Board borrows $10M for construction

PHOENIXVILLE » The Phoenixville Area School Board on Thursday approved a construction bond of nearly $10 million, but less than half of that will be spent on construction.

That’s because it’s already been spent on the new Manavon Elementary School.

Stanley Johnson, the school district’s director of operations, explained that during the construction of Manavon, which opened in August, it was prudent to lend the project about $6 million from the general fund, rather than borrow for the two projects twice.

“So about half of this borrowing is paying ourselves back,” he said.

The other portion of the borrowing will pay for the expansion and security upgrade project now underway at Phoenixville Area High School, said Johnson.

With a unanimous vote, the board approved the sale of $9,950,000 in bonds.

Jamie Doyle, a managing director at Public Finance Management, said the district’s bonds were sold in an internet auction Thursday morning and attracted a total of 29 bids be-

fore the contest was won by Janney Montgomery Scott.

The district’s taxpayers will pay 3.15 percent interest on the bonds, which can be paid off as early as May 15, 2023.

The interest rate turned out to be lower than anticipated in October, due in part to the district’s excellent bond rating, said Doyle, and as a result, will save taxpayers will pay $2.4 million less in interest.