Notice is hereby given pursuant to Indiana Code 6-1.1-20-3.1 that the Board of School Trustees (the "Board") of Warsaw Community Schools (the "School Corporation") did, on July 25, 2017, make a preliminary determination to issue bonds and enter into a lease (the "Lease") for the construction of a community center at Warsaw Community High School (the "Project"). The Lease will be for a maximum term of 22 years with a maximum annual Lease rental of $1,050,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $10,000,000, estimated interest rates ranging from 3.00% to 5.00%, and total estimated interest costs of $4,580,632.
As required by Indiana Code 6-1.1-20-3.1(b)(1), the following information was available to the public at the public hearing 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 5.17%; 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 5.79%.
The School Corporation's current debt service levy is $10,534,038 and the current rate is $0.4559. After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $1,050,000 and the debt service rate will increase by a maximum of $0.0441. However, as existing obligations mature, the anticipated net impact on the Debt Service Fund tax rate is expected to be $0.00. The Project involves the opening of new facility space. The School Corporation expects to annually incur an increase of $150,000 to operate such new facility space. The purpose of the Lease and the bonds is to provide for the Project.
The estimated amount of the School Corporation’s debt service levy and rate that will result during the following ten 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, is as follows:
Year
Estimated Total Debt Service Levy
Estimated Total Debt Service Rate
2016 $9,519,097 $0.4330
2017 $10,534,038 $0.4559
2018 $10,503,724 $0.4542
2019 $10,508,340 $0.4544
2020 $10,474,793 $0.4529
2021 $10,472,042 $0.4528
2022 $10,338,445 $0.4469
2023 $10,330,353 $0.4465
2024 $9,434,881 $0.4069
2025 $7,888,468 $0.3386
2026 $7,877,400 $0.3381
2027 $7,886,900 $0.3385
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 IC 6-1.1-20-3.1 subdivisions (4) and (5) not later than 30 days after the first publication of this notice.
