February 20, 2004

Enumclaw Board of Directors Saves 1.4 Million Dollars in Bond Refunding

The Enumclaw School District Board of Directors met in special session on Thursday, February 19, 2004, for the purpose of refunding over 23 million dollars in bonds at a lower interest rate. The Directors moved swiftly to take advantage of lower interest rates and refinanced outstanding bonds approved by voters in 1997. The effect of this action is to lower the bill for local taxpayers by savings of $1,478,667 over the next thirteen years. District superintendent, Dr. Art Jarvis emphasized that no additional funding is generated, but the District will be able to pay for outstanding bonds at a lower interest rate.

The refunding is the result of over fifteen months of monitoring the financial market. In 2002, the Board of Directors established a potential savings target, and directed the business office and the district's bond finance firm, Seattle Northwest Securities, to take all necessary steps to enable the District to refund the bonds if the savings target could be met. With a sudden recent drop in rates, the average interest rate for 1997 bonds was reduced from 5.34% to 3.72%. The target established by the Board was exceeded by these extraordinary low rates, resulting in these substantial savings. Dr. Jarvis also commended Mr. Tim Madden, Director of Business and Operations for his perseverance on behalf of the District and community.