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Superintendent Hardman outlines $10 million unified-project authorization to preserve district borrowing capacity
Summary
Superintendent Hardman and Baker Tilly described a preliminary unified-project authorization of up to $10 million to preserve future bond or lease financing options after legislative changes could push the district’s debt-service rate above the 70¢ threshold; the board opened a public hearing and later approved related lease-amendment steps for HVAC work.
Superintendent Hardman told residents at a preliminary public hearing that the Oak Hill United School Corp is beginning a process to authorize a "unified project" of up to $10 million to preserve the district’s ability to finance major capital needs without waiting on a voter referendum.
The hearing, required under Indiana Code 6-1.1-20-3.5, is an early public-comment step; no board action was required at this session. "This does not mean the district plans to borrow $10 million right now," Hardman said, adding the authorization is intended to provide flexibility to address significant facility needs that may arise over the next five to 10 years.
Velvie Gray, a financing advisor with Baker Tilly, provided the board with the financial parameters that would underlie any future issuance. Gray said the district’s current debt-service rate is 0.6999 (69.99¢) and that projected changes in net assessed value could push the rate above the 70¢ statutory threshold next year, which would require a public referendum for many bond issuances. "The purpose of starting this process is to preserve the district’s ability to access funding in the future," Gray said. She added that the $10 million authorization would likely be issued in multiple series, with repayment terms of up to 20 years, and that the legal documents include a maximum levy/payment limit of $3.4 million.
Administration described the kinds of improvements the unified authorization could cover — site work, roofing, paving, HVAC, buses, equipment and technology — and said the district intends to hold subsequent, issuance-specific hearings if and when it decides to issue debt or enter lease financing for particular projects. The board scheduled a second public hearing on the unified project for March 16 at 6:00 p.m.
The meeting also addressed financing steps tied to the district’s HVAC work. Trustees adopted a resolution approving the form of an amendment to the district’s existing financing lease that would extend the lease term and increase lease rental so proceeds could be used for the HVAC project; the board approved that resolution 6–0. Administration explained that lease-financing is commonly used by Indiana school corporations and that such lease financings generally do not count against the district’s constitutional debt allowance.
Administration and the board emphasized the preliminary nature of today’s hearing: no debt will be issued, and any future financing would return to the board for approval at the time of issuance. The district will publish required notices and make detailed financial information available to taxpayers upon request.
