Tippecanoe Valley Preliminary Determination
May 21, 2021 at 1:00 p.m.
By -
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the "Board") of Tippecanoe Valley School Corporation (the "School Corporation") did, on May 24, 2021, make a preliminary determination to issue bonds and enter into a lease agreement (the "Lease") for the 2022 Modernization, Improvement and Renovation Projects which include renovation of and improvements to the Tippecanoe Valley High School including site improvements and the purchase of equipment and technology (the "Project"). The Lease will be for a maximum term of 21 years with a maximum annual Lease rental of $1,783,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $16,210,000, estimated interest rates ranging from 2.50% to 4.75%, and total estimated interest costs of $8,958,269.
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 0.59%; 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 4.86%.
The School Corporation's current debt service levy is $2,472,379 and the current rate is $0.4500. After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $1,783,000 and the debt service rate will increase by a maximum of $0.3245. However, as existing obligations mature, the anticipated increase to the Debt Service Fund tax rate is expected to be $0.1145.
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 Estimated Total
Year Debt Service Levy Debt Service Rate
2023 $ 2,405,096 $ 0.4378
2024 2,467,339 0.4491
2025 2,547,719 0.4637
2026 2,608,596 0.4748
2027 2,712,707 0.4937
2028 2,779,437 0.5059
2029 2,852,713 0.5192
2030 2,932,459 0.5337
2031 2,932,459 0.5337
2032 2,200,000 0.4004
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 within 30 days from the first 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 May 27, 2021.
/s/ Board of School Trustees
Tippecanoe Valley School Corporation
5-27, 6-3 hspaxlp
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the "Board") of Tippecanoe Valley School Corporation (the "School Corporation") did, on May 24, 2021, make a preliminary determination to issue bonds and enter into a lease agreement (the "Lease") for the 2022 Modernization, Improvement and Renovation Projects which include renovation of and improvements to the Tippecanoe Valley High School including site improvements and the purchase of equipment and technology (the "Project"). The Lease will be for a maximum term of 21 years with a maximum annual Lease rental of $1,783,000. The maximum annual Lease rental has been estimated based upon an estimated principal amount of bonds of $16,210,000, estimated interest rates ranging from 2.50% to 4.75%, and total estimated interest costs of $8,958,269.
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 0.59%; 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 4.86%.
The School Corporation's current debt service levy is $2,472,379 and the current rate is $0.4500. After the School Corporation enters into the proposed Lease and the bonds are issued, the debt service levy will increase by a maximum of $1,783,000 and the debt service rate will increase by a maximum of $0.3245. However, as existing obligations mature, the anticipated increase to the Debt Service Fund tax rate is expected to be $0.1145.
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 Estimated Total
Year Debt Service Levy Debt Service Rate
2023 $ 2,405,096 $ 0.4378
2024 2,467,339 0.4491
2025 2,547,719 0.4637
2026 2,608,596 0.4748
2027 2,712,707 0.4937
2028 2,779,437 0.5059
2029 2,852,713 0.5192
2030 2,932,459 0.5337
2031 2,932,459 0.5337
2032 2,200,000 0.4004
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 within 30 days from the first 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 May 27, 2021.
/s/ Board of School Trustees
Tippecanoe Valley School Corporation
5-27, 6-3 hspaxlp
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