SILVERDALE – Plans for a $260 million major upgrade to Central Kitsap School District buildings took another step forward as the school board voted to approve authorizing the issuance and sale of $220 million worth of unlimited general obligation bonds.

[ RELATED: CKSD study session (pdf) ]

The CKSD school board met March 9. Because CKSD’s buildings are more than 30 years old, they’re eligible for $40 million from the State of Washington’s School Construction Assistance Program. Local taxpayers will be responsible for the remaining $220 million.

The district has 120 days to work with its financial consulting firm, PiperJaffray, to go to market. The district could potentially issue bonds April 21-22, with funds from the sale being available for use in May. Then, the district can begin moving forward with “phase II” of its Long Range Facility Plan. Phase II includes building a new CK high and middle school, and making upgrades to all other district buildings.

CKSD Superintendent David McVicker said the district had earlier anticipated selling $220 million worth of bonds in four $55 million sales, one each year from 2016-2019. But now, the district plans to sell all $220 million worth of bonds in one large sale, “for the purpose of capturing the lowest interest rate possible and shortest duration possible. It would essentially get our community the best deal that we can and still prepare for a Phase III in … 8 years,” McVicker said.

Market conditions are currently favorable, with low interest rates, “and conditions are daily moving,” McVicker said.

Board President Bruce Richards said the sale would be akin to locking-in a mortgage rate.

The district will meet with financial services companies Moody’s and Standard and Poor’s at the end of the month.

“Go out and sell some bonds,” Richards said.