As Princeton ISD continues to grow, it is looking to raise funds to meet its demand by authorizing another bond series from its 2019 bond package.

The PISD board of trustees received an update from its bond counsel during the regular meeting Monday, April 18, held at the Administration Office.

Jeff Robert from Hilltop Securities presented the item to the board.

In 2019, trustees authorized a $237 million bond package that was spread out over four separate issuances to help manage the interest level-related debt the district would take on.

Around $100 million in bonds have already been issued, according to Robert’s presentation. The remaining $137 million is likely to be spread out in two increments: $60 million in 2022 and $77 million in 2023, said Robert.

He added there is a possibility the district does not issue the remaining $77 million in 2023, but it will authorize the sale of as much of the remaining amount as possible. The next authorization amount will depend on how much the district requires increased taxes to service bond-related debt.

One potential obstacle for the bonds could be higher interest rates, said Robert, because interest rates are starting to climb after being at record low levels previously. He said he is hoping to sell the bonds with a 3.8% interest rate, but the resolution presented to the board set the maximum total interest rate at 5% on the bonds.

Timing also played a role, said Robert, because several school districts are putting bond packages before voters in the upcoming May 7 municipal elections.

“There are more bond election dollars on the May election date than there has ever been in any one year,” Robert said. “It’s up to 118 bond elections total, totaling about $16.5 billion. A lot of those districts are going to want to start selling bonds around late June and throughout the summer.”

For the full story, see the April 21 issue of The Princeton Herald.