|
Building Project Information |
|
| Summary of Finance Study | ||
FINANCE STUDY
FOR
MIDDLEBURY COMMUNITY SCHOOLS
SUMMARY
JUNE 2004
|
In Indiana, a state in which most of the burden of paying for school
facilities falls on the local taxpayers, Indiana public education
receives its funding from various sources, but the majority comes
from the state and local sources. There are two funds that are used
to finance capital improvements, Capital Projects Fund and Debt Service
Fund. The wealth of a school corporation is commonly measured by its assessed valuation. The assessed valuations for the Middlebury Community Schools have increased on an average of 5.44% yearly since 1998. The 2004 assessed valuation was $980,123,120. The 2005 assessed valuation has exceeded the 5.44% to 6.12%, which equates to $1,040,000,000. Using the 5.44 percentage of increase by 2008 it would be greater than $1,211,440,875. The fiscal effort of a school corporation is measured by local tax rates. For the Middlebury Community Schools, changes in the total tax rate over the last six-year period were relatively minor except reassessment in 2003. By state statute, school corporations in Indiana may enter into debt obligations for specified reasons, the most common of which is school construction and renovation. On January 1, 2004, the school corporation has outstanding debt involving both general obligation bond and holding corporation. The total debt as of the January 1, 2004 date was $25,311,145.00. The debt leeway is an estimate of a school corporation's fiscal capacity to assume additional debt. If the school district decides to move forward with facility projects, the question is how will it affect tax rates? If the current 5.44% increase in assessed valuation continues and the outstanding debt continues to decline, by the time construction would be completed, there will be very little affect on the tax rate for the Middlebury Community Schools. Also a new facility appeal may be requested as an additional or excessive levy to increase the local levy base for the operation of the facility. This could generate between $800,000 and $1,250,000 for the operation of the new facility depending on the square footage of the facility. In summary, the Middlebury Community Schools has enough wealth with the assessed valuation of property along with a declining outstanding debt services fund, to fund a new facility project. |