Greater Clark board approves bond resolutions after contested public hearing on Charlestown expansion

The Greater Clark County School Board of Trustees on May 27 approved five resolutions that set the parameters for a building‑corporation bond issue of up to $50 million to finance facility projects, including classroom additions at Charlestown High School.

The action followed a required public hearing and preliminary‑determination presentations that explained the financing structure under Indiana law and drew a mix of residents who urged both caution and urgency. The board voted to approve all five resolutions together after presentations by district staff and legal and financial advisers.

The hearing covered four procedural elements required by statute: the so‑called “10‑28” project definition (referenced in the meeting as House Bill 1028), a preliminary determination of the financing parameters, authorization to execute an amendment to a lease that ties school lease payments to bond debt service, and authorization for the Greater Clark Building Corporation to issue tax‑exempt bonds. Bond counsel and a financial adviser described the legal and financial mechanics of using a building corporation to issue bonds and lease the facility to the school corporation.

“The building corporation operates without profit,” Thomas Peterson said during the presentation, describing the structure that will hold title to financed facilities and return them to the school corporation after bonds are retired. Peterson also explained why statute and case law have led most Indiana districts to use building corporations for large projects.

Financial adviser Matt (last name not specified at the hearing) summarized the draft parameters the board approved: a maximum par amount not to exceed $50,000,000; a conservative maximum interest rate of 7 percent for planning; a maximum annual lease payment of $15,000,000; and statutory debt limits and direct/overlapping debt ratios required by state reporting. Matt said the figures are “conservative” and noted comparable sales recently occurred at lower interest rates.

Public commenters raised contrasting points. Alice Butler, a Charlestown resident, urged the board to reject the bond and criticized the district’s cumulative debt, calling the schedule “rushed” and saying the public had been misled about prior debt promises. “This bond is untimely,” Butler said during the hearing. Caitlin Blesett, another resident, argued the district had exceeded constitutional debt limits and criticized the use of a building corporation as a way to avoid voter referenda.

Other residents said growth in Charlestown requires expansion. In remarks to the board, Superintendent (name not specified in the record) described projected enrollment growth at Charlestown High School — citing current projections of about 930 students for the next school year and a longer‑range expectation that enrollment could surpass 1,000 — and urged action to secure capacity before costs rise further.

Board members asked questions during the presentations and then moved to act. A single motion to approve all five resolutions was made and seconded; the board recorded the motion as approved after those present responded “aye.” The board did not record a roll‑call vote in the transcript excerpt.

The resolutions do not obligate the district to borrow the full $50 million; they set a not‑to‑exceed par amount and maximum payment parameters required by Indiana statute to allow the financing to proceed if the district decides to issue bonds. The district’s advisers said actual borrowing and the final interest rate will determine the ultimate cost to taxpayers.

The public hearing and vote close a statutorily required step toward financing defined facility work; the district must follow subsequent procedural and contract steps before bonds are sold or construction begins. Residents who spoke at the hearing said they will continue to press the district on transparency, debt levels and project timing.

Board minutes show the hearing closed and the resolutions were approved the same evening; the board then moved on to other agenda items.