§ 101038 Community College Bond Interest

• •Money from bond premiums and interest must stay in the Capital Outlay Bond Fund.
• •That money can be transferred to the General Fund.
• •The transfer is used as a credit to lower bond interest expenses.

A community college sells bonds and gets $1 million in extra payments and interest. That $1 million stays in the Capital Outlay Bond Fund, and the college can later move it to the General Fund to lower the amount it has to spend on bond interest.

The extra money is kept in the bond fund first, then it can be transferred to the General Fund and counted as a credit, which reduces the college’s interest costs.