Bond Accountability Commission 2 Recommendations Page 107
with the commencement of the Segment 5 expenditures that is not reflected on the chart due to insufficient data.) Clearly, CMSD times the issuance of Bonds and Notes to occur in concert with expenditure need.
Issuances Made in Conjunction with Requirement to have District's Share On-Hand to Initiate Projects
Net Proceeds/ Expenditures
$300,000,000 $275,000,000 $250,000,000 Seg 4 Expenditures
Seg 3 Expenditures
$175,000,000 Seg 2 Expenditures
$150,000,000 New Issuances
$125,000,000 Locally Funded Initiatives
$100,000,000 $75,000,000 $50,000,000 Seg 1 Expenditures
$25,000,000 $0 3Q-01
3Q-05 3Q-06 3Q-07 3Q-08 3Q-09 3Q-10 3Q-11 Quarter-Year (Calendar Year) Proceeds timing is based on bond/note issuance date, though does not necessarily reflect full amount of funds available. Segment expenditure timing is based upon the first expenditure, while amount is from Facilities Construction Report, dated October 31, 2009, as provided by the District. Proceeds may be used for multiple segments, and individual segments may receive proceeds from multiple issuances.
While we never recommend trying to “time the market,” and second-guessing in hindsight is an exercise in futility, there is value in looking at market conditions over the course of Issue 14 to determine whether the issuance strategy has benefited the District. In that connection, the following chart details market conditions, as represented by the Bond Buyer’s 20-Bond Index, consisting of 20 general obligation bonds that mature in 20 years. The average rating of the 20 bonds in the Index is roughly equivalent to Moody’s Investors Service’s “Aa2” rating and Standard & Poor’s Corp.’s “AA.” Those