Middlebury board preliminarily OKs up-to-$20.605M capital program, plans layered bond questions
April 22, 2026 | Middlebury Community Schools, School Boards, Indiana
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Middlebury Community Schools' board voted unanimously April 21 to adopt a series of resolutions that move forward a two-year capital program and clear key legal steps for issuing bonds.
The board held a public project hearing and heard a presentation from the district's administrative team about capital needs and expected timing. Mr. Palmer described a capital plan that concentrates on HVAC replacements and upgrades (chillers, air handlers and controls), classroom and library renovations, roofing and lighting projects and routine work on sidewalks and outbuildings. He said the combined capital-plus-technology program is "just over $20,000,000" as a maximum and that the district hopes final costs will be lower.
Dr. Yoder outlined the financing strategy, saying the district plans to split the program into two bond issues (2026 and 2027) so that "by layering these issues as old debt is retired, the district can fund these improvements while keeping the debt service tax rate level for the community." He gave the board the maximum legal terms for the issue: a total par amount of $20,605,000, $500,000 in issuance costs and $20,105,000 available for hard and soft construction costs. He described estimated interest rates ranging from 2% to 7%, a maximum repayment term of 20 years and a maximum annual bond payment capped at $7,000,000. Under the most conservative scenario Dr. Yoder said total interest could be about $8,460,000; he also cautioned that actual rates to date have been closer to 3% and the district's planning assumes a shorter repayment timeframe where possible.
The board conducted the statutorily required votes after the hearing. The board adopted the project resolution, the preliminary determination resolution and a reimbursement resolution (a required mechanism to permit reimbursement of certain advance costs from bond proceeds). Each motion passed by voice vote, recorded as 5 to 0 in favor. The board also approved the consent agenda earlier in the meeting (minutes, personnel updates, the March 2026 financial report and related items) by the same margin.
During the public-comment portion, Pam Kaiser of Middlebury asked whether SEA 1 would limit what the district can issue or how the two-year schedule was chosen. Dr. Yoder replied that "SEA 1 really is putting into effect new deductions, which is artificially deflating net assessed values," and that issuing in two bond phases provides flexibility to see how assessed values change before committing larger amounts in the second year.
What happens next: the approvals taken April 21 are preliminary steps in the bond-issuance process. Dr. Yoder said the district plans to present a general-obligation bond question to voters in June to fund the first phase. The resolutions adopted on April 21 set maximum legal terms and permit the administration to continue work on finalizing financing and project scopes.
Votes at a glance
- Consent agenda (minutes, personnel, financials, athletics purchases, credit-card reauthorization, donations): Passed 5-0.
- Project resolution (authorize projects and maximum terms): Passed 5-0.
- Preliminary determination resolution (advance step toward bond issuance): Passed 5-0.
- Reimbursement resolution (allow reimbursement of advance costs from bond proceeds): Passed 5-0.
All quoted speakers and specific figures are taken from the district's April 21 presentation and the public hearing record.
The board held a public project hearing and heard a presentation from the district's administrative team about capital needs and expected timing. Mr. Palmer described a capital plan that concentrates on HVAC replacements and upgrades (chillers, air handlers and controls), classroom and library renovations, roofing and lighting projects and routine work on sidewalks and outbuildings. He said the combined capital-plus-technology program is "just over $20,000,000" as a maximum and that the district hopes final costs will be lower.
Dr. Yoder outlined the financing strategy, saying the district plans to split the program into two bond issues (2026 and 2027) so that "by layering these issues as old debt is retired, the district can fund these improvements while keeping the debt service tax rate level for the community." He gave the board the maximum legal terms for the issue: a total par amount of $20,605,000, $500,000 in issuance costs and $20,105,000 available for hard and soft construction costs. He described estimated interest rates ranging from 2% to 7%, a maximum repayment term of 20 years and a maximum annual bond payment capped at $7,000,000. Under the most conservative scenario Dr. Yoder said total interest could be about $8,460,000; he also cautioned that actual rates to date have been closer to 3% and the district's planning assumes a shorter repayment timeframe where possible.
The board conducted the statutorily required votes after the hearing. The board adopted the project resolution, the preliminary determination resolution and a reimbursement resolution (a required mechanism to permit reimbursement of certain advance costs from bond proceeds). Each motion passed by voice vote, recorded as 5 to 0 in favor. The board also approved the consent agenda earlier in the meeting (minutes, personnel updates, the March 2026 financial report and related items) by the same margin.
During the public-comment portion, Pam Kaiser of Middlebury asked whether SEA 1 would limit what the district can issue or how the two-year schedule was chosen. Dr. Yoder replied that "SEA 1 really is putting into effect new deductions, which is artificially deflating net assessed values," and that issuing in two bond phases provides flexibility to see how assessed values change before committing larger amounts in the second year.
What happens next: the approvals taken April 21 are preliminary steps in the bond-issuance process. Dr. Yoder said the district plans to present a general-obligation bond question to voters in June to fund the first phase. The resolutions adopted on April 21 set maximum legal terms and permit the administration to continue work on finalizing financing and project scopes.
Votes at a glance
- Consent agenda (minutes, personnel, financials, athletics purchases, credit-card reauthorization, donations): Passed 5-0.
- Project resolution (authorize projects and maximum terms): Passed 5-0.
- Preliminary determination resolution (advance step toward bond issuance): Passed 5-0.
- Reimbursement resolution (allow reimbursement of advance costs from bond proceeds): Passed 5-0.
All quoted speakers and specific figures are taken from the district's April 21 presentation and the public hearing record.
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