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School City of East Chicago approves $6.5 million bond for HVAC upgrades
Summary
The School City of East Chicago approved a $6.5 million general-obligation bond resolution to fund HVAC improvements across district schools; bond counsel said the debt will be tax-exempt, 5–7 year maturities and tax-rate neutral.
The School City of East Chicago Board of School Trustees voted unanimously Tuesday to adopt a 2025 bond package that will allow the district to issue $6,500,000 in general-obligation bonds to finance heating, ventilation and air-conditioning upgrades.
The measure was introduced under new business as agenda item 6.06. Bond counsel James Shanahan of Taft Law told the board the interest on the bonds “are exempt from income tax,” a feature that provides lower borrowing costs. Shanahan said the plan contemplates maturities of roughly five to seven years and that the issuance is intended to be tax-rate neutral — timed so new debt will replace existing debt as it falls off the district’s tax rolls.
Board President Gibson King asked for public comment during the required hearing; no members of the public addressed the bond after the presentation. Trustee motions to approve were seconded and the board approved the bundled resolutions that (1) set project parameters under state law, (2) authorize bond issuance, and (3) appropriate proceeds for spending.
Why it matters: The district said the bonds will pay for “much needed HVAC improvements” at district schools. Board members and bond counsel framed the financing as the most cost-effective borrowing option available because of the tax-exempt status. Bond counsel also noted the district last pursued similar financing in 2023.
Details and next steps: Attorney Shanahan said one resolution in the package sets statutory parameters for the projects, a second authorizes issuance of the bonds and the third appropriates proceeds so the district can spend the money once received. The board adopted all three resolutions in a single vote.
No implementation schedule or construction timeline was specified at the meeting. The board did not attach any additional conditions to the appropriation during the vote.
Ending: With the board’s adoption, district staff may proceed with closing steps for the bond issuance and later bring back any required contracting or appropriation details for specific projects. The board did not set a separate timeline for project bidding or completion during the meeting.
