On Dec. 11, Lopez Island School District sold $9.6 million of school renovation bonds for a lower-than-expected interest rate, resulting in a significant reduction in borrowing costs from pre-sale projections.

With strong demand and an end-of-year low in school bond yields, Lopez School District locked in an overall interest rate of 2.6 percent, below the 3-plus percent originally estimated. As a result, while keeping to the same incremental property tax mileage rate of 31 cents per thousand of assessed value, the district was able to achieve a 15-year repayment term. In other words, with no increase in the annual cost to taxpayers, the bonds will be fully paid five years earlier than had been expected.

“We are so appreciative of Decatur and Lopez voters for supporting this major investment in our school and kids. At the same time, we are thrilled to have locked in an interest rate and cost to property owners that is significantly lower than we had estimated prior to the election,” stated board chairperson John Helding.

Lopez School District was assisted by the underwriting firm of Piper Jaffary & Co. in Seattle. In addition, the district was pleased and appreciative that Islanders Bank was a vital participant in the sale purchasing a portion of the renovation bonds to add to its investment portfolio.

With this major milestone completed, the renovation project continues forward. Currently the district is soliciting interest for community member positions on the Project Design Advisory Committee as well as requesting qualifications from parties interested in the critical project manager role. Information on how to apply for either position is on the Lopez Island School District webpage: www.lopezislandschool.org.