Jersey Shore Area School District board sets $10 million financing amount for middle school, Avis projects

The Jersey Shore Area School District board of school directors on Feb. 24 amended its finance agenda to place $10,000,000 in a parameters resolution to support planned building upgrades, saying the amount will fund work at the middle school and at Avis Elementary.

The board reached the amendment after a presentation from Melissa Hughes of PFM Financial Advisors on bond timing, federal tax tests and two financing scenarios, and a separate presentation from SiteLogic outlining a multi-phase middle school and Avis Elementary project. Treasurer Ben Enders recommended the larger $10 million option during board discussion; the roll-call amendment passed 7–1, with one member voting no.

PFM representative Melissa Hughes told the board that federal tax rules for tax-exempt borrowing require “you can reasonably expect to spend 85% of the money that you borrow within 3 years of settlement,” and she described two scenarios the firm modeled: a $7.5 million borrowing and a $10 million borrowing, each with a 15-year term. Hughes said the district could expect long-term borrowing rates in the mid‑4 percent range based on current market conditions and that a parameters resolution would allow the financing team to sell bonds on a market‑driven day rather than on the board meeting date. She also noted a potential procedural benefit: borrowings of $10 million or less can be offered on a “bank‑qualified” basis, which can produce modest rate and call‑feature advantages.

Ben Enders, the district treasurer, summarized PFM’s scenarios for the board and recommended the $10 million option. Under PFM’s illustrations, the $7.5 million scenario would require an incremental roughly $275,000 in local debt service in 2026; the $10 million scenario would require about $365,000 in 2026. PFM advised the board that if it authorized proceeding, the district could receive proceeds as soon as April, and that the board should be prepared to demonstrate a plan to spend the proceeds within the IRS three‑year reasonable‑expectations window.

SiteLogic representatives presented a phased project plan focused primarily on the middle school and an Avis Elementary classroom univent (unit ventilator) replacement. The firm said Phase 1 would cover classroom unit ventilators — about 70 units at the middle school plus units at Avis — and include LED lighting upgrades, with a Phase 1 presentation targeted for the board’s March 10 meeting. SiteLogic described Phase 2 as a larger package (chilled‑water pumps, domestic hot water storage tank and heaters, hot water pumps and additional lighting/HVAC work) with costs still being finalized; the presenter said the district has set an internal cap so the middle school work would not exceed about $7.5 million total absent further board direction. The SiteLogic presenter told the board the gym floor (original, about 69 years old) has been deferred to summer 2026 for replacement planning and that lighting and ceiling work in the gym would be part of later phases.

Board members asked for more itemized cost detail, firm schedules and line‑item bills for Phase 2; SiteLogic said it would provide a full itemized bill, a start‑to‑finish schedule for each phase and refined cost estimates before the board votes on Phase 1 work. PFM advised the board that the parameters resolution presented in March would typically include a 20% cushion in the maximum principal figures to meet state filing requirements, and counsel would remove the unused amount after sale.

During public comment several residents urged caution about spending and called for renewed attention to prior building‑closure decisions. Paul Pryor, a Midland Township resident, told the board he was concerned about past investments in buildings that were later closed and said, “Those are bad decisions and will we ever recover that $500,000 if we sell that building? Who knows?”

What the board decided: a board member moved to amend the finance item to state $10,000,000 for letter E under finance; a second was recorded, and the motion carried in a roll call vote recorded as: Allen — yes; Pregard/Grugard — yes; Edwards — yes; McConnell — yes; Peters — yes; Perferman — yes; Thomas — no; Stemlich — yes. The board also voted to advance related finance and budget items on the consent agenda.

Next steps: PFM said the board could be presented with a parameters resolution at the March meeting to allow the financing team to proceed to market. SiteLogic expected to return with the Phase 1 package and a detailed cost and schedule on March 10. The board did not approve construction contracts or final scope at the Feb. 24 meeting; each phase and any authorizing motions will return to the board for formal approval.

The district recognized several long‑tenured employees in tonight’s meeting and heard routine budget and curriculum questions from board members and administrators; detailed budget approvals and personnel actions were handled on the consent agenda earlier in the meeting.