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Muncie board holds public hearing on ~$19 million capital package; administration outlines tax-neutral financing plan
Summary
District staff and consultants described a proposed roughly $19 million capital package — roofing, bleachers, HVAC and other repairs — and a financing structure intended to keep the tax rate steady for two years before an estimated drop; the hearing solicited public comment and no vote was taken.
The Muncie Community Schools board held a public hearing on proposed capital projects that district staff and financial consultants estimate at about $19 million.
Administration outlined needed work across the district, including roof replacements on multiple buildings, replacement of the fieldhouse boiler that has been operating on a temporary rented system, chiller replacement at North Side Middle School, replacement of original exterior door sets at Muncie Central (about 50 doors), removal/replacement of older bleachers, and resurfacing of the Southside Middle School track and tennis courts at Southside and Muncie Central.
Mr. Derome described the district’s recent debt history and current balances: long-term debt has fallen from approximately $38 million in 2018 to about $22.8 million at the end of last December. The district said it has more than $35 million cash on hand and is projecting an education fund balance of roughly $15.5 million at year-end, while continuing planned repayments on a state loan of about $7.3 million.
Financial advisers from Baker Tilly presented a two-piece debt structure designed to be tax neutral initially: part issued as lease-rental debt (about $10 million) and part as general obligation bonds (about $9.8 million). The consultants estimated the plan would keep the current debt-service tax rate at approximately $0.41 per $100 assessed value for roughly two years, with a projected drop to about $0.16 afterward if no additional borrowing occurs. Under the proposal the general obligation portion would be paid off quickly (approximately a two-year schedule) while lease-rental debt would be amortized over a longer term.
Administrators emphasized that the hearing was an early, legally required step under Indiana law to solicit public comment and that no board action was required at this meeting. The board opened the floor for public comments; none changed the administration’s plan. After closing the hearing, the board resumed other business.
Board members noted legislative uncertainty — including recent state-level changes affecting school funding — and said they are monitoring developments before finalizing any bond sale or formal resolution. No bond sale or final resolution was approved at this meeting.
Next steps: administration said it will continue to refine project specifications, retain architects/contractors for design as needed and return to the board with formal resolution(s) and timelines for any debt issuance.
