Debt Service Fund - General Obligations Bonds
RESTRICTED FUND*
Debt Service Fund - General Obligations Bonds
Total in Fund for 2009-10: $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 1999. 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
call-able portion of the outstanding 1998 Refunded Bonds, maturing on June 1 in the
years 2009 through 2014. 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
vot-ers. 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.
* 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.
TOTAL DISTRICT BUDGET - ALL FUNDS (refer to page 7.10)
2006-07 2007-08 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 $27,006,639
1112 Prior Year Taxes $624,085 $962,577 $950,000 $1,040,000 $1,040,000 $1,040,000
1510 Interest Earned $972,116 $829,475 $500,000 $206,000 $206,000 $206,000
1970 Miscellaneous $0 $32,122 $0 $0 $0 $0
5100 Long Term Debt Financing $0 $0
5400 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
$33,882,059 $32,965,716 $30,498,724 $31,152,639 $31,152,639 $31,152,639
5100 - 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 $18,770,000 620 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 $9,482,639
TOTAL ESTIMATED RESOURCES
ESTIMATED REQUIREMENTS
Prior Years' Actuals 2008-09 Account Code and Description
2009-10 Adopted Budget
Debt Service Fund-General Obligation Bonds
2006-07 2007-08 FTE Budget Proposed Approved Adopted FTE Prior Years' Actuals 2008-09
Account Code and Description
2009-10 Adopted Budget
Debt Service Fund-General Obligation Bonds
Budget Next Year 2009-10
$26,163,792 $28,928,075 $27,598,724 $28,252,639 $28,252,639 $28,252,639 2520 - Business Services
380 Professional Services $0 $31,204 $0 $0 $0 $0
Total Professional Services $0 $31,204 $0 $0 $0 $0
$0 $31,204 $0 $0 $0 $0
7000 - 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
$7,718,267 $4,006,437 $2,900,000 $2,900,000 $2,900,000 $2,900,000
$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 328.245 as detailed below: True cash value of taxable property within School District 24J/32,
Marion/Polk County, Oregon for fiscal year 2008-09 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. TOTAL DEBT SERVICE
TOTAL SUPPORT SERVICES
TOTAL FUND BALANCE
2009-10 Adopted Budget
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 30
2004 Refunding Issue $149,625,000 5.00% 6/15/2010 5,232,437.50 14,760,000.00 $106,855,000 4.00% 6/15/2010 3,350,000.00 2.75% 6/15/2010 230,000.00 5.00% 6/15/2011 4,354,112.50 10,000,000.00 5.00% 6/15/2012 3,854,112.50 10,000,000.00 3.25% 6/15/2012 765,000.00 5.00% 6/15/2013 3,329,250.00 10,910,000.00 3.25% 6/15/2013 1,000,000.00 5.00% 6/15/2014 2,751,250.00 10,925,000.00 3.50% 6/15/2014 2,050,000.00 5.00% 6/15/2015 June 2015 2,133,250.00 6,605,000.00 4.00% 6/15/2015 1,000,000.00 5.00% 6/15/2016 1,763,000.00 8,065,000.00 5.00% 6/15/2017 1,359,750.00 8,465,000.00 5.00% 6/15/2018 936,500.00 9,085,000.00 5.00% 6/15/2019 482,250.00 9,645,000.00 2008 Refunding Issue $21,575,000 3.25% 12/15 & 6/15 6/15/2010 801,600.00 430,000.00 $17,390,000 3.25% 6/15/2011 787,625.00 3,965,000.00 3.25% 6/15/2012 600,925.00 4,140,000.00 3.25% 6/15/2013 411,512.50 4,335,000.00 3.25% 6/15/2014 214,950.00 4,520,000.00 2009 $178,715,187 12/15 & 6/15 6/15/2010 3,448,600.63 0.00 $178,715,187 6/15/2011 2,765,025.00 3,700,000.00 4.00% 6/15/2012 2,620,400.00 4,970,000.00 6/15/2013 2,421,600.00 5,515,000.00 6/15/2014 2,216,000.00 6,090,000.00 6/15/2015 1,987,400.00 18,310,000.00 6/15/2016 1,219,000.00 20,000,000.00 6/15/2017 1,424,770.00 8,013,230.00
2009-10 Adopted Budget
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 30
2009 4.22% 6/15/2018 560,612.50 1,189,387.50 4.46% 6/15/2019 1,509,147.50 2,640,852.50 4.71% 6/15/2020 1,691,623.00 2,458,377.00 5.00% 6/15/2021 10,402,012.80 12,517,987.20 5.17% 6/15/2022 11,603,134.50 12,006,865.50 5.26% 6/15/2023 12,713,523.20 11,606,476.80 5.35% 6/15/2024 13,850,646.00 11,199,354.00 5.46% 6/15/2025 15,047,334.00 10,752,666.00 5.56% 6/15/2026 16,254,864.50 10,320,135.50 5.66% 6/15/2027 17,485,324.50 9,884,675.50 5.70% 6/15/2028 18,636,895.00 9,558,105.00 5.77% 6/15/2029 19,861,036.80 9,178,963.20 5.84% 6/15/2030 21,106,888.80 8,803,111.20
Debt Service Fund - PERS Pension Bonds
RESTRICTED FUND*
* 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.
