Contra Costa County Grand Jury • 2013-2014

Capital Appreciation Bonds*

Published: January 17, 2013 8 pages
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Findings and Recommendations 6 findings

F2
The high cost of Capital Appreciation Bonds has caused a higher, long-term debt for school districts in Contra Costa County that have used these bonds to finance construction.
No recommendations for this finding
F3
It is preferable for bonds to contain a "callable clause."
Related Recommendations (1)
R2
School districts should consider including "callable" provisions in all future bond issues. Contra Costa County 2013-2014 Grand Jury Report 1411
F4
Each of the subject school districts has a published repayment schedule of its Capital Appreciation Bonded indebtedness.
No recommendations for this finding
F5
The Auditor-Controller of Contra Costa County sets tax rates for properties in a school district to make sure principal and interest to bonded debts are paid when due.
No recommendations for this finding
F6
The County Tax Collector collects the taxes that are held in designated accounts of the County Treasurer for issuance of debt payments as directed by the County Auditor- Controller.
No recommendations for this finding
F7
The State Superintendent of Schools, the State Treasurer, and the California Association of County Treasurers and Tax Collectors have urged local districts to halt any further use of Capital Appreciation Bonds as a means of funding construction projects.
No recommendations for this finding

Additional Recommendations 1

These recommendations are not explicitly linked to specific findings.

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.