Redevelopment commission votes to proceed with Burkhart TIF bond refinancing to capture roughly $2.1M in interest savings

The Vanderburgh County Redevelopment Commission on a voice vote instructed staff and financial advisors to prepare for a refunding of the Burkhart TIF bonds, with documents to be returned to the commission in January.

Robert Reynolds, CPA, of LWG CPAs and Advisors presented the statutorily required spending-plan template and walked commissioners through debt and capital line items before advising on the refunding. Reynolds and other advisors told the commission the near-term refunding could yield roughly $2.1 million in interest savings and that the bonds carry a debt-service reserve of about $1.6 million that could be applied to the transaction.

The advisers described two basic approaches: refinance only the short tranche (the 14-month series) or combine multiple series into a single issuance that would be callable on Feb. 1, 2026. They said combining callable series into an 18‑bond issuance could raise net-present-value savings to about 3.4 percent, compared with roughly 2.9 percent for the short tranche alone. Advisors also noted there are 11 remaining scheduled payments on the existing bonds, which reduces the window for capturing savings if the commission waits.

Commissioners discussed timing and a possible federal funds-market rate cut in December. Counsel and advisors explained that under federal tax rules a current refunding must close within 90 days of the bonds’ call date; staff said they could have documents ready in January so the commission could “push the button” at the most favorable market moment within that window.

After discussion a commissioner moved that staff and financial advisers proceed with preparations to refund the bonds and seek the maximum feasible savings; commissioners approved the motion by voice vote. Staff will return to the commission in January with the formal papers and a recommendation to execute within the legal refunding window, if market conditions are acceptable.

No formal dollar allocations for projects were decided alongside the refinancing; commissioners said they want refinancing prepared even if decisions about using any realized savings are made later.

Next steps: staff and the bond team will finalize legal documents and present a formal refinancing package to the commission in January; the bonds are callable Feb. 1, 2026, and the advisors said any closing must occur within 90 days of that call date to qualify as a current refunding under federal tax law.