The interest rate on the bond does not match the interest rate residents are paying. CFD#6 has three special tax bonds (2002, 2007 and 2010 series) and the most recent one starts with 1.2% in 2011 and goes up to 5.375 in 2036.
It looks like PUSD can issue bonds as needed at whatever cost/value they can negotiate and pay them off with money collected from the residents. I am not sure if PUSD’s ability to issue bonds is limited by the amount they are projected to collect from the residents, or some magic number specified in the original Bond Indenture that I can’t find on CaliforniaTaxData website.[/quote]
Perhaps I’m missing something, but the way I interpret everything thus far:
Right now they charge me $5,600/year.
They can, have, and presumably will continue to increase this amount annually by 2% until the last possible second. Behind the scenes they can pile on more debt, etc.
So my final annual payments will be approximately $9,500/year after factoring in annual 2% increases.
Temecula’s question is a good one.. whether or not that payout amount truly removes that entire bill (there’s not some fixed school fee/etc that would still remain).
