Parkland officials OK seeking $9.5M in bonds to pay for school renovation, other projects

Parkland officials Thursday night signed off on borrowing up to $12 million in 2014 to help pay for a Kratzer Elementary School renovation and other district projects.

Although the parameters resolution school directors approved with a 7-0 vote calls for $12 million, Parkland plans to borrow only about $9.5 million, district Director of Business Administration John Vignone said.

Setting a threshold of $12 million will help Parkland negotiate a better deal on its bonds, according to financial advisor Scott Shearer, of Public Financial Management Inc., or PFM.

"What's in the resolution is $12 million...but we're going to be much closer to $9.5 million," he said, noting that Parkland should borrow no more than $10 million annually in order to keep its bond interest rates low.

Since Parkland in the first half of 2014 plans to refinance 2005 bonds totaling about $16 million, it's best for the district to take on no more than $9.5 in new debt, Shearer said.  Refinancing the 2005 bonds will save Parkland money, but it will also mean about $500,000 in new debt will shift to 2014, he said.

Parkland borrowed $10 million in 2013 and is looking to borrow another $10 million in 2014 and 2015 to pay for the roughly $9 million Kratzer renovation and other projects a feasibility study recommended the district tackle over the next few years.

Kratzer, in South Whitehall Township, hasn't been updated since 1991. Repairs or improvements to the school's roof, windows, acoustic tiles, driveway, kitchen, electrical system, heating and cooling system, and cabling are part of the project.

Moving the main office closer to the entrance and creating separate driveways for buses and parents' vehicles are part of the renovation, as are building code upgrades and asbestos abatement.

Improvements at Orefield Middle and Kernsville Elementary schools, in addition to district-wide technology infrastructure upgrades, the purchase of new buses and the installation of keyless entry and surveillance camera systems are also covered by Parkland's 2013 bonds, and those they plan to seek for 2014 and 2015.

School directors Barry Long and Jef Reyburn were absent from Thursday night's meeting.

Source: Lehigh Valley Live