MSD Southwest Allen County Schools holds first public hearing on proposed $85 million bond package

MSD Southwest Allen County Schools opened a public hearing on proposed districtwide facility improvements and a plan to borrow for the work, the district said during a presentation at Whispering Meadows.

The district presented a preliminary program and financial parameters that would allow the district to borrow up to $85,000,000 and to sell bonds in multiple issuances over about three years to match cash-flow needs and minimize capitalized interest. "This is the first step in this process," the district's presenter said, adding that "no formal board approval is required during this time." The board scheduled a second preliminary-determination hearing for April 15.

Why it matters: The proposal would fund a set of building projects across the district that district staff said are intended to update aging systems and improve accessibility. The financing plan's structure and stated maximums — including a listed 7% maximum interest assumption and a multi-year bond-sale schedule — shape the projected debt-service costs that could affect long-term budgets and capital planning.

District staff outlined the proposed projects and key parameters. The list included a new career and technical education building planned adjacent to Covington Elementary School; interior upgrades at all K–8 buildings (flooring, wall coverings and similar work); playground standardization (including replacing some mulch surfacing with synthetic material where appropriate to improve accessibility); structural work at Woodside Middle School to add helical piers; HVAC upgrades (air handlers, boilers, chillers); roof replacements; athletic facility upgrades including turf fields and LED lighting; parking-lot improvements; and expanded storage facilities.

On financing, staff said they planned to sell bonds in up to three issuances over a three-year window. Presenters cited preliminary maximum parameters shared in the board packet: total borrowing outlined at $85,000,000, about $80,000,200 in proposed hard-cost proceeds and a 7% maximum interest assumption. Jim Elizondo, who the district identified as available to answer finance questions, characterized the 7% figure as conservative: "Yes. So, because we're talking about a period of over 3 years of issuance and projects starting, we're very conservative in our estimates. That's 7% interest that's in there. Today, we sold bonds, up in Lake County at, 20 year bonds at about $4.24."

Board members asked about tax impacts. A board member asked whether taxpayers would see increases to the debt-rate fund. The district replied that the proposal would not increase the debt-rate fund: "This would have no imposed impacts. This is no increase to your debt rate fund," the presenter said.

District staff said next steps will include refining project scopes, choosing delivery methods, engaging building principals and other stakeholders, and returning to the board for further hearings and approvals as the program is finalized.

Evidence spans: presentation opening and the hearing close are recorded in the meeting transcript; staff emphasized these were preliminary parameters and that formal approvals would follow later meetings.