Financing is provided principally through the issuance of General Obligation (G.O.) Bonds. The financing incurs the obligation to repay the loans through annual principal and interest payments that are shown in the Debt Service Fund. G.O. Bonds issued from Fiscal Year 1982 through Fiscal Year 1995 had maximum maturities of 15 years. In October 1995, the District began issuing bonds with maturities of 30 years to more closely match the expected useful lives of the assets being financed. The current cost of Debt Service is within the District’s ability to pay and within reasonable levels compared to total obligations. The Capital Budget includes a transfer to the Debt Service Fund to pay for issuance costs in each year that bonds are issued.

It is the School Districts practice to apply for underlying ratings for its G.O. bonds. The underlying ratings assigned to Bonds by Standard & poor’s and Fitch, based on section 633 of the School Code, are “A+” and “A+”, respectively. Moody’s has assigned an underlying rating “A V to the Bonds. All Bonds issued for Capital purposed are and have been insured by “AAA” rated insurance companies that further reduces interest costs.

Bond proceeds are used to acquire sites; build new schools; add classroom or other educational space to existing schools; renovate and or modernize existing space; replace major building components and remove or reduce environmental hazards. Infrastructure improvements include, but are not limited to, the replacement of roofs, windows, lighting, heating systems, exterior doors, elevators, fire alarm systems and the modernization of toilet rooms and science labs. Equipment acquisitions include the planned vehicle replacement program, instructional and administrative informational systems and wide and local area networks.