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Board holds public hearing on Hums Elementary replacement financing; $45 million maximum borrowing proposed
Summary
At a Jan. 8 public hearing, consultants from Baker Tilly outlined a preliminary financing plan for replacing Hums Elementary School, proposing a $45 million maximum borrowing limit, a 20‑year repayment term and an estimated $27.74 million interest cost using a conservative 5% rate.
The School City of Mishawaka opened and closed a public hearing Jan. 8 on the proposed replacement of Hums Elementary School and heard a preliminary financing report from Baker Tilly that set maximum borrowing parameters for the project.
Lisa Huntington of Baker Tilly told the board the resolution before taxpayers would set maximums for the financing: a maximum borrowing amount of $45,000,000 with estimated proceeds available of $43,850,000 after issuance costs, a maximum repayment term of 20 years and an estimated total interest expense of $27,742,000 using a conservative 5% interest rate. Huntington said the board’s action tonight was procedural and that the numbers establish ceilings the district will not exceed when the bonds are sold.
Huntington also said the presentation included an allowance for common school fund loans and showed how new debt service would layer in as older debt matures. She said the financing plan set a maximum annual lease payment of $6.5 million to allow flexibility in structuring debt service at sale. The presentation included historical and projected school tax‑rate context and estimated the tax rate would be near $1.35 in 2026 after the transaction.
Doctor Stevens explained that the board had already passed a resolution to proceed with two public hearings — the first on Jan. 8 and a second during the Feb. 5 regular meeting — and read the notice language that informs taxpayers they may file an objection petition within seven days of the hearing if at least ten taxpayers sign the petition. He asked the board president to open and then close the public hearing so that Baker Tilly could answer any subsequent public questions.
The board did not take financing action at the Jan. 8 hearing; consultants said final borrowing terms and schedules will be set when the district moves to market and that the figures presented were preliminary maximums.
