Agency: State Board of Education (on behalf of school districts and Florida College System Institutions).
Purpose: The bonds are issued for the purpose of financing capital outlay projects for school districts and Florida College System Institutions. Such projects generally include classrooms, laboratories, maintenance facilities and parking lots.
Security:
- Pledged Revenues: The bonds are payable primarily from the first revenues derived from the motor vehicle license taxes which are levied annually for the operation of motor vehicles in Florida and distributed to the respective education districts. Distribution of the tax revenues to the school districts is based on a student enrollment formula established by law. One hundred percent of such taxes are available for debt service on capital outlay bonds, if needed. The bonds are also secured by the full faith and credit of the State of Florida.
- Debt Service Reserve Fund: No debt service reserve fund is required for capital outlay bonds.
- Lien Status: The bonds have a first lien on the pledged motor vehicle license tax revenues.
- Additional Bonds Test: Additional parity bonds may be issued on behalf of any district if the motor vehicle license taxes accruing to it are at least 112% of the average annual debt service on its outstanding bonds and the proposed additional bonds.
Frequency: Typically, one new‐money issue per year.