Bond Accountability Commission 2 Recommendations Page 108
ratings correspond with CMSD’s Bond ratings, as enhanced by the Ohio Department of Education enhancement program. The chart shows that yields in the municipal securities market have fluctuated, often considerably. The gray line represents the Bond Buyer 20Bond Index, whereas the red diamonds reflect the timing of CMSD’s Note issuances, and the blue circles reflect the timing of CMSD’s Bond issuances. The use of Notes adds a level of flexibility to the District’s financing options. Particularly in times of uncertainty, any additional flexibility can only be viewed positively.
Added Flexibility from Use of Notes is Advantageous in Times of Uncertainty and Large Fluctuations
Maximum: 6.11% (Jan 13, 2000) 6.00% 5.50% 5.00% 4.50% 4.00%
Minimum: 3.94% (Oct. 1, 2009) 3.50% 3.00%
Current: 4.21% (Dec. 24, 2009) 2.50%
Bond Buyer-20 Year Municipal General Obligation Bond Index Note Issuance
Bond Issuance 1.50% 1.00% 0.50% 0.00% Jan2000
DecJunDecJunDecJunDecJun2004 2005 2005 2006 2006 2007 2007 2008 Date The 20-Bond Index is the average yield on the 20th year maturity for 20 general obligation bonds with an average rating equivalent to Moody's Investors Service's "Aa2" rating and Standard & Poor's Rating Service "AA". The Index is as of each Thursday, but the data is usually not published on the Bond Buyer website until Thursday night/Friday morning.
Delving into the structure of the Bonds shows an unconventional repayment structure that is entirely consistent with the District’s stated goals. The following chart reflects net debt service on the Issue 14 Bonds and Notes, with the blue area representing the principal component and the yellow area representing interest. (The refinanced