SCSD1 Considers $2.6M in School Maintenance Projects; No Tax Increase Expected...Second public hearing set for July 21

Scott County School District 1 (SCSD1) is moving forward with a proposal to invest up to $2.6 million in major maintenance and facility upgrades—without increasing the property tax rate. The plan was presented during the first of two required public hearings, with a second scheduled for Monday, July 21.
	
According to Superintendent Trevor Jones, the proposed improvements are part of a proactive approach to address aging infrastructure across district campuses. “Just like our homes, we must do periodic maintenance and repairs at the school system as well,” Jones said. 

	Planned projects include:
• Roof repairs where leaks and wear have been reported
• Parking lot improvements across all school facilities, including new striping and resurfacing
• Replacement of outdated student lockers in both the middle and high school
• Installation of a new hardwood floor at Regal Gymnasium, replacing the current one which is over 40 years old
• HVAC system improvements for better efficiency and climate control in instructional spaces

One of the most notable projects, the gymnasium floor replacement, will be completed by Cincinnati Floor at a cost of approximately $215,000. Additionally, new video boards and scoreboards—estimated at $122,000—will be installed as part of a cost-recovery plan supported by the Athletic Department. That department will repay the district using advertising revenue generated from local sponsorships.

The cost of replacing lockers is expected to estimate $500,000. Jones said that final vendor quotes are still pending, but work may begin as early as fall break for the middle school and during winter break for the high school to minimize disruption to the academic calendar.

How the project will be financed:
The $2.6 million investment would be financed through a bond issue to be completed later this year, likely by September. While the legal term of the bond is 20 years, the district anticipates full repayment within 8 to 10 years at not more than 6% interest rate.
	
Financial advisors explained that the bond proposal falls within 1% of the district’s gross assessed property valuation and does not require a referendum vote. This means that if no substantial public opposition is submitted via petition, the bond can proceed.

The maximum annual bond payment has been set at $500,000. Because the district’s existing debt service obligations are naturally declining, the new bond issue is not expected to cause any increase in the debt service tax rate. 

Because the district’s current general obligation bond capacity is only about $1 million, SCSD1 will issue the bonds through a building corporation—an entity commonly used by Indiana school districts to finance capital projects beyond their statutory borrowing limits.

The first payment on the bonds is expected to be due in June 2026.
	
Next Steps

A second public hearing will take place at the next school board meeting on Monday, July 21, where residents can ask questions or provide feedback. No board action will be taken until both hearings have been held.