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How the Lake Oswego bond would be financed: tax-rate, term and staged sales explained
Summary
District staff explained that the bond is modeled to keep the estimated tax rate about $2.90 per $1,000 of assessed value, illustrated debt maturities from prior authorizations and described planned staged bond sales with a maximum term of roughly 26 years.
Mary Kaye Larsen and the district's project team walked attendees through financing basics: bond proceeds can only pay for capital projects, not operating expenses, and the proposed measure is modeled to maintain the district's current estimated tax rate at roughly $2.90 per $1,000 of assessed value. "It's a no tax rate increase. It maintains the current estimated tax rate," Larsen said.
Presenters explained bonds are typically sold in multiple series rather than all at once; the district anticipates at least two sales (a roughly 50/50 split) with flexibility based on cash-flow needs and market conditions. The 2017 authorization was said to mature on 06/01/2043 and the 2021 authorization to mature on 06/01/2047, and staff described the current authorization as having a maximum term of about 26 years. Attendees asked about escalation and contingency planning; staff said they model construction escalation at about 4.5% annually and incorporate that into budgets.
