Facilities Master Plan
LEARN MORE ABOUT OUR FACILITIES MASTER PLAN
LEARN MORE ABOUT OUR FACILITIES MASTER PLAN
Information at a Glance
UNDERSTANDING PUBLIC SCHOOL BONDS FOR FACILITIES USE
What are Prop. 39 General Obligation Bonds?
There are few ways that public schools have available to them to fund school facility repairs and upgrades. One option is a Proposition 39 General Obligation Bond, often known as a local school bond, or GO bond. This common debt financing tool allows a public school district to raise local funding to help replace, upgrade, or repair our schools, including construction and renovations, technology upgrades, safety enhancements, energy efficiency initiatives, transportation, and athletic facility improvements.
GO bonds are sold to investors and repaid with interest over time using property tax collections, typically repaid between 12-24 years. A Prop 39 GO Bond requires a 55% voter approval within the specified school district, and by law must include a project list, independent citizen oversight and annual audits of funds. No funds can be taken by the state or used for other purposes.
GO bonds are sold to investors and repaid with interest over time using property tax collections, typically repaid between 12-24 years. A Prop 39 GO Bond requires a 55% voter approval within the specified school district, and by law must include a project list, independent citizen oversight and annual audits of funds. No funds can be taken by the state or used for other purposes.
How do Bonds Work?
When a school district issues a bond, it borrows money from investors. This borrowed amount and an agreed-upon interest are repaid over a specified period. The funds acquired through bond sales are then earmarked for designated projects, ensuring essential improvements across our schools.
The repayment of school bonds primarily relies on property taxes within our district. These taxes cover the principal amount and interest over the bond's term, which varies depending on the borrowed amount and terms. This mechanism ensures that the financial burden is distributed across the community over time.
Understanding Credit Ratings:
A crucial aspect to consider is the credit rating of a bond. This rating, determined by nationally recognized credit rating agencies based on the district's financial condition, indicates the risk to potential investors. Higher ratings signify lower risk, lending to lower interest rates for taxpayers and ensuring efficient use of public funds.
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