Eatonville board hears bank-placement option for limited general obligation bond and considers capital projects budget increase

At a school board meeting, the Eatonville School District heard a presentation on using a bank placement of a limited general obligation (LGO) bond to front‑fund capital projects and discussed a separate resolution to increase the capital projects fund ceiling to hold capacity for those projects.

Corey Baker, a financial adviser visiting from Spokane, told the board the district could use a delegated‑authority resolution that would let district leadership negotiate a bank loan within set parameters. Baker said the proposed parameters in the draft resolution capped the borrowing at $4,800,000, set a five‑and‑a‑half‑year term and placed a 6 percent maximum on interest. "This is called a delegation resolution... not to exceed $4,800,000," he said, adding the preference would be for prepayable terms so the district could refinance or prepay if circumstances change.

Baker described three statutory limits that apply to LGO bonds: a cap on the district's debt capacity (three‑eighths of 1 percent of property…