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Business Services reports on bond indebtedness, arbitrage repayment and state budget gains
Summary
Business Services presented the annual indebtedness report, outlined outstanding bonds and bonding capacity, warned of an upcoming arbitrage repayment obligation, and described state budget increases that add one‑time and ongoing revenue to the district budget.
At the July 22 meeting, Business Services staff delivered the district’s annual indebtedness report and a market update. Staff said the district’s prior general obligation bond (1993) is paid off, the 2006 Measure I bond balance remains material (reported in the hundreds of millions) and the recently issued Measure AS is approximately $70 million. Total estimated bonding capacity was reported at about $524 million, with roughly $208 million still available under conservative assumptions.
Staff warned the district is currently in an arbitrage position and estimated an IRS repayment due August 1 of "between $200 and $250,000," a self‑reported calculation the district must make to remain compliant. On state budget news, staff reported a TK per‑ADA rate of $5,545 (an increase of $2,397) and identified several pots of one‑time funds: a Student Support and Professional Development Discretionary Block Grant (district share ~$2.7 million), the learning recovery emergency discretionary ($~300,000 for the district), and flat ELOP funding (about $250,000 increase). Staff said some state funds are restricted by eligibility and reporting requirements and that district leaders are considering how one‑time state funds might interact with federal funding shortfalls.
Board members asked clarifying questions about how interest earnings and post‑issuance rules affect project timelines and monitoring.
