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Berwick Area School District weighs up to $7.8 million in borrowing to fund HVAC work; board told decision could come May 12
Summary
Financial advisers laid out four borrowing options for an estimated $7.8 million HVAC project, showing varying annual debt-service levels and possible millage impacts. Bond counsel described the parameters-resolution timeline; no formal borrowing vote was taken.
Berwick Area School District financial advisers presented four borrowing scenarios to the board for an estimated $7.8 million HVAC upgrade at the district administration building and related capital needs. The adviser, Brian Ottenstein of FSL Public Finance, said the project is treated as a guaranteed-energy-savings project and must be financed for 20 years or less.
Ottenstein told the board the district could borrow the full $7.8 million or borrow smaller percentages and make up the rest from cash on hand. "If we were to borrow the full $7,800,000 ... you'd be looking at an increase in your debt service from an annual perspective in year 1 of about $343,000," Ottenstein said, adding that the second-year additional principal put the maximum annual level debt service at roughly $615,000 under current market rates. He presented alternatives the board could consider: borrowing 75% (annual debt service shown around $462,000), 60%…
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