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Board hears summer construction timeline and bond-interest update; Moody’s assigns negative outlook
Summary
District staff outlined a packed summer construction schedule across 13 buildings beginning June 22, with phased work through 2027; bond investments have earned about $35.5 million (roughly $31 million available after a $4.5 million arbitrage liability) and Moody’s placed a negative outlook but did not downgrade the district’s rating.
The Cherry Hill Board of Education on Tuesday received a detailed project update outlining a heavy summer construction schedule across district schools and an update on bond investment returns.
Mr. Schimp told the board that interior renovations and site work will begin June 22, with major projects at Rosa, Carusi and the East Auditorium and additional security vestibule and locker-room work across multiple elementary and high school sites. "This will be the final phase of the interior renovations at Rosa," he said, and described plans to reconfigure the existing cafeteria into instructional space and to perform punch-list and abatement work ahead of the September school opening.
The presentation included remaining contract allowances and change orders. Mr. Schimp noted an $883,000 standalone change order to modernize elevators at both high schools and said some change orders reflect regulatory bid changes that moved certain moving/storage costs into general-contractor scopes.
In committee reports, BNF chair Mr. Greenbaum said bond investments have generated about $35.5 million in interest as of April 30; roughly $4.5 million of that is an anticipated arbitrage liability, leaving approximately $31 million available for future use. "There is a little bit of a cushion should we need it in the future," he said.
BNF also reported that $63 million of bonds remain unsold and that the district expects to monitor market conditions before issuing additional debt. The committee noted Moody’s assigned a negative outlook but did not change the district’s underlying credit rating, citing limited fund balance and capital reserves but recognizing corrective budget actions already underway.
Board members asked clarifying questions about the timing and scope of projects and acknowledged the aggressive schedule. Dr. Driesen reiterated the district’s plan to complete the remaining security vestibules by September 2027.
The district said contractors have completed pre-construction coordination and that interior work will be phased to meet school openings where possible. The board did not take new funding action at the meeting; the items described were part of previously approved referendum projects and related change orders already included on the agenda.
