The Davis County School District plans to refinance about $41 million of its debt including $4.7 million in new money for portable classrooms and renovation at Central Davis Junior High School.
The Davis County School Board voted last week to sell general obligation bonds for the amount on Oct. 19. Along with the new funding, the district would refinance $36 million of its existing debt to help cover a $1.2 million insurance program shortfall. Superintendent Richard Kendell said the additional bonding is still within limits set during a public bond election in April."We would be able to lessen our annual debt service by extending payments," Kendell said.
Board President Sheryl Allen said that about $1 million is needed to clear the district's insurance debt. As a result of teacher salary negotiations the district agreed to switch the troubled insurance program from a self-insured system to a statewide insurance pool.
"We see this as the best way to assume that debt and clear this insurance thing up," Allen said.
The bonds will be sold by sealed bid on the open bond market rather than through a negotiated sale that is commonly used by government. Kendell said with the current market stability the public sale is likely to give the district a better chance to get lower interest rates.