Board reviews grade‑configuration plans and multi‑hundred‑million dollar facility options; staff asks for direction on sequencing

The Chambersburg board on Tuesday reviewed design schedules, estimated construction costs and financing scenarios tied to the district’s Schools of Distinction and grade‑configuration work.

Administrators and consultants presented a draft schedule and four high‑level options for moving forward with three major facility projects: a new 7–8 middle school, a new intermediate school for grades 4–6, and a new elementary (Grandview). Preliminary cost estimates provided by financial advisors put the combined borrowing need for the 4–6 and 7–8 projects at about $231 million; Grandview would add further cash or borrowing needs depending on sequencing.

Why it matters: the projects would reshape grade configurations, affect staffing and operating costs, and materially increase district debt service — potentially adding tens of millions in annual debt payments when fully realized.

Key elements of the presentation - Preliminary schedules and estimates: architects and staff provided draft construction timelines that would place substantial work in the 2026–2029 window. Example milestones included start dates and multi‑year construction periods for the 7–8 and 4–6 projects. - Estimated costs and savings: the intermediate (4–6) project was estimated at about $114 million and the 7–8 project at about $117 million (rough totals). Staff estimated possible one‑time proceeds from building sales and attritional staffing and operational savings in a range that could partially offset costs (one‑time sale proceeds estimated between $4.6M and $6.25M; recurring operational savings estimated roughly $500,000 annually in some scenarios). - Financing assumptions: PFM/financial advisor scenarios assumed using $8.4M remaining from a 2023 bond issue and projected that the district would need to overfund the debt service levy in coming years (an example figure of roughly $2M extra per year was cited) to meet peak debt service obligations.

Four options presented (high level) - Option 1: Build new intermediate (4–6), new 7–8, and new Grandview now. This is the most aggressive sequencing and would require identifying roughly an additional $18M (on top of existing plans) over the planning window. - Option 2 (favored by several board members): Build the 4–6 (intermediate) and Grandview earlier and delay Grandview or adjust sequencing of the middle school, or vice versa — staff described staged approaches that spread borrowing and bids across years. - Option 3: Prioritize Grandview and 4–6 and push the 7–8 middle school further out to reduce near‑term borrowing pressure. - Option 4: Renovate and add on to the existing CAMS North site rather than build a new 7–8; staff and board generally rejected this option as least desirable.

Board reaction and next steps Board members broadly eliminated Option 4 and clustered preferences around Options 2 and 3, with several members expressing a preference for Option 2 (move sooner on the middle schools but stage Grandview if needed). Board members asked staff to proceed with design work so the district would have completed plans ready for bidding if financing and bids align in 2026; several members emphasized designing now and delaying construction if bids come back above budget.

Financial context PFM and staff stressed the sensitivity of the district’s debt profile: a prior PFM analysis showed annual debt service increasing significantly in the late 2020s with higher borrowings, and the updated design estimates have increased the projected borrowings since that earlier analysis. Administrators said bid timing (a target May 2026 bid window for some projects) and evolving construction inflation create tradeoffs between moving quickly and avoiding higher prices.

Ending: The board directed staff to continue design and feasibility work, to refine cost estimates and to return with more detailed financing options and recommended sequencing for board action at a future meeting.