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Madison Consolidated Schools sets $6.865 million maximum for facility bond project; board adopts project and reimbursement resolutions
Summary
At a June 10 project hearing the board adopted resolutions establishing a not-to-exceed borrowing amount of $6,865,000 for facility improvements, authorized a reimbursement resolution required by federal tax law, and heard municipal-advisor estimates that the bond would add roughly 4.97 cents to the debt service rate (about $29 annually to the median homeowner) if issued as a single series.
The Madison Consolidated Schools Board of School Trustees on June 10 adopted a project resolution that sets a not-to-exceed borrowing limit of $6,865,000 to fund planned facility improvements, and adopted a related reimbursement resolution required by federal tax law.
At the project hearing Dr. Brown said the resolutions begin the legal process required under Indiana Code 20-26-7-37, which requires a public hearing before a school corporation spends more than $1 million on a building financed by lease or bonds. Jason Tansel, municipal adviser with Baker Tilly Municipal Advisor LLC, reviewed the districts current debt, the legal borrowing limit and the proposed financing approach. Tansel said the district is considering issuing the work in two tranches (2027 and 2029) but presented a conservative single-series example for planning. He said the proposed maximum borrowing amount is $6,865,000 and that estimated interest expense under conservative assumptions would be about $2,841,000.
Tansel outlined the estimated tax impact if the district issued a single series: "we are anticipating a tax rate increase due to this series of bonds of 4.97 cents," he said, and added that "what the 4.97 cents would mean to the median home value here in Madison Consolidated Schools is . . . an annual increase in dollars paid for taxes of $29." He also said the first series under the proposed timing would be issued in 2027 and would first affect tax rolls in 2028; a 10-year maturity example would show final repayment in budget year 2037. The board adopted the project resolution (26-204) and the reimbursement resolution (26-205) by voice votes with no recorded opposition.
District officials said the project list is drawn from a 2023 facility study and includes HVAC, roof and controls work. The resolutions establish maximum financial terms; the board and administration said they will continue to evaluate options (including issuing multiple series) to minimize taxpayer impact.
