Chief Fonkauser proposes $2.5M geo bond for fire department funding

The Town Council of Whiteland, Indiana, convened on April 9, 2025, to discuss key financial strategies for the local fire department, focusing on the potential issuance of a general obligation (GEO) bond. Chief Fonkauser presented the proposal, highlighting that the fire department could qualify for a bond amounting to $2.5 million. This funding would be utilized for necessary capital outlays, which would be repaid through a dedicated revenue stream generated by the bond itself.

During the meeting, it was clarified that the fire department has a unique debt limit separate from the town, allowing it to pursue this bond without any existing obligations against that limit. The council discussed the advantages of the GEO bond, particularly its ability to create a new debt levy, which would provide a dedicated revenue source for repaying the bond. This mechanism would ensure that the bond payments are covered without impacting the town's existing budget.

An alternative option discussed was a lease structure, which would function similarly to a vehicle loan. However, this option would not generate new revenue, requiring the town to cover lease payments from its existing funds, which the council expressed concern over.

The council members were informed that the process for securing the GEO bond would take approximately 60 to 90 days. They also confirmed that the issuance of the bond would not lead to an increase in the overall property tax rate, maintaining the current tax structure while potentially stabilizing it against future decreases.

In conclusion, the meeting underscored the council's commitment to exploring financial avenues that support the fire department's needs while ensuring fiscal responsibility and minimal impact on taxpayers. Further discussions and decisions regarding the bond issuance are expected in the coming weeks as the council moves forward with the proposed plan.