School Needs to Extend Debt

(posted Dec 13)

The Speedway Public School Corporation posted legal notice on December 12 to notify taxpayers the need to extend its loan from the Indiana Bond Bank to maintain daily operations of the school district.

Superintendent Ken Hull explained the school corporation borrowed $6,495,633 in May and June of 2008. The loan was about 80 % of the amount of local property taxes expected to be received. Due to the 2007 reassessment problems, the delay with distributing property tax dollars to local units has forced many entities to borrow millions of dollars to maintain daily operations.

The school corporation, like other local units, has not received any 2008 tax distributions except for a portion of the state's property tax replacement credit.

Hull said "The school corporation has used the PTRC and all other sources of funds to repay $2,054,000 to the Indiana Bond Back and has advertised its intent to extend (roll-over) the $4,440,833 balance into 2009 with the intent of repaying these funds as soon as property taxes are received."

The corporation may be able to retire the debt by next month if the full amount of property tax is received on schedule. Hull also realized that it might not happen until late spring or early summer if the second half of 2008 property taxes are needed.

"This debt and related interest has been caused by the tardiness and inaccuracies of the original assessment at the township and county levels and the intervention into local matters by state government."

Hull said the figures might vary slightly depending upon interest charges and receipt date of payments.