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School Board Approves Borrowing $3.2M to Update Stadium

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Copyright 2013 Lancaster Newspapers, Inc.
All Rights Reserved

Intelligencer Journal/New Era (Lancaster, Pennsylvania)
November 13, 2013 Wednesday
A; Pg. 12
408 words
Cv Oks Borrowing For Stadium Improvements
Donna Walker Correspondent
Lancaster, PA

BY DONNA WALKER

Correspondent

An overhaul of Conestoga Valley High School's athletic stadium will begin next year following a school board vote Nov. 11 to borrow up to $3.2 million.

By a 6-2 tally, the board passed a resolution to buy general-obligation bonds to pay for the project.

Scott Kramer with RBC Capital Markets, the district's bond advisers, presented the board with a borrowing structure. He showed that the district's debt level will drop significantly in 2020. That, coupled with its low existing debt and community contributions, sets the district up for what he called "wraparound financing."

Kramer said that wrapping the new bond debt into the current debt payment schedule allows the district to finance the project without affecting the budget until 2020.

As such, the district can borrow money without raising taxes or eliminating programs.

Until 2020, the district will use money from the Buckskin Boosters Capital Campaign and Market Street Sports sponsorships to pay the new debt. After that, when the principal on the loan comes due, the district can pay the loan by keeping debt payments the same as they are now.

Bond rates have remained low, Kramer said, making this a good time to buy them. He also said the district's low debt level earned it a double-A credit rating.

Board chairman Daryl Stoltzfus noted that although the $3.2 million covers the entire project, the district might not spend that much. The board will consider alternates and make decisions on various parts of the plan based on how much they cost.

The base project would include improvements to the home-side bleachers and concession stand, and renovatios to the visitors' bleachers.

Additions to the project could include a sythetic turf field, lighting and sound improvements and other improvements.

The bottom line could be reduced if business sponsorships increase or the Buckskin Boosters Capital Campaign receives more contributions.

Voting in favor of the resolution were Stoltzfus, Todd Shertzer, Merle Esh, Craig Esbenshade, Elizabeth Ulrich and John Smucker. Voting against were Charles Maines and Idette Groff.

Also at the meeting, the board nominated its slate of officers for next year. They are Smucker for president, Esh for vice president and Esbenshade for secretary.

Groff will serve as the temporary chairperson for the Dec. 2 reorganization meeting. Michael Talley has been elected to fill the seat of Allan Keim, whose term expires in December.

November 13, 2013

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