Park board bond package would be paid from park district taxes; county advisers say issuance should be net tax-neutral

The Budget Administration Committee voted to send favorably a request related to proposed park district bonds that would fund multiple park projects and are structured as debt of the park district rather than the county.

Catherine Fanello, counsel for the park district, described recent park board meetings and said the park board adopted a resolution after a public hearing on May 20 to seek authority to issue park district bonds not to exceed $6.6 million. She said park district bonds are payable from an ad valorem property tax within the park district and that the county council’s approval is required under Indiana law to issue the bonds and appropriate proceeds.

Steve Dalton, the county’s municipal adviser, told the committee the new bonds are intended to replace retiring payments and that the net tax rate will not increase. He said the payment on the newly proposed park bonds, combined with other scheduled changes, would result in a lower tax rate for the example taxpayer: “The total that a person would pay on a $300,000 house for this specific proposed bond would be $12 per year,” he said, and that overall the replacement would reduce the prior tax obligation.

What the committee did: The committee voted to send the park bond request favorably to the full council; the chair broke a tie during the committee vote and recorded a favorable 3–2 result.

Next steps: The park district bond ordinance and the appropriation of bond proceeds will appear on the full council calendar for final approval under statutory requirements.