Explanation of Actual / Projected Bond Funding
SERIES 2017 BONDS
On November 30, 2017, the Fallbrook Union High School District (“District”) sold its first series of Measure AA Bonds in the par amount of $9,000,000 (“Series 2017 Bonds”). The Series 2017 Bonds generated $632,557.50 in premium, which cannot be used for capital projects. Instead, premium can only be deposited into the Debt Service Fund for the purpose of lowering debt service. The Cost of Issuance and Underwriter’s Discount are upfront costs that were paid from the $9 million bond par amount, not premium. The total for these two expenses was $218,000 so the remaining balance of $8,782,000 is what is available for the District’s building fund for the Series 2017 Bonds.
sERIES 2020 BONDS
On September 2, 2020, the District sold its second series of Measure AA Bonds in the par amount of $12,000,000 (“Series 2020 Bonds”). The Series 2020 Bonds generated $721,312.40 in premium, which was deposited into the Debt Service Fund for the purpose of lowering debt service. The Cost of Issuance and Underwriter’s Discount are upfront costs that were paid from the $12 million bond par amount, not premium. The total for these two expenses was $223,000 so the remaining balance of $11,777,000 is what is available for the District’s building fund for the Series 2020 Bonds.
sERIES 2022 BONDS
On March 23, 2022, the District sold its third and final series of Measure AA Bonds in the par amount of $24,000,000 (“Series 2022 Bonds”). The Series 2022 Bonds generated $2,461,206.75 in premium. A portion of the premium was used to pay for a bond insurance policy on the Series 2022 Bonds in the amount of $58,502.03. The remaining net premium was deposited into the Debt Service Fund for the purpose of lowering debt service. The Cost of Issuance and Underwriter’s Discount are upfront costs that were paid from the $24 million bond par amount, not premium. The total for these two expenses was $265,000 so the remaining balance of $23,735,000 is what is available for the District’s building fund for the Series 2020 Bonds.