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Oakland Unified School District Long Term Obligations

Oakland Unified School District Long Term Obligations. May 8, 2008 Ruth Alahydoian Vice President KNN Public Finance. Oakland Long Term Debt. Oakland USD has three types of long term debt: General Obligation Bonds $563.99 million Lease Obligation (“COPs”) 19.28 million

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Oakland Unified School District Long Term Obligations

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  1. Oakland Unified School DistrictLong Term Obligations May 8, 2008 Ruth Alahydoian Vice President KNN Public Finance

  2. Oakland Long Term Debt • Oakland USD has three types of long term debt: • General Obligation Bonds $563.99 million • Lease Obligation (“COPs”) 19.28 million • State Loan 93.09 million TOTAL: $676.36 million • Other long term obligations not discussed today: • State School Building Loan – repaid directly from tax collections, but less than $500,000 left to repay. • Health benefits for retirees (Other Post Employment Benefits, “OPEB”) – less than $100,000 payable • Compensated Absences

  3. Oakland USD Outstanding Bonds • General Obligation Bonds are approved by voters and repaid by taxpayers. • District still has $305 million of bonds authorized but not yet issued. • Taxpayer currently paying $80.10 per $100,000 of assessed value each year for bond repayment.

  4. Oakland USD Outstanding Lease Obligations • School Districts can only enter into long term DEBT if voter approved. • However, districts can enter into long term LEASES. Certificates of Participation, or “COPs” are based on lease agreements. • COPs are repaid by the District (General Fund).

  5. COP Repayment Schedule • All COPs are variable rate. Table below estimates interest at 4.50%.

  6. Oakland USD Outstanding State Loan • Original State Loan for $65 Million converted to “Lease Revenue Bonds” by the State. Annual repayment of $3,890,532 is automatically deducted. • Additional draw-down of $35 Million set-aside for specific purposes and to repay itself.

  7. 2006 State Loan Drawdown • July 2006 - Draw-down of remaining $35 million of State Loan • State has approved expenditures for IFAS/Technology Upgrades of $7,000,000. • State has also approved expenditures for audit findings for 2002-03 and 2003-04 totaling $1,798,885. • Remaining balance is to be applied to repayment or as otherwise approved by State Administrator. Draw-down $35,000,000 IFAS/Tech Upgrades -7,000,000 Audit Findings -1,798,885 Funds Remaining $26,201,115

  8. 2006 State Loan Repayment • Interest earnings and loan proceeds are sufficient to make payments through 2023. • The District will need to repay $8 million of the total $35 million loan.

  9. Option to Repay Bi-Tech COPs • Series J COPs were for Bi-Tech Information Technology • State may allow State Loan Proceeds to be used to pay-down those COPs. • Assuming COP pay-down of $1,960,000 (in addition to other approved expenditures, District will owe $11 million.

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