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South Madison board holds preliminary hearing on $200 million "Elevate SMCSC" facilities plan; no action taken
Summary
The South Madison Community School Corporation held a legally required preliminary determination hearing on the "Elevate SMCSC" facilities plan, where Superintendent Hall outlined priorities and Stifel presented a hypothetical $200 million financing scenario; no votes were taken and a second hearing is scheduled for June 4.
The Board of Trustees of the South Madison Community School Corporation held a preliminary determination hearing on the proposed "Elevate SMCSC" facilities project, with district leaders outlining a long-range plan and a financial adviser presenting a hypothetical borrowing scenario.
Superintendent Hall told trustees the plan is intended to modernize aging infrastructure, improve safety and learning environments, address deferred maintenance and expand opportunities in academics, arts, athletics and career and technical education. Hall emphasized the hearing was for public comment only and that no board action was required that night.
"This preliminary determination hearing represents an important milestone in the continued growth and improvement of our district," Hall said, describing collaborative work by administrators, architects and community stakeholders to identify priorities.
Chad, a Stifel financial adviser, walked trustees through an illustrative financing scenario showing layered potential borrowings totaling $200 million across a long-range plan. He said the presentation is a scenario, not a final borrowing plan, and explained the assumptions used in the slide deck: a maximum par amount of $200 million, estimated issuance costs of about $2 million (leaving roughly $198 million for project costs), example interest-rate assumptions between 2% and 7% (the slides used a 5% example) and a maximum statutory 20-year term for municipal bonds in Indiana. He also cited an estimated total interest cost shown in the presentation of about $130 million. The spoken presentation did not specify an exact net tax increase, which the slides labeled as "Z."
Ken McCarti explained the legal context required for the hearing, citing Indiana Code 6-1.1-20-3.5 and noting the district must hold two public hearings and later adopt a preliminary resolution to proceed with bond issuance or a lease when project costs exceed statutory thresholds. McCarti reiterated that no board action was required at the preliminary hearing.
No members of the public signed up to speak at the hearing. Trustees thanked those in attendance and noted staff will continue to refine project scopes and look for efficiencies. The board scheduled the second required public hearing for June 4 at 7:00 p.m. in the boardroom.
The preliminary hearing transcript records the presentation and Q&A but shows no formal motion, vote, or resolution at this meeting. Additional details and specific tax-impact calculations are expected to be presented at later public meetings as project plans are finalized.
