PL PACKETS 09211999 - Laserfiche WebLink

Home Browse Search

Ad Valorem Tax- A tax based on the value (or assessed value) of property [Latin: to the value added]. Bond Year-An element in calculating average life of an issue and in calculating net interest cost and net interest rate on an issue. A bond year is the number of 12-month intervals between the date of the bond and its maturity date, measured in $1,000 increments. For example, the "bond years" allocable to a $5,000 bond dated April 1, 1980, and maturing June 1, 1981, is 5.830 [1.166 (14 months divided by 12 months) x 5 (number of$1,000 increments in $5,000 bond)]. Usual computations include "bond years" per maturity or per an interest rate, and total "bond years" for the issue. Call-Actions taken to pay the principal amount of the bonds prior to the stated maturity date, in accordance with the provisions for"call" stated in the proceedings and the bonds. Callable - Subject to payment of the principal amount (and accrued interest) prior to the stated maturity date, with or without payment of a call premium. Costs of Issuance-The expenses associated with the sale of a new issue of municipal securities, including such items as printing, legal, and rating agency fees, and others. In certain cases, the underwriter's spread may be considered one of the costs of issuance. Dated Date (or Issue Date) - The date of a bond issue from which the bondholder is entitled to receive interest, even though the bonds may actually be delivered at some other date. Debt Limit- Statutory or constitutional limit on the principal amount of debt that an issuer may incur(or that it may have outstanding at any one time). Debt Service - Principal and interest. Discount- (1) Amount (stated in dollars or a percent) by which the selling or purchase price of a security is less than its face amount. (2) Amount by which the amount bid for an issue is less than the aggregate principal amount of that issue. Estimated Market Value- The estimated selling price of a property, as determined by the County Assessor, in an arm's-length transaction between reasonable people. Market values are determined as of January 2nd of the assessment year and are used for determining taxes for the subsequent (tax payable) year. Issue Date (or Dated Date) -The date of a bond issue from which the bondholder is entitled to receive interest, even though the bonds may actually be delivered at some other date. Level Debt Service-The result of a maturity schedule that has increasing principal amounts maturing each year so that the debt service in all years is essentially "level." "Level debt service" is often used with revenue bond issues (and, in a familiar area, in the traditional approach to monthly payments on home mortgages). Maturity Date -The stated date on which all or a portion of the principal amount of a security is due and payable. Maturity Schedule - The schedule (by dates and amounts) of principal maturities of an issue. Minnesota Credit Enhancement Program - The Minnesota School District Credit Enhancement Program (the "Program") created by Minnesota Statutes, Section 126C.55 (the "Act"). Under the Act, if the District believes it may be unable to make a principal or interest payment on the due date, it must notify the Commissioner of Children, Families and Learning as soon as possible, but not less than 15 working days prior to the due date, which notice is to specify certain information. After consultation with the District and paying agent, and after verification