District finance team outlines plan for final $4 million borrowing; board names financial advisers

Jamie, a finance presenter for the Shippensburg Area School District, updated the board on a proposed additional $4,000,000 tax-exempt borrowing intended to finish several existing projects, including the high school STEM lab (GISA) project, a high school traditional bid project, a middle school parent loop and athletic facility lighting. "This will be an illustration for an additional $4,000,000 borrowing to finish up the existing projects," Jamie said.

The presentation explained why the district can use a parameters resolution — a board action that sets maximums for principal, interest rate and maturity to allow staff to enter the market on a single advantageous day rather than wait for a specific board meeting. Jamie emphasized compliance with IRS temporary-period rules for tax-exempt borrowing, including the requirement to expect spending 85% of proceeds within three years and having entered substantial binding obligations for at least 5% of proceeds.

Jamie showed the district's debt-service tables and projected that, even after the $4 million issue, the district's peak net debt service would be about $2,640,000, leaving some budget room compared with an earlier 2022 budget figure of roughly $3.4 million. The presentation included a proposed timeline: draft parameters resolution available for the June 9 meeting, possible vote at the June 23 meeting, sale as early as June 24 and settlement around July 29, should the board authorize the process.

At the planning-and-action meeting the board voted to appoint financial advisers and bond counsel for potential issuance. The board approved working with PFM Financial Advisors as financial advisers and with the named bond counsel (as read into the record) to support any general obligation issuance. The motion to appoint those firms was moved and seconded on the floor and carried without further amendment.

No parameters resolution was adopted at this meeting; Jamie presented it as the next formal step if the board wishes to proceed. Board members asked clarifying questions about budget impacts and the timing of the parameters resolution; Jamie said once parameters are set staff can complete the sale without a subsequent board action if the sale fits within the resolution limits.

Ending: The administration will prepare a draft parameters resolution for the June 9 packet and seek the board's direction on whether to place it on the June 23 agenda for a vote. If approved, staff indicated they could move quickly to market to lock in rates and settlement dates.