Federal Way Public Schools’ taxpayers gain to save $4 million in interest costs, thanks to the school board’s unanimous vote to approve the refunding of the 2007 and 2008 issue of bonds.

Jeri Carlson, executive director of business services for the school district, explained to the board during Tuesday’s meeting that the $4 million represents a savings target of 6.5 percent. This surpasses the 5 percent minimum savings target on the refunding of the 2007 and 2008 bond series.

“This is a nice chunk of money,” Carlson said.

The 2007 and 2008 bond series is part of the $149 million bond authorization approved by voters in 2007.

Also approved by the school board on Tuesday night was the sale of $10 million in new bonds. This is the fifth and final issue of new bonds in the $149 million bond authorization.

“This is new money,” Carlson said. “Proceeds will the support the rebuilding of Federal Way High School.”

Carlson explained the refunding of the 2007 and 2008 issue of bonds refinances the old bonds by issuing new bonds.

“It doesn’t create new money,” she said. “It simply retires that old debt. This reduces interest rates and passes savings on to taxpayers.”

The resolution approved by the board declares the bonds to be sold competitively. Bonds will be sold to the bidder that offers the lowest interest rate, Carlson said. The bonds are scheduled to go up for bid on April 9.

A second resolution the board approved on Tuesday authorized the school district to participate in the state-run School Bond Guarantee Program.

“It provides credit enhancement for the school district by the state pledging its full faith and credit to cover those bond payments in the unlikely event that the district would default on those bonds,” Carlson said.

Carlson also reported good news in regards to the school district’s management of its total tax bill.

“Within the next 10 years, 70 percent of our current outstanding debt will be retired,” Carlson said. “So, as we look to some of the future needs of our construction here in the district, that is some exciting news.”

Following board approval, interim Superintendent Sally McLean congratulated Carlson on her perseverance throughout the bond selling process.

“I just want to give a shout out to Jeri for being willing to take this on during a year where the business office continues to be short staffed,” McLean said. “I want to say thank you for saving our taxpayers $4 million. That is a significant contribution.”