At its April 26 meeting, the Medical Lake School Board approved a resolution to allow the school district to refinance $13.7 million of its general obligation bonds from 2010.
The $13.7 million is what’s left from a $15.65 million school bond proposal voters approved in 2010 that funded construction of Hallett Elementary School and additions to the middle school.
According to Business Manager Chad Moss, the 2010 bond resolution included a call feature that allows the district to call back the bond for redemption prior to its maturity date of 2020. The bond currently has a 5 percent interest rate, which is higher than the current market rate.
Moss said the district hopes to sell the refinanced bonds to pay off the old bonds, and then pay off the new bonds with a lower interest rate to help local taxpayers save money in the long run. The Cheney School District recently went through a similar process with refinancing their 2010 bonds.
“We’re targeting a 7 percent interest savings and we’re currently looking at June 8 to sell the bonds,” Moss said.
Moss added that bond underwriter Jim McNeill of Foster Pepper will help the district with the process. The board also approved a resolution allowing Superintendent Tim Ames and Moss to authorize the sale of the bonds.
In other action items the board approved the first and second readings of Board Policy 6220 “Bid Requirements.” It also approved the annual resolution for Northeast Washington Educational Service District 101 to provide and administer the educational program for the Martin Hall juvenile detention facility for the 2016-17 school year.
In other business:
● The board approved the second reading of Policy 5253 “Maintaining Professional Staff/Student Boundaries.”
● Hallett Elementary was named a “School of Distinction” for 2015.
Al Stover can be reached at al@cheneyfreepress.com.
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