PORT ANGELES — The Port Angeles School District will refinance a $9.5 million bond approved in 2001 bond at a lower rate.
Refinancing the bond, which voters approved to rebuild Jefferson Elementary School and make other facility improvements throughout the district, saves taxpayers about $244,000, said Jon Gores, senior vice president for D.A. Davidson & Co., which handles the bonds for the district.
The board unanimously voted Monday night to issue $6.27 million in refunding bonds to pay off the previous bonds which were taken out at a higher interest rate.
4.85 percent interest
The old bond had a 4.85 percent interested rate and the interest rates have recently averaged 2.16 percent, Gores said.
“These funds do not in any way come back to the district or supplement our budget,” board member Patti Happe said.
“The only purpose of this is to save taxpayers a little bit of money.”
The bonds will expire in 2015, the same year as the old bonds, said Jim Schwab, executive director of business and operations.
“We will issue the new bonds at a lower interest rate, and that allows us to pay off the older bonds,” Schwab said.
Saves taxpayers
The move would save taxpayers money because will be collected in property taxes between now and 2015.
The district saved 3.84 percent, Schwab said.
The board required a savings of 3.62 percent in order to refinance, he said.
“Whenever we can save taxpayers money, no matter how little that might be, we want to do what we can,” Schwab said.
Like a home loan
Refunding the bond is like a homeowner refinancing a home loan for a lower rate.
D.A. Davidson will now market the bond at a lower rate, which hasn’t yet been specified.
The 2001 bond earmarked $4.2 million to upgrade and renovate Jefferson Elementary School. Four newer additions to the 1922 building were built.
About $3.6 million from the bond was used for safety improvements and to replace heating, electrical and plumbing systems at other district schools.
About $2 million went to upgrades to the science labs, gyms, cafeterias and music rooms.
__________
Reporter Paige Dickerson can be reached at 360-417-3535 or at paige.dickerson@peninsuladaily news.com.
