Abington Heights SD to seek parameters authorization for up to $30 million in bonds to fund middle-school project

The Abington Heights School District heard detailed financing options on Oct. 16 as officials prepared to seek a parameters resolution that would set a maximum $30 million aggregate for a future bond issue to fund the district’s middle-school renovation and related projects.

Superintendent Dr schaer framed the need, saying the district began a roughly $50 million addition and renovation and previously issued a $10 million municipal bond to kick off construction. He told the board that advancing a parameters resolution would allow the district’s financing team to monitor markets and “take risk off the table” if interest rates continued to fall.

David Payne of PNC Capital Markets outlined how the bank-qualified $10 million issuance in May constrained another bank-qualified issuance in the same calendar year, and explained the parameters resolution would permit the district to move quickly if conditions improved in early 2025. Payne said a November parameters approval would allow the district to prepare an official statement, engage rating agencies and potentially price in January, when municipal demand historically rises.

PNC estimated a comparable all-in yield today around 3.75 percent — notably lower than the roughly 4.2 percent yield on the district’s May issuance — and described January as a favorable window. Payne said the parameters issuance would be sized with a conservative cap (6 percent maximum interest rate) so the district would have room if markets worsened unexpectedly; he added the district would likely net about $27–28 million from a $30 million ceiling once issuance costs and structure were set.

Board members pressed on timing and trade-offs. Officials noted the next year’s draw schedule anticipates roughly $23 million in bills when full construction is underway and emphasized early site work — including road widening and sidewalks on the Newton Ransom approach — that they estimate could total roughly $5.7 million. The district’s financing team cautioned against borrowing substantially more than near-term needs because internal cash spending deadlines and construction contracting timelines create a risk of holding unspent proceeds under tax rules.

The district’s financial advisers said that, if the board approves parameters next month, staff will return with a bond purchase agreement and the formal parameters resolution for a vote. The board did not take the parameters vote at the Oct. 16 meeting; the item was set up for formal consideration in November.

Next steps: the board is expected to consider the formal parameters resolution and a bond purchase agreement at its November meeting, after which staff could proceed to market as early as January 2025 if market conditions are favorable.