Franklin Area board debates $10 million bond, agrees to weigh smaller, phased alternative

Franklin Area School District board members spent several hours debating whether to authorize up to $10,000,000 in tax‑exempt general obligation bonds to begin phased repairs and upgrades to aging school facilities, including boilers, electrical gear and an emergency generator.

"A bank qualified bond is a mechanism in which a tax exempt borrower can borrow $10,000,000 in a calendar year," said Alicia Henry, the district's bond underwriter from PNC Capital Markets, explaining that to qualify for 2025 bank‑qualified treatment the district must close by Dec. 31 and that federal rules require spending 5% of proceeds within six months and 85% within three years. Henry said the timing is important because some electrical equipment has lead times of about 52 weeks.

Trustees and presenters agreed the district has significant deferred capital needs. Joe Perez and Rob Campbell of the firm identified in the meeting as "10" presented an investment‑grade audit showing mechanical equipment at the junior‑senior high school is past its useful life (the consultants estimated an average age of about 35 years) and outlined a list of candidate projects and preliminary costs.

But several board members said they were not willing to commit the full $10 million on the record without a clearer long‑range plan. "That's insanity. I'm sorry. No offense to you, but I am completely against this whole thing, especially now that I've heard we are required to spend all $10,000,000 of it with no plan," said the board member who led much of the questioning. That trustee also argued the district should have used a formal RFP process before selecting some professional services; the superintendent replied the district had interviewed three firms (Raymond James, First National Bank and PNC) and was recommending PNC based on references and experience.

Consultants and the superintendent described a phased approach intended to limit near‑term commitment while allowing the district to pre‑order long lead‑time equipment and begin the work most likely to be needed regardless of later decisions about school consolidation or additions. "The next step, the first step of this process, is installing this equipment, preordering or ordering the long lead time equipment, doing the feasibility study," Rob Campbell said, adding that phase 1 also can include a feasibility study that then informs later phases.

Board members raised fiscal capacity questions. One trustee outlined that annual debt service on a $10 million issue would be roughly $685,000 and noted the district's legal ability to raise taxes without voter approval is limited; the trustee urged the board to see a budgeted plan showing how debt service would be paid before committing to larger borrowing.

After extended discussion the board agreed to put a reduced request on the next meeting agenda rather than immediately approve the full $10 million. Members debated options including a $4–5 million authorization limited to immediate, critical work and a still‑smaller authorization that would cover boiler and domestic hot‑water heater replacements only (the latter was discussed in the meeting as approximately $1.755 million). The board also set a timeline for a broader feasibility study to return numbers and options in February–March.

The meeting closed its business and then voted to move into executive session on negotiations and matters required to be kept confidential.

What happens next: trustees will receive detailed, contract‑ready figures to populate the bond resolution and will consider a smaller bond authorization on the board agenda before deciding whether to proceed with an issuance that would allow procurement for work targeted for 2026.