originally posted on Monday, June 27, 2022 at 09:32:25 AM.
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the "Board") of Middlebury Community Schools (the "School Corporation") did, on June 21, 2022, 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, including the construction of a student activity center, and maintenance improvements throughout the School Corporation, including roofing improvements and site improvements (the "Project"). The Lease will be for a maximum term of 12 years with a maximum annual Lease rental of $9,500,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $35,435,000, estimated interest rates ranging from 1.00% to 6.00%, and total estimated interest costs of $9,750,000.
As required by Indiana Code § 6-1.1-20-3.5(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 1.38%; 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 4.34%.
The School Corporation's current debt service levy is $13,455,652 and the current debt service rate is $0.8035. After the School Corporation enters into the proposed lease agreement and the bonds are issued, the debt service levy will increase by a maximum of $9,500,000 and the gross debt service rate will increase by a maximum of $0.4100. However, due to the structure and timing of existing obligations, including the anticipated issuance of General Obligation bonds of 2022, the anticipated net increase to the Debt Service Fund tax rate is expected to be $0.00 above the current rate.
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 |
|---|---|---|
| 2022 | 13,455,652 | 0.8035 |
| 2023 | 14,540,108 | 0.843 |
| 2024 | 14,894,148 | 0.8383 |
| 2025 | 11,443,083 | 0.6441 |
| 2026 | 11,421,192 | 0.6429 |
| 2027 | 11,393,848 | 0.6413 |
| 2028 | 11,395,231 | 0.6414 |
| 2029 | 8,572,323 | 0.4825 |
| 2030 | 6,094,335 | 0.343 |
| 2031 | 5,333,998 | 0.3002 |
| 2032 | 991,248 | 0.0558 |
The Project involves the opening of new school 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 is to provide for the Project.
If a valid petition pursuant to Indiana Code § 6-1.1-20-3.5 is received within 30 days from the first publication of this notice, the proposed debt service or Lease payments must be approved in an election on a local public question held under Indiana Code § 6-1.1-20-3.6.
Dated June 29, 2022.
R. Mitchell Miller
/s/ Board of School Trustees
Middlebury Community Schools