Board approves $84.235 million bond sale to fund referendum projects

The Hopewell Valley Regional School District board on Tuesday approved a resolution authorizing the form and sale of $84,235,000 in tax-exempt school bonds to fund projects approved by voters in last month’s referendum.

Robbie Acampora, financial planner with Phoenix Advisors, told the board the offering will include a 20-year maturity schedule and that the district plans to open bids on January 22 and sell to the lowest bidder. Acampora said recent market moves allowed the district to revise its previously modeled interest rate to about 3.85% and that the district projects investment earnings on undrawn proceeds of roughly 3.5%, creating “positive arbitrage” that can offset early debt-service costs.

Chair members and the advisor said the district intends to use those projected earnings to cover much of the first year’s tax impact and part of the second year’s. Acampora explained the likely cashflow pattern: interest-only payments in fiscal 2026–27, with principal and semiannual interest beginning in 2027–28. She also described planned procurement steps: a Standard & Poor’s rating and issuance of offering documents before the bid date.

Board members asked for details about the district’s planned investment services; the district said it will issue an RFP for conservative, state-authorized investment options and will budget expected interest earnings as part of the 2026–27 budget process. The business administrator and financial adviser said drawdown schedules provided by the architect will determine how much is invested at any time and the RFP will require firms to model and track arbitrage calculations to avoid later IRS liability.

The board held a roll-call vote; the following members were recorded as voting in favor: Mister Capadia, Doctor Lilliston, Mister Peters, Doctor Resnick, Mister Slotman, Doctor Stiliano, Doctor Wilson, Miss Williams Galliano and others present. The motion carried.

What’s next: staff will complete the rating and offering documents before the January 22 bid opening and will issue an RFP for investment services so projected earnings can be reflected in the 2026–27 budget.

(Reporting based solely on the board meeting transcript.)