Frazier may borrow $3M more for new school
Frazier School Board is considering borrowing an additional $3 million to help finance the construction of a $21.4 million middle/elementary school.
The school board recently floated an estimated $20 million bond for the project but could decide to borrow an additional $3 million instead of depleting $2 million from its capital reserve fund.
Alisha Phillips of Janney Montgomery presented the school board with options for financing the project at Thursday night's meeting.
“I understand that the school board opened the bids for the projects and you may need to borrow an additional $3 million for the project,” Phillips said.
“I think you should consider whether it's time to deplete the $2 million in the capital reserve fund when you have no idea how much money you will be receiving from the state in the future,” she said. “We're not assuming that you will receive any additional money from the state.”
Phillips said it is also unclear if or even when the school district will receive state reimbursement for construction projects through the Pennsylvania Department of Education, which has occurred in the past.
“There are stacks of requests and paperwork for school construction projects waiting to be approved by the state right now,” she said.
If the school board decides to borrow $3 million at the beginning of 2014, Phillips said the payments will be about $180,000 a year.
Business manager Kevin Mildren said one mill generates about $265,000 for the school district. The payment would amount to an estimated .68 mills, he said.
“As long as the school district doesn't close on the bond until January, the first payment will not be due until the 2014-2015 school year,” Phillips said.
Phillips said a principal wrap-around payment, which will require the school district to pay a larger amount, will not come due until 2033-2034.
Cindy Ekas is a contributing writer.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Connellsville’s blighted property ordinance overcomes first hurdle
- Connellsville man charged in shooting
- Connellsville — a model trail town
- Defender plans to quit Daniels murder case in Fayette County
- Defense in Connellsville teen’s fatal shooting wants suspect’s statements to police suppressed
- Science is focus of Connellsville library’s survivor challenge
- Atkins’ teachers, students to hold Summer Jam