Bond Accountability Commission 2 Recommendations Page 92

important to monitor economic developments carefully, but absent other data, these recent general historical trends are what we can review. In conclusion, the District’s goal of maintaining Bond retirement taxation at the target millage of 6.1 and assumptions regarding tax base growth and tax delinquencies establish constraints on the District’s issuance of the debt authorized by Issue 14. The District is seeking at an explicit level to avoid undue taxpayer burdens, and to date, the District has been able to achieve its 6.1 target. How the cash flow needs of the Issue 14 school construction segments are met through borrowing, given these constraints, is addressed in “Cash Flow Considerations” beginning at page 104.

Recommendation: We recommend that CMSD revisit periodically its assumptions to determine whether they are sufficiently conservative (or overly so) with regard to tax base changes and delinquency rates as the District pursues the issuance of the remaining $55,000,000 in authorized debt, or a potential new bond issue.