Washougal School District Saves Taxpayers Money Through Bond Refinancing -03/17/25

Washougal School District has successfully taken advantage of current low bond interest rates to save taxpayers around $2 million dollars over the next ten years.  A sale of bonds authorized by the Washougal School Board of Directors at the January 28 school board meeting will refinance bonds issued in 2015.  The overall borrowing rate for the new bonds sold on March 11 is 3.10%, compared to the rate of 4.87% on the ten-year old bonds.

“This is a great opportunity to save our taxpayers a significant amount of money,” said Superintendent Aaron Hansen.  He emphasized that the anticipated savings will go directly to taxpayers by lowering future tax collections. “Refinancing the 2015 bonds does not save the district money, it directly benefits Washougal taxpayers.  This money will now stay in our community and local economy, rather than go to pay interest on our bonds.”

Although there has been substantial volatility in the bond market resulting in interest rates swinging over the past two months, the interest rates on these types of bonds are still relatively low compared to historical rates according to Shelese McConnell, the district’s School Finance Director.  “We have been monitoring the market closely, hoping to have an opportunity to refinance these bonds. We are very happy to be able to lock-in these savings to the district taxpayers in a difficult market,” said McConnell.   “This was our earliest opportunity to refinance these bonds.  We may have another opportunity next year to refinance the second half of the voter approved bonds, which were sold in 2016,  if rates remain low enough.  We are hoping to provide some additional savings, but we’ll have to wait and see,” notes McConnell. 

As part of the sale, the district received a strong credit rating of “A1” from Moody’s Investors Service, which helps lower the district’s borrowing costs.  Moody’s recognized that the district has been making good progress toward improving finances and restoring financial reserves. 

“We appreciate the investments local voters made in our schools when they voted to approve the bonds in 2015,” said Hansen. “This refinancing underscores our commitment to sound financial management of voter-trusted funds.”

WSD Improves Financial Health Score And Strengthens Financial Planning -03/12/25

Washougal School District (WSD) has made significant progress in improving its financial health, and the district is no longer listed as a district with a financial warning on the OSPI Financial Health Indicator list. This improvement reflects the district’s commitment to sound financial management, using community feedback to guide budget adjustments, and achieving long-term fiscal stability. The district’s OSPI School District Financial Health Indicator has increased from 1.55 in the school year 2022-23 to 2.6 in 2023-24. 

The Washington Office of Superintendent of Public Instruction (OSPI) assigns financial health scores to each school district in the state based on key indicators including the ending fund balance to revenue ratio, expenditures to revenue ratio, and cash on hand. Previously, WSD’s 2022-23 score placed it in the “financial warning” category, prompting the district to take proactive measures to stabilize its financial position. 

Superintendent Aaron Hansen emphasized the district’s commitment to responsible financial stewardship, stating, "we recognized the urgency of addressing our financial situation and took deliberate steps to stabilize our budget. We asked for community feedback to guide reductions, and led with reductions in areas furthest from the classroom. While challenges remain, we are on a positive trajectory and committed to being strong stewards of public resources. We are thankful for our positive relationship with our labor partners and their help supporting staff impacted by the reductions."

Next Steps for Continued Financial Stability

As WSD continues working toward long-term financial health, the district is implementing the following strategies to further strengthen its fiscal position and regain the full confidence of the community:

• Restoring the Fund Balance to 6% – The district remains committed to meeting its 6% fund balance policy, which provides the operational cash flow the district needs to pay bills each month as well as handle unexpected financial challenges.

• Advocating for Increased State and Local Funding – Given regional funding challenges, WSD is actively engaging with legislators and encouraging the community to advocate for changes in education funding to keep pace with inflation, fully fund special education, and fix the prototypical staffing model.

• Demonstrating Fiscal Responsibility – The district is reinforcing its commitment to financial transparency by providing monthly financial updates to the Board and implementing clear financial reporting to ensure informed decision-making.

• Developing a Long-Term Financial Plan – WSD is focused on building a multi-year financial strategy that ensures long-term stability, reduces the risk of future budget deficits, and sustains quality educational programs for students.

Commitment to Transparency and Board Engagement

At the request of the Washougal School Board, the district has increased the frequency and depth of financial reporting to ensure Board members remain fully informed. WSD now provides monthly financial updates, giving real-time insights into revenues, expenditures, and fund balance trends.

"The board is being provided with financial information in a clear, concise format to support our governance and decision-making," said Sadie McKenzie, WSD School Board President. “The board appreciates the ideas shared by the community and has worked closely with the Superintendent to make sure we are preserving excellent programs for students as we create a sustainable budget.”

As WSD continues working toward long-term financial stability, district leaders remain committed to collaborating with the Board, staff, and community to make informed, responsible financial decisions that support student success.