Board Poised to Borrow $78M for High School Renovations

While the decision to select a new facilities manager for Bensalem Township School District will be in the hands of the new school board, the board majority agreed the same should not be the case for the planned $78 million Bensalem High School renovation and expansion. 

The school board, during Wednesday's meeting, had a roughly hour-long exchange with its financial advisor Warren White, of First American Municipals regarding the $78 million general obligation bonds that will be considered during the board's Nov. 13 meeting. 

Despite a suggestion from board member Matthew Grodsky that borrowing be delayed until December when three new board members join the nine-member board and a facilities manager has been named, the current board is poised to authorize the $78 million debt.

Once that happens, White said the money would be in hand within a few weeks. From there, the clock would begin ticking on the annual interest accrual, which at an estimated 4 percent rate, would cost the district approximately $3 million annually in interest, according to White.

Grodsky said he was "very concerned" about the district committing "to a project this large" without having a facilities manager in place. 

"It doesn’t allay my fears that we do not have an individual who is taking ownership in that department," Grodsky said.

After the meeting, in an email to Patch, Grodsky emphasized the concerns he expressed during the meeting.

"With a decision whether or not to borrow $78 million dollars for a major facilities project just one week away, it is extremely troubling that we could not fill the facilities manager position," Grodsky wrote. "A position that will be the school district’s eyes and ears on such a large project should be filled prior to embarking on it."

Board member Wayne Lewis said design is ongoing for the 23,000-square-foot high school addition and renovations to reconfigure the 44-year-old high school into four academies: Ninth Grade, Science Technology Engineering and Mathematics (STEM), Fine & Performing Arts, and Business and International Studies.

Since asbestos abatement is expected to begin in the end of August or beginning of September, Lewis said it was not necessary to have a facilities manager in place at the time of borrowing.

White suggested that delaying the financing by a month could cause the district's recent Moody's credit rating to become "stale" and would put the district "at risk" for potentially higher interest rates.

"The market is very, very volatile," White said. "None of us have a crystal ball ... at some point (interest rates are) going to be going higher. All it takes is a hint that the economy is getting better."

Board President Ralph Douglass said it was "not logical" to have new members weigh in on something that the current board has been working on for some time. 

"This current board is the board that’s been through this process," Douglass said during the meeting. 

Afterward, Douglass told Patch that delaying was not in the district's best interest. 

"It's prudent for this board to take action next week," Douglass said.