Salem-Keizer Public Schools marked its first major milestone in the implementation of the construction bond. The district sold $178.7 million of its bond authorization on February 25, 2009 to generate funding to pay for repair projects at 48 school and to construct four new schools. The favorable terms of the sale will bring a savings to taxpayers.

“This is a very important step among many we’re taking right now to get the people, structures and plans in place required for effective implementation of the bond. The funding is now in place and soon the sounds of construction will be heard at many of our schools as we work to improve student learning environments and protect our community’s investment in its public buildings,” said Sandra Husk, superintendent.

Chief Financial Officer Rich Goward said the district earned an A1-rating from Moody’s Investors Service and an AA-rating from Standard and Poor’s for its first issue of the general obligation bonds. The positive ratings mean the district’s general obligation bond issue has favorable investment attributes and superior ability for repayment. The district anticipates a second sale for the balance of the $242.1 million bond but a date has not been set.

The taxpayer cost for the bonds was originally estimated at approximately $1.21 per $1,000 of assessed value over the life of the bond, which is 31 years or less. New estimates based on the first bond sale bring the rate down to $1.06.

In the short time since voters approved the construction bond, the school district has been working diligently to put the necessary pieces in place to complete bond projects on time and on budget. Work on projects included in the bond begins this summer.

• Hiring of the architects, project managers and seismic engineers who will join the district’s Bond Management Team is underway. Bids have been received and reviewed. These firms and individuals will be responsible for creating the detailed, individual project plans, budgets and comprehensive timelines for completing the bond projects. The goal in this critical part of the process is to hire the best qualified candidates at the best price, following strict legal guidelines for contracting public work.

• A Citizen Committee for Bond Oversight will be formed in March to help assure bond projects are delivered to the community on time and within the promised scope and budget. This School Board subcommittee will involve 20 to 25 people and will meet quarterly, starting in early spring.

• The district is evaluating possible locations for three new elementary schools and one new middle school, the first step toward buying land for construction.

• The Facilities Department is gearing up to do several bond projects during summer break, primarily roofing projects and the exterior sealing of buildings. Other projects will enter the engineering phase, such as HVAC system replacements. The projects scheduled for this summer are those with the shortest lead times.