Sean C. Morgan
The District 55 School Board authorized Business Manager Kevin Strong to refinance the district’s current bond when he can.
State law permits districts to refinance bonds when savings reach 3 percent of the “net present value,” Strong told the board Monday night. The move is similar to refinancing a home.
When the savings reaches the threshold, the district can borrow money to cover the bond.
The bonds, $17.29 million worth, are not callable until 2011, so until then the district would place the funds in an escrow account, which would invest in U.S. Treasury securities to help offset the interest those funds.
The procedure takes into account fees and expenses, including interest on the proceeds of refinancing, leaving a net interest rate on the district’s 2001 bond of 4.51 percent. The bond has an interest rate of 5.25 percent.
The lower interest rate would save the district taxpayers $858,000 spread out over the next 24 years, Strong said. The district estimates a total repayment on the bond of $33,794,522.50 through 2029.
In 2005 dollars, the savings would be a $541,602.24.
“Our investment banker, Seattle-Northwest, believes there is a reasonable likelihood that interest rate changes will allow the district to meet the 3-percent savings requirement in the near future,” Strong said. He needed authorization to take advantage of the opportunity when it happens.
The $18.6 million bond was used to rebuild the high school, complete additional classrooms at Hawthorne Elementary School, upgrade heating and air conditioning projects, remove underground fuel tanks, upgrade lighting and a variety of other projects. Most bond projects are complete.
Present at the meeting were school board members, Dave VanDerlip, Tim Crocker, Milt Moran, Scott Proctor, Don Hopkins, Dave Kem, Mike Reynolds and Diane Gerson. Barbara Snow was not present.
In other business, the board:
– Indicated its support to the Husky Booster Club for its plans to develop the fields south of the football field and north of the junior high into new varsity softball, baseball and soccer facilities off 22nd Avenue.
Richard Dodge and Jim Cota presented the proposal to the School Board on behalf of a recently reactivated Booster Club.
The group has set a long-term goal of constructing the new complex within two to three years using primarily volunteer work and fund-raising activities to complete the projects.
The club also wants to terrace the hillside south of the fields for spectator seating. The board did not support this feature with details for maintenance uncertain.
Other features would include a crow’s nest, a batting cage, lighting and an underground sprinkler system.
The first phase of the project is surveying and designing the fields. Phase two would begin in the spring or summer and address drainage issues. The club has applied for a $2,500 grant with the Community Foundation to help in this phase.
The third and fourth phases would begin in the summer and include installation of backstops, fencing, dugouts and field preparation. The project would extend through spring or summer next year.
The club would like to complete the soccer field for use by fall 2006 and the baseball field by 2007.
The fifth and sixth phases will be ongoing, including installation of the sprinkler system.
The Booster Club will obtain all permits while District 55 would remain in charge of maintenance.
The club hopes that improved and additional fields will encourage more children to participate in junior high and high school sports. It will also provide more fields for the community’s adults and youth and allow more tournaments to be played in Sweet Home.
The soccer program would have a regulation field, 110 yards, instead of the small one, 100 yards, it uses now.
The club would like the district to contribute a portion of the funding for the project, but the board did not commit to any funding Monday night.
— Announced that three at-large positions, Holley, Liberty and Cascadia were open in the upcoming election. Filing deadline is March 17. Current board members with terms expiring this year include Dave Kem, Milt Moran, Tim Crocker, Diane Gerson, Don Hopkins and Barbara Snow.
Moran and Crocker told the board they would not seek another term. Hopkins said he would not commit to a decision to run yet. Gerson told the board she planned to run again. Kem did not announce his intentions to the board. Snow was absent.
Forms for filing to run for office are available at the Central Office. Persons may call 367-7126 for more information.