'Full' cost of $54 million Sloan 'elementary campus' project: About $101 million
In stating his opposition to the Franklin Regional School District's Sloan “elementary campus” project, Murrysville resident Scott Weinman asked about the full cost of borrowing $54 million.
His estimate was more than $100 million, and according to the school district's finance director, it is not far off the mark.
Director Jon Perry estimated the full cost — taking into account that the borrowing is happening in four segments, and that interest will play a very significant role — would be around $101 million.
The full cost encompasses $54 million in principal, broken into four segments. The first segment, $9.995 million, was issued and settled in December.
“It has an associated interest expense of $6.7 million assuming no refinancing during the life of the bond,” Perry said in an email.
The additional three segments total about $44 million in principal and interest for those is expected to reach just over $40.5 million, again with no refinancing over the life of the borrowing.
“The interest expense projections are intentionally conservative given the number of variables that impact rates, and the time between now and when the final borrowing could take place,” Perry said.
Perry noted that the initial interest projected for the first segment of borrowing was $10.2 million, a full $3.5 million higher than the actual figures.