Bond Mill Levy Calculation

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Bond Mill Levy Calculation

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Calculating Bond Debt Mill Levy

• Annual debt schedule DS
• Current FY Assessed Valuation AV
• DS/(AV/1,000)

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Bond Election Question

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Determine Expenditure Level

• Check Debt Schedule for the total amount of
  principal and interest to be paid in the fiscal
  year.
• Add the amount of any Paying Agent Fees
• Add other costs, if any
• Sum of the above equals total bond redemption
  expenditures.
• Note Maintain a sufficient Appropriated
  Contingency to cover the December debt payment
  (prior to tax collections).

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• Amount needed for Debt 150,000
• Assessed Valuation 30,000,000
• 150,000/(30,000,000/1,000)
• 150,000/(30,000)
• 5 mills
• Amount needed for Debt 150,000
• Assessed Valuation 35,000,000
• 150,000/(35,000,000/1,000)
• 150,000/(35,000)
• 4.29 mills

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• Amount needed for Debt 150,000
• Assessed Valuation 35,000,000
• 150,000/(35,000,000/1,000)
• 150,000/(35,000)
• 4.29 mills
• Assessed Valuation 35,000,000
• Kept Mill Levy at 5 Mills .005
• Property Taxes Generated 175,000
• Above the Voter Approved 166,000

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Bond Fund Trustee/Escrow Agent

• C.R.S. 22-45-103(b) required school districts to
  place their Bond Redemption monies in a Colorado
  bank that had a full trust department.
• Many districts had to move money from local banks
  to banks with trust powers.
• C.R.S. 22-45-103(b)(VII) allows districts to use
  banks that do not have trust powers by entering
  into an Escrow of Bond Redemption Funds
  Agreement.

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Bond Refunding

• When interest rates are low, Districts may choose
  to issue refunding bonds to obtain a more
  favorable interest rate.
• Districts must account for all transactions
  related to the refunding bond issuance in their
  financial system and ADE financial transmission.
• Source code 5111 Refunding Bond Proceeds
• Source codes 5121 and 5131 if needed
• Object code 0940 Payment to Escrow Agents

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Override Revenues (C.R.S. 22-54-108)

• A school district may desire to spend more
  property tax revenues than authorized/required to
  fund its Total Program. In this event, a district
  must seek approval from its voters to raise and
  expend "override" property tax revenues via an
  additional mill levy. Override revenues also are
  permitted for a district whose budget year
  1994-95 actual Total Program exceeded its budget
  year 1994-95 formula calculation (a "hold
  harmless" district).
• A districts override revenues cannot exceed 20
  of its Total Program or 200,000, whichever is
  greater, plus an amount equal to the maximum
  dollar amount of property tax revenue that the
  district could have generated for FY 2001-02 in a
  Cost of Living Adjustment election. All override
  revenues come from increased property taxes no
  additional state funding occurs. A district's
  authorization to raise and expend "override"
  revenues does not affect the amount of State
  Share funding which the district is eligible to
  receive.

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Override Election Question

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Override with Mill Levy Cap