The Neshaminy School District’s “roadmap” for the future marches forward.
The school board voted 7-2 Tuesday evening to borrow $53.9 million to finance $20.9 million in renovations for three schools and build a new $33 million elementary school in Lower Southampton. The district also plans to restructure nearly $28.4 million in outstanding debt.
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During a roll call vote, board members Mike Morris and Ron Rudy voted against the resolution to set bond parameters.
According to a plan laid out by financial professionals, the borrowed money would be paid off by 2037 and end up costing the district $108 million.
Michael Lilly of RBC Capital Markets said last week that the impact on the yearly district budget would not exceed $400,000. He added the time for the district to act is now because “interest rates are very favorable.”
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Board member Stephen Pirritano reiterated this week that the bond would allow the district to take on the consolidation project without having to raise taxes because of it.
In total, the district will spend about $700,000 in costs related to preparing the authorizing and implementation of the bond sale, officials said.
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According to bond documentation, the bond sale would happen in late February to lock in rates and settlement would be in late March.
