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Kutztown board authorizes bond issuance up to $23 million to finance capital projects
Summary
The board adopted a resolution authorizing issuance of up to $23 million in general-obligation bonds and notes to finance district projects and to reduce near-term debt service; the superintendent said $4.7 million was recently approved for middle-school HVAC work.
The Kutztown Area School District board on May 21 adopted a debt-restructuring resolution that authorizes the issuance of one or more series of general-obligation bonds or notes with an aggregate principal not to exceed $23,000,000.
Superintendent Till Chatham described the action as part of a planned restructure intended to lower near-term debt-service payments while not extending the overall life of the district’s debt beyond previously established timelines. He said the restructuring is a continuation of multi-year debt strategies and noted that the first tranche of work — a $4.7 million project — was recently approved to fund HVAC upgrades at the middle school to be completed this summer.
The resolution delegates authority to execute bond and note purchase agreements (to be finalized at pricing) and related certificates and documents and authorizes the district to work with bond counsel and Raymond James and Associates on the transactions. The motion carried on roll-call vote as recorded in the meeting transcript.
The board did not provide final pricing at the meeting; the resolution permits issuance of one or more series and anticipates that additional documents will be reviewed and approved by bond counsel and district officials before any bonds are sold.
Next steps include finalizing price and terms, executing purchase agreements with the chosen underwriter, and completing any bond-counsel reviews required prior to closing.
