Cornwall-Lebanon SD to consider parameters resolution for $50 million phase of Cedar Crest high school and stadium financing

Financial advisers for the Cornwall-Lebanon School District on March 10 recommended the board move forward with a tax-exempt borrowing to begin funding the Cedar Crest High School renovation and stadium projects, with a target issuance this spring of about $50 million.

The advisers said market interest rates have trended lower since the beginning of 2025 and that timing looks favorable to “lock in” rates in mid-April and close before Memorial Day. Brad Remick of PFM Financial Advisors told the board that, “going down is a good thing. Okay. So that means rates are getting more attractive, as we get into the 2025 year.” Lou Verdeli of Raymond James said demand for municipal bonds has been strong, citing an example of a recent $40 million Pennsylvania issue that drew roughly $100 million of orders during its sale.

The board was told it must take a parameters resolution under the Local Government Unit Debt Act to authorize the borrowing and give the district flexibility on price and timing. Remick said tax-exempt borrowing requires the district to “reasonably expect to spend it within 3 years,” and that the resolution typically authorizes a larger cap than the expected draw so the district has room when final pricing is set. Administrators indicated next-week consideration of a parameters resolution that would be sized in the roughly $57.5 million to $60 million range to allow a $50 million borrowing to be structured and priced within the resolution limits.

Advisers outlined the district—s broader financing plan for the campus: the district sold earlier tranches in 2024 (roughly $15 million) and is planning a roughly $50 million issuance this year and a further roughly $50 million issuance in 2026 to fully fund the high school and stadium projects. Remick and district staff said the plan assumes spending will occur within the statutory three-year period for tax-exempt proceeds and noted that the district has been maximizing interest earnings on funds already on hand.

The administration also reviewed the district—s long-term debt-service plan tied to the campus work. Business staff said the district is planning to increase the general fund budget by about $750,000 per year to smooth debt service needs over the coming decade; the presentation noted that, under the current plan, annual bond payments are projected to peak in the 2029—2030 period at a little over $10 million. The presentation included an example tax-impact estimate that the $750,000 annual increase corresponds to roughly a 1.1 to 1.25 percent tax-rate change annually, though staff cautioned projections depend on final pricing, state aid and other factors.

Board materials and advisers also outlined the transaction timetable: parameters-resolution consideration at the board—s March meeting, continued market monitoring in the weeks after, an anticipated pricing window in April and closing by late May. District staff said a separate special meeting will be scheduled soon after bids are opened to award construction contracts; administrators characterized that award meeting as limited to contract approvals.

No final borrowing decision was made on March 10; the parameters resolution was presented as an action item for the board—s next meeting.

Ending

If the parameters resolution is approved next week, staff and the financial advisers said they would continue to monitor market conditions and return to the board with final pricing and closure documents when the district proceeds to sell the bonds.