South Fayette Township SD reports $14,402 near‑term debt‑service savings from bond sale; final budget vote set for June 17

South Fayette Township SD officials reported improved results from a competitive bond sale and updated the board on changes to the 2025–26 budget, with a final budget and millage vote scheduled for June 17.

The district’s bond sale, conducted through financial advisor PFM, received six bids from five bidders and produced a winning bid with a yield of 4.68. The district’s presenter said the sale reduces the district’s 2025 debt‑service cost by $14,402 and is projected to lower total costs over the life of the 2025 bond by just over $1.5 million compared with earlier projections. Officials said the district expects to receive the full deposit for the bond around June 24 and that PFM is finalizing an updated debt‑service presentation for the board.

The update also presented budget scenarios tied to different millage rates. Using a revenue projection that raises millage to the Act 1 index, the district currently shows a projected deficit of $5,531,637. At the district’s current millage rate of 26.7 mills, the presenter showed a projected deficit of about $7.8 million. The presenter said staff will continue to track line‑by‑line changes and will provide additional revisions next week before the June 17 vote.

Officials summarized several line‑item updates that have reduced budget pressure since the preliminary presentation. Those items include: a $39,714 projected decrease in salaries for overtime and placeholders for unfilled positions and a related benefits decrease of $16,541 (a net staffing decrease cited as $49,207 after offsetting state reimbursement changes); an anticipated $10,000 aggregate reduction across auto, property/liability and cyber insurance and a $15,799 reduction for workers’ compensation costs; an $8,000 reduction in disposal‑services costs after receiving new vendor quotes; and an anticipated $20,000 increase in access funding drawn from the AIU.

The superintendent and staff also flagged several planned or proposed capital and contract items that will affect the 2025–26 budget. Among those are a districtwide Wi‑Fi replacement project to support state online testing, priced at $466,986.41 total with an estimated E‑rate allocation of $126,679.20; the presenter said the replacement would be financed through a leasing agreement anticipated in June 2025 and charged to the 2025–26 technology budget if approved. Facilities items noted in the packet include a new rooftop unit for the high school quoted at $233,870 and a recommendation to contract CEC Civil & Environmental Consultants for geotechnical and infiltration testing at the proposed elementary school site, quoted at $103,700.

Board members asked technical questions about the bond sale and spread; the presenter answered that the winning bid was 4.68, slightly better than PFM’s earlier projection. Staff said they will continue to work with PFM and counsel to finalize documents and will post an updated debt‑service schedule for board review.

The board previously approved a proposed final budget at an earlier meeting, and staff described the adjustments being tracked to present a final version on June 17. The presenter emphasized that further changes will be shown by specific line items so board members can see how the budget evolves.

Next steps: staff will finalize bond closing documents with PFM and counsel, circulate the updated debt‑service presentation, continue departmental budget reviews, and return to the board with revisions next week and a final vote on June 17.