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Downingtown Area SD discusses reimbursement resolution for Beavercreek and West Bradford projects
Summary
Superintendent Dr. O'Donnell and district finance staff described a reimbursement resolution that would allow the district to use capital reserves for Beavercreek and West Bradford projects and later reimburse those reserves from a future bond, with a not-to-exceed figure of $20 million listed.
Superintendent Dr. Matthew O'Donnell told the Downingtown Area School District Committee of the Whole that the board has on its agenda a proposed reimbursement resolution to allow the district to use capital reserve funds now for work at Beavercreek and West Bradford and reimburse those reserves from a future bond issue.
“The first relates to a proposed reimbursement resolution, which is on your agenda,” Dr. O'Donnell said. He told the committee the measure is an administrative step to document an intent to reimburse recent and upcoming capital expenditures for the two projects.
Brian (staff member) summarized the measure’s mechanics: “It states we use money from our capital reserves for the Beavercreek and West Bradford projects. And it states that we are kind of saying that we intend to reimburse some of those monies to our capital reserve with a future bond issue.” He added the resolution does not itself authorize new debt: “What it doesn't do is authorize any new debt or bonds tonight.”
Board members asked for an approximate cap. Brian noted the reimbursement resolution includes a not-to-exceed amount of $20,000,000 to satisfy Internal Revenue Service requirements and said, “We don't foresee that the amount is gonna is gonna exceed that.”
Dr. O'Donnell and board members framed the resolution as a financing tool rather than an immediate borrowing decision, saying the district currently has funds to complete the work and that the resolution preserves the option to reimburse the capital reserve when bonds are issued later.
The finance committee's agenda later lists “approval of reimbursement resolution for Beavercreek and West Bradford construction projects” as an action item. The transcript records discussion of the measure but does not record a formal motion, seconder, or final vote on the reimbursement resolution in the portions provided.
The district indicated the reimbursement approach would allow reallocation of capital funds for other priorities now while keeping the option to refund those reserves from a future bond issuance. No timeline for a parameters resolution or bond sale was specified in the meeting record.
Board members asked for follow-up materials and clarity about timing; staff said they would return with further details as the process advances.
