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Notice of Adoption of Preliminary Determination

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 Danville Community School Corporation (the "School Corporation") did, on June 10, 2019, make a preliminary determination to issue bonds and enter into a Lease Agreement (the "Lease") for the Preserve Our Future Renovation, Efficiency, Safety & Security Project which consists of renovations of and improvements to school facilities including Danville Community High School, including academic, agricultural and fine arts areas, Danville Community Middle School, North Elementary School, and South Elementary School, including site work, maintenance improvements and purchase of equipment and technology (the "Project").  The Lease will be for a maximum term of 22 years with a maximum annual Lease rental of $5,606,000.  The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $53,000,000, estimated interest rates ranging from 3.85% to 6.45%, and estimated total interest costs of $41,345,121.

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 1.02%; 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 5.42%.

The School Corporation's current debt service levy is $6,876,715 and the current rate is $0.8838.  After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $5,606,000 and the debt service rate will increase by a maximum of $0.6845.  However, as existing obligations mature, the anticipated increase to the Debt Service Fund tax rate is expected to be $0.0824.  

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:

Year

Estimated Total Debt Service Levy

Estimated Total Debt Service Rate

2020

$7,199,686

$0.9253

2021

7,517,540

0.9662

2022

7,314,607

0.9401

2023

7,314,878

0.9401

2024

7,312,150

0.9398

2025

7,314,050

0.9400

2026

7,310,250

0.9395

2027

5,321,900

0.6840

2028

5,325,700

0.6845

2029

5,323,800

0.6842

2030

5,324,750

0.6843

2031

5,322,850

0.6841

 

 

 

 

 

 

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, the proposed debt service or Lease payments for the Project must be approved in an election on a local public question held under Indiana Code § 6-1.1-20-3.6.

Dated June 13, 2019.

 

/s/ Amy Comer Elliott                                               

Secretary, Board of School Trustees

Danville Community School Corporation