Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
To guarantee bonds issued by school districts or by the state for the purpose of making loans to or purchasing the bonds of school districts for the purpose of acquisition, construction, or improvement of instructional facilities including all furnishings thereto. State of Texas Constitution, Article VII, Section V (2)(d)
Established 1983 by Texas Constitutional Amendment Bonds are fully guaranteed by the corpus of the Permanent School Fund Guarantee Capacity is Limited
Since inception TPSF has guaranteed 5,227 issues Currently there are 2,796 bonds outstanding *07/31/2013 No district has ever defaulted
3
1989 IRS 1.148-11(d)(1)(vi) allows the fund to guarantee bonds up to 250% lower cost or fair market value of the TPSF. 1994 SEC makes amendments to Rule 15c2-12. 2003 78th Regular Session of the Legislature increased the State Capacity to 250% lower cost or fair market value of the TPSF. 2007 80th Regular Session of the Legislature authorized the Board to increase the limit up to 500% of the cost value of the TPSF, as long as increase is consistent with federal requirements and does not prevent the bonds to be guaranteed from receiving the highest available credit rating (AAA). Dec 2009 IRS increases capacity limit to 500% of the total cost of the assets held by the TPSF as of December 16, 2009. May 2010 State Capacity Limit is increased by the State Board of Education to 300% the cost value of the TPSF.
4
District must be accredited by the State Have at least one credit rating below a AAA Bonds must be for the purpose of constructing, renovating, acquiring, and equipping school buildings Applications must be approved by the Commissioner of Education Bonds must be approved by the Office of the Attorney General
5
If a participating District cannot make the next principal or interest payment on a guaranteed bond, the amount needed to pay will be transferred from the TPSF to the Districts paying agent. The Commissioner of Education will direct the Comptroller of Public Accounts to withhold the amount paid, plus interest, from the first State money payable to the District, regardless of source. Unmatured bond payments are not accelerated upon default by a District.
6
Commissioner instructs the Comptroller to transfer amount necessary to pay defaulted amount from the PSFs State Treasury account to the Districts paying agent.
The Comptroller transfers the amount paid plus interest back to the PSF.
PSF generates the required amount of cash and transfers it to State Treasury.
50
2500
40
2000
30
1500
20
1000
10
500
Amount Outstanding
Issues Outstanding
Billions
140.00
120.00
100.00
60.00
20.00
0.00
$50
$40
$30
$20
$10
$-
10
Total Principal
Total Interest
CAB Principal
CAB Interest
Capital Appreciation Bond (CAB) Bond that is issued at a discount, bears no stated rate of interest, and accretes in value from the date of issuance to the date of maturity. At maturity, the investor receives the original par amount plus all the accreted interest. Premium Capital Appreciation Bond (PCAB) A type of CAB that has a stated yield or accretion rate that is higher than its actual (market) current yield to investors. This difference results in a lower initial stated par amount which preserves debt capacity. Compound Interest Bond Bond that is issued at a stated interest rate, the interest is compounded over the life of the bond and not paid until maturity. Premium Compound Interest Bond A type of compound interest bond sold to investors for more than the face amount of the bond. Generally this occurs when the market interest rate at the time of sale falls below the stated interest rate. Current Interest Bond (CIB) a bond on which interest payments are made to bondholders on a periodic basis.
12
Millions
$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $Capital Appreciation Bonds Compound Interest Bonds Interest Principal Premium Compound Interest Bonds Current Interest Bonds
Capital Appreciation Bonds Compound Interest Bonds Principal Interest 1,340,032,329.30 3,010,884,091.04 12,270,000.00 25,470,000.00
13
Used by districts where immediate development is needed due to rapidly expanding population. This effectively defers payment to a future tax base generally anticipated to be larger and more established. In certain interest rate environments, PCABs are necessary on refunding issues in order to meet the par-to-par sizing constraint. Used to cope with the 50 cent test, a limitation of schools districts maximum Interest & Sinking Fund tax rate. A debt management tool for school districts to lower the tax impact of bond programs and manage bond payments by transferring the payment to a larger and more established future tax base.
14
Interest to principal ratio is total interest paid over life of debt divided by total principal paid. A lower ratio indicates a debt portfolio mix more heavily weighted towards more traditional debt categories, such as current interest bonds. A higher ratio indicates a debt portfolio mix more heavily weighted towards instruments with interest payments at or towards the end of the debt term, such as CABs, or other deferred principal structure.
15
427 out of 806 participating Districts use CABs Principal Outstanding $2.415 Billion at 7/31/2013 Interest Outstanding $6.192 Billion at 7/31/2013 40 participating Districts have interest to principal ratios >1
16
Rockwall ISD
DeSoto ISD
17
0 Galena Park ISD Crowley ISD Robstown ISD Liberty Hill ISD Mabank ISD Brock ISD Aledo ISD Cedar Hill ISD Hale Center ISD Rockwall ISD Caddo Mills ISD Little Elm ISD Denison ISD Mexia ISD Wylie ISD Corpus Christi ISD Royse City ISD Hutto ISD Aubrey ISD Bastrop ISD Lake Dallas ISD Waxahachie ISD Anna ISD Bland ISD White Settlement Prosper ISD Terrell ISD Lipan ISD Crandall ISD Argyle ISD DeSoto ISD Ennis ISD Sanger ISD Coppell ISD Weatherford ISD Leander ISD City View ISD West ISD Sanford-Fritch ISD Gatesville ISD 19
20
21
2/15/2016
2/15/2017
2/15/2018
24
Millions
Millions
Millions
Millions
Millions
Principal Interest
30
50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00
Millions