The Nazareth Area School District is running out of time to spend its $10 million elementary school construction bond, so administrators have recommended diverting most of the funds to other projects.
The board agreed in October 2024 to borrow the money, but the elementary school project has lagged. The site at Hecktown and Country Club roads in Lower Nazareth Township isn’t zoned for a school, and the township doesn’t want to accommodate the school district.
The district is digging its heels in on a zoning dispute that could take years to resolve and is likely headed for court.
Meanwhile, Nazareth Area School District Chief Operating Officer Stuart Whiteleather said the district must spend 85% of the bond within three years or face IRS penalties. Municipal bonds come with favorable interest rates to help fund government projects. It’s against the law to borrow the money and just allow that favorable interest to accumulate.
“We cannot borrow money to invest. That’s what the IRS says. You borrow money to spend it,” Whiteleather said at the board meeting Tuesday, Nov. 12.
It’s not easy to just give the money back, either, he said. Administrators have determined the best course is to use the money on badly needed projects. They’ll ask the school board Nov. 25 for permission to move ahead with the projects. With that approval, preparations will start toward a final approval of the projects in the spring with work to start this summer.
The projects include:
$1.5 million for a retaining wall at Nazareth Area High School. Whiteleather said a previous round of bids on the project came in higher than the board wanted to spend. Efforts to come up with a cheaper alternative haven’t panned out, he said.$600,000 for a switchgear at the high school. A switch in the current mechanism failed last year and shut off power to the school. The switch was replaced, but the district wants to replace the entire mechanism and move it indoors.$580,000 for a stadium press box upgrade$450,000 for middle school security cameras$425,000 for the failing rooftop air conditioning units at the high school$330,000 for high school stadium lighting$311,000 for lights in the high school auditorium and the high school art gallery
The board can review the list and decide which items to approve or remove. For more details on the projects and the bond, you can watch a video of the school board meeting. A link to the video is available at the end of the school board meeting agenda posted on the district website.
Information about the elementary school project is also no the district website.
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