Franklin County school board holds preliminary hearing on proposed $80 million unified bond to repair elementary schools

The Franklin County Community School Corporation held a statutorily required preliminary-determination public hearing on July 13 to present a proposed unified bond authorization and solicit public comment. Superintendent Dustin Gehring told the board the hearing is an early step that does not require board action but allows the public to weigh in on the district’s financing plans.

Gehring summarized independent facility and viability assessments that found “approximately $25,000,000 in restoration needs across our three elementary schools,” listing campus improvements, HVAC and plumbing replacement, roofing and secure classroom door hardware as priorities. He said the district’s goal is to “fix what's needed and improve what matters” and described a unified-project approach intended to preserve the corporation’s debt capacity while phasing necessary repairs over multiple years.

Matt Shoemaker of Stifel Financial presented a model showing how the district could authorize up to $80,000,000 in total borrowing without increasing the district’s annual debt-service levy under current assumptions. Shoemaker described the $80 million number as a not-to-exceed authorization, not a commitment to borrow that full amount, and listed conservative financing parameters: capitalized interest and issuance costs shown at $1,250,000, estimated proceeds of about $78,750,000 for project costs, a conservative maximum interest assumption of 6 percent, and a statutory maximum bond term of 20 years. He said the model’s estimated interest cost on the full amount at the conservative rate was approximately $45,007,083 and noted the district’s current debt-service levy is scheduled to drop significantly after 2026, creating capacity for future borrowing.

During a public-comment period, resident Sarah Duffy said she supports repairing elementary schools but asked the board to be specific about where and how bond proceeds would be spent. “Don’t buy a pig in a poke,” Duffy said, urging clear community outreach and asking the district to describe exactly what the $80,000,000 would fund and on which schools.

Questions from attendees focused on how debt service would interact with the district’s operating funds and on the tax-rate presentation. Shoemaker and district staff explained the debt service fund is distinct from operations and education funds and reiterated that the proposal is a financing authorization the board could implement in parts over time. The superintendent and staff encouraged residents to contact district officials for further details and said a second required public hearing will be held on August 10 at 6 p.m.

Why it matters: The unified authorization is intended to secure borrowing capacity for essential restoration work and to let the board phase projects without immediately raising taxpayers’ annual debt-service payments under the suggested scenario. The proposal frames long-term stewardship of aging elementary-school infrastructure while leaving project-by-project decisions — and required public input — to future board actions.

What’s next: The district will hold a second public hearing on August 10 and later consider resolutions if it moves from authorization toward issuance. No vote on bonds was taken at the July 13 hearing.