Board authorizes lease financing and building corporation for school projects

The New Albany Floyd County School Board on July 14 approved a series of resolutions to begin financing facility projects through lease financing and a building corporation, voting 7-0 to adopt each resolution. The board first adopted a resolution determining need for renovation and improvement projects across the district, as required by the school leasing statute (IC 20-47-3). Board staff described projects included in the request as HVAC, roofs, windows, intercoms, a softball field at Floyd Central High School, Chromebooks, buses, and other equipment across multiple school buildings. The board next approved a resolution approving the form of lease; under the plan a building corporation would purchase a portion of the Ellen Jones Elementary building at appraisal value and lease it back to the school corporation, with lease payments to be paid from property taxes and sized to cover principal and interest to bondholders. The board also reauthorized the district’s standing nonprofit building corporation so it can issue tax-exempt bonds on the school corporation’s behalf; the presenter said the IRS requires board reauthorization to permit a building corporation to issue tax-exempt debt. The administration indicated the board will hold required hearings in August and expects to sell the bonds and start projects in late September or October. Each of the three resolutions was moved, seconded and approved unanimously. Board members asked for a list of the community members who serve on the building corporation; administration said it would provide that list. No public hearing was held at the July meeting; the presenter said statutory hearings are planned for August.