Batesville Community School Corp. trustees decided July 13 to seek a $28 million tax-exempt bond issue for a building project to better all four schools.

Since July 1, 2008, when Indiana House Enrolled Act 1001-2008 took effect, local voters must approve sizable school construction projects, according to the Indiana Department of Local Government Finance Web site secure.in.gov/dlgf/8083.htm.

Elementary and middle school projects are subject to the referendum process if the projected cost is more than $10 million, and high school projects if the estimated cost is above $20 million. If a majority of the voters Nov. 3 are in favor of the project, BCSC leaders may proceed.

When the BCSC Facilities Planning Committee presented their recommendations to trustees July 6, members observed that a property tax increase is a concern and were sensitive to the current state of the economy. However, superintendent Dr. Jim Roberts pointed out now taxpayers’ dollars may stretch farther. There “may be recession-related bonuses with lower interest rates and lower construction costs.”

Financial consultant Colette Irwin-Knott, an H.J. Umbaugh & Associates, Carmel, partner, said July 13 the $28 million would be repaid over 20 years at an interest rate not to exceed 6.45 percent. The maximum annual payment would be $3.185 million.

The bonds would be paid off Jan. 15, 2030, according to a 14-page document BCSC was required to submit to the state.

Now the school corporation’s debt service tax rate is about 20 cents in Franklin and Ripley counties. The bond issue would increase that amount by 23 cents for each $100 of net assessed valuation, reported H.J. Umbaugh financial analyst Katie Halloran.

With a debt of $8.49 million on a $655 million net assessed value, the school district’s current indebtedness rate is 1.3 percent. A $28 million debt would hike that rate to 4.27 percent, still considered a low to moderate level and far less than the 15 percent and above some Hoosier school districts in high-growth areas owe, she reported.

What will the impact be to property taxpayers? For a home valued at $100,000, taxes would rise $6.25 monthly or $75 annually; a $150,000 home, $12.45 monthly or $149 annually; a $200,000 home, $18.65 monthly or $224 annually; and a $250,000 home, $24.85 monthly or $298 annually.

She gave an example of how property tax bills would fluctuate for a $150,000 Laughery Township home if the project is approved: 2007, $1,216; 2008, $668; 2009, $830; 2010, $854; 2011 and 2012, around $1,030 annually. This means that if the building project moves forward, property taxes in 2011 and beyond would still be below 2007 levels.

The impact to commercial and rental property owners is greater. For a property valued at $100,000, taxes would rise $229 annually; a $150,000 structure, $343 annually; a $200,000 property, $458 annually; and a $250,000 property, $572 annually.

For farmers, “the more acreage you have, the greater the impact,” the analyst explained. Property taxes would increase $2.75 per acre. The owner of a 100-acre farm would pay about $275 more each year.

A preliminary determination resolution detailed the complex funding. It can be viewed on the BCSC Web site www. batesville.k12.in.us (click on School Board on the left side of the page, then scroll to the bottom) or at the administration building.