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 of Brownsburg Community School Corporation (the "School Corporation") did, on July 18, 2016, make a preliminary determination to enter into a lease for the proposed 2017 Efficiency, Renovation, Safety & Capacity Project which includes the renovation of and improvements to the Brownsburg High School and the construction of a new elementary school (the "Project"). The lease will be for a maximum term of 26 years with a maximum annual lease rental of $9,868,000. The maximum annual lease rental has been estimated based upon an estimated principal amount of bonds of $98,100,000 and estimated interest rates ranging from 3.20% to 5.35% and total estimated interest costs of $60,410,432. As required by Indiana Code 6-1.1-20-3.5(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 1.06%; 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 15.87%. 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 is being replaced. Therefore, the School Corporation expects to annually incur an increase of $634,396 to operate such new facility space. The School Corporation's current debt service levy is $20,373,286 and the current rate is $1.0019. After the School Corporation enters into the proposed lease and the bonds are issued, the debt service levy will increase by a maximum of $9,868,000 and the debt service rate will increase by a maximum of $0.4465. However, as existing debt rolls off, the estimated net increase to the debt service rate is expected to be $0.00. The purpose of the lease is to provide for the construction of the Project. If a valid petition pursuant to Indiana Code 6-1.1-20-3.5 is received by the School Corporation, 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 July 20, 2016. Phil Utterback, Secretary, Board of School Trustees Brownsburg Community School Corporation HCF-554 July 20, 27 hspaxlp
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