South Madison board adopts preliminary resolutions for proposed $200 million facilities plan

The South Madison Community School Corporation board on a unanimous roll-call vote on the evening approved three preliminary financing resolutions that begin the legal process to borrow for a multi-year facilities plan branded in materials as "Elevate SMCSC — Our Community, Our Schools, Our Arabians." Dr. Hall described the initiative as a long-range facility-improvement plan to modernize aging infrastructure, improve safety and instructional spaces, and address deferred maintenance across the district.

"Tonight's preliminary determination hearing represents an important milestone in the continued growth and improvement of our district," Dr. Hall said, summarizing the district's stated priorities and the community engagement used to develop the proposal.

Bond counsel and staff explained that the public hearing is a statutory requirement before a school corporation may finance more than $1 million in building work via bonds or a lease. Mr. Marti reviewed the applicable statutory citations and described the procedural steps the board must take before issuing debt.

The underwriter presented sample financing scenarios and statutory disclosures. The presentation described a case in which the total par amount outstanding could be $200 million, with estimated issuance costs of roughly $2 million, leaving an estimated $198 million available for construction and related hard and soft costs. The underwriter also ran sample scenarios showing layered issuances (for example, equal $20 million issuances over a multi-year period) and estimated total interest costs in planning scenarios of approximately $130 million depending on interest-rate assumptions. The presentation noted that the maximum annual payment modeled was about $15 million in a high-case scenario and that final borrowing would be driven by project need and market conditions.

"This is just one scenario we played out," the underwriter said, adding that borrowing amounts, timing and structure would be adjusted to fit project needs.

The board opened the public hearing required by Indiana law; no members of the public were present or signed up to speak. With that, the board moved, seconded and adopted the project resolution, the preliminary determination resolution (which sets maximum financial terms such as maximum annual payment and term), and the reimbursement resolution (which preserves the corporation's ability to reimburse prior expenditures from bond proceeds). The motions passed on roll-call votes.

The resolutions do not obligate the district to begin borrowing immediately; they set maximum terms and allow the district to continue planning and to meet statutory notice requirements. Board materials and the underwriter's scenario sheets were described as illustrative; actual issuance amounts, timing, interest rates and tax impacts will be determined later and will be subject to further board action and required public disclosures.

Next steps described by administration include continued project scoping, follow-up outreach to the community, and later board actions to finalize any bond or lease issuance if the district decides to proceed.