Chester-Upland School District approves $19.25 million short-term revenue anticipation note

The court-appointed receiver and the elected school board for the Chester-Upland School District met in a special public session on Thursday, Aug. 28, and unanimously approved a resolution authorizing a tax- and revenue-anticipation note (series 2025) in the amount of $19,250,000 to provide short-term liquidity.

The measure, introduced as business agenda item B‑1, was amended on the floor to correct inconsistencies in paperwork before the final vote. Unidentified Speaker 1, presiding over the meeting as receiver, said the district expects to use the first state subsidy payment to repay the note and added, "The note is not callable until 12/30/2025." The loan interest rate disclosed at the meeting was 5.33%.

Why it matters: Board members and district officials said the borrowing is intended as a short bridge while awaiting Commonwealth subsidy payments and to avoid a cash shortfall if the state budget is delayed. At the meeting, the presiding officer noted the district's tax base brings in about 9% of its budget, far below the 75% or more that most school districts rely on from real estate taxes, increasing the district's dependence on state aid to meet obligations.

Public comment: Sylvia Richbill, a resident who identified herself during the public comment period, asked whether collateral would be used for the loan and whether relying on real estate taxes is sustainable. Richbill asked, "Is there collateral being used for this loan?" The presiding officer answered that the district's taxes and the timing of collections (typically between August and December) help its cash position and that the loan documents include provisions allowing the loan period to be extended if the state budget does not pass on schedule.

Board discussion and vote: Board members debated a discrepancy in the dollar amount across document versions; staff clarified the loan documents reflect $19,250,000. A motion was made and seconded to amend the resolution to the corrected amount and passed unanimously on a roll call vote in which Board member Neal, Board member Stan, Board member McLaren, Board member Harris, Board member Ham, Board member Riley, Dr. Morales and President Johnson each recorded "yes." The amended resolution to authorize the $19,250,000 note was then approved unanimously in a subsequent roll call.

Terms and estimates: Meeting remarks identified a 5.33% interest rate and a three-month term for the note. A commenter offered a rough estimate of total interest cost in the low millions; that figure was presented as an approximation rather than a formal projection.

Next steps and formalities: After the votes the presiding officer, acting as receiver, formally approved action item B‑1. The meeting closed with a requested moment of silence for the late Judge Barry Dozier, who had overseen the district's receivership.

Details not specified at the meeting included any lender-imposed collateral requirements beyond the general loan terms in the paperwork on hand, detailed repayment schedule calculations, and the year referenced for some calendar dates in the paperwork; those items were not resolved on the record at the special meeting.