PFM financial advisors presented an informational update on the district’s multi‑phase borrowing plan for the high‑school project, reiterating prior cost estimates and explaining a wrap‑around debt‑service structure that spreads payments over multiple series of bonds.

Zach Williard of PFM reviewed the tax‑exempt 10‑year treasury index used for school district borrowing, noting that current market conditions could place North Penn’s borrowing near 4% fixed for 25 years under the structures discussed. He reminded the committee that the district previously borrowed $10,000,000 earlier this year for start‑up costs and that the plan calls for additional phased borrowings as construction bids and draw schedules crystalize.

Williard said a working example in the materials shows a possible ~$60,000,000 borrowing in March 2026, though he emphasized the numbers are preliminary and will change with updated cost estimates and draw schedules. “You pass the debt resolution in February and then when the market’s right … we would then hop into the market, lock in interest rates, and then you’d have the money about 30 days later,” he said.

PFM explained a wrap‑around approach—using existing debt drop‑offs to keep early payments lower while new borrowings ramp up later—so that long‑term debt service levels out rather than spiking sharply. The presentation included an example that projects long‑term debt service could rise from roughly $12.4M today to about $17.3M in later years depending on borrowing pace, which board members and staff said will need to be phased into future budgets.

Board members pressed PFM and staff on timing, how draw schedules from architects and construction managers feed the borrowing plan, whether additional projects could be layered into future financings, and on call/refinancing features (PFM said smaller issues under $10M typically carry five‑year call features; larger issues will likely have seven‑to‑eight‑year call periods). PFM said all debt would be issued with call features; none would be non‑callable.

No authorization to borrow was requested tonight; PFM and staff outlined next procedural steps: possible authorization to proceed (earliest penciled for Dec. 10), a debt resolution vote (penciled for Feb. 19) and then a market sale when conditions and credit ratings align. Staff said updated cost estimates and draw schedules will be provided as they become available.

Public comment during the meeting raised questions about the long‑term budgetary impact of concentrating borrowing on the high‑school project and the district’s ability to fund other facility needs. PFM and district staff acknowledged those concerns and said the schedule and project list can be shown in breakout form so the community can see allocations for the high school versus other projects.