In May, as part of a newly launched Indiana Bond Bank (IBB) Gives Back campaign, the IBB reimbursed 29 school corporations $348,175 in interest paid on tax anticipation warrants issued through IBB in 2020 during the height of COVID-19.
Among those were Wawasee Community Schools, according to a news release from the Office of the Indiana Treasurer of State.
In summer 2020, schools issued tax anticipation warrants through IBB to combat COVID-19-related cash-flow deficits. After providing this cash-flow relief to schools, IBB sought a portion of the State’s Coronavirus Relief Funds (CRF) to reimburse the schools for the majority of their interest expense paid.
Because the initial financing rolled all costs into the interest rate, this reimbursement of the majority of their interest results in schools effectively receiving a no-cost, no-interest loan from IBB.
“Through no fault of their own, these schools faced cash-flow interruptions due to COVID-19,” explained Mark Wuellner, executive director of the Indiana Bond Bank. “None planned on borrowing last year. So we felt an obligation to pursue every option on their behalf. It took time and effort, but what an amazing feeling to call these 29 hard-working school treasurers and hear their surprise that over one year later we had a reimbursement check for them.”
“I am so proud of our IBB team, who worked behind the scenes for months to secure reimbursement for these 29 schools,” said State Treasurer Kelly Mitchell, chair of the Indiana Bond Bank Board. “As the kick-off to the ‘IBB Gives Back’ campaign, it perfectly encapsulates how IBB views serving local governments. Exceptional customer service is a baseline expectation that does not end with the financing.”
As part of its efforts, IBB also secured interest expense reimbursements for a fire protection district (over $2,000) and three cities (over $113,000) which issued tax anticipation warrants through IBB due to COVID-19.
The Indiana Bond Bank is a quasi-state agency created in 1984 whose mission is to provide targeted financial solutions to local Indiana government. For more information on the Indiana Bond Bank, visit https://inbondbank.com or contact the IBB at 317-233-0090 or bcarman@inbondbank.com.
