Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the “Board”) of Wawasee Community School Corporation (the “School Corporation”) did, on August 8, 2023, make a preliminary determination to issue bonds and enter into one or more lease agreements (the “Lease”) for the (i) renovation of and improvements to Wawasee High School, including the construction of new Performing Arts Center, (ii) reconstruction and/or renovation of Milford School, and (iii) renovation of and improvements to facilities in the School Corporation, including deferred maintenance improvements and site improvements, and the purchase of equipment and technology (collectively, the “Project”). The Lease will be for a maximum term of twenty-six (26) years with a maximum annual Lease rental of $12,500,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $77,150,000, estimated interest rates ranging from 1.00% to 6.00%, and total estimated interest costs of $52,983,292.
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 0.3625%; 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 2.14%.
The School Corporation’s current debt service levy is $10,186,482 and the current rate is $0.3084. After the School Corporation enters into the proposed Lease and the bonds are issued, the gross debt service levy will increase by a maximum of $12,500,000 and the gross debt service rate will increase by a maximum of $0.3784. However, as existing obligations mature, 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:
Estimated Total Estimated Total
Year Debt Levy Debt Rate
2023 10,186,482 0.3084
2024 10,411,503 0.3060
2025 10,644,937 0.3038
2026 10,798,262 0.2992
2027 10,409,985 0.2800
2028 9,957,337 0.2600
2029 10,074,634 0.2631
2030 10,079,761 0.2632
2031 10,071,129 0.2630
2032 10,080,445 0.2633
2033 10,083,913 0.2633
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 does not expect an increase in annual operating costs due to the Project.
If a valid petition pursuant to Indiana Code § 6-1.1-20-3.5 is received within 30 days from the 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 August 9, 2023.
/s/ Secretary, Board of School Trustees
Wawasee Community School Corporation