Derry Area School District authorizes issuance of roughly $10 million in general obligation bonds
October 17, 2025 | Derry Area SD, School Districts, Pennsylvania
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The Derry Area School District Board of Directors voted to authorize administration to proceed with issuing general obligation bonds, series of 2025, in the approximate amount of $10,000,000.
Board members were told the formal resolution will show a larger “not to exceed” amount to comply with state legal requirements, and that the district expects to borrow roughly $9.5 million to $10 million for the first phase of projects. “Even though the resolution is gonna say something like not to exceed $12,000,000, we know that we're only gonna borrow somewhere between 9 and a half and 10,000,000 for the first phase,” a district presenter said during the board discussion.
The presenter outlined a 20-year borrowing plan showing current annual payments of about $2.1 million. Under the plan’s first step, the district would fund about $22.5 million in projects while keeping annual payments near the existing $2.1 million level by lengthening the debt schedule. The presenter warned the plan is a guide and may change as project specifics are finalized.
Board members were also told the district recently completed a Moody's credit-rating interview with the superintendent and business manager; the presenter said the district expected a rating in the “high A” category and anticipated the rating report in about two weeks. The timeline discussed calls for the bond resolution to appear on the board agenda on Nov. 6 and for the district to enter the market shortly before Thanksgiving.
At the meeting, the motion authorizing the issuance directed administration to work with TFM Financial Advisors LLC as independent municipal advisor, Raymond James as underwriter, Dinsmore and Scholl LLP as bond counsel, and the district solicitor. The motion passed on a roll call with eight yes votes and no votes recorded.
The board was told bond counsel Sean Garen of Dinsmore would attend the Nov. 6 meeting to walk members through the resolution. District officials also said the “not to exceed” figure shown in the resolution is intentionally higher than the expected borrowed amount to meet legal drafting practices.
No specific projects tied to the bond proceeds were finalized during the meeting; staff said project lists and any adjustments to the multi-step plan will be developed in the coming months and brought back to the board.
Board members were told the formal resolution will show a larger “not to exceed” amount to comply with state legal requirements, and that the district expects to borrow roughly $9.5 million to $10 million for the first phase of projects. “Even though the resolution is gonna say something like not to exceed $12,000,000, we know that we're only gonna borrow somewhere between 9 and a half and 10,000,000 for the first phase,” a district presenter said during the board discussion.
The presenter outlined a 20-year borrowing plan showing current annual payments of about $2.1 million. Under the plan’s first step, the district would fund about $22.5 million in projects while keeping annual payments near the existing $2.1 million level by lengthening the debt schedule. The presenter warned the plan is a guide and may change as project specifics are finalized.
Board members were also told the district recently completed a Moody's credit-rating interview with the superintendent and business manager; the presenter said the district expected a rating in the “high A” category and anticipated the rating report in about two weeks. The timeline discussed calls for the bond resolution to appear on the board agenda on Nov. 6 and for the district to enter the market shortly before Thanksgiving.
At the meeting, the motion authorizing the issuance directed administration to work with TFM Financial Advisors LLC as independent municipal advisor, Raymond James as underwriter, Dinsmore and Scholl LLP as bond counsel, and the district solicitor. The motion passed on a roll call with eight yes votes and no votes recorded.
The board was told bond counsel Sean Garen of Dinsmore would attend the Nov. 6 meeting to walk members through the resolution. District officials also said the “not to exceed” figure shown in the resolution is intentionally higher than the expected borrowed amount to meet legal drafting practices.
No specific projects tied to the bond proceeds were finalized during the meeting; staff said project lists and any adjustments to the multi-step plan will be developed in the coming months and brought back to the board.
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