Warsaw Schools Hears Tax Impact Of Building Plans
July 28, 2016 at 4:25 p.m.
By David [email protected]
"What you'll see tonight," said Warsaw Community Schools Superintendent Dr. Robert Haworth, "it's going to affect - increase - your taxes."
Todd Samuelson, a partner with H.J. Umbaugh & Associates, Plymouth, presented the potential financial impact of each step of each option. To help determine the impact, he said they looked at what WCS's tax base has been from 1997 to 2006. Samuelson said they used a factor of 3 percent real growth for the corporation based on the history of WCS's growth. The beginning assessed valuation of the WCS district is $2 billion. For the financial projections, he also said they assumed a 5 percent increase to the assessed valuation for taxes payable 2007 as a result of the trending process.
WCS also has two bond issues outstanding, Samuelson said. One is debt service for the existing high school, which will be paid off in 2011. The second, to be retired in 2022, is for the recent construction of a performing arts center, extension of administrative offices and renovation to Lakeview Middle School.
For the interest rate to pay off the bonds for the potential projects, Samuelson said they figured in a rate of 5 percent. The length of the repayment of bonds is assumed at 23 years.
Jamie Lake, with Kovert Hawkins Architects, Jeffersonville, said the options for the building projects revolve around what happens to the sixth grade. "This is a kindergarten through sixth, kindergarten through eighth-grade project," said Lake. Costs for each step of each option include estimated construction, bonding and soft costs.
Option A maintains the current grade level configurations. Option B moves the sixth-grade to the middle schools, while Option C creates an academy just for sixth-graders.
Option A, Step 1 includes replacing Leesburg Elementary with a new four-section school, and expanding Claypool and Jefferson. The bond issue would be $45 million, Lake said. Samuelson said the annual debt payment on that step would be $3,395,000 per year. The tax rate would be 13.15 cents per $100 of assessed valuation. The monthly impact on a homestead property valued at $100,000 would be $6.79. The annual impact on farmground would be $1.50 per acre for taxes payable 2009.
Option A, Step 2 includes replacing Madison with a new four-section school, and constructing a new four-section school in the northern end of the corporation. The bond issue required for the step is estimated at $40 million. Samuelson said the annual debt service payment for step 2 would be $3,020,000. The tax rate impact for payable 2010 for a homestead would be 11.36 cents per $100 of assessed valuation. The impact to a home valued at $100,000 would be $5.87 per month. To farmland, the annual impact would be $1.29 per acre.
Step 3 includes additions and renovations to Washington, Lincoln, Harrison and Eisenhower elementary schools. The bond issue required would be $17.5 million. Samuelson said the annual debt service would be $1,320,000. For taxes payable 2011, the impact to a homestead would be 4.82 cents per $100 of assessed valuation. For a home valued at $100,000, the monthly impact would be $2.49. To farmland, the impact would be 55 cents per acre per year.
Edