073-24 - NOTICE OF ADOPTION OF PRELIMINARY DETERMINATION
NOTICE OF ADOPTION OF PRELIMINARY DETERMINATION
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.1 that the Board of School Trustees (the “Board”) of Culver Community Schools Corporation (the “School Corporation”) did, on November 1, 2021 and November 15, 2021 make a preliminary determination to issue bonds and enter into a lease (the “Lease”) for the Expansion and Improvement Projects, including renovation and construction of improvements to Culver Middle/High School and other school facilities within the school corporation, including site improvements, the purchase of technology and equipment (the “ Original Projects”) for which bonds would be issued in the maximum amount of $12,050,000. On February 28, 2023, Bonds were issued in the amount of $11,920,000. In an abundance of caution the School Corporation held additional hearings in order to use the bond proceeds on expanded projects which include the Expansion and Improvement Projects, including renovation and construction of improvements to Culver Middle/High School and other school facilities and construction of a new Youth Center, including site improvements, the purchase of technology and equipment (the “Projects”).
No additional bonds will be issued in connection with the Projects. The following financial terms are consistent with the bonds actually issued.
The Lease is for a maximum term of 22 years with a maximum annual Lease rental of $1,225,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $12,050,000, estimated interest rates ranging from 2.20% to 3.60%, and total estimated interest costs of $5,437,011. 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 0.21%; 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 2.09%.
The following information was reported at the hearings in 2021: The School Corporation’s current debt service levy is $1,316,800 and the current rate is $0.1521. After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $1,225,000 and the debt service rate will increase by a maximum of $0.1257. However, as existing obligations mature and other debt rolls on, the anticipated increase to the Debt Service Fund tax rate due to these Projects is expected to be $0.0100 above the estimated 2023 Debt Service Fund tax rate in the amount of $0.1773.
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:
Estimated Total Debt Estimated Total Debt
Year Service Levy Service Rate
2021 $1,316,800 $0.1521
2022 1,438,877 0.1563
2023 1,631,799 0.1773
2024 1,724,469 0.1873
2025 1,724,469 0.1873
2026 1,724,469 0.1873
2027 1,724,469 0.1873
2028 1,261,658 0.1371
2029 1,193,483 0.1297
2030 1,192,630 0.1296
2031 1,173,392 0.1275
2032 1,173,250 0.1275
2033 1,172,587 0.1274
The purpose of the Lease and the bonds 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 and expansion of the scope of the Original Project 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 March 20, 2024.
/s/ Board of School Trustees
Culver Community Schools Corporation
073-24 G 3/20, 3/27