Types of Bonds: Funding Bonds
There are a number of different forms of bonds/debt that a school district may issue to meet its financing needs.
Funding Bonds. Funding bonds may be issued in order to pay teachers’ orders or claims including lease obligations that a school district cannot meet from current revenues. In order to issue funding bonds, a school district follows a procedure similar to other backdoor referendum processes: (i) the school board adopts a resolution declaring the district’s intent to issue bonds for a qualifying purpose; (ii) notice of intent to issue the funding bonds is published in a newspaper within the district and if there is no newspaper within the district then a newspaper having general circulation within district; (iii) the notice must inform voters of the district’s intent to issue bonds and that the bonds shall be issued unless a requisite number of voters1 sign a petition and present such petition to the board secretary within 30 days of publication of the notice.