This information is being provided in response to some concerns expressed by Duncan School Patrons regarding the upcoming bond proposal. The bond proposal represents eighteen series of bond issues with the first issue going on the tax roll in July 2010 and the last issue coming off the tax roll after June 2028 (please see the attached Combined Debt Service Schedule). The bonds were structured so as to keep the projected tax impact at or below 10% assuming the Net Assessed Valuation of the School District grows at an average rate of 3.99% (the 26-year average). We also took into consideration the fact that the Duncan School District could have additional projects in the future that might need to be addressed by additional bond elections. The current bond proposal was structured with different maturities to help address these goals. The initial issue from the April 2010 Bond Election is in the amount of $7,000,000 and is based upon a 5-year maturity. This initial issue will put you at approximately 96% of your available bonding capacity as of June 2010. The future issues from this proposal will put you at approximately 89% of your projected capacity in July 2011, 81% in July 2012, and 73% each year thereafter. After the June 2010 5-year issue, the subsequent bond issues are based upon 2-year maturities. Smaller bond issues on 2-year maturities keep the projected Sinking Fund millage rate level but allow the School District’s available bonding capacity to increase because the bond issues are not on the tax roll for as long. After a few years you will only have two issues outstanding at any one time.

 

Ron Fisher

President

Stephen H. McDonald & Associates, Inc.

2200 McKown Drive

Norman, Oklahoma 73072

Telephone: (405) 329-0123 ext.: 25

Fax: (405) 329-0808

Mobile: (405) 613-4468

E-mail: ronfisher@shmcdonald.net