JEFFERSON TWP — The South Butler County School Board on Wednesday night heard a presentation on how it could finance large-scale renovations needed throughout the district.

Zach Williard of PFM in Harrisburg told the board that interest rates are currently low and conditions are favorable for issuing a bond.

He said the board could decide to borrow the entire amount, which is tentatively expected to range from $25 million to $35 million, at once or in phases as the upgrades and renovations continue.

Williard said the board is set to make its final payment in November on a current bond issue.

If the board borrowed $25 million over the term of 25 years, the annual payment of $1.6 million for the first two years and $1.5 million after that would not be a burden on the district's budget.

“That would be at or below where you are in the budget now,” Williard said. Should the board choose to borrow $25 million over 30 years, the payment would drop to $1.5 million for the term of the bond, but would cost an extra $2 million in interest.

Borrowing $30 million over 25 years would see the district pay $1.8 million per year, which is slightly more than the current bond payment.

Borrowing $30 million for 30 years would put the district's annual payment at $1.65 million, but would cost more in total interest paid.

The annual payment would be $1.9 million if the district borrowed $35 million over 25 years, Williard said.

All payment amounts are approximate, as interest rates and other factors could change by the time the board issues the bond.

Projects listed in a feasibility study presentation by The Foreman Group in May 2019 included:

n A new roof, windows, doors, exiting and accessibility upgrades, solid walls, a new heating and air conditioning system, plumbing, wiring and other projects at the intermediate elementary school

n A rebuild of the high school, which was built in 1956, at a cost of $47.2 to $57.7 million

n Heavy renovations at the aging high school that would range in cost depending on the options chosen

n Additional renovations at the middle school.

Williard said the architectural design of the project chosen by the board will take 12 months.

He said the district will need funds for the expensive design phase, so it could borrow $18 million to $20 million at that time.

After the design phase, projects would be advertised for bid.

“At that point, you have a pretty good idea of how much money you need,” Williard said.

The district would borrow the remainder of the funds at that point, he said.

He stressed that the presentation's purpose was to give the board an idea of the details and impact of the bond should the board choose to pursue the renovations.

The district's capital improvement plan is available for viewing at southbutler.org.