Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.1 that the Board of School Trustees (the "Board") of Middlebury Community Schools (the "School Corporation") did, on February 20, 2024, make a preliminary determination to issue bonds for the (i) deferred maintenance improvements throughout the school corporation, including HVAC improvements and school kitchen remodels; (ii) purchase of buses; and (iii) purchase of technology hardware and equipment (collectively, the "Projects"). The bonds will have a maximum maturity of 8 years, a maximum principal amount of $14,000,000, and estimated interest rates ranging from 2.00% to 6.00% resulting in total estimated interest costs of $1,193,000.
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 0.8825%; 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 5.06%.
The School Corporation's current debt service levy is $16,399,507 and the current debt service rate is $0.7995. After the School Corporation's bonds are issued, the gross debt service levy will increase by a maximum of $10,600,000 and the gross debt service rate will increase by a maximum of $0.5168. However, as existing debt matures the net impact on the debt service 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 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:
Year | Estimated Total Debt Service Levy | Estimated Total Debt Service Rate |
2024 | $16,399,507 | $0.7995 |
2025 | 16,890,600 | 0.7995 |
2026 | 13,580,663 | 0.6241 |
2027 | 11,945,945 | 0.5330 |
2028 | 9,197,645 | 0.3984 |
2029 | 6,414,713 | 0.2779 |
2030 | 3,907,721 | 0.1693 |
2031 | 3,334,808 | 0.1444 |
2032 | - | - |
2033 | - | - |
2034 | - | - |
The purpose of the bonds is to provide for the Projects.
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 issuance of the bonds 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 publication of this notice.
Dated February 21, 2024.
Michael Varner
/s/ Secretary, Board of School Trustees
Middlebury Community Schools