After learning that interest rates could increase in the coming months, South Butler County School District officials have decided to step on the gas in preparing to secure funding for their upcoming renovation project.

Alisha Reesh Henry of PNC Capital Markets presented the school board and administration with bond options regarding financing the large upgrade project, which will include much-needed improvements in nearly every district building.

Henry and board member Rebecca Boyd voiced their concern about the potential for interest rates to increase by the time the district lines up the project's design and bidding process, and approves Henry as the district's bond official for the project.

Boyd asked Henry what each half percentage point in interest increase would cost the district if they waited until all factors were lined up to secure the bond.

Henry replied about $1.1 million per half percentage point in interest.

“I am very, very concerned about the interest rates increasing,” Boyd said.

Henry said she could begin administrative work on the bond issue before being officially approved for the job by the board at its Feb. 2 meeting.

The board agreed to the arrangement, and Henry said she would immediately begin gathering the documents she needs from the district, such as past audits, budgets and enrollment numbers.

“I recommend we start the process,” Henry said.

Her presentation gave the board options of borrowing $21.6 million at a 15-year term and 2.38% interest rate, $30 million at a 25-year term and 2.93% rate, or $33.3 million at a 30-year term and 3.08% interest rate.

Henry said the district made its final payment in November on existing bond debt and is currently debt free.

The district has an A-plus bond rating and a significant fund balance that could help during the construction project.

Science labs and other learning spaces, wiring, roofing and other work is being prioritized at the district's aging high school.

The board voted to approve John Pappas of Eckles Construction Services as the project's construction manager.

The board also voted to approve a five-year contract renewal for David Foley, superintendent.