Bonds for rebuild: Update on Hums Elementary School makeover

MISHAWAKA, Ind. -- The School City of Mishawaka held the first of two public hearings Wednesday evening to share possible financial plans for building a new Hums Elementary School.

The outline of the project is to construct a new building on the same property of the current school. Once the new facility is built, they plan to tear down the old structure, built in 1975. To do that, they need bonds issued.

“These bonds are sort of the school corporation’s version of a mortgage… Those bond issuances are essentially the way to pay the architects, the construction managers, all the folks that are involved in building a new building,” said Superintendent of School City of Mishawaka, Dr. Theodore Stevens.

The school corporation has been working with accounting firm Baker Tilly, that serve as the school district’s financial adviser. They have helped the school structure the needed bonds and will guide them through the financial process for the project.

The plan is to borrow at most 45 million dollars that they will have 20 years to pay back with a 5% estimated interest rate. However, Dr. Stevens said Mishawaka taxpayers do not have to worry about extra money coming out of their pockets.

“It does not raise the taxes to the Mishawaka taxpayer to complete the project as presented,” said Dr. Stevens.

The next public hearing on the financial plan will be held on the Feb. 5 board meeting, where the public will be allowed to provide feedback or ask questions.

If the board adopts a resolution at the Feb. 5 meeting, property owners or registered voters will then have 30 days to file a petition requesting the application of the local public question process for the proposed bonds.