Kankakee Valley School Corporation holds second preliminary hearing on up to $19.81 million bond to fund facility repairs

The Kankakee Valley School Corporation on July 14 held a second preliminary public hearing on a proposed bond package that would allow the district to borrow up to $19,810,000 for repairs and maintenance across its five campuses.

Municipal adviser Sean McGill of Baker Tilly told the board the maximum borrowing amount equals the maximum project cost and that, under a conservative market estimate of issuance fees and costs, at least $19,535,000 would remain available for hard and soft construction expenses. He said the maximum repayment term in the parameters is 12 years, though the district does not anticipate needing financing longer than 10 years. In an illustrative 10-year scenario at a 5% interest rate he presented estimated interest costs “just below $6,200,000.” (Sean McGill, senior manager and municipal adviser, Baker Tilly.)

A staff member summarized the legal process and background for the hearing, citing Indiana Code 20 26 7 37 and Indiana Code 6 1.1 20 3.1 as the authorities that require public hearings and a preliminary determination when a school corporation plans to finance projects above statutory thresholds. The staff member said the requirement begins the legal process and that the resolutions being presented at the meeting would establish maximum financial terms for the projects.

Board discussion and the administration’s earlier facility study identified a set of maintenance priorities that the bond would address, including high school roof and climate controls, pool envelope and HVAC, masonry repairs, main electrical panels, intermediate-school chillers, DeMott Elementary roofing work (phase 2), bus area water expansion, Wheatfield water-pump replacements and exterior masonry work across district buildings. The staff member emphasized this is not for new construction: “I think it’s important to stress that it’s no new buildings. It’s not a new facility.”

Following the presentation the board opened the public hearing and invited comments from anyone who had signed the sheet; no members of the public requested to speak. The board then considered the required project, preliminary determination and reimbursement resolutions (procedural steps required under federal tax law and state statute to preserve the corporation’s ability to finance and to reimburse prior expenditures from bond proceeds) and approved the resolutions unanimously.

Next steps indicated at the meeting were that the administration and its advisers would continue to work on financing details and that the resolutions adopted that night established the maximum parameters for the proposed bond issue. The district’s municipal adviser left contact information for follow-up questions.

The board held no substantive public comment on the project during the hearing and moved on to routine business after adopting the bond resolutions.