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East Chicago finance advisor outlines $6.5 million facilities plan; board told borrowing can proceed without raising tax rate
Summary
A financial presentation at the Feb. 11 School City of East Chicago meeting sketched a facilities-improvement borrowing plan of about $6.5 million that district advisors say can be issued without increasing the tax rate, and noted pressing HVAC needs in some buildings.
A financial advisor working with School City of East Chicago told trustees on Feb. 11 that the district can borrow about $6.5 million for prioritized facility improvements without increasing the current tax rate.
Steve Dalton, who said his firm has worked with the district for about a decade, presented a reduced list of projects trimmed from a larger set of facility needs to fit a debt plan the district can carry without raising what he described as the district’s existing debt-related tax rate. Dalton said the $6.5 million figure was the reason the team landed on that target: that amount can be borrowed “without having to increase the tax rate above what it has been for the last few years,” he said.
Dalton told trustees the district’s debt-related tax rate has declined over the last decade — by about 20 cents per $100 of assessed value — and that the current projection for debt-attributable tax rate is roughly 13 cents per $100. He said the district’s plan aims to maintain tax-rate consistency while addressing urgent needs, including HVAC work in multiple buildings.
On timing, Dalton said market conditions do not appear volatile and that waiting months (three to six months) would likely produce similar interest rates; the district’s expectation was that rates would remain stable for the year. He said the district would return to the board in March with the actual borrowing documents to begin the process.
Trustees had brief questions about pacing and market volatility. One trustee asked whether the market required a quick issuance; Dalton said the market was not volatile and that a three- to six-month timeline would likely yield a similar rate but that district priorities might push for a quicker schedule.
No borrowing action was taken at the Feb. 11 meeting; the presentation was informational and a preliminary step before returning with formal documents.
Ending: Dalton and district staff said they will return in March with proposed documents to start the borrowing process if the board directs staff to proceed.
