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Apatang seeks to allow PSS to loan $20M
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Posted on Aug 02 2008
A lawmaker has proposed allowing the Public School System to borrow up to $20 million for construction projects.
Rep. David Apatang on Thursday introduced a House joint resolution authorizing public borrowing for the construction of gymnasiums at five high schools, classroom renovations, and other capital improvement projects.
To be adopted, the resolution must be approved by two-thirds of the members in each house of the Legislature.
The proposed bond will fund the building of new gymnasiums at Saipan Southern High School, Kagman High School, Hopwood Junior High School, Rota High School, and Tinian Jr./Sr. High School, as well other unidentified school-related capital improvement projects.
The resolution limits the range of allowable interest rate to 4 percent to 5.5 percent each year, and the term of repayment to 15 years. The bond will be repaid by the central government.
The construction of new gymnasiums is part of PSS’ seven-year capital improvement plan. The CIP plan encompasses PSS’ high priority school facility needs from school year 2004-05 to school year 2011-12. It was drafted in anticipation of continued increase in student population.
In 1999, PSS floated a $16-million general obligation bond also for capital improvement projects at the schools. PSS is expected to make the final payment to bondholders at the end of the current fiscal year.
