School Bonds in Limbo
Pilot News Staff Report
PLYMOUTH� Upon further review, there is a ray of hope for the Plymouth School Corpor-ation's plans to sell bonds for its planned $26.4 million expansion/renovation projects.
The action by the Indiana School Property Tax Control Board on Thursday was 2-2. The issue moves onto a Tax Control Commissioner without a recommendation.
The commissioner has said she would not approve the sale of bonds until all litigation is clear. An appeal by the Marshall County Tax Awareness Com-mittee of a judge�s ruling that they must put up $1 million bond before they can contest the very idea of expansion is the sticking point.
The school corporation itself will pay the necessary extra cost to push the appeal of the judge�s ruling to the attention of the Indiana Supreme Court.
�We must do all we can, we�re required to do all we can, to get this issue resolved,� said Plymouth Superintendent John Hill late Friday night.
The schools are certain, once the judge�s ruling is upheld by the supreme court, opposition to the issue will die and the project can proceed.
But the state commissioner can take up to 90 days to even announce a decision and can request another 90 days to consider it. That basic six-month period would more than allow time for the state supreme court to make its ruling. The two votes which did not endorse the request on Thursday both hinged on the court cases being cleared as well.
�No one was against the project,� said assistant superintendent Jack Davis.
�No board member questioned it. We went to Indianapolis with two goals in mind: Get a hearing and get the motion to the commissioner. We accomplished both goals.�
What was not and will not be accomplished this year is the chance to issue bonds.
A figure of $1.3 million additional cost has been often used in reference to the non-sale this year.
�That means we�ll have to pay $1.3 million just because we were not allowed sell the bonds this year,� said Hill.
�It becomes part of the lease payment and we can�t levy tax payments to pay that. We have to borrow money to pay that interest.
�If we could have sold the bonds before Dec. 31, we could sell to the lowest bidder, to several bidders. We won�t do that after Dec. 31. We�ll have to go with one bidder.�
�I also know people are saying that they thought the $1.3 million is a false figure based on the fact interest rates have fluctuated. Sure, they have gone down, but, in the past 30 days, they have gone back up. This money is not about that. There will be additional costs because of this delay.�
Also unspoken is the court costs to the schools, court fees and lawyer costs foremost.
The Plymouth School Corporation and TAC have been battling in the courts about Option B.
TAC first filed a lawsuit to oppose the outcome of their remonstrance against the expansion project.
When special judge Duane Huffer decided to hear the motion to declare the lawsuit a public lawsuit first, and ruled in the school corporation's favor by ordering TAC to post a $1 million bond, TAC filed an appeal to that decision.
That�s the appeal the school corporation is asking to be expedited.
They are also asking that TAC post an appeal bond because if the school cannot sell bonds on Option B by the end of the year, that would add the $1.3 million to the cost of the project.
"Right now we are doing everything we can to keep this from costing the taxpayers any more money," said Hill. The school corporation is certain it will eventually proceed with the project.
"We need to do as much as we can on the project to be in a position to sell the bonds and the bid the project," Hill said. "We need to be as ready as we can."
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