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Greenwood Elementary estimate rises as district readies multi‑stage bond financing
Summary
Architects reported a roughly $4 million increase in Greenwood Elementary’s construction subtotal driven by structural and demolition costs; district staff outlined a staged bond strategy that aims to fund two new schools without increasing long‑term tax burden beyond a targeted debt service level.
The Kennett Consolidated School District finance committee reviewed updated construction estimates and a financing plan for Greenwood Elementary on April 1. Henry Garylla (project presenter/architect) told the committee that, as design has advanced into construction documents, the budget has become more granular and the building construction subtotal has increased by roughly $4,000,000 largely because of higher costs for concrete, masonry and steel and increased demolition and furnishings estimates.
Garylla and other staff explained the difference between Act 34 figures — which use a construction‑cost subset and therefore can appear lower — and the full project budget, which includes site work, soft costs and contingencies. Staff said an Act 34 number would likely be between the mid‑$40s and low‑$50s million range, while the full project estimate including soft costs is currently nearer $62,000,000; architects noted the Act 34 number excludes some soft costs and uses different cost factors.
Mr. Tracy (finance lead) described a multi‑stage borrowing plan using bank‑qualified municipal bonds and other general obligation issues. He said the district currently has roughly $20,000,000 available from prior bond proceeds and plans a $50,000,000 borrowing in May 2024 as part of a total borrowing program that could produce roughly $116,000,000 in proceeds (estimated out‑turn near $121,000,000 including interest earnings under current assumptions). The financial strategy is designed to ‘stack’ debt service so the district can target an approximately $8,000,000 annual debt‑service level over the life of the plan; staff said that goal is intended to avoid a net real‑estate‑tax increase based on current projections.
Board members discussed market escalation, bid timing (targeting August–September for Greenwood bids and August approval), and add/delete options to reduce scope if bids come in high (examples include removing certain large‑group instruction spaces or switching finishes). Staff also said they will continue to pursue conditional grants (PDE infrastructure, RAC‑P and other sources) that could reduce the district borrowing need, but cautioned grant timing and award windows are uncertain.
