District advisers recommend parameters resolution to underwrite $50M campus renovation financing

Financial advisers for the Cornwall‑Lebanon School District told the board at a public work session April 13 that they plan to seek roughly $50 million in tax‑exempt bonds to finance high‑school and related campus renovations and will ask the board to approve a parameters resolution at its April 20 meeting.

Garrett Moore of PFM Financial Advisors and Lou Verdelli of Raymond James said the parameters resolution gives the district and its financing team the legal authority to enter the municipal bond market when market conditions are most favorable instead of timing pricing to a specific regular board meeting date. Moore said, “interest rates now are about half a percent less than where they were last year,” and Verdelli noted recent short‑term movements in the municipal market, including a one‑day drop of about 10 basis points.

Why it matters: the district’s financing is part of a multi‑year package tied to ongoing renovation work at Cedar Crest High School and other campus projects. Advisers said the district’s outstanding principal related to the project is about $80 million and that this year’s targeted new‑money issuance would be about $50 million with an illustrative maximum in the parameters resolution of $57.5 million to permit structuring flexibility and compliance with public finance rules.

What advisers said: the presenters walked the board through the basis for timing and structure. They highlighted the 10‑year BVAL municipal index as a market indicator and reminded the board of an “expenditure test” requirement for tax‑exempt financings — districts generally must reasonably expect to spend 85% of bond proceeds within three years. Moore and Verdelli said, given the project cadence and prior issuances tied to the renovations, they do not anticipate difficulty meeting that test.

Next steps: the district’s bond counsel will present a parameters resolution at the April 20 board meeting. If the board approves it, advisers said they would target pricing in early May and expect a roughly one‑month interval between pricing and settlement, putting proceeds availability in May or June.

Board action: no formal borrowing vote occurred at the April 13 work session; the board will consider the parameters resolution on April 20. The advisers said they will continue daily market monitoring and coordinate with the business office and bond counsel on timing.

Context: the advisers reviewed the district’s recent bond issues from 2023–2025 tied to the same set of projects and said the planned issuance would mirror the district’s prior structure (level debt service). The advisers emphasized that market volatility exists but characterized the current environment as attractive relative to last year.