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SV holds public hearing on school

Tax hike likely will fund project

JACKSON TWP — Seneca Valley School District held a public hearing Monday night concerning the proposed elementary and middle school to be built in Cranberry Township.

The proposed two-story, 197,000-square-foot school would be built off Ehrman Road. The school board previously approved a maximum building construction cost of about $60.5 million, with a maximum project cost of more than $78.7 million. A tax increase of 2.47 mills is projected to help pay for the new building.

No changes to the proposed structure were proposed, but the hearing provided insights into the district's financing plan for the new school.

Under state law, an Act 34 public hearing must display data based on 20-year financing plans, said Alisha Reesh Henry, the district's investment banker. Due to the district's debt service, however, it likely will take significantly less time to repay the proposed $62.1 million in general obligation bonds the district plans to take out.

“This is not a mechanism that the district will optimally employ to pay the bonds,” Reesh Henry said.

During the later school board work session meeting, Reesh Henry said the district's debt service obligations will remain around $10 million — hovering around 8 percent of the operating budget — and that the proposed bonds will not change that obligation significantly.

Jim Nickel, school board president, said the board tries to ensure future debts will not cause the district financial harm. “We work hard to watch our expenses so we can plan for the future,” he said.

Two residents made their voices heard during the hearing.Diana Zoelle, an Evans City borough councilwoman, asked the district to consider relinquishing control of the Evans City Elementary and Middle School to the municipality when it is vacated. She said a developer told her that site is prime for mixed-use buildings but added she did not expect a decision to be made Monday.John Clowes asked how the district planned to connect the campus to Ehrman Road and how long the tax hike would last. Michael Corb, senior vice president of CannonDesign, the architect used for the building, said the campus would likely connect via a roundabout, and Matt Hoffman, the district's solicitor, said the tax increase will be considered year-to-year.

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