The issuance of $22.3 million in bonds has been approved by Northampton Area School District Board of Education.

The bonds will fund several projects for the district. School directors voted unanimously 9-0 at the Oct. 13 school board meeting to approve issuing general obligation bonds, series of 2026.

The vote authorizes the NASD administration to work with PFM Financial Advisors LLC in conjunction with the issuance of general obligation bonds, series of 2026, in the approximate amount of $22,315,000 in early calendar year 2026.

The bonds are for the final phase of the financing plan for East Allen Elementary School and Education Center, the Northampton Area High School roof project, the district’s portion of the Bethlehem Area Vocational-Technical School capital projects and to refund the district’s outstanding series of 2012 Emmaus note.

“Rates are above historic averages,” said Jamie Doyle, managing director of PFM Financial Advisors LLC, financial adviser for NASD, in her presentation at the school board meeting Oct. 13. “Long-term fixed rates are above historic averages. This year’s plan of financing is multi-financial.”

She listed the projects to be funded by the bonds, including the following.

• Third and final step of the district’s financing plan for East Allen Elementary School in the approximate amount of $10 million of bond proceeds

• Funding for the district’s portion of the BAVTS projects (Columbia Street and main building) in the approximate amount of $5.5 million of bond proceeds

• Funding for the district’s high school roof project in the approximate amount of $2 million

• Refunding of the district’s outstanding variable rate series of 2012 note (1996 Emmaus bond pool loan). The outstanding balance is $4,655,000 at a fiscal year 2024-25 average all-in rate of 4.32% and a final maturity of Feb. 1, 2028.

Refinancing the series of 2012 Emmaus loan would result in the entirety of the district’s debt portfolio being traditional fixed-rate debt, providing maximum budgetary certainty, according to Doyle.

Doyle said the district, also known as the issuer, could borrow at a tax-exempt rate and invest the proceeds at an unlimited taxable yield if it meets the following three tests.

• Expenditure: The issuer will spend 85% of the proceeds within three years.

• Time: The issuer will incur a substantial binding obligation (sign a design contract, award a construction contract) within six months, equal to at least 5% of the borrowing amount.

• Due diligence: Construction of the project will proceed, and the bonds funds will be spent with due diligence to completion.

“You’ve already done that because you’re well along with the project,” Doyle said.

The $75.8 million East Allen Elementary School complex, Route 329 and Seemsville Road, is to open for the 2026-27 academic year. Construction of the East Allen school began in November 2023. A ceremonial groundbreaking for the project was held Sept. 19, 2024.

The BAVTS projects (Columbia Street and main building) will be funded by NASD and BAVTS’ two other sponsors, Bethlehem Area School District and Saucon Valley School District. Columbia Street refers to the former factory building, 313 Columbia St., South Side Bethlehem, purchased by BASD for a BAVTS satellite campus. The BAVTS main campus is at 3300 Chester Ave., Bethlehem Township.

The satellite campus is expected to allow an estimated 330 more students to attend BAVTS. The satellite campus project is estimated to cost $12 million in renovations.

A parameters resolution for the bonds is expected to be on the agenda of the next school board meeting, to be held 6:30 p.m. Nov. 10 in the auditorium at NAHS.

The parameters resolution authorizes the financing to issue bonds in order to enter the market when it is most advantageous.

“That’s to give me flexibility,” Doyle said.

Bond counsel is King, Spry, Herman, Freund & Faul LLC, the solicitor firm for NASD.

The pricing of the 2026 bonds to lock in interest rates is expected Jan. 6, 2026, with settlement of the 2026 bonds set for Feb. 10, 2026.