After reducing bond, Carmel school board questions $10M additional appropriation

Last month, the Carmel Clay Schools board of trustees reduced a bond to pay for facility renovations and other projects from $59 million to $55 million.

So, at their Nov. 4 meeting, school board members said they were surprised to see a resolution tied to the bond appropriating an additional $10 million. The meeting agenda states the resolution will appropriate bond proceeds, but school board members – and the district’s chief finance officer – questioned the amount.

CCS Associate Superintendent Roger McMichael, who oversees finances, said additional appropriations beyond bond amounts typically cover issuance costs and related expenses. He found the $10 million amount to be unusually high but said he trusted the advice of the district’s bond counsel from Barnes & Thornburg.

“Bond counsel is a pretty high level practice of law,” McMichael said. “I’m sure they know what they’re doing. It’s one where I chose to take the advice of the doctor.”

He also said bond counsel originally proposed a $15 million appropriation, which he said was “considerably different” than amounts approved with previous bonds.

Several school board members said they weren’t comfortable approving the resolution without a better understanding of why the appropriation was set so high.

“My concern is, we cut $4.5 million out of the total bond amount, and now we’re appropriating $10 million more than the amount after we cut it,” school board member Kristina Wheeler said. “I have a concern that $10 million is an awful lot, and it’s unnecessary. It looks inappropriate to me.”

School board member Jennifer Cashin said when she voted for the $55 million bond, she expected that would be the cap and include the projects, issuance costs and any other expenses.

“The project list should have also then identified this is the total that we would need in order to complete all of these projects,” she said. “That would be more transparent and avoid these types of conversations later, because the board is always looking at something as a total budget number.”

The board tabled a vote on the resolution and requested bond counsel appear at the next school board meeting – either in person or virtually – to address questions about the appropriation.

The next school board meeting is at 6 p.m. Nov. 18 at the CCS Educational Services Center, 5201 E. Main St.

After reducing bond, Carmel school board questions $10M additional appropriation

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