Jasper school corporation could work within current tax levy for future expansions

Jim O’Neal, News Director at WITZ AM/FM contributed to this report

The Greater Jasper Consolidated School Corporation’s ability to expand could be less taxing on property owners in the future.

During a public work session held Monday evening, the school board and the few members of the public in attendance received an update on the school corporation’s current debt service from Jim Elizondo with Indianapolis-based City Securities.

According to Elizondo, the corporation could be virtually debt free by 2024 and contrary to the board’s understanding, the corporation has some room to bond for needed projects without impacting the current tax levy depending on how the debt is configured.

This is an important component for the school corporation facing two aged buildings in Fifth and Tenth Street Elementary Schools as well as the student growth at Ireland Elementary that precipitated a $2 million dollar expansion project last year.

The current debt service is costing taxpayers about 6 cents per $100 of assessed value. By 2024, the amount could be reduced or the corporation could allow it to remain the same to fund the needed expansions or pay off any new debts.

Elizondo outlined three options for the corporation’s future needs. “These numbers aren’t tied to any specific projects,” he added. “We are going to look at some lump sum numbers to see how they tie into your current debt service.”

During the meeting, Superintendent Dr. Tracy Lorey and Board President Nancy Habig both reiterated the corporation is not planning any projects at this time.

The first option was for $10 million a project. According to Elizondo, anything between$2 million and $10 million is subject to a petition remonstrance. A process which basically allows the school corporation to seek the necessary number of signatures — 500 — from the affected taxpayers for approval to seek the bond. If enough remonstrate against it within a certain timeframe, the corporation would not be allowed to seek the bond.

If the corporation began a $10 million project funded through a 20-year bond in 2017, it would pay off the interest on the new bond until previous debt was paid off by 2024 and then it would begin making payments on the principal of the new debt. According to Elizondo, this example sees the debt service dropping to 2 cents per $100 of assessed value by 2024. It also leaves the board options that would not impact the current 6 cents per $100 of assessed value.

The second option would be for a $25 million project requiring referendum approval. It would maintain the current level property tax impact and again drop to about 2 cents per $100 of assessed value in 2024. It would also leave the board options for funding future projects.

Elizondo also outlined a $40 million project taken on in 2017 that would push the taxpayer burden to more than 6 cents per $100 of assessed value until 2024 when it would likely drop to 3 cents per $100 assessed value. This bond would not give the corporation much room for growth without going to the taxpayers to raise the tax levy.

A fourth option would be to complete projects in increments below the $2 million threshold that would require the petition remonstrance process. This would allow the current 6 cent tax levy to be unaffected. In 2024, the amount could still be reduced. “If you have components of projects you can do, then this would work,” Elizondo said.

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Elizondo presented a graph of the current outstanding long-term debt along with the current payment schedule. The corporation could shorten the terms on the bonds by paying more upfront but that would impact its ability to address any other needs without impacting the tax levy.

In future work sessions, the corporation will begin to examine options and needs for the expanding student population.

“Four years ago the board and I began looking at the various needs of our facilities and discussing how in the future we might fully address what those needs are,” Dr. Lorey said. “So, the ultimate goal would be to create a long range planning with goals and strategies of how to address our needs over a long period of time so that we can be cognizant of our taxpayers and how the way we levy those tax dollars impacts our community.”