OTHELLO — The Othello School District signed an agreement Monday to sell $28.6 million in bonds to Seattle-Northwest Securities.

Bond Council Jim McNeill said the district is going to have the full amount in hand June 26 to begin its list of improvement projects.

The estimated collection rate in 2008 is $2.62 per $1,000 in assessed home value, said Seattle-Northwest Securities Vice President of Public Finance Mark Prussing. Projected tax rates remain nearly steady for the duration of the 20-year bonds issue.

Prussing said if the assessed value continues to grow as it has been, the tax rate could drop considerably lower.

"My expectation is these numbers will all be lower five years from now," he said.

Along with $35.3 million in state matching funds, the bonds sale supports new classrooms for McFarland Junior High School, new classrooms for the elementary schools, a modernization of McFarland Junior High School and a modernization of the elementary schools.

After new classrooms are added to McFarland Junior High School, the school is going to serve as a traditional middle school.

Othello High School is going to be reconfigured for additional classroom space, and a multipurpose room is going to be added.

In addition to 50,000 square feet of new space being added to the schools, approximately 175,000 square feet of district space is being remodeled, said District Superintendent George Juarez.

McNeill said the district locked in an interest rate for the bonds sale of 4.65 percent. Although interest rates were volatile last week, they are still at a near historical low, he noted.