Explain what you are doing!
Munistat ,hired by Commack UFSD announced in June 2020, that they are selling bonds to pay back or" refund" a portion of school bonds issued in 2013, that will be coming due, instead of paying them off. Should not all Boards of Education offer more public disclosure to taxpayers , many of whom are in the business of finance .?
Commack school district had received voter approval for a tremendous construction project in 2002. In 2013 the district refinanced $46,720,000 of the initial bond debt.. Be aware that construction aid is paid by New York dept. of education for completed and approved projects and this money plus tax revenues should pay back the bonds. State aid is not paid up front and so bonds are sold to raise project funds knowing that state aid will be paid at a later date
These 2020 bonds are not related to the new bond issue approved December 2019.According to p. 21 of the official statement shown on the EMMA site.
"The District has unissued debt in the amount of $67,523,998 from the 2019 bond referendum" for projects that will be started at some point soon focusing on safety and security, academic expansion and preserving District facilities.
The following data is listed in the bond statement:
COMMACK UNION FREE SCHOOL DISTRICT SUFFOLK COUNTY, NEW YORK $4,785,000 SCHOOL DISTRICT REFUNDING SERIAL BONDS – 2020
The Refunding Bond Resolution authorizes the issuance of the Bonds to provide the funds necessary to effect the refunding of all or a portion of the Refunded Bonds.
Sources: Par Amount of Bonds ..........$..4,785,000
Original Issue Premium/Discount ........... 1,001,225.20
Total ….. $ 5,786,225.20
COMMACK UNION FREE SCHOOL DISTRICT SUFFOLK COUNTY, NEW YORK / $46,720,000 SCHOOL DISTRICT REFUNDING SERIAL BONDS – 2013
Refinance of originally issued bonds 2013 Par Amount of Bonds..............$ 46,720,000.00
Original Issue Premium ............ 6,682,593.50
Total ............... $ 53,402,593.50
A full statement is listed on the EMMA site.