Lake Orion Community School District, Mich.'s state aid notes are secured by the district's full faith and credit GO pledge and are payable from state school aid. Note proceeds will fund the district's fiscal 2001 operating cash flow needs. Projected debt service coverage by net available ending general fund cash balances at Aug. 22, 2001, is very strong at 1.16 times (x). Debt service coverage is likely to be higher than projected because the district conservatively projects its cash flows. The district's financial position is good. The district closed fiscal 1999 with a $4 million reduction in its general fund balance to $2.88 million (6.5% of operating expenditures) as a result of transfers made to the school services fund for
