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North Harrison board authorizes refunding of 2015 and 2016 building bonds to seek interest savings
Summary
The North Harrison Community School Corporation board on March 12 unanimously approved resolutions authorizing refunding of bonds issued in 2015 and 2016 to pursue lower interest costs when market conditions permit; officials cited prior estimates of about $323,000 in potential savings and more recent estimates in the roughly $228,000–$280,000 range.
The North Harrison Community School Corporation board on March 12 approved resolutions authorizing the refunding of school building bonds originally issued in 2015 and 2016, actions officials said are intended to lower the district’s interest costs when market conditions are favorable.
Marcus Burger presented the measures for two building corporations associated with district projects and said the district previously estimated about $323,000 in potential savings from a refunding opportunity last October. He told the board more recent market estimates vary — “in the $200,000 range” — and quoted examples near roughly $228,000 to $280,000 depending on current rates. He said Ice Miller LLP of Indianapolis would serve as bond counsel and an underwriter transcribed in materials as Sequoia/Sequel Nicholas & Company would be engaged if the sale proceeds.
Officials described the action as an authorization to pursue replacement bonds (series labeled in the materials as 2026A/2026B) rather than issuance of new, additional long-term debt. A presenter emphasized the district would not extend the length of payoff and that the refunding is intended to reduce interest paid over time rather than increase principal borrowing.
Board materials and verbal remarks identified the original 2015 building corporation borrowing at about $12.19 million and described the 2016 series as substantially paid down (presenters referenced a remaining component near $2.5 million). The district said the exact savings will depend on market timing and debt-structuring details, and that staff would only proceed to sell replacement bonds if the transaction clearly produced savings.
Board members voted unanimously to adopt both refunding resolutions (5-0). The resolutions authorize staff and counsel to pursue refunding and to execute bond documents when the officials determine market conditions are favorable; no immediate sale was reported at the meeting.
The board adjourned at 7:54 p.m.
