JERSEY SHORE — The Jersey Shore Area School board approved a resolution for a $10 million bond to be issued to finance capital projects that have been identified at the middle school.

Following a presentation at their meeting this week by Melissa Hughes, senior managing consultant with PFM Financial Consultants LLC, the board agreed to proceed with the issuance of General Obligation Bonds, Series 25 via internet auction. PFM acts as the independent financial adviser Eckertm Seamans, Cheering & Mellott LLP as Bond Counsel.

Board member Mary Thomas was the lone vote against incurring the debt. Those voting in favor were: Michael Allen, Harry Brungard, Jessie Edwards, Tim McDonnell, Cheri Peters, Bill Pfirman and Michelle Stemler. Board member Kayla Calhoun was absent.

The district is seeking a 15-year wrap bond which takes the current bond debt and refinances it with the amount being borrowed. The new amount would be paid off in 2040.

Thomas had questioned if the savings the district is projecting from the closure of Salladasburg Elementary School at the end of this school year would be enough to offset the increased debt payments.

Ben Enders, the district’s business manager, said that was the plan. He also said, when asked by another board member, if he thought the increased debt would result in a change in the tax rate, “I don’t see this having an impact on tax rates.”

He told the board that now is a good time to borrow with rates projected around 4 percent.

The district has a tax exempt status for borrowing at the lower rate, however the borrower has strict guidelines related to the funds borrowed.

They include an expenditure test, where 85 percent of the proceeds must be spent within three years. They must also have a binding obligation, such as a design contract or award a construction bid, equal to at least 5 percent of the borrowing amount within six months. There is also a stipulated due diligence test where “construction of the project will proceed, and the bond funds will be spent, with due diligence to completion.”

The board’s approval to proceed with seeking the $10 million bond followed a presentation by Wayne Brookart, senior business consultant at SitelogIQ on the projects that had been identified for Phases 1 & 2 at the Middle School.

Phase 1 is primarily 70 classroom unit ventilators. Phase 2 which is also scheduled for this year includes: chilled water pumps; domestic hot water storage tank and heater; two hot water pumps; a hot water circulation pump; gym ceiling removal; gym equipment (curtains and padding); replacement of expansion tank; cafeteria and library RTU’s; corridor ceiling tiles; and LED lighting.

Cost for Phase 1 is estimated at $3.2 million. Phase 2 costs have not been determined, but Brookart stressed that the total for the two phases would not exceed $7.5 million.

Board member Jessie Edwards stated that she felt that the projects would be an “investment in the students” because “they all use the Middle School.”

Work on the gym floor, in the locker rooms and the lockers and wall panels in the corridors were also listed in the presentation as projects for 2026 if the board chose to borrow the $10 million amount.

Enders also told the board that by borrowing the larger amount the district could possibly invest the excess amount for two years, as long as the expenditure test is satisfied.

If the bond is secured, the district could have the funds in their account and ready to be used by the end of April, Hughes said.