Parkland School District is planning to borrow $30 million early in 2019 for construction of the Veterans Memorial Elementary School, in Upper Macungie, and other district projects.

Borrowing for the new school with a projected cost of $35.9 million, is also included in previous and future bond issues.

A resolution adopted at the Dec. 18, 2018, meeting specifies not only funding for the new school but also improvements to other buildings and facilities, purchase and installation of technology infrastructure upgrades, security systems and computers, acquisition of buses and land purchase.

The amount will also provide reimbursement to the district’s general fund for payments made for capital projects before obtaining the new money.

Managing Director of PFM Financial Advisors Scott Shearer explained the transaction will be set up to include refinancing of 2014 bonds if a 2-percent net savings is available.

He noted combining the two actions can save the district money and time.

Bond Counsel Jens Damgaard reported the 2014 bonds had a five-year call in period.

He is also looking toward the 2-percent savings target.

Shearer said the 2014 refunding would save the district approximately $179,000.

He noted preparation of the financial plan involved a lot of communication between the Parkland administration and the financial advisory team.

Shearer said this borrowing will have a capitalized interest feature.

Parkland Business Manager John Vignone said that means $2.3 million would be used to make the debt service payment in the 2019-20 term.

Shearer said using capitalized interest will keep the debt service lower and will make the pay back faster.

The board approved a parameters resolution to authorize the financial team to proceed with the bond issue when rates are best for the district and taxpayers.

Shearer plans to price the bonds the week of Jan. 14.

He commented on the Parkland financial team and situation.

“Parkland School District’s fiscal discipline and policies save taxpayers a lot of money through the years,” Shearer said. “The district saved a quarter million more based on its favorable AA credit rating.”

Vignone provided a positive outlook on the forthcoming transaction.

“These are safe, quality bonds,” he said. “The interest rates could come in less if market conditions warrant a demand for general obligation bonds at that time.”