Renovations are one small step closer to becoming reality at Eisenhower Middle High School.
The Warren County School District's board of directors passed a resolution at its meeting Monday evening that will serve as the framework for the bond issue that will ultimately finance the renovations.
Tom Tupitza, an attorney with Knox, McLaughlin, Gornall & Sennett informed the board that during June's regular meeting the "purpose of the resolution is to set forth the various required items as referenced in the statute" regarding the bond issue.
The resolution includes a variety of blanks that will be filled in once an underwriter has been selected for the bond issue and the issuance date becomes clearer.
It was passed unanimously as part of the consent agenda, a slate of items that are all handled under one vote.
Gregg McLanahan, with Public Financial Management, Inc., a financial advisory group, provided a wealth of background on the upcoming bond issue for the board.
He said the school district will issue taxable debt but receive a federal subsidy that will cover approximately 73 percent of the interest.
McLanahan explained that the school district will be making payments into a sinking fund and will receive interest on those payments throughout the life of the bond which, at this point, is set at 21 years. "A sinking fund is what's called a savings account where you put the money in and it grows interest for the duration of the bond issue," he explained.
He said the total amount of the bond will be $17,984,000, indicating that the district still has to go through a credit rating process and find an underwriter before the bonds can be issued.
Eventually, at the end of the 21 years, the sinking fund will reach $17,984,000 and the investors will be paid.
He said that the district will receive three forms of revenue off of the bond issue: federal subsidies, interest from the sinking fund payments and state reimbursement. Payments will be due on March 1 and Sept. 1 each year, McLahan said.
With the revenue subtracted, the district will pay a total of $16,248,000 in principal and interest over the life of the bond, ultimately paying back less than is borrowed.
McLahanan said that the total millage impact on the yearly budget will be .23 of one mill in 2013 and .28 in 2014 , for a total milage impact of about .5 of one mill.
Superintendent Brandon Hunagel was quick to point out, though, that this doesn't necessarily mean there will be a tax increase and that the numbers are just provided to give a sense of how the debt service will impact the budget.