News Bulletins

Notice of Adoption of Preliminary Determination

Posted Wednesday, January 9, 2019 7:47:17 AM EST


Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.1 that the Board of School Trustees (the "Board") of Middlebury Community Schools (the "School Corporation") did, on January 8, 2019, make a preliminary determination to issue bonds and enter into a Lease Agreement (the "Lease") for the renovation of and improvements to Northridge High School campus, including construction of outdoor athletics facilities and related site improvements, and renovation of and improvements to Northridge Middle School (the "Project").

The Lease will be for a maximum term of 12 years with a maximum annual Lease rental of $5,275,000.  The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $15,000,000, estimated interest rates ranging from 1.00% to 5.00%, and total estimated interest costs of $1,900,000.

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 0.89%; 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 5.60%.

The School Corporation's current debt service levy is $9,338,215 and the current rate is $0.7499.  After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $5,275,000 and the debt service rate will increase by a maximum of $0.3308.  However, as existing obligations mature, the anticipated net increase to the debt service fund is expected to be 0.0582 above the current rate.

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, is as follows:

Year Estimated Total
Debt Service Levy
Estimated Total
Debt Service Rate
2018 $10,477,150 $0.7499
2019 11,416,575 0.7865
2020 12,392,454 0.8081
2021 10,387,700 0.6761
2022 9,216,200 0.6050
2023 9,212,100 0.5989
2024 9,215,500 0.5667
2025 6,680,200 0.4256
2026 6,678,300 0.4213
2027 6,675,200 0.4172
2028 6,682,300 0.4132
2029 6,676,200 0.2214

The purpose of the Lease is to provide for the Project.

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 January 9, 2019.

/s/ Robert Souder
Secretary, Board of School Trustees
Middlebury Community Schools