North Judson-San Pierre school board members took a few major steps in the General Obligation Bond process at their Tuesday night meeting.
A public hearing was held over the proposed bond issuance, which will be for a total of $1.1 million. Curt Pletcher from Umbaugh provided a general overview of the bond process, explaining that it will take the place of the 2006 bonds that will soon be retired.
He said there is about a 2 percent interest rate and the bond will be paid back over a three year period. Fletcher stressed that the school corporation will be maintaining their annual payments going forward.
Dr. Zupin noted that about $400,000 of the bond money will be used to purchase new technology devices. Another $100,000 dollars will be spent to enhance safety and security. The remaining money will be set aside for future repairs and potential upgrades to the elementary school building.
Following the hearing, members considered three resolutions that dealt with issuance, appropriation and reimbursement.
The school corporation’s bond counsel, Thomas Peterson, explained that the first two resolutions had to do with issuing the money and making an additional appropriation in the school’s budget so the money can be spent.
Peterson said the third document is a reimbursement resolution created by the Internal Revenue Service. It establishes that the school is borrowing on a tax-exempt basis, and acknowledges that the money will be utilized for projects that are “purposeful for tax exemption” and that any money given to the school is reimbursement for an appropriated expense. He said that the IRS put that resolution in place to keep individuals from abusing the system.
All three resolutions were approved unanimously by the school board members. The request to make an additional appropriation now has to go before the Starke County Council at their next meeting on May 21st. If that is approved, the school can move forward with the process. Dr. Zupin said that if all goes according to plan, they can expect to see the money from the bond issuance in mid-June
