School Bonding Program and Bond Debt Service Discussion
[Mike's e-mail for reference delete after internal review]
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hope all is well with you - I wanted to check in to see if PRAG might be able to assist with a presentation
(virtual) at our upcoming school construction task force.
We are still waiting to hear from AOE to confirm the agenda for Monday's meeting - but I wanted to see if
PRAG might be in a position to present the following:
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An overview of the Rhode Island bond issuance with a specific eye toward how the transaction was
structured to avoid being considered net tax-supported debt.
A simple forecasting scenario where Vermont (more specifically an authority similar to Rhode Island -
assume the Vermont Bond Bank in Vermont's case) issues $250 million in bonds to support a portion
of the approximate $1 billion in immediate life and safety issues from the school audit.
a. We could assume a $125 million bond is issued in year one and a second $125 million bond is
issued in year four - both for 20 years - and calculate the annual interest & principle payments
that would result for the term of the bonds.
Please let me know if you have any questions - happy to visit to discuss as well. Many thanks.
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