Board approves parameters resolution authorizing up to $130 million in bonds to fund capital plan

The Tredyffrin-Easttown School District board on March 18 approved a parameters resolution that authorizes issuing bonds over multiple years with a maximum authorized debt of $130,000,000 and a 6% maximum interest rate. The resolution sets guardrails for multiple prospective bond issues to fund the district’s capital plan, which includes athletic fields, potential elementary school projects and infrastructure work.

Officials from the district and bond advisors (Raymond James, PFM and outside counsel) explained the resolution would permit the district to go to market without returning to the full board every time parameters (within the resolution’s caps) are set. Administration representatives said the $130 million maximum includes a contingency cushion above a planning figure of $106 million to preserve flexibility.

Board members and staff discussed whether to 'front-load' a larger first tranche to take advantage of an inverted yield curve; finance staff said the current plan contemplated a first tranche of roughly $33,000,000 with the option to increase that tranche to $35–40,000,000 subject to board direction once bids and scope are clearer. Staff emphasized that each borrowing tranche would be brought back to the board for specific authorization and that unused authorization would be removed from the district’s books when projects are complete.

The board voted 9–0 to approve the parameters resolution. The administration said next steps include finalizing the official statement, obtaining bond ratings and returning to the board with specific borrowings and timing for each tranche as bids and project scopes become more definite.