Existing Debt v Restructured Debt
The following document is to provide the public with an explanation of Tioga ISD's Public Facility Corporation (PFC) existing debt from the secondary campus facility versus what that same debt, along with the existing "Voter Approved Debt" (currently what is left owed on the elementary campus facility) would be if voters approve the proposed $26,305,000 bond election (refinance) in May. Please keep the following in mind as you analyze the document: Coupons Rate is the interest rate paid on the bond(s) by Tioga ISD for the term of the bond(s). I&S stands for Interest and Sinking and is the voter-approved portion of the tax rate that provides funds for payments on the debt that primarily finances a district's facilities. M&O stands for Maintenance and Operations and provides for the daily operation of the school district. Currently, 100% of the high school facility bonds are paid by the District with M&O funds. The bond election (refinance) is being held to move small portions of the existing high school facility debt a little at a time, over the course of time, so we can eventually pay for the high school facility with I&S funds "as property values allow" until the payments for the entire $26,305,000 (balance currently owed) are made using only I&S funds. There is also an option listed at the bottom of the document that explains if the bond election (refinance) fails and we are unable to move the first portion of the PFC debt out of M&O and to I&S.
