Board sets maximum $69.2 million borrowing for long-range facilities plan

The Western Boone County Community School Corporation board adopted a package of resolutions that set maximum borrowing parameters for a long-range facilities plan that officials said will be financed over multiple series of bonds.

At a preliminary determination hearing, Kristin McClellan, an attorney with the firm Ice Miller, explained that state law requires a hearing when a school corporation proposes to spend more than $1,000,000 on a building and when the board seeks to set preliminary maximums for a project. “This is the very beginning of the legal process tonight,” McClellan said, describing the resolutions as measures that establish maximums the board can set now and that it may never exceed later.

Municipal adviser Jason Dansel of Baker Tilly said the board is being asked to establish an overall not-to-exceed borrowing amount of $69,215,000 to pay for HVAC improvements, routine renovations and longer-range projects such as additions, transportation facilities and possible real-estate acquisitions. “These are maximums we cannot exceed, but we can always come under,” Dansel said, adding the plan contemplates multiple series of bonds over five to 10 years. He said estimated proceeds after issuance costs would be roughly $67,615,000, with a repayment term not to exceed 20 years and a maximum annual payment of $6,010,000. Dansel told the board the presentation used conservative interest-rate assumptions (a planning assumption of about 5.5 percent) while noting current 20-year yields were nearer 4.5 percent.

Dansel also presented an estimated net debt-service and levy increase of about $300,000 relative to 2026 levels, which he calculated as roughly a 2.81¢ increase in the tax rate.

After the presentation the board opened the public hearing; no members of the public had signed in to speak. The board then moved to adopt three separate resolutions related to the project: the project resolution (which specifies the maximum borrowing and basic project scope), the preliminary determination resolution (which sets maximum borrowing and payment terms), and the reimbursement resolution (which allows interim spending from operations or rainy-day funds and reimbursement from later bond proceeds if needed). Each resolution was introduced, seconded and approved by voice vote.

The presentation included an interest-expense figure that was garbled in the transcript; presenters emphasized the interest estimates were planning assumptions and that final costs would depend on market conditions at the time of any sale. The board and administration repeatedly emphasized that tonight’s approvals set maximums only; any decision to issue bonds and the timing of sale would require later board action and additional approvals.

What happens next: With the maximums set, the district may proceed with additional planning steps and future board approvals if it chooses to advance specific bond series. The resolutions do not obligate the board to immediate borrowing.