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Upper Darby SD finance staff outline $47 million target for 2025 bond to fund Clifton Heights Middle School
Summary
District finance staff told the Finance and Operations Committee they are targeting roughly $47 million for a 2025 bond to fund Clifton Heights Middle School construction, and will seek board approval of a 'max parameters' resolution on March 11 to allow sale planning up to a $52 million ceiling.
District finance staff presented an updated schedule and parameters for a 2025 bond issuance intended primarily to fund construction of Clifton Heights Middle School.
The presentation to the Finance and Operations Committee described a targeted issuance of roughly $47,000,000 and said the district will ask the full Board to approve a 'max parameters' resolution at the March 11 board meeting that would set a higher aggregate ceiling of about $52,000,000 to give the financing team flexibility when marketing the bonds.
The finance presenter said the team is in due diligence through March, will circulate a draft preliminary official statement to the financing team and rating agency this week, and expects a Moody’s credit-rating interview during the week of March 10. The presenter said the district expects pricing and rate-lock activity the week of March 24 and hopes to settle the bonds in late April. “We will ask the Board hopefully to vote on a max parameters resolution at our next Board meeting on March 11,” the presenter told the committee.
Staff cautioned that the 10-year market indicators shown to the committee (2.99 percent on the slide) are not the same as 30-year borrowing costs the district typically uses for long-term capital projects; the presenter said 30-year rates are likely to be near 4 percent. The slides showed that current 10-year rates are below the long-term historical average but slightly above the twelve-month average.
Committee members were shown a borrowing plan the district described as a multi-step financing strategy spanning 2024–2026 tied to the Clifton Heights construction draw schedule. The presenter said any additional proceeds beyond the middle school would be limited, and if needed could be used for exploration and design of a potential new elementary school.
No formal bond sale was approved at the committee meeting; committee members signaled consensus to move the matter to the March 11 board meeting for a formal vote on the max-parameters resolution. Final sale documents and signature authority would follow the district’s usual post-approval sign-off by the Board president or vice president and administration before settlement.
The committee did not set exact borrowing amounts or final pricing at this meeting; staff said those values will be finalized after the rating opinion and the marketing process.
