,608,166 $22,162,535 $22,509,998 $22,509,998 $22,509,998 ESTIMATED REQUIREMENTS Business Services 390 Allowance for PERS Adjustments/Litigation $0 $0 $10,601,998 $10,297,944 $10,297,944 $10,297,944 Total Business Services $0 $0 $10,601,998 $10,297,944 $10,297,944 $10,297,944 TOTAL BUSINESS SERVICES $0 $0 $10,601,998 $10,297,944 $10,297,944 $10,297, Debt Service 610 Principal on Bonds Outstanding Issue of October 2002 $1,067,378 $1,281,904 $1,476,045 $1,650,269 $1,650,269 $1,650,269 Issue of February 2004 $0 $0 $95,000 $375,000 $375,000 $375,000 Total Principal Requirements $1,067,378 $1,281,904 $1,571,045 $2,025,269 $2,025,269 $2,025, Interest on Bonds Outstanding Issue of October 2002 $4,911,837 $5,042,311 $5,203,170 $5,403,945 $5,403,945 $5,403,945 Issue of February 2004 $4,786,322 $4,786,322 $4,786,322 $4,782,839 $4,782,839 $4,782,839 Total Interest Requirements $9,698,159 $9,828,632 $9,989,492 $10,186,784 $10,186,784 $10,186,784 TOTAL DEBT SERVICE $10,765,536 $11,110,536 $11,560,537 $12,212,053 $12,212,053 $12,212, Transfer of Funds 710 Transfer to General Fund (Annual Savings) $3,700,000 $0 $0 $1 $1 $1 TOTAL TRANSFER OF FUNDS $3,700,000 $0 $0 $1 $1 $1 TOTAL ESTIMATED REQUIREMENTS $14,465,536 $11,110,536 $22,162,535 $22,509,998 $22,509,998 $22,509,

8 School District 24J/32, Marion/Polk County, Oregon Debt Service Fund-PERS Bonds SCHEDULE OF OUTSTANDING BONDS AND ANNUAL PRINCIPAL RETIREMENT AS OF JUNE 30, 2009 Date Annual Annual Outstanding of Interest Interest Maturity Callable Interest Principal Bonds Issue Amount of Issue Rate Dates Date Date Payment Retirement June $114,614, % 6/30 & 12/30 6/30/2010 $5,403,945 $1,650,269 $109,091, % 6/30/2011 $5,644,119 $1,800, % 6/30/2012 $5,910,465 $1,938, % 6/30/2013 $6,214,710 $2,054, % 6/30/2014 $6,559,307 $2,149, % 6/30/2015 $6,936,358 $2,232, % 6/30/2016 $7,355,445 $2,293, % 6/30/2017 $7,807,707 $2,336, % 6/30/2018 $8,286,433 $2,377, % 6/30/2019 $8,796,016 $2,413, % 6/30/2020 $9,335,549 $2,438, % 6/30/2021 $4,724,215 $7,640, % 6/30/2022 $4,304,015 $8,670, % 6/30/2023 $3,828,899 $9,790, % 6/30/2024 $3,291,428 $10,990, % 6/30/2025 $2,681,483 $12,300, % 6/30/2026 $1,998,833 $13,705, % 6/30/2027 $1,238,205 $15,225, % 6/30/2028 $393,218 $7,085, $88,815, % 6/30 & 12/30 6/30/2010 $4,782,839 $375,000 $88,720, % 6/30/2011 $4,767,363 $675, % 6/30/2012 $4,737,663 $1,005, % 6/30/2013 $4,691,553 $1,360, % 6/30/2014 $4,626,641 $1,750, % 6/30/2015 $4,542,763 $2,175, % 6/30/2016 $4,435,688 $2,635, % 6/30/2017 $4,303,332 $3,135, % 6/30/2018 $4,142,726 $3,680, % 6/30/2019 $3,950,519 $4,270,

9 School District 24J/32, Marion/Polk County, Oregon Debt Service Fund-PERS Bonds SCHEDULE OF OUTSTANDING BONDS AND ANNUAL PRINCIPAL RETIREMENT AS OF JUNE 30, 2009 Date Annual Annual Outstanding of Interest Interest Maturity Callable Interest Principal Bonds Issue Amount of Issue Rate Dates Date Date Payment Retirement June % 6/30/2020 $3,723,227 $4,915, % 6/30/2021 $3,459,144 $5,615, % 6/30/2022 $3,154,643 $6,370, % 6/30/2023 $2,806,013 $7,190, % 6/30/2024 $2,408,550 $8,080, % 6/30/2025 $1,961,887 $9,040, % 6/30/2026 $1,462,156 $10,075, % 6/30/2027 $905,210 $11,190, % 6/30/2028 $286,627 $5,185,000 Total $165,858,889 $197,811,307 $197,811,