Daily Local News (West Chester, PA)
Debt service $19M below estimates on new high school
Avon Grove School District officials announced that the district’s debt service for its Comprehensive Facilities Plan is $19 million below original estimates.
The Facilities Plan includes construction of a new Avon Grove High School (AGHS), slated to open for students this fall, as well as renovation of the current high school to become the middle school building for students in grades 6 to 8.
When the district approved its borrowing resolutions in November of 2018, the projected total gross debt service was $230,827,190 over the life of the bonds. After the District’s final bond issuance on March 10, 2022, the actual total gross debt service
was $211,849,264, a difference of $18,977,926. The nearly $19 million in savings was due to favorable market conditions and an exceptional financing strategy. Additional savings will be realized once the final PlanCon reimbursement rates are received from the state.
Initially, the district assumed that funding for the project would be a local effort. Due to PlanCon reimbursements, the district will recognize over $500,000/year in revenues
from the state, according to John Frey of PFM Financial Advisors and Ken Phillips of Raymond James, who presented an overview of the district’s financing for the projects.
AGSD’s Chief Financial Officer Daniel Carsley reviewed the project costs summary. As of March 31, the district has spent $76,306,703 on the new AGHS construction project and $3,387,823 on the high school renovation project, totaling $79,694,527.
The new AGHS construction project remains under budget and on schedule for opening in the fall.