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Piper Sandler adviser outlines options to cover $26 million project for Atlantic Comm School District
Summary
At a board meeting, Travis Squires of Piper Sandler summarized financing scenarios to bridge the district's construction budget to $26 million, citing state property-tax reform that diverts sales-tax infrastructure revenue and recommending combinations of bonds and district cash contributions; the board requested updated estimates and took no action tonight.
At a meeting of the Atlantic Comm School District Board of Education, Travis Squires of Piper Sandler presented financing scenarios designed to cover a possible increase in the district's construction project to roughly $26 million.
Squires told trustees the referendum had authorized $22.5 million and that market dynamics and cash-flow options could allow the district to access about $23.5 million without new borrowing beyond authorized capacity. "We were assigned to look at what would be the scenario if we needed to come up with a total of $26 million of funding," Squires said, describing two scenarios: one relying on bond proceeds and modest cash commitments (about $2.5 million over three years) and a second scenario that phases roughly $3.5 million in cash contributions over four years to reach the $26 million target.
Squires warned the board that state property-tax reform is expected to redirect a larger share of statewide sales-tax revenue toward property-tax relief, which reduces the pool available for school capital projects. He outlined modeled rate and valuation sensitivity and said his team still sees a feasible path to keep the district's promised tax rate intact under current assumptions, though he cautioned that significant valuation changes in the coming year could alter that outlook.
The presentation covered typical timing for bond sales, potential premium on bonds that could realize modest additional funds, and estimated investment income during construction (Squires used a conservative estimate of about $600,000). He also discussed project-cost definitions (including soft costs, architects, construction management) and noted identified reductions that trimmed gross project costs from about $28.8 million down toward $26 million.
Board members asked for alternate price points and value-engineering options—including pricing a sky bridge concept and a two-classroom high-school option. Consultants said they would deliver updated schematic-design estimates and a revised package by Friday for the board to review. Administration and the consultants emphasized that no formal board decision was required at this meeting; the board asked staff to provide an "adjustment target" to guide the next design milestone.
Next steps: consultants and district staff will deliver updated estimates and a revised schematic estimate (including sky-bridge and two-classroom options). The board did not take a funding vote at this meeting.
