District plans to borrow $40M for high school renovation without tax increase

The Pleasant Valley School District held a Board of Education meeting on April 10, 2025, focusing on financial updates and project funding strategies. The session began with a detailed presentation on the district's capital reserve and financing plans for ongoing projects, particularly the high school renovation.

The discussion highlighted that the district anticipates utilizing approximately $13.1 million from its cash reserves to complete the high school project, with no additional borrowing planned at this time. The administration emphasized that while this is the current strategy, they have a contingency plan in place should unexpected financial needs arise in the future.

A significant point raised was the district's ability to maintain a 20-year financing term for the $40 million borrowing necessary to fund the project, which is considered favorable compared to the typical 25 to 30-year terms seen in similar projects. The board was informed that the district has all necessary millage in place to support this funding without requiring further increases, barring any unforeseen circumstances.

The meeting also covered the capital reserve account, which reported an available balance of approximately $15.99 million as of March 31, 2025. The funds from previous bonds were noted to have been allocated to various components of the high school project, although they have not yet been spent. Interest earned on these funds has been rolled into construction costs, effectively reducing the overall financial burden for the renovation.

Additionally, the board reviewed the Eptem reserve balance, which stood at about $5.02 million, ensuring compliance with the required four-month reserve policy. This financial stability was acknowledged as a positive aspect of the district's fiscal management.

The meeting concluded with a transition to discussions on food service operations, where the cafeteria meal totals for March were set to be reviewed. Overall, the session underscored the district's proactive approach to managing its finances and ensuring the successful completion of its educational facilities projects.