Reconstruction of Puyallup school part of district’s $15 million funding plan
The reconstruction for Ferrucci Junior High School is one of the projects that the Puyallup School District is proposing to fund short-term through bond of up to $15 million.
District staff consulted financial advisors and bond counsel to create a financing plan that would use a Limited General Obligation Bond. The bond would fund a portion of the costs associated with the school’s reconstruction as well as “critical capital facility projects and infrastructure improvements,” according to Monday night’s Puyallup school board meeting agenda item. The bond does not require voter approval and allows access to funds now with repayment later.
Sarah Gillispie, spokesperson for the school district, told The News Tribune the district is authorized to take on the debt for the bond without voter-approval under state law. It is repaid through existing district resources legally available for that purpose.
“The funding comes from the sale of a $15 million limited general obligation bond, otherwise known as an LGO bond. It allows the district to borrow funds for capital projects and repay the debt over time, which in this particular case is that two-year period,” she said.
The first reading of the resolution was presented to the board during the meeting. If approved, the bond would “address a temporary cash-flow timing need created by the significant costs associated with restoring Ferrucci Junior High.” It would also maintain progress on other voter-approved projects, according to the district.
Other projects include:
- Roof-replacement projects at Ballou Junior High School, Edgemont Junior High School and Spinning Elementary School
- HVAC system and equipment improvements at Aylen Junior High School, Emerald Ridge High School and Stahl Junior High School
There is no property tax increase associated with the bond should it be approved, Kyle Ritz, district director of finance and accounting, said during the board meeting. The financing does not replace funding from insurance reimbursements but provides access to funds as the reimbursements are processed.
“As mentioned, the challenge we are addressing is a timing gap. Construction costs must be paid on a set schedule, whereas insurance reimbursements are received over time,” Ritz said. “Again, this is not a shortage of funding. Just a mismatch in timing between expenses and reimbursements.”
An electrical-room fire on the main floor of the building’s new classroom wing damaged the school on April 4. The wing contained lead-acid batteries, and the fire caused extensive damage across multiple areas of the school, The News Tribune previously reported.
Central Pierce Fire & Rescue said the fire was “a failure in the emergency power battery backup system.”
Students have been in temporary learning locations since April 20 and will continue to be at the start of the 2026-27 school year. Students could remain in those spaces longer if the board does not authorize the bond, according to Ritz. Reconstruction for Ferrucci would take longer, other capital projects could be delayed and costs might increase.
“However, with a short-term financing solution in place, funding is available immediately. Reconstruction continues on schedule. Other projects stay on track and students return to permanent learning spaces sooner,” he said.
Gillispie said that a specific cost has not been identified for Ferrucci’s reconstruction efforts.
“So, the district is in need of accomplishing projects, which is anticipated to be no more than $15 million. And Ferrucci is part of that,” she said.
July 1 will be a public hearing and consideration for the resolution.
“If the board approves the resolution on July 1, the district will move forward with finalizing the bond sale and completing the closing process, so that is currently anticipated for July 9,” Gillispie said. “Then at closing, the bond purchaser, which is typically a financial institution, provides the funds, and the district receives the bond proceeds. Those proceeds are then deposited in the district’s capital projects fund, and can be used for the eligible capital project expenses that were noted in the resolution.”
The district said on its website the proposal is not intended to fund new projects.
