Smith-Green board approves preliminary bond resolutions to pursue up to $995,000 in general obligation debt

At a special meeting Oct. 6, Smith-Green Community Schools heard preliminary financing proposals for a general obligation bond the board is considering issuing this fall and approved preliminary resolutions to move the application process forward.

Megan Tilly, identified herself as representing the district's municipal advisor (firm transcribed as "Baker Philly"). She told the board the proposed bond would be $995,000 and "fits well within that capacity," noting the statutory GO debt limit calculation presented in the meeting produced capacity of roughly $2.9 million after accounting for $855,000 of existing GO principal. "The proposed bond is that you were discussing this evening would be for 995,000 that fits well within that capacity," she said.

Tilly presented an illustrative structure that would repay the issue over just more than five years, with the resolution allowing a maximum seven-year repayment. She estimated interest costs at about $94,000 using rates from the Indiana Bond Bank plus a one-percentage-point cushion, and said project proceeds — after issuance costs — were currently estimated at roughly $870,000.

Board members discussed potential uses for proceeds. Tilly and members noted that repair estimates cited during the meeting include a junior-high gym at about $945,000 and an elementary gym at about $811,000; a single gym project at those prices would consume most or all of the projected net proceeds. The advisor said the district can alter the amortization schedule before pricing and that final amortization is required for the November bond-bank meeting; an application would be filed at the end of October for the November meeting, she said.

A motion was made to approve a preliminary bond resolution for 2025; another motion approved the "declaration of official intention to reimburse expenditures (Exhibit B)." Both motions were seconded and the chair moved to finalize the paperwork for the next meeting. The transcript does not record a roll-call vote or tally by name; the board directed staff to prepare a final resolution for the October meeting and additional projections requested by members.

Next procedural steps described were preparation of a final amortization schedule and submission to the Indiana Bond Bank's November meeting for pricing; staff and the advisor said minor adjustments could be made up until the application is submitted.