Allentown School District officials told the finance committee they closed a financing in late 2024 for just under $15 million, locking a 25‑year fixed rate a little over 4 percent and capturing savings on bond insurance tied to a two‑notch upgrade by Standard & Poor's to a BBB rating with a positive outlook.

The district’s advisers said the rating upgrade reduced borrowing costs on that issue and contributed to about $300,000 in bond‑insurance savings on the $15 million transaction. The advisers warned, however, that a downgrade of even one notch could raise borrowing costs materially on a larger financing: they estimated a one‑notch downgrade could increase borrowing costs by about $1.5 million on the size of the next planned issue.

Officials said the district still plans to finance a much larger portion of the K–8 program later this year (presenters referenced “about $100 million or so” remaining to finance). The advisers recommended planning for a sustained revenue source to pledge against the K–8 debt service to protect the district’s rating.

Millage examples and taxpayer impact: the presentation offered two multi‑year, phased millage options designed to spread the new debt service over three years. Both sample options produced similar household impacts: for a property with a $107,000 assessed value example, the advisers said the combined three‑year increase would total about $107 (roughly $35 per year). For a $150,000 assessed value example, the advisers projected an increase of roughly $50 per year spread across three years.

Transportation and charter costs discussed: board members and parents pressed the business office about a roughly $500,000 increase tied to the district’s first year with a new STA transportation contract; some parents said service has improved despite the higher cost. The business office also described PDE’s charter tuition calculation process and said projected per‑pupil charter tuition for general education was roughly $13,500 for the 2024–25 preliminary calculation; staff said the PDE spreadsheet and reconciliation process drive charter tuition figures rather than an enrollment increase alone.

What happens next: finance staff said they will return with more detailed budget scenarios, and the board will consider whether to phase millage increases across multiple years to reduce immediate homeowner impact while protecting the district’s credit rating.