Abington board adopts parameters to allow first $15M bond tranche for middle‑school project

The Abington Board of School Directors voted Nov. 25 to adopt a parameters resolution that allows the district to file the necessary documents with the Pennsylvania Department of Community and Economic Development (DCED) and move forward with the first phase of planned borrowing for the Abington Middle School project.

Miss Brown read the resolution (addendum 13.1), which authorizes financing to partially fund planning, design and demolition of the existing middle school, relocation of athletic fields and construction of a new Abington Middle School. Under the parameters the board authorized a maximum amount of $18,000,000; the district’s financial advisers said the first tranche to be sold to the market will be slightly less than $15,000,000 — likely about $14.5 million — and that subsequent tranches will follow as the project proceeds.

Lauren (Raymond James) and Audrey Baer (Piper Sandler) explained why the board is using a tranched approach. "For tonight, we are just contemplating phase 1, which is the first approximately $15,000,000 borrowing," one adviser said, and emphasized that the parameters resolution provides flexibility so final terms secured at sale do not exceed the published maximums. They said the total voter‑authorized project cap remains $285,000,000 and that the phased approach is intended to match borrowing with cash‑flow needs and to phase in tax impacts.

Advisers discussed the DCED approval process and credit‑rating steps. They told the board that DCED typically takes about three weeks to review filings after publication and that Moody's Investor Services would evaluate the district's finances as part of the credit‑rating review. The presentation also noted that purchasing bond insurance was likely to be considered to reduce interest costs.

Board members pressed for clarity on taxpayer impact and transparency. The advisers said the district’s published scenario for a median assessed home put the phased‑in impact at about $54 per month, and they said the district would return to the board with final numbers and public reporting once the sale is completed. Bond counsel George Magnotta added that if the district later issues less than an authorized maximum the district may file evidence with DCED to remove the unused authorization from the record.

The resolution passed on a roll call vote. Next steps outlined by the advisers include filing the debt proceedings with DCED, securing a credit rating, premarketing, and then pricing and closing the bond sale if market conditions are favorable.

The board also approved adding Raymond James as an underwriter and Mister Brian Island to the finance team to assist with the issuance process.