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New Albany-Floyd County Schools approve lease and about $19.5 million in bond-related appropriations
Summary
The school board unanimously approved a lease-financing resolution and related bond actions to fund building renovations and equipment, including an additional appropriation estimated at about $19.5 million. The measures clear legal and disclosure steps needed before bond sale.
The New Albany-Floyd County Schools board unanimously approved a resolution authorizing a lease agreement with a building corporation and adopted an additional appropriation estimated at about $19,500,000 to fund renovation and construction projects.
Bond counsel explained the financing structure during the public hearing, saying, “These financing are used by school corporations across the state of Indiana in order to borrow for renovation and construction,” and that the building corporation would purchase a portion of an elementary school building and lease it back so lease rental payments repay bondholders. Counsel also cited the school-leasing statute in Indiana Code 20-47-3 as the authority for the transaction.
After the hearing the board voted 7-0 to: approve the lease-authorizing resolution; adopt the additional appropriation for bond proceeds and place the funds in a separate school construction account; approve a resolution allowing the assignment of construction bids and contracts to the building corporation once bids are received; and adopt a fifth supplement to the master continuing disclosure undertaking required by the Securities and Exchange Commission before issuing bonds.
District staff told the board the appropriation will support districtwide projects discussed earlier this year, including HVAC improvements, roofing and building envelope repairs, fire alarm and intercom upgrades, cabling at middle schools, athletic improvements (including moving the Floyd Central softball facility out of a flood plain), Chromebooks and new buses. Counsel said the lease payments will be paid from property-tax revenue and timed to meet bond interest and principal payments.
Board members did not ask for additional public comment during the hearing. Administration said it expects to proceed toward a bond sale in late September or early October and begin work on projects in the fall, pending market conditions and final closing.
