The bonds offered are municipal bonds. The district offers bonds for sale and pays investors back plus interest from property taxes that are not subject to legislative limitations like Measure 5. Some of the bonds offered for sale are tax-free, which can be attractive to large investors.
When bonds are issued for sale, they are offered in packages – the whole bond package amount approved by the voters is not usually issued all at one time. The offerings are based on the construction schedule over a 6- to 8-year period. As the packages are paid off, the levy rate will fluctuate year-by-year.