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Municipal adviser lays out conservative financing parameters for Munster’s proposed bond authorization
Summary
Baker Tilly presented maximum borrowing and interest parameters—$62 million maximum, up to $82 million in maximum interest under conservative assumptions—and outlined structuring the bond as multiple series with a maximum 20-year term per series to avoid increasing the district debt service levy.
Megan Gibson of Baker Tilly, the district’s municipal adviser, presented financial guardrails for the district’s proposed 15-year capital authorization, telling the board the maximum borrowing amount is set at $62,000,000 inclusive of issuance costs and that multiple series would be used so no one series exceeds 20 years. Gibson said the presentation used conservative assumptions to set maximums the district cannot exceed when it later adopts parameters.
Gibson framed two interest scenarios: a conservative top‑end interest expense approaching $82,000,000 based on a 6% assumption and an intermediate scenario around $42,400,000 using a 5% assumption. "That is based on a 6% interest rate, which is higher than where rates currently are," she said, noting the conservative posture preserves flexibility. She also noted the district has upcoming call dates on prior bonds that could create refunding opportunities to reduce interest costs. The board received the presentation and was reminded the hearing and resolution-setting will occur again in September.
