WEATHER
The Peninsula School District Board of Directors enacted a handful of policy changes last Thursday night.
Some changes, like the refunding and refinancing of a district bond, will save taxpayers $100,000 during the next two years. Others, like a hazard mitigation plan and energy management plan, are long-term processes that will provide financial savings to the district.
Many of these changes come before the completion of two major projects within the district: strategic planning and creating the budget for the 2008-09 school year.
Bond refinancing
The idea of refinancing the bond — which is currently worth $3.1 million — was introduced by Finance Director Karen Sexsmith at the Feb. 14 board meeting. Sexsmith had been informed by Seattle-Northwest Securities, the company that manages the PSD’s bond, of a potential savings through lowering the bond’s interest rate.
“They approached us and said, ‘You have an opportunity here,’ and we started to look into it,” she said.
The original bond was acquired in 1990 for $37 million and was used to pay for constructing and improving existing school facilities, as well as other capital improvements. The district first refunded in 1996 before doing so again last week.
Essentially, refinancing the bond is equivalent to refinancing a mortgage on a home. By acquiring a lower interest rate on the bond — which is basically a loan used to pay for maintaining public schools — the district will have less to pay back. And since those bonds are partially paid back through property taxes, those savings will be passed on to taxpayers.
Sexsmith explained that, although individual taxpayers may not see a big change in their property taxes, the district felt that seizing the chance to save money showed an intent to take taxpayers into consideration when making decisions.
“It’s not much, but at least it’s something,” Sexsmith said.
PSD board members voted unanimously to approve the refinancing of the bond, which will officially happen later this month.
“By and large, we ended up with lower payments,” board member Matt Wilkinson said.
Creating a safer district
The PSD is also working with the state to review a Hazard Mitigation Plan. The plan is designed to reduce risks from natural or man-made disasters — including events such as tornadoes or terrorist attacks — and to serve as a guide for district administrators to navigate those disasters, if they happen.
Richard Schroedel of the Department of Energy Management presented the preliminary plan at last Thursday’s board meeting.
The PSD’s plan includes partnering with local police and fire departments, training school staff and partnering with local businesses. It also involves repairing and constructing some facilities, such as leaking gym walls at Key Peninsula Middle School.
The state government and the Federal Emergency Management Association must next approve the plan before it can be implemented.
Conserving money and energy
PSD board members heard and are currently reviewing a presentation by Ed Graff of Energy Education, Inc., a company that promises it can save the district nearly $4.5 million in the next 10 years by implementing an energy-saving program.
“It’s impossible for you to get hurt with this program,” Graff told the board at last Thursday’s meeting.
The program would involve hiring an energy manager to oversee the four-year contract.
Graff has presented the same program to the PSD board of directors four times in the past few years. The district has declined the proposal every time.
This time, the board seemed more interested: Superintendent Terry Bouck told Graff he would review the proposal with Associate Superintendent Chuck Cuzzetto.
Preparing for budget changes
Cuzzetto informed board members about changes that might affect the district’s 2008-09 budget. For one, Cuzzetto said enrollment within the district has declined slightly during the past few years, which affects state funding.
He also explained state-mandated cost-of-living increases for school faculty and staff, which requires that the district pay about $1.2 million more for health, retirement and other benefits than last year.
The PSD’s budget will be officially determined next month and put out for public review at forums in May.
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