Pike Township board approves reimbursement bond resolution to fund Pike High learning center

The Metropolitan School District of Pike Township on May 14 approved resolutions to issue reimbursement bonds not to exceed $6,865,000 to finance the district's matching share of the Pike High School Learning and Engagement Center.

The action followed a public hearing on the bond and related additional appropriation. Bond counsel Jeff Quackenbush of Barnes & Thornburg explained the legal process and said the district intends to sell the bonds later this summer; the bond documents include a 6% maximum interest cap, though current market rates were described during the hearing as nearer to 3%. Finance presenter Belvia Gray told the board the proposed borrowing is structured to remain within the district's existing debt service levy and presented a calculated general obligation debt capacity figure of $30,300,000.

Board members asked whether the proposed borrowing would cover contingency expenses; Gray said the borrowing is intended to satisfy the district match for the grant underpinning the project and could provide contingency funding if needed. After discussion, the board considered two resolutions: (1) approving issuance of the bonds and (2) making the additional appropriation of bond proceeds and interest earnings required for use of bond funds. A motion and second were recorded and the board voted by voice to approve the resolutions; the motion carried.

The bond proceeds are intended to be used along with the grant proceeds identified in the board materials to begin the project. The district presentation noted the plan to issue the bonds this summer and said proceeds would be available later in the year to start construction.

The board did not record a roll-call tally in the transcript; the vote was taken by voice and announced as carried. The board moved on to other agenda items following the vote.