District looking at borrowing up to $80 million

Levittown - Robert A. Reichert, Hatboro-Horsham School District's director of business affairs, wore the hat of a financial planner Monday night, presenting the school board's finance committee with a look down the road as the board deals with strategies to fund more than $20 million in improvements to the district's middle school and a minimum of $25 million in upgrades to elementary schools.The presentation centered on the price tag for borrowing money to pay for the projects. Reichert, who told committee members that the district was "in pretty good shape" financially, gave costs projections in terms of debt service the district would incur for borrowing from $50 million to $80 million. Those figures included a scenario in which an elementary school would be closed. Back in June the school board was presented with a number of options dealing with the costs of upgrades for elementary schools. Either Pennypack or Hallowell would be closed in those options.Reichert said the closing of an elementary school will allow the school district to borrow more money for its building improvements because the closing would offset the additional debt service.Superintendent William Lessa asked Reichert what amount of money he would "feel comfortable" borrowing."I think we will be able to fund a debt service of $25 million," Reichert said. "If we close a school then we can borrow another $20 million for a total of $45 million."Board member Harriet C. Ehrsam questioned Reichert about how the closing of a school would equate to assuming an additional $20 million in debt.Reichert said his projections include the annual savings - including teachers' salaries and benefit costs - that would be realized from staff reductions with the closing of the school.Lessa told the finance committee members that the next step would be for the facilities committee to examine the costs involved in the renovations of the schools to determine how much the district would need to borrow.Bill Devlin can be reached at 215-345-3179 or wdevlin@phillyburbs.com.

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