WILSON, Pa. — Wilson Area School Board on Monday approved a bond financing resolution that will secure at least $15 million to fund high school athletics fields work.
The board passed a resolution approving the sale of general obligation bonds intended to finance districtwide projects for the next few years, with a maximum principal of $60 million.
Board President Judith Herbstreith said there are numerous projects to consider, with the athletic fields the foremost priority, but while the district may borrow up to that amount, it's not necessarily where the final figure will fall.
“This is not ‘We have to borrow $60 million.' It does not mean we're going to get anywhere close to $60 million.Investment firm Raymond James Managing Director Allie Macchi
Investment firm Raymond James Managing Director Allie Macchi said the methodology helps the district streamline project financing.
“This is not ‘We have to borrow $60 million,’" Macci said. "It does not mean we're going to get anywhere close to $60 million.
"It's just a flexibility tool so that as you decide what things you're going to do and what the cost of those projects are, that we don't have to come back every single time and re-advertise and do more resolutions and do all those things."
Herbstreith said the district’s current bond rating of AA lets it secure optimal terms in the bond agreement, making now an opportune time to secure enough to fund several years of projects.
“We are, however, on track to borrow the first $15 million,” Macci said, that will go toward the athletic fields and provide some seed money for additional projects.
According to Macchi, the bond issue will be closed by the end of the year.
Debt still well below cap
By the end of this week, the district will send off the offering documents — which contain detailed financial information about the district and the bond offering — to ratings agencies.
In a week or two, there will be a rating call, after which the bond will be priced, likely around mid-November, and finalized by the end of the year.
“it’s going to essentially wrap around your existing debt.”Investment firm Raymond James Managing Director Allie Macchi
Asked by board member Jonathan Jones about the repayment plan, Macchi said, “it’s going to essentially wrap around your existing debt.”
“So, if you recall, your existing debt goes down significantly this fiscal year, and then completely goes away in fiscal year… [20]27," Macci said.
"And so this debt is going to come in and just literally be interest-only until the bulk of that payment is paid off, and then it’s going to wrap in underneath it.
“So we’re not going to be increasing your debt service run rate more than you are already currently paying.”
Essentially, in next year’s budget, debt for the district will be set around $2.5 million, which includes $1 million in debt added on top of the existing amount.
That still falls below the $4 million cap for the district, letting it layer on additional debt as more projects are approved.
Herbstreith said EI Associates, a firm with offices in Harrisburg and Cedar Knolls, New Jersey, is working on plans for stadium renovations.
The process is in the early stages, but construction could begin as early as summer 2025.
According to Herbstreith, Smith Field and the other athletic grounds have not seen much work outside of some HVAC improvements over the past few years.
