Bonds, Bonds and More Bonds

This is not a typical blog post. In fact, I put it together in about five minutes to answer some points that came up in the .

The pictures attached to this bond is the long term debt pages of the 2010 Board of Education audit. It has a list of all payments scheduled for bonds. It does not include the interest. I made a conservative estimate of that. Here are my calculations for 2014:

There are three payments to the principal of the three bonds for 2014: $690,000,  $470,000 and $135,000. This comes to $1,295,000.  

Interest is based on the outstanding balance of the bond multiplied by the interest rate. I conservatively estimate bonds outstanding will be about $40,000,000 (probably high by $2,000,000). I estimate a 4.5 percent rate (higher than the the published rates in the audit.) This means interest at most will be $1,800,000.

Add the interest to bond payments and you get about $3.1 million dollars. I said it should be about $2.8 million dollars earlier, so I am comfortable with my estimate of $2.8 million dollars.  

There is no way to get $14 million from the long-term debt portion of the 2010 audit.