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BOND REDEMPTION FUND

 

This fund is required, and must account for, revenues and expenditures related to general obligation debt per the guidelines in Colorado Revised Statute 22-45-103(b).

 

This fund is used to finance and account for the principal and interest on all long-term general obligation debts (school bonds).  The monies collected in this fund must be used only for the payment of principal and interest on obligations of the school district having a term greater than one year and approved at an election.

 

Revenue received to make principal and interest payments on outstanding debt are received solely from the collection of property taxes as approved by voters when the debt is incurred. 

 

The School Finance Act of 1994 defines school district debt limit as 20 percent of the district’s property tax assessed valuation or 6 percent of actual valuation, whichever is greater.  As of July 1, 2007, the district will have bonded debt outstanding of $221,230,000 and a debt limit of $347,424,308.   

 

In November 2002, Aurora voters approved a referendum which authorized the district to issue general obligation bonds in the amount of $225 million amount for school construction, renovations and improvements.  Under this authorization, $150 million in various maturity dates were issued in March 2003 with an insured rating of AAA (underlying rating of A1/A+) and a 4.35 percent interest rate.  The remaining $75 million were issued in February 2006, with interest rates varying from 4.00 percent to 5.25 percent, and with the same insured and underlying ratings as the 2003 bonds.