Randy Rompola, bond counsel with Barnes & Thornburg, speaks to the Warsaw Parks and Recreation Board Tuesday about bonding for the Parks and Recreation Department’s office and maintenance building. Photo by David Slone, Times Union.

By David Slone
Times-Union

WARSAW — In back-to-back separate meetings Tuesday, Feb. 21, the Warsaw Park Board and the Warsaw Common Council approved two resolutions and an ordinance, respectively, to move forward on the park district bonds to pay for the remainder of the park and recreation department’s office and maintenance building.

Both boards also approved using American Rescue Plan Act dollars to add new programs and equipment or add to existing programs at the park

department.

There were no remonstrators to the bonds when the park board held a public hearing during its meeting.

The park board approved a preliminary resolution at its January meeting to go forward with the bonds for up to $2.8 million, while the council at its Feb. 7 meeting approved the ordinance for the bonds on first reading. The city has already paid approximately $1.4 million on the building at the intersection of Fort Wayne and Indiana streets.

Randy Rompola, bond counsel with Barnes & Thornburg, attended both meetings Tuesday to offer any further explanation or answer questions.

He told the park board they were having two public hearings, which could be combined into one. One was for the preliminary resolution the board adopted in January, and after the public hearing they would consider the confirmatory resolution. The second public hearing related to the appropriation of the bond proceeds, which was part of the longer bond resolution.

The bonds are up to $2.8 million, Rompola said, at an interest rate of no more than 6%, although those figures are expected to be less than that.

“These bonds would be issued by the city on behalf of the park district, so they would be payable from a tax levy on the park district, which has the same boundaries as the civil city,” Rompola said.

The bonds would be payable solely from the park district tax levy. The park district has its own 2% debt limit.

“If you’re familiar with the city having the ability to issue general obligation bonds, this is the same concept except for the park district. The statute provides different districts — the cities have different districts that can authorize debt. The park district is one of those districts that can authorize debt for park purposes, and certainly that building would be a park purpose,” Rompola said.

He told the park board the resolution does provide for the sale of the bonds either by competitive sale or negotiated sale. Baker Tilly, the city’s municipal adviser, recommended the bonds be sold through a competitive sale and that they be rated.

The first payment on the bonds is expected July 1, 2024, with the final payment expected to be made in January 2032.

After the public hearing with no one from the public present to ask questions or remonstrate, the park board approved both resolutions.

When presenting to the common council, Rompola provided similar information they heard at its Feb. 7 meeting and that he gave to the park board. He also said, “We are scheduled to talk with the rating agency in early March and, again, assuming you adopt the resolution tonight, we move forward with that and look to sell bonds toward the end of March, closing in early April.”

Councilwoman Diane Quance gave the common council a quick synopsis of what the park board heard and did as she is the council representative to the park board.

Mayor Joe Thallemer said Baker Tilly ran an analysis and it shows the bond payments aren’t until 2024. “It will impact the tax rate just a little over 2.5 cents, starting next year. And then, hopefully, as we move into the street department project, that will add about another 2.25 cents to the rate. But this bond is an eight-year payback, whereas the lease rental bonds for the street department are projected to be 20 years. So, just an FYI, the impact will not be felt until 2024,” Thallemer said.

Quance made the motion to approve the ordinance on second reading and it was approved unanimously.

The other item the park board and the common council looked at and approved was using $19,289.98 in ARPA funds for additional recreational activities in the city parks. Quance said when the city was looking at where to spend the millions of dollars it received from ARPA, she told committee she would like $25,000 to go toward the parks because the park department provided many activities for families during the COVID pandemic.

Recreation Director Stephanie Schaefer gave the park board a rundown of where the $19,289 would be spent. The list includes $644 for additional games and attractions at the Family Carnival July 28 to $7,500 for new rails and freight at Mantis Skate Park.

The park board unanimously voted in favor of the plan.

After a shorter version of Schaefer’s presentation was made to the common council, along with comments from Park Superintendent Larry Plummer, the council approved transferring the money as it had already been appropriated.