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Jennings County School Corporation holds public hearing on up to $2.9 million GO bond for Brush Creek HVAC replacement
Summary
At an Oct. 28 public hearing, municipal adviser Jeff Hammond outlined a proposed 2025 general obligation bond of up to $2.9 million to replace the aging HVAC system at Brush Creek School; the adviser said the district could issue the bonds without raising the tax rate and presented multiple repayment scenarios.
Jennings County School Corporation held a public hearing Oct. 28 on a proposed 2025 general obligation bond of up to $2.9 million to replace the HVAC system at Brush Creek School and potentially renovate a few select units elsewhere in the district.
Municipal adviser Jeff Hammond of Baker Tilly told the board that the proposed borrowing would translate to about $2.7 million available for hard and soft construction costs after issuance expenses. "We are able to issue these bonds without an increase to the tax rate," Hammond said, adding that the resolutions before the board would set maximums the corporation could not exceed.
Hammond reviewed the corporation's outstanding debt and its general obligation (GO) bonding capacity under the statutory formula that applies to Indiana municipalities. He said the district's 2025 net assessed value is a little over $1.1 billion, which leads to a statutory debt limit (after the formula) of $7,782,452; subtracting existing GO principal produces a current remaining capacity of just over $3.3 million, Hammond said. He noted all bonds currently outstanding will mature by 2034.
Hammond presented several repayment scenarios the board could choose from, including shorter (about four years) and longer options. He said the board was being conservative in estimates of interest and proceeds to preserve flexibility on final repayment terms. The presentation included examples using roughly four-, 10- and 15-year repayment scenarios and a stated maximum repayment term of 20 years; Hammond cautioned that shorter terms reduce lifetime interest but raise annual payments.
Hammond also showed a recent payments chart that steps down from about $4.3 million in total annual bond payments in 2025 to about $4.0 million in 2026; one purpose of the proposed borrowing scenarios is to smooth those changes in annual payments so the district can maintain a stable tax rate while addressing capital needs.
No members of the public spoke during the hearing. After Hammond finished his presentation and the board took no questions, the board member presiding at the hearing adjourned the meeting.
The board did not take a formal vote on the borrowing during the hearing and no subsequent meeting date or vote was specified in the record provided.
