Franklin schools approve bus purchases and move forward on maintenance bond financing

At its Sept. 9 meeting, the Franklin Community School Corp. board approved a 2025 bus replacement plan that would use $2,200,000 in maintenance bond proceeds to purchase 12 regular buses, one special‑needs bus and two activity buses.

The board also approved a resolution determining the need for the maintenance-bond projects, which district counsel and staff said will cover deferred maintenance, playground work and bus purchases. Legal counsel described a financing structure in which a building corporation will issue bonds and lease a facility (Custer Baker) to the school corporation; lease rentals paid by the school corporation will match bond debt service. Counsel said the board’s approval on Sept. 9 covered the form of the lease only; final borrowing amounts, term and tax-rate impacts will be considered at the Oct. board meeting.

Board members also reapproved the building corporation’s board members as required by IRS guidance so interest on the bonds can remain tax‑exempt, counsel said. Counsel and staff said the timetable envisions a bond sale in early November and a closing in early December to provide funds for the projects.

All three bond-related resolutions and the bus replacement plan were approved by voice vote; the board did not record a roll-call tally in the meeting audio.

Provenance: The bus replacement plan and maintenance-bond resolutions were presented during action items and approved by the board on Sept. 9.