School board sets maximum $395 million bond package, adopts required resolutions
Summary
The New Albany Floyd County Schools board held its second public hearing and adopted project, preliminary determination and reimbursement resolutions enabling up to $395,000,000 in borrowing to fund roofing, HVAC, safety and other facility projects; administrators said the plan is designed to be tax-levy neutral.
The New Albany Floyd County Schools board on Tuesday completed required public hearings and unanimously adopted a series of resolutions that set maximums for a planned facilities bond package with a not-to-exceed par amount of $395,000,000.
At the hearing, Kristen McClellan of Ice Miller, bond counsel for the district, told the board that the two public hearings are statutory prerequisites when a school corporation proposes projects above the legal threshold and that the resolutions set maximum borrowing and project parameters. "The purpose of our meeting tonight is anytime a school corporation proposes to spend more than $1,000,000… the board must hold two public hearings," McClellan said.
Superintendent Dr. Madison framed the plan as a prioritized, multi-year approach informed by a Schmidt facility study. He said the study identified needs ranging from roofs and HVAC replacements to fire alarm and PA systems, and that the district is aiming to address end-of-life building systems while remaining "tax rate neutral." "We have significant opportunity here at our district where we have debt coming off and we have a lot of needs to address," Dr. Madison said.
Matt Shoemaker, an underwriter with Stifel, presented the numeric maximums the board was asked to set. He said the maximum par amount is $395,000,000; estimated interest rates were modeled between 2% and 6% for long-term planning, with 3.5–4% used as an example if bonds were issued now. Shoemaker listed an estimated total interest cost of $252,945,000 and a maximum annual payment of $40,000,000. He also showed a maximum tax-rate impact framed in the resolution as $0.7853 per $100 of assessed value but reiterated that the district expects levy neutrality as existing debt retires.
After counsel summarized the project resolution and the preliminary determination and reimbursement resolutions (the latter described as a federal tax rule that allows short-term use of operations or rainy-day funds prior to bond issuance and later reimbursement), the board adopted each resolution by unanimous vote. The project resolution passed 7-0, followed by unanimous votes on the preliminary determination and reimbursement resolutions.
Board members and administration said additional decisions — including final project scopes or potential rebuilds at Georgetown and Grant Line noted in the Schmidt report — will return to the board for later approvals. McClellan said adoption tonight sets maximums and guardrails; actual borrowing decisions and bond sale timing will be brought back to the board for approval.
The board also opened but found no in-person speakers during the statutory project hearing portion; administration said notices were published as required. Next steps include bringing detailed resolutions and final bond series terms to the board when staff and advisors are ready to proceed.
