Notice of Adoption of Preliminary Determination
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.1
that the Board of School Trustees (the "Board") of Wa-Nee Community
Schools (the "School Corporation") did, on June 22, 2020, make a
preliminary determination to issue bonds and enter into a lease (the
"Lease") for the renovation of and improvements to school facilities,
including Northwood High School and Middle School, Woodview, and Wakarusa
Elementary Schools and the soccer complex being constructed in partnership with
the City of Nappanee, including site improvements and the purchase of equipment
and technology (the "Projects").
The Lease will be for a maximum term of 17 years with a maximum annual Lease
rental of $2,129,000. The maximum annual
Lease rental has been estimated based upon an estimated principal amount of
bonds of $16,050,000, estimated interest rates ranging from 2.40% to 3.80%, and
total estimated interest costs of $5,017,135.
As required by Indiana Code § 6-1.1-20-3.1(b)(1),
the following information was available to the public at the public hearings on
the preliminary determination: (i) the School Corporation's current and
projected annual debt service payments divided by the net assessed value of
taxable property within the School Corporation, which is 0.51%; and (ii) the
sum of the School Corporation's outstanding long term debt plus the outstanding
long term debt of other taxing units that include any other territory of the
School Corporation divided by the net assessed value of taxable property within
the School Corporation, which is 4.78%.
The School Corporation's current debt service levy is
$5,231,605 and the current rate is $0.4416.
After the School Corporation enters into the proposed Lease and the
bonds are issued, the debt service levy will increase by a maximum of $2,129,000
and the debt service rate will increase by a maximum of $0.1680. However, as existing obligations mature, the
anticipated increase to the Debt Service Fund tax rate is expected to be $0.00.
The estimated amount of the School Corporation's debt
service levy and rate that will result during the following 10 years if the
School Corporation enters into the lease and issues the bonds, after
considering any changes that will occur to the debt service levy and rate
during that period on account of any outstanding bonds or lease obligations
that will mature or terminate during that period:
Year
|
Estimated Total Debt
Service Levy
|
Estimated Total Debt
Service Rate
|
2021
|
$5,226,960
|
$0.4412
|
2022
|
5,208,901
|
0.4397
|
2023
|
5,040,184
|
0.4254
|
2024
|
4,073,518
|
0.3438
|
2025
|
4,070,071
|
0.3436
|
2026
|
4,063,632
|
0.3430
|
2027
|
4,066,677
|
0.3433
|
2028
|
4,065,736
|
0.3432
|
2029
|
4,065,362
|
0.3432
|
2030
|
3,763,837
|
0.3177
|
To the extent that the
Projects involve the opening of additional square footage, it is expected that
efficiencies achieved by these Projects will offset any additional costs due to
the greater square footage. The
purpose of the Lease and the bonds is to provide for the Projects.
Any owners of real property within the
School Corporation or registered voters residing within the School Corporation
who want to initiate a petition and remonstrance process against the proposed Lease
payments or the issuance of the bonds must file a petition that complies with Indiana
Code § 6-1.1-20-3.1 subdivisions (4) and (5) not later than 30 days
after the first publication of this notice.
Dated June 24, 2020.
/s Terry
Graber
Secretary, Board of School Trustees
Wa-Nee Community School Corporation