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Council to redeem 2014 income‑tax bonds early using $4.27 million in PSAP funds
Summary
Saint Joseph County Council approved an appropriation of $4,270,000 in PSAP/local income tax funds on May 13 to redeem the county’s 2014 economic development income‑tax revenue bonds on June 30, 2025; officials said the move will remove roughly $600,000 in annual debt service and yield savings in the 2026 budget.
The Saint Joseph County Council voted 9‑0 on May 13 to appropriate $4,270,000 from the county’s PSAP distribution of local income tax receipts to redeem the outstanding economic development income‑tax revenue bonds issued in 2014, which funded construction of the county’s 911 communication center.
Tom Everett of Barnes & Thornburg presented the ordinance (bill 29‑25) and told the council the appropriation would allow the county to redeem all outstanding 2014 bonds on June 30, 2025. Everett said, “This ordinance would appropriate $4,270,000 that the county has on hand from the PSAP distribution… in order to redeem the county’s economic development income tax revenue bonds of 2014.” He added the final maturity of the bonds was scheduled for Dec. 31, 2034, and redeeming them now retires roughly nine years of remaining principal and interest.
Council members asked about projected savings. Everett and county staff estimated the debt service on the bonds had been about $600,000 per year; Everett offered to provide an amortization schedule for precise savings calculations. Everett also said that, if the council adopted the ordinance, the county commissioners would consider the same ordinance next week as part of their approval process.
There were no public speakers for or against the appropriation during the hearing. The committee provided a favorable recommendation and the council motion to approve was made by Councilman Brian Tanner and seconded by Councilman Thomas; the roll call vote was 9‑0.
Why this matters: redeeming the 2014 bonds now uses existing PSAP/local income tax funds to eliminate a recurring debt service obligation and will free those PSAP funds for other uses beginning in the 2026 budget year, according to presenters.
