State and federal funds bolster school bond project
State and federal funds bolster school bond projects
The Oregon City voters who approved a $158 million school bond issue last November may be surprised to learn bond projects will benefit from an added $32.9 million in funds from other sources.
"Thanks to the Oregon School Capital Investment Matching program, we gained an added $7.7 million,” said Chief Financial Officer Susan Dodd. “This program was designed to incentivize local voters to approve school construction bonds.”
An additional $17.8 million came from the bond premium, an extra amount investors paid for the district’s bonds because they offer an interest rate higher than the prevailing rate.
“We will also receive $6 million in added funding from the interest earned by investing the bond funds until they are needed,” said Dodd. “Those funds are invested in low-risk funds that guarantee a steady return while protecting and enhancing the public’s investment.”
The district has also chosen to invest E-rate funds for technology infrastructure and funds from the Oregon Department of Energy for energy-efficient LED lighting tied to bond projects.
“By combining these added funds with our bond, we can tackle more school renovation projects, lower costs by combining different funded projects into one bid package, and also ensure we are covered in the event of any contingencies,” said Director of Operations Wes Rogers.
