Through bond refunding, the Federal Way School District will save local taxpayers about $1.3 million. The bonds are from 2002, part of the 1999 construction bond series that paid for the construction of Todd Beamer High School, Sequoyah Middle School and Truman High School.

By refunding the bonds, the district can save taxpayers money on the interest costs.

The process is similar to refinancing a mortgage, Assistant Superintendent of Business Services Sally McLean said.

When bonds are originally sold, they are sold in a series. The bonds are structured to be refundable, with the interest rates monitored over time. The current economic downturn is actually good news for the district in this case because the current bond interest rates are low.

The district plans on using the School Bond Guarantee Program, which allows the district to use the state’s insurance rating, McLean said. The state’s insurance rating is slightly higher than the school district’s insurance rating, she said.

McLean also said that there isn’t any risk to refunding bonds. If the market were to change drastically in the next week and a half, the district can choose to retract the competitive bid request.

The estimated sale date is Oct. 12.