Debt Service Fund - Public Employee Retirement System (PERS) Bonds
Total in Fund for 2009-10: $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 2009-10 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 2009-10 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
TOTAL DISTRICT BUDGET - ALL FUNDS (refer to page 7.10)
2006-07 2007-08 FTE Budget Proposed Approved Adopted FTE
1510 PERS Bond Interest $61,675 $0 $50,000 $0 $0 $0
1970 Services Provided to Other Funds $18,628,464 $10,526,749 $12,031,119 $12,541,787 $12,541,787 $12,541,787 5400 Beginning Fund Balance $5,856,814 $10,081,417 $10,081,416 $9,968,211 $9,968,211 $9,968,211 $24,546,953 $20,608,166 $22,162,535 $22,509,998 $22,509,998 $22,509,998
2520 - 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
$0 $0 $10,601,998 $10,297,944 $10,297,944 $10,297,944 5100 - 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 $2,025,269 620 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 $10,765,536 $11,110,536 $11,560,537 $12,212,053 $12,212,053 $12,212,053 5200 - Transfer of Funds
710 Transfer to General Fund (Annual Savings) $3,700,000 $0 $0 $1 $1 $1
$3,700,000 $0 $0 $1 $1 $1
$14,465,536 $11,110,536 $22,162,535 $22,509,998 $22,509,998 $22,509,998 Account Code and Description
ESTIMATED RESOURCES
TOTAL ESTIMATED RESOURCES
ESTIMATED REQUIREMENTS
TOTAL BUSINESS SERVICES
TOTAL DEBT SERVICE
TOTAL TRANSFER OF FUNDS
TOTAL ESTIMATED REQUIREMENTS
2009-10 Adopted Budget
Debt Service Fund-PERS Pension Bonds
2009-10 Adopted Budget
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 30
2002 $114,614,763 4.55% 6/30 & 12/30 6/30/2010 $5,403,945 $1,650,269 $109,091,307 4.82% 6/30/2011 $5,644,119 $1,800,096 5.00% 6/30/2012 $5,910,465 $1,938,750 5.18% 6/30/2013 $6,214,710 $2,054,505 5.36% 6/30/2014 $6,559,307 $2,149,908 5.51% 6/30/2015 $6,936,358 $2,232,857 5.67% 6/30/2016 $7,355,445 $2,293,770 5.82% 6/30/2017 $7,807,707 $2,336,508 5.93% 6/30/2018 $8,286,433 $2,377,782 6.02% 6/30/2019 $8,796,016 $2,413,198 6.10% 6/30/2020 $9,335,549 $2,438,666 5.50% 6/30/2021 $4,724,215 $7,640,000 5.48% 6/30/2022 $4,304,015 $8,670,000 5.49% 6/30/2023 $3,828,899 $9,790,000 5.55% 6/30/2024 $3,291,428 $10,990,000 5.55% 6/30/2025 $2,681,483 $12,300,000 5.55% 6/30/2026 $1,998,833 $13,705,000 5.55% 6/30/2027 $1,238,205 $15,225,000 5.55% 6/30/2028 $393,218 $7,085,000 2004 $88,815,000 4.13% 6/30 & 12/30 6/30/2010 $4,782,839 $375,000 $88,720,000 4.40% 6/30/2011 $4,767,363 $675,000 4.59% 6/30/2012 $4,737,663 $1,005,000 4.77% 6/30/2013 $4,691,553 $1,360,000 4.79% 6/30/2014 $4,626,641 $1,750,000 4.92% 6/30/2015 $4,542,763 $2,175,000 5.02% 6/30/2016 $4,435,688 $2,635,000 5.12% 6/30/2017 $4,303,332 $3,135,000 5.22% 6/30/2018 $4,142,726 $3,680,000 5.32% 6/30/2019 $3,950,519 $4,270,000
2009-10 Adopted Budget
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 30
2004 5.37% 6/30/2020 $3,723,227 $4,915,000 5.42% 6/30/2021 $3,459,144 $5,615,000 5.47% 6/30/2022 $3,154,643 $6,370,000 5.53% 6/30/2023 $2,806,013 $7,190,000 5.53% 6/30/2024 $2,408,550 $8,080,000 5.53% 6/30/2025 $1,961,887 $9,040,000 5.53% 6/30/2026 $1,462,156 $10,075,000 5.53% 6/30/2027 $905,210 $11,190,000 5.53% 6/30/2028 $286,627 $5,185,000 Total $165,858,889 $197,811,307 $197,811,307