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School board hears plan for up to $30 million in bonds to fund HVAC and capital work
Summary
At a public hearing, bond counsel and financial advisers outlined a plan to issue up to $30 million over two years to finance HVAC upgrades at East Chicago Central and other district projects; trustees approved preliminary resolutions to begin the process.
The School City of East Chicago board on April 28 held a second public hearing on a proposed lease-financing that could raise up to $30 million over two years to pay for capital improvements, with the first $20 million targeted for HVAC replacement at East Chicago Central High School.
"The proposal involves issuing up to $30,000,000 over the next 2 years to undertake significant HVAC improvements at Central High School," Jimmy Shanahan, bond counsel, told the board during the hearing. He said the plan would phase $20 million in the current year and the balance the next year and that staff will time borrowing to minimize interest costs.
A financial presenter showed a projected debt-service schedule and tax-rate illustration; the presentation listed the district's current tax rate around 0.1432 and projected modest increases while new debt is layered on before the rate declines as older bonds retire. The presenter said staff will provide homeowner-level examples and post the slide deck online.
Trustees pressed for continued board and public input on how non-HVAC projects will be prioritized if the financing proceeds. "There will be opportunities for the board to continue to have input," a district presenter said, adding that the administration will return with a prioritized project list and additional details.
After the hearing the board approved a set of preliminary resolutions needed to start the financing process. Roll-call votes showed one abstention on the 10/28 project resolution; subsequent preliminary-determination and lease-amendment approvals passed with the majority present. Trustee votes were recorded in roll call: Trustee Gibson King abstained on the initial resolution; Trustees Gomez, Rodriguez, Smith and President Taylor voted yes on subsequent actions.
Officials said further steps will come before the board, including final sale documents if the board moves forward. The administration said staff will produce more-detailed tax-impact scenarios and make presentation materials available on the district website for public review.
The board indicated the intent to sell bonds possibly this summer if approvals and market conditions align.
