The Derry Area School District Board of School Directors voted to adopt a parameters resolution authorizing the district to begin the process of issuing general obligation bonds with a maximum principal amount of $12,000,000, while the district's advisers said the actual planned sale is expected to be about $9.95 million to fund future capital projects, primarily at the middle and high school complex.

Bond counsel Sean Garrett (Dinsmore & Shohl) told the board the resolution is the required first step to authorize the bond transaction, make the necessary filing with the Pennsylvania Department of Community & Economic Development and to permit the district to accept a bond purchase agreement. Garrett said the larger $12 million figure is a state-law precaution to give flexibility when fitting maturities at the time of sale.

Mike McCabe of Raymond James, the proposed underwriter, described current market conditions as favorable for a sale next week and highlighted the district's recent independent credit rating. "Your rating came back as an A1. And you as school board director should feel really good about that rating. It is a very solid credit rating," McCabe said, noting Moody's cited the district's healthy reserves, liquidity and a growing tax base.

Board members emphasized that adopting the parameters resolution does not commit the district to specific projects; it only starts the borrowing process so money can be available if and when the board decides on scope. Counsel explained a proposed closing date of December 11, assuming the bonds are sold next week and the Department of Community & Economic Development approves the filing.

The board approved the parameters resolution by roll call. The motion passed on a recorded vote, 6-0.

The district's advisers noted that the planned issue is below the permitted maximum, and that proceeds will be deposited to project funds at closing and spent according to the board's future determinations of scope and timelines.