Committee advances plan for 2026 general-obligation bond to close out Clifton Heights project

Craig Rogers, the district’s board secretary, told the Finance and Operations Committee that the administration plans a 2026 general obligation bond issuance to close out the multi-year Clifton Heights Middle School project and to fund early-stage design work exploring a possible new school at the Delaware County Memorial Hospital property.

Rogers said the district intends to target a bank-qualified bond — a classification that requires issuances of $10 million or less per calendar year — because it can produce a stronger market and potentially lower rates. He described a schedule of due diligence and credit work: distribution of a draft preliminary official statement in mid‑January, a Moody’s credit interview the week of Feb. 9, an anticipated Moody’s opinion the week of Feb. 16, pricing and rate lock the week of Feb. 23, and settlement in March 2026.

The presentation stated the administration expects the district will need “roughly around… $5 million in additional cash” to complete Clifton Heights, with any dollars above that level earmarked for design and exploration related to the hospital property or other district priorities. Rogers said the administration will ask the board to approve a max-parameters resolution that establishes upper limits — including a dollar cap and maximum interest rate — and that the resolution will likely be set about 20% higher than the planned final issuance to provide flexibility when marketing the bonds.

An unnamed committee member asked why the district is targeting $10 million, saying, “It just seems like a low number for finishing off Clifton Heights and anything we need to do with… the beginning of Delaware County [Memorial Hospital] design exploration.” Rogers replied that prior financings had covered much of Clifton Heights’ costs, that roughly $5 million is the estimated additional need based on current escrow and grant funding, and that the extra room in the max-parameters authorization would allow the district to adjust amortization schedules or redirect funds within the district if circumstances change.

Another committee member noted the uncertainty around costs at the hospital site — including whether existing buildings could be reused or would require demolition — and estimated permitting or demolition could take six to 12 months. That speaker said limiting the 2026 bond to the bank-qualified threshold helps reduce near-term budget and tax impacts and preserves the option to issue additional debt next year if more clarity emerges.

The committee expressed support for advancing the max-parameters resolution and agreed to place the resolution on the full board’s Feb. 10 agenda for a formal vote. The administration emphasized that all project plans remain subject to change pending due diligence, design work and final board approvals.

Next steps: the administration will finalize the draft preliminary official statement, proceed with credit due diligence and present the max-parameters resolution to the full board for action on Feb. 10.