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Board holds preliminary bond hearing for $19.05M capital program, administration says aim is to keep tax rate steady
Summary
Administrators outlined a proposed 2024 general-obligation bond with $19,050,000 par amount (proceeds ~$18.75M) to finish infrastructure and site improvements; presenters said the district expects to preserve the current debt-service tax rate and that the hearing was informational with no vote required.
At a public hearing required by Indiana law, district finance staff and legal counsel described a potential general-obligation bond issue to finance capital projects across the district, including boilers, chillers, auditorium work, parking and the McLaren Road extension.
Nate Day, the district finance presenter, described the bond parameters: a par amount of $19,050,000 with estimated proceeds of $18,750,000 after issuance costs; an estimated interest rate range of 1%–6% depending on maturity; a maximum term of 15 years; and a cited "maximum debt service tax rate impact" of 34¢ if all bonds were new debt on a theoretical basis. Day said the district's current debt-service tax-rate is "just a tick under 60¢" and that the plan aims to hold the debt-service rate around 58¢ while leaving capacity for future projects.
Day and administration representatives explained the district had engaged Stifel Public Finance to model impacts and that the proposed financing was intended to complete identified infrastructure needs, including work on remaining boilers and chillers, auditorium finishing and parking/site improvements. He estimated issuance costs of roughly $300,000 and an illustrative total interest cost (at a high-rate scenario) near $10,438,000, but he said market conditions could lower those costs.
Legal counsel explained this meeting was the first of the statutorily required public hearings under Indiana Code 6-1.1-20-3.1 and that no board action was required at this session. The administration invited public comment; no substantive fiscal objections were recorded in the transcript and the public hearing was adjourned by voice vote. Board members and presenters emphasized that the district did not intend to increase the overall tax rate beyond current levels, but also noted the theoretical maximums required by state disclosure rules. The board did not adopt bond documents at this meeting; further board action and formal resolutions would be required before any sale of bonds.
