TIPP CITY — On Monday, the Tipp City Schools Board of Education voted to place a bond issue on the May ballot.
The $35.75 million, 27-year bond issue would be used to renovate parts of some existing facilities and to construct a new addition around L.T. Ball Intermediate School to house pre-kindergarten through fifth grade students.
At a special meeting earlier this month, the board voted to declare the necessity of the bond issue.
Treasurer Dave Stevens explained that the millage rate of the bond issue will be 5.4 mills, but for the first five years of its term, 3.87 mills will be collected.
“We’re in the unique situation where we have a bond for the high school that’s currently outstanding that will go off the books at the end of 2024,” he said.
The effective rate for the high school bond issue was at 3.89 mills in 2018 combined with the full millage for the new project of 5.4 mills would be 9.29 mills in debt service, Stevens said. The 3.89 mills for the high school and the 3.87 mills for the new project will combine for 7.76 mills in debt service.
In an effort not to burden the taxpayer with a larger tax bill, Stevens said, the district will collect enough to pay the interest on the project until the high school bond is paid in 2024.
“We don’t need 5.4 mills worth of millage to pay just the interest,” he said. “Then when the high school debt drops off, the millage can go back up to the 5.4, which is what’s needed, but it will still be less than the 7.76 mills that they were seeing for the first five years.”
Stevens noted that the numbers are based on interest rates and assessed valuation assumptions as of Jan. 9.
The district has been working with the Ohio Facilities Construction Commission on the project through its Expedited Local Partnership Program (ELPP) and is eligible for 35 percent matching funds from the state. ELPP enables districts to move ahead with portions of their facilities projects and be reimbursed for part of the cost.
Stevens noted that the district will hold a community meeting to discuss the financing of the construction project at 6:30 p.m. March 12, at L.T. Ball.