Bath County board adopts resolution to authorize revenue bonds after presentation on borrowing capacity

A financial presenter told the Bath County Board of Education on March 23 that the district is in a conservative fiscal position and can take on new school-building debt. After the presentation, the board adopted a resolution authorizing issuance of revenue bonds to fund the current project.

Why it matters: The financing decision clears a key procedural step for the Bath County Middle School renovation. The resolution authorizes the Bath County School District Finance Corporation to issue bonds and approves related participation and lease agreements so the district can complete project financing and proceed with construction procurement.

The presentation and vote: The presenter walked trustees through the district’s restricted building-fund revenue streams — the locally levied “nickels” (property-tax rates dedicated to building funds), capital outlay, and state equalization under Kentucky’s Facilities Support Program — and then showed current obligations on outstanding debt. He said the district currently has roughly $2,135,000 per year in restricted building-fund revenue available for debt service and that, using conservative assumptions, the district’s immediate borrowing capacity was illustrated at about $11.5 million. He also said an anticipated change in the statewide per‑student equalization threshold would raise that capacity to roughly $15.6 million in the next budget cycle.

The board then heard a resolution read into the record authorizing the issuance of revenue bonds in a principal amount of $6,985,000, subject to a permitted 10% adjustment, pursuant to the Kentucky Revised Statutes cited in the resolution. A motion to approve the resolution was made, seconded, and passed by voice vote.

What the resolution does: The resolution provides the corporate authority to issue bonds to fund construction, create funds sufficient for principal and interest payments, establish maintenance and insurance funds, and authorize execution of a lease between the finance corporation and the board of education to support the financing structure.

Details and next steps: Board members clarified that a previously announced $7 million state grant intended for the middle school project was not included in the presenter’s bonding-capacity calculation. The presenter also noted an offer of assistance from the Kentucky School Facilities Construction Commission (SFCC) toward debt service for eligible priority-one or -two projects; the board was told the SFCC contribution was read during the presentation. The board did not alter project scope at this meeting and proceeded to other agenda items; bond sale timing and contract execution were addressed later in the meeting’s construction agenda.