[quote=temeculaguy]Is there a way to find out what the bond is actually paying in interest as opposed to trying to calculate it yourself. I’ve read numerous articles where mello-roos districts have refinanced and lowered the cost to residents. Could some of what looks like mello-roos be a community service district fee, which can’t be paid off as it is for ongoing maintenance or services that other residents of a city do not get. For over 50k, you’d want to make sure that you are getting out of the entire bill, not just part. You’d also want to make sure there aren’t plans to refi on the part of the municipality as the buyers of certain muni bonds don’t pay tax, thus they have a lower yield. I’m kinda shocked they are paying 9%, that’s more Greece pays.
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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.
