Audrey Baer, financial adviser with Piper Sandler and Company, briefed the Abington School District Board of School Directors on a potential financing plan to support a middle school project approved by referendum earlier this year.

Baer outlined an early estimate that the referendum authorizes borrowing up to $285,000,000 for the project and described a likely structure of three separate bond borrowings: an initial series of about $20,000,000 this year, a larger series in 2026 (illustratively about $135,000,000) and a final series in 2028 (illustratively about $130,000,000). "We don't make projections. You'll see it end with current," Baer said when showing recent municipal interest-rate history and explaining that estimates will change as bids and market conditions evolve.

The presentation showed how issuance deductions and financing costs reduce the face amount to net proceeds that can be spent on construction. Baer said the example scenario subtracts items such as original issue discount (OID), estimated underwriting and issuance costs, insurance and capitalized interest and results in an illustrative project fund deposit of about $270,000,000 available to finance construction work.

Baer described capitalized interest as an option to use a portion of borrowed funds to make interest payments early in the construction schedule in order to phase in the budget impact over several years rather than concentrate it immediately. She said that approach is one reason the district is considering borrowing in multiple pieces: "One of the advantages of being able to borrow in 3 pieces instead of all at once is, in fact, that ability to space out the budget impact and, therefore, your taxes."

On sale method, Baer explained the difference between a competitive sale — an auction-style sale occurring in a short, preselected window — and a negotiated sale where the district selects an underwriter in advance and can time the offering to market conditions. She said negotiated sales are more common for municipal borrowing today because they allow more flexibility to pursue favorable timing.

Baer also described the investor market. Municipal bonds are typically sold in $5,000 increments and are attractive to individual retail investors because Pennsylvania residents generally receive tax-exempt interest from Pennsylvania municipal bonds. "For a Pennsylvania resident, they get a tax advantage on bonds from any municipal bond," Baer said, describing the state and federal tax advantages that can lower the district's borrowing costs.

Board members asked about timing and tax impacts. Baer said payments on the first series would begin in the 2026–27 school year, after borrowing during the 2025–26 year. She cautioned that all figures were preliminary and would be revised as architects', engineers' draw schedules, contractor bids and market conditions become firmer.

A board member asked about how project funds are held after issuance. Baer said proceeds are wired by the underwriter to a project bank account set up by the district's business office and subject to the same state school-code investment rules that apply to other district accounts. "The rules are not complicated. What it does is provide protections for school districts," a board member said, describing required collateralization and protections above federal deposit insurance.

Baer closed by noting the district will receive more precise figures as it progresses through design, bidding and market windows, and that decisions on sale method and final series amounts will follow when those inputs are available.

Next steps identified in the discussion include refining the draw schedule with the architect and contractor, updating estimates when contractor bids arrive, and returning to the board for decisions on sale structure and final issuance amounts. All timelines, Baer repeatedly noted, are contingent on construction schedules and market conditions and subject to revision.