"In November 2005, the Board passed Resolution No. 1969 authorizing a special election on
February 7, 2006 in order to propose the issuance of general obligation bonds in the amount
of $436 million. The bonds were to be used for Phase II of the district’s modernization
program which modernized 11 schools and built one new school (Carson Elementary). The
bond election passed, and the district proceeded to sell $425 million of the bonds over the
next six years to complete the projects.
The projects were completed on time and under budget.In October 2014, the Board passed Resolution No. 2196 authorizing the remaining bond proceeds and State Construction Assistance Program (SCAP) funds to be redirected to additional projects to serve the district’s growing enrollment. These short-term capacity projects included portables, upgrades to classrooms, an addition, future bond planning, internal building modifications, and property acquisition. After completion of these projects, there is approximately $24 million of SCAP funds remaining.
In October 2018, the Board passed Resolution No. 2257 authorizing the sale of the remaining $11 million of the bonds approved by voters in February 2006. Of this combined $31 million, $7 million will be used for portables. The remaining $24 million, plus the $120 million voter approved April 2019 Capital Projects levy, will be used for the district’s critical capacity projects
These projects include an addition to Lake Washington High School; auxiliary gym and commons expansions; classroom additions to Carson, Franklin, Rose Hill, and Twain elementary schools; and district-wide upgrades to building safety and security measures.
In order to redirect the unspent bond funds and unallocated state matching funds on additional projects, it is necessary for the board to hold a public hearing and adopt a resolution modifying the original bond resolution. A public hearing has been scheduled for May 6. Action on the adopting the resolution will be placed on the May 20 agenda.
RECOMMENDATION The Board of Directors holds a public hearing regarding redirecting of bond proceeds and matching funds as outlined in Resolution No. 2270."
-- LWSD website
School Board meeting packet, 5/6/2019
Bob Yoder, 5/6/2019
The Lake Washington School District received $33,000,000 in matching funds from the state that it reallocated in 2014 (Resolution 2196) for school construction projects and bond interest as follows: $4 million for bond interest, $14 million to purchase land at Redmond Ridge, $5 million for the new 7-classroom wing at Redmond El and $10 million for 41 portables. Total was $33,000,000. The money was spent and it's gone!
ReplyDeleteAt the May 6, 2019 school board meeting, the district introduced Resolution 2270 and now says that $20,000,000 of the $33,000,000 is still available and requests that the school board approve the reallocation of the funds for future construction projects and portables.
There is something wrong here. Study session documents from 2014 and past resolutions show that all of the $33 million in matching funds were specifically earmarked for the above expenditures.
So let's ask about each project:
The district spent $13,843,126 to purchase land at Redmond Ridge for the new middle school. What account did the district get the money from for the land purchase?
The district spent $5,100,000 on the Redmond Elementary addition. Where did the district get the money from for this project?
The district spent $4,064,303 to pay for interest on the 2012 LGO bonds. How did the district account for this expenditure?
The district spent $10 million on 41 portables across the district between 2014 and 2016. Where did the money come from?
These 4 major expenditures add up to a total of $33,000,000 and were supposed to be paid for by state matching funds. So we have to ask - if the $33,000,000 didn't come from matching funds, where did it come from?
The district seems to be double dipping here! They spent all of the $33 million and now they say that there is $20 million left. And if it is correct that the district somehow still has $20 million in matching funds leftover from 2014, why has the district never mentioned the money even as they have run bond measures in 2016 and 2018? What is going on here?