PFM financial adviser Melissa told the William Penn School District board on Nov. 14 that borrowing conditions have improved slightly — "current rates are just slightly below historic averages" — and the district can likely consolidate two planned financings into one shorter borrowing.

Melissa said the district has used several borrowing types recently, including short-term TRANs, a lease–sublease long-term cash flow structure executed through the William Penn School District Authority, and more traditional long-term capital borrowings. She said the district has spent $42.7 million and borrowed $42.9 million to date and currently holds roughly $12.8 million in funds on hand.

That mix of grants and earned interest reduced near-term need, Melissa said, so the financing team estimates the maximum additional borrowing need at about $13.3 million and characterized that figure as a ceiling rather than a floor. "We estimate that the maximum need is about $13,300,000," she said. She noted an expected $7 million RACP reimbursement is not yet in the district account and that an additional $1 million RACP award might materialize — both are reimbursement-style grants that require milestones before cash is released.

On timing, Melissa said the plan assumes funds would need to be in the district's account by March; the board would get an update in January and, if it authorized the financing team, could consider a parameters resolution in February and borrow in the market at an appropriate time.

Melissa reminded the board of federal tax requirements tied to tax-exempt borrowing: 85% of proceeds generally must be spent within three years, and a substantial binding obligation to spend 5% must be in place within six months of settlement. She also warned of future call dates and said staff would monitor refinancing or call opportunities to reduce debt service if available.

From a budget standpoint, the presentation translated the borrowing implication into a "millage equivalent" and showed the district would need approximately $1.4 million more in debt service in the 2026-27 budget under the current plan. Melissa said doing a single step rather than two reduces total borrowing and interest costs over time while preserving future flexibility.

Board members asked clarifying questions about what has been spent on the high school project (Melissa said roughly $1.5 million in design costs to date) and whether the $7 million RACP award was included in the plan (Melissa said the plan currently counts the award as likely but still treats it cautiously because RACP is a reimbursement program requiring further progress before cash is available). A board member emphasized caution about treating any small surplus as available funds because of known upcoming uncertainties.

Next steps: the board will receive an updated presentation in January; authorization for the financing team and a parameters resolution could follow in February, with borrowing timed when market conditions and grant-reimbursement timing align.

The presentation did not include a formal vote during the Nov. 14 meeting; the board was told a vote to propose the preliminary budget is scheduled for Monday under the budget calendar.