Fairfield board approves preliminary resolutions for $12 million renovation project, calls public hearings

The Fairfield Community Schools Board of School Trustees on May 8 adopted preliminary resolutions and a declaration of intent to finance renovations and purchases across the district, approving Exhibit A through D and a preliminary bond resolution that together outline an estimated $12,000,000 project and potential bond issue. The actions followed a public hearing held as required under Indiana law. The resolutions describe the Project as renovations and improvements to facilities throughout the district, including site work, buses, equipment, real estate and technology. The board’s materials list estimated hard and soft costs of $11,400,000 and estimated costs of issuance of $600,000, resulting in a total estimated Project cost of $12,000,000. The resolutions say the estimated $12,000,000 could be funded by one or more of the following: Operations Fund, Common School Fund loan, state or federal grants, a general obligation bond issue and/or a building corporation bond issue. Board materials state the financing could have an anticipated impact on the Debt Service Fund tax rate of $0.4908 per $100 of assessed valuation based on the resolution’s estimated assessed valuation; the documents also state that “as existing obligations mature, the anticipated increase to the Total Tax Rate is expected to be $0.00 above the current Total Tax Rate.” Dr. Brandon Penrod, the district’s chief financial officer, presented the resolutions and requested board approval of Exhibits A–D and the preliminary bond resolution. The board approved each request by unanimous vote: Exhibit A (Project Resolution) — motion by Tyler Rensberger, second by Aaron Rink; Exhibit B (Preliminary Determination Resolution) — motion by Brian Wogoman, second by Aaron Rink; Exhibit C (Preliminary Bond Resolution) — motion by Aaron Rink, second by Tyler Rensberger; and Exhibit D (Declaration of Official Intent to Reimburse Expenditures) — motion by Tyler Rensberger, second by Brian Wogoman. The preliminary bond resolution authorizes up to $12,000,000 in general obligation bonds bearing interest not to exceed 5.00 percent and sets proposed maturity and payment dates; the resolution directs the secretary to publish required notices and to schedule a public hearing before final appropriation of proceeds. The Preliminary Determination Resolution in the board packet also states that each lease agreement considered would have a maximum term of 25 years with a maximum annual lease rental payment of $6,000,000 and includes a schedule of estimated debt service levies and rates for the coming decade. Board materials note the district consulted bond counsel Ice Miller LLP on procedures and the legal opinion process. The board recessed the regular meeting to hold the Second Preliminary Determination Hearing & Project Hearing, during which no objections were voiced concerning the information presented; the hearing was closed and the regular meeting resumed. Next steps reflected in the resolutions include publication of notices as required by Indiana law and further hearings or appropriation action before any final bond sale or lease is executed. The board did not take a final bond sale or lease action on May 8 — the approvals were preliminary determinations and authorizations to proceed with the financing process.