Colonial School District families could see long-term debt costs drop if the Finance Committee moves forward with a plan to refinance nearly $39 million in bonds at its Monday, August 3 meeting.
The committee, chaired by Jeremy Schwartz, will take up two items of new business at 6 p.m. at Colonial Elementary School, 230 Flourtown Road, Plymouth Meeting: refinancing the district's Series of 2020 and Series of 2022 General Obligation Bonds and discussing a state Public School Infrastructure Improvement Grant that could bring up to $5 million for facility repairs.
What's on the table
The 2020 bonds carried a par amount of $29,505,000 at an all-in borrowing rate of 2.07% when issued, according to a PFM Financial Advisors presentation to the board. Those bonds become callable on Feb. 15, 2027, opening a window for the district to lock in new terms.
A 2019 PFM projection placed the 2022 series at approximately $9,525,000 in principal over a 22-year term, though actual issuance terms have not been confirmed in public documents.
Combined, the two series represent roughly $39 million in original par value that financed capital projects including the Colonial Middle School and elementary school renovations.
Grant application deadline approaching
The second agenda item lands with urgency. The Shapiro administration extended the application deadline for Pennsylvania's Public School Facility Improvement Grant Program to Friday, August 7, according to a DCED announcement. Individual districts can receive up to $5 million per project for roof repairs, HVAC systems, plumbing, windows, ADA improvements and other safety upgrades.
DCED Secretary Rick Siger said July 27 that the program gives school districts flexibility and resources to make repairs they might not otherwise be able to complete.
The state's 2026-27 budget puts $125 million behind school infrastructure, including $100 million for the facility grants. Since 2023, nearly $175 million has gone to 208 schools statewide.
The district has not disclosed which building or project it might target. The board voted June 8 to redirect $50,536 in surplus funds from the completed Colonial Elementary renovation toward a Plymouth Elementary School roof project, according to board meeting records.
Budget context
The committee's discussion comes less than two months after the board adopted a $168,847,053 budget for 2026-27, which included a 3.5% real estate tax increase bringing the millage rate to 27.422.
Business Administrator Mark Digian presented budget projections showing a $3.897 million General Fund deficit before the tax adjustment.
For a homeowner with a $200,000 assessed value, the Colonial School District portion of the property tax bill runs approximately $5,484 annually. Successful refinancing at lower rates could ease pressure on future budgets.
The grant application window closes Friday, August 7, with no additional funding round available in 2026-27.
