Upper Darby finance committee outlines plan for Clifton Heights bond; max‑parameters vote set for Sept. 10

The Upper Darby School District finance and operations committee on Aug. 27 received an update on the district’s 2024 general obligation bond plan to fund the Clifton Heights Middle School project and was told district staff will seek a max‑parameters resolution at the full board meeting on Sept. 10.

The committee was presented a borrowing plan that targets roughly $37,000,000 for the 2024 phase of a multi‑step financing program tied to construction draws for the Clifton Heights project. District staff said the resolution that will be presented Sept. 10 will set higher maximums — “closer to $42,000,000” — to preserve flexibility in pricing, but the district does not expect to issue that full amount in this phase.

The update, led by board secretary Mr. Rogers and financial advisor Zach Willard of PFM Financial, covered timing, interest‑rate expectations and next steps. Rogers said the district plans three issuances tied to the project: 2024, 2025 and a smaller “cleanup” issuance in 2026, though that schedule could change with construction draws or market conditions. Rogers said, “we're targeting roughly $37,000,000 in this phase of the debt issuance,” and that the resolution will provide flexibility in the event market or project needs shift.

Willard described the interest‑rate context for tax‑exempt school borrowing, distinguishing the tax‑exempt 10‑year index his team follows from the taxable 10‑year Treasury. He said that for “a plain‑vanilla bond issue” over 20–30 years, the district could expect fixed rates in the roughly 3.75% to 4% range, adding that current shorter‑term index levels (which he referred to in the presentation) are not themselves the district’s borrowing rate but an indicator of market direction. “If you go out and borrow money as a school over 20, 25, 30 years, you know, you're somewhere in the 3.75 to 4% range for a fixed rate for the full term,” Willard said.

Officials outlined a near‑term timetable tied to credit rating and pricing steps: a Moody’s credit opinion expected the week of Sept. 2, a board vote on a max‑parameters resolution at the Sept. 10 board meeting, pricing and any rate lock the week of Sept. 16, and settlement currently estimated for mid‑October. Rogers said Fox Rothschild will present a debt resolution when the board considers the maximum parameters.

District staff emphasized why a max‑parameters resolution is used: it authorizes the financing team to enter the market and price bonds when conditions are appropriate, while setting legal caps on aggregate principal and maximum annual interest and principal payments. Rogers said final documents will still require signatures from the board president or vice president and administration before the financing is complete.

Committee members asked about the number of planned issuances; Rogers responded that the current plan is three issuances tied to construction timing but acknowledged the plan is a “living document” that may be adjusted if market conditions or project draws change. Willard and staff said the district will return to the board with a similar presentation before each issuance.

No formal committee vote was taken on the max‑parameters resolution at the Aug. 27 meeting; staff framed the session as an informational update and schedule check ahead of the Sept. 10 board vote. The committee approved routine meeting items (the evening agenda) and then adjourned. There were no public comments during the committee portion of the meeting.

Next steps: staff will present the max‑parameters resolution to the full board on Sept. 10; Moody’s will issue its credit opinion the week of Sept. 2; pricing is expected the week of Sept. 16, with settlement targeted for mid‑October.