Upper Dublin School District explores $70M project financing options with PFM's guidance

The Upper Dublin School District Finance Committee convened on April 23, 2025, to discuss financing options for upcoming projects, with a focus on a potential $35 million to $70 million borrowing plan. The meeting aimed to outline strategic funding avenues as the district prepares to make a project recommendation by June.

During the session, committee members reviewed four project concepts, which range from a system refresh to the construction of a new building. The estimated costs for these projects vary significantly, with the new building projected to cost up to $70 million. The committee emphasized that the presentation was not a complete funding plan but rather an overview of available financing options.

Jamie Doyle, an expert in debt service and project financing, provided insights into current market conditions and interest rates. She noted that despite recent volatility in the financial markets, there remains strong investor interest in Pennsylvania school district bonds, particularly those with high credit ratings like Upper Dublin's. Doyle highlighted that current interest rates are around 4.5%, which is favorable compared to historical averages.

The committee explored various funding sources, including the general fund, capital reserve fund, and debt service fund. Doyle explained that borrowing would impact the general fund through increased debt service payments, necessitating either higher revenues or reduced expenses to accommodate these costs. The district has approximately $5 million available in its debt service fund, which could be strategically utilized for the project.

The discussion also touched on the importance of a maximum parameters resolution for any borrowing, allowing the district flexibility to respond to market conditions without needing to hold special meetings for final approvals. This resolution would set a maximum principal amount and interest rate, ensuring the district can act swiftly when favorable borrowing opportunities arise.

As the meeting concluded, the committee acknowledged the need for further refinement of the borrowing scenarios based on a detailed draw schedule. The next steps will involve continued discussions on the project concepts and financing strategies, with the goal of finalizing recommendations in the coming months.