Board authorizes up to $16.25 million in school bonds to cover $75 million middle-high school cost overrun

The Lancaster County Board of Supervisors on Aug. 28 approved a resolution authorizing issuance of up to $16,250,000 in general obligation school bonds to fund the remaining cost of the county's new middle-high school.

Background: The new middle-high school is a $75 million project. The county previously secured $60 million in financing; the school board on Aug. 4 passed a resolution requesting the additional financing after guaranteed maximum price bids raised the total estimated cost to about $75 million. County staff said the board had earlier increased the capital budget in December 2023 to reflect the higher estimate but deferred seeking the additional financing until interest-rate conditions improved.

Why it matters: The bond authorization provides the county a financing path for the remaining roughly $15 million gap so construction can proceed to completion. County officials said they plan follow-up due diligence and to pursue financing late this year when market conditions are more favorable.

Meeting action: County finance advisers Ben Wilson (Davenport Public Finance) and bond counsel Dan Siegel (Sands Anderson) attended the meeting and were available to answer legal and financial questions. With no public comment, a supervisor moved to adopt the resolution and the board approved it on a voice vote. The resolution authorizes issuance of general obligation school bonds with a maximum principal amount of $16,250,000 and directs county staff to complete the subsequent financing steps.

Ending: Staff said the next steps include a due-diligence call and closing steps for market financing anticipated in late October; bond counsel and financial advisers will return to staff with schedule updates.