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Former council chair urges exploration of private loans as justice center financing alternative
Summary
Donnie Hussung, former council chairman and Lanesville Community School Corporation board member, told the council to compare private tax-exempt loans and bank financing to bond issuance fees and rates when evaluating financing options for the justice center renovation.
Donnie Hussung, former council chairman and current board member of the Lanesville Community School Corporation, addressed the council during discussion of the justice center financing and suggested staff evaluate private financing options as a comparison to the proposed bond issuance. Hussung said tax-exempt loans to governmental entities can carry lower interest than some loan products and that fees associated with bond issuance versus a bank loan could make a private offering competitive in total cost.
Hussung acknowledged that bond rates are likely to be lower in many cases but urged the council to compare total costs, including issuance fees, before finalizing a financing path. The council received the recommendation but took no formal action to shift the finance approach during the Feb. 9 meeting.
