NOTICE OF ADOPTION OF PRELIMINARY DETERMINATION
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the "Board") of Hamilton Southeastern Schools (the "School Corporation") did, on December 11, 2019, make a preliminary determination to issue bonds and enter into a lease agreement (the "Lease") for the proposed construction of a new elementary school in Wayne Township (the "Project"). The Lease will be for a maximum term of 22 years with a maximum annual lease rental of $3,100,000. The maximum annual lease rental has been estimated based upon an estimated principal amount of bonds of $35,000,000, estimated interest rates ranging from 1.00% to 5.00%, and total estimated interest costs of $21,177,750.
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 0.5898%; 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 6.97%.
The School Corporation's current debt service levy is $43,546,542 and the current rate is $0.5898. After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $3,100,000 and the debt service rate will increase by a maximum of $0.0406. However, as existing obligations mature, there is no anticipated net increase to the Debt Service Fund tax rate relative to 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:
||Estimated Total Debt Service Levy
||Estimated Total Debt Service Rate
The Project involves the opening of new school facility space; however, the new school facility space will be more efficient than the school facility space which shall be replaced. Therefore, the School Corporation expects to annually incur an increase of $400,000 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 December 16, 2019.
/s/ Janet Pritchett
Secretary, Board of School Trustees
Hamilton Southeastern Schools
(Note 1: In addition to publishing, mail to the Hamilton County Clerk and any organization which has requested a notice of preliminary determination.)
(Note 2: Publish once each week, for two weeks in legally required newspapers; also post in three public places in the School Corporation.)
AFFIDAVIT RE POSTING OF A NOTICE
STATE OF INDIANA )
COUNTY OF HAMILTON )
The undersigned, being first duly sworn, upon his/her oath deposes and says:
That he/she did, on December 16, 2019, post in three public places in the school corporation known as Hamilton Southeastern Schools (the "School Corporation") a copy of the School Corporation's Notice of Adoption of Preliminary Determination, which Notice is in the form attached hereto.
Affiant further says that said Notice was posted in the following places in the School Corporation:
Subscribed and sworn to before me this _______ day of December, 2019.
My commission expires: County of Residence: