RSA Advisors outlines $24M bond scenario and how tax 'nickels' affect future borrowing

RSA Advisors briefed the Spencer County Board of Education on Nov. 11 about the district’s current restricted funds, how the state equalization (FSPK) affects building-fund revenues, and realistic bond scenarios the district could support.

Dwight Crump of RSA presented detailed calculations showing the district’s building fund and capital outlay balances, SFCC offers, and projected debt-service capacity. Using conservative assumptions (4% annual restricted revenue growth), RSA modeled a $24,000,000 bond tied to the district’s original DD1 estimates and indicated the district could still have roughly $4 million in unused restricted cash that could be applied to other projects or reduce borrowing.

RSA showed how levying an additional 5¢ (a callable nickel) would raise local revenues and — historically — the state has often equalized such additional nickels; RSA estimated bond potential could jump to roughly $40 million using only local revenues and to about $49 million if the new nickel were equalized. RSA cautioned equalization timing is set by the legislature and is not guaranteed.

RSA also emphasized phasing and timing: waiting a year can free capacity as existing debt rolls off, and the firm recommended conservative growth assumptions for long-term planning. Board members asked about using cash versus bonds for certain projects and how SFCC offers apply to qualifying facility plans.

Next steps: RSA will provide continued modeling as the district finalizes project scope; the board did not vote on levying additional taxes at this meeting.