Lake Washington School District will soon offer sale of tax-exempt bonds

Local investors will soon have the opportunity to purchase tax-exempt bonds from the Lake Washington School District (LWSD).

Lake Washington School District - Contributed art

Local investors will soon have the opportunity to purchase tax-exempt bonds from the Lake Washington School District (LWSD).

The sale comes after district voters approved a $398 million, 20-year bond in April to build new schools to accommodate growth.

Barbara Posthumus, director of business for LWSD, said when the bond passed, that gave the district the authority to sell bonds and this is just the first of three phases of them doing just that.

This first phase will include about $165 million of funds. In addition, the sale will also include the refinancing of previously sold, unlimited tax general obligation bonds at lower interest rates. Posthumus said this will save taxpayers money.

“We are aiming to take advantage of historically low market interest rates for the bond projects and to deliver savings to our taxpayers with the refinancing,” she said in an LWSD press release.

According to the release, the district plans to provide local taxpayers with an opportunity to “invest locally” by purchasing some of the tax-exempt bonds.

Posthumus said this is the first time she can recall the district offering this to local investors, adding that the opportunity was born out of the fact that the last time LWSD passed a bond, people inquired about the possibility of purchasing bonds.

Typically, the district sells the bonds to institutional investors such as pension funds, with companies from all over the country, she said.

The LWSD press release states that the current offering for local investors is made only by the preliminary official statement, which will be made available by the underwriters and the district. The interest rates and taxpayer savings are expected to be finalized on or about Aug. 9.

Kathryn Reith, communications director for LWSD, said the district won’t be able to provide specific returns for investors until after this date.

According to the district release, Moody’s Investors Service has assigned its “AAA” credit rating to the bonds, the highest rating possible. S&P Global Ratings (formerly Standard & Poor’s Ratings Services) assigned the district’s existing “AA+” rating to the bonds. The rating agencies cited such factors as balanced budgetary performance, the large tax base, growing enrollment and good management policies and practices as positive credit factors supporting the ratings.

D.A. Davidson & Co. in Seattle is serving as senior managing bond underwriter for the transaction and Northwest Municipal Advisors is serving as the district’s municipal financial advisor.

For more information about the bonds or to obtain a copy of the preliminary official statement, contact D.A. Davidson’s Redmond office at (425) 497-3416.

More in News

The Council recognized the AFIS program as it celebrates 30 years of assisting law enforcement throughout King County. Councilmembers, AFIS staff and King County Sheriff Mitzi Johanknecht join AFIS regional manager, Carol Gillespie. Photo courtesy of King County.
King County Council recognizes Automated Fingerprint Information System

For three decades, AFIS has helped law enforcement solve thousands of cases.

Sarah Yount, former YES client, speaks at YES’s 50th anniversary celebration on Nov. 2. Madison Miller/staff photo.
Youth Eastside Services celebrates 50 years

YES celebrates 50 years of providing youth and family behavioral health services.

Nude suspect blocks traffic, fights officers | Police blotter

The Kirkland police blotter for Oct. 25 through Nov. 1.

Sky Metalwala has been missing for seven years. Photo courtesy of the National Center for Missing and Exploited Children
Police plead for help in search for missing boy

Sky has been missing since Nov. 6, 2011 and turned 9 years old on Sept. 2.

Protesters chant “What do we want? Justice! When do we want it? Now!” at the intersection of Northeast 124th Street and 124th Avenue Northeast Thursday evening. Kailan Manandic, staff photo
Kirkland locals rally in national protest to protect Mueller

Protesters across the nation respond to former Attorney General Jeff Session’s resignation.

From L-R: Panelist Roderic Camp from Claremont University, William Beezley from University of Arizona, Linda, and Guillermo Sheridan from UNAM-Seattle touched on the subject of U.S.-Mexico relations on Nov. 1 at Northwest University. Stephanie Quiroz/staff photo.
Northwest University hosts public academic conference

NU partners with National Autonomous University of Mexico to discuss U.S.-Mexico relations

Kuderer leads Tom; Walen over Bright

Legislative District 48 race. Results are preliminary.

One of the things Kirkland’s Proposition 1 will pay for is police services. Courtesy photo
Voters decide on city’s Prop. 1 measure

The sales tax increase for police services and community safety was passing as of election night.

Most Read