Franklin County school board adopts preliminary resolutions to enable up to $4.2 million in bonds for buses and repairs

At a preliminary determination hearing, the Franklin County Community School Corporation voted unanimously to adopt three preliminary resolutions that would allow the district to issue up to $4,200,000 in bonds to fund bus purchases and priority facility repairs, officials said.

The action followed presentations from district staff and the district's underwriter, Stifel, Nicolaus & Company Incorporated. "We're not looking at a tax rate increase as part of this project," Matt Shoemaker of Stifel said, describing a financing structure the district's advisers say can be implemented while maintaining the district's stated total tax rate goal of $1.00.

Why it matters: Board members were presented a triage list of short- and long-term projects at several elementary schools and were asked to authorize the preliminary legal steps that permit the corporation to borrow in excess of statutory thresholds. If finalized, the financing would provide funds to replace or repair HVAC components, electrical panels, playgrounds, sidewalks, roofing and kitchen equipment at identified sites including Mount Carmel, Laurel and Brookfield, as outlined by district staff.

Shoemaker said the resolution before the board sets a not-to-exceed par amount of $4,200,000. "The maximum par amount of the bonds is listed at $4,200,000," he said. He listed conservative parameters for the authorization: a not-to-exceed interest rate of 6 percent, an estimated cost of issuance of $150,000 and a maximum term of five years, while noting the district's expectation that the bonds could be repaid much sooner under current market conditions.

Shoemaker provided illustrative metrics for taxpayer impact: he said the district's total tax rate has been about $1.00 since 2022 and that the proposed structure aims to remain tax-rate neutral from 2025 to 2026. He also said the district's maximum annual payments would equal about 0.57 percent of net assessed value and that direct and overlapping debt would total roughly 0.83 percent of NAV.

The board approved three separate resolutions as described in the meeting packet: (1) a preliminary determination resolution (Exhibit A) required before financings above specified thresholds; (2) a preliminary bond resolution (Exhibit B) listing project costs, maximum interest rate and maturity parameters; and (3) a reimbursement resolution (Exhibit C) permitting the corporation to reimburse pre-closing project expenditures from bond proceeds as required by federal tax rules. Each measure passed on a voice vote recorded as 6-0.

Kim Simonson moved to adopt the preliminary determination resolution and Miss Holman seconded; Jessica Brennan moved to adopt the preliminary bond resolution and Miss Holman seconded; Miss Brennan moved to adopt the reimbursement resolution and Miss Holman seconded. The hearing record shows no registered public speakers; the chair closed the public hearing and the board adjourned after adopting the resolutions.

Next steps: District staff said they will seek permission to solicit bids on specific projects once the scope is finalized and available bond proceeds are known. The preliminary resolutions set maximum terms and amounts; any final sale of bonds and project award would come at a future board action.

Sources: Presentations by mister Gehring (district administration) and Matt Shoemaker (underwriter, Stifel, Nicolaus & Company Incorporated) at the Franklin County Community School Corporation preliminary determination hearing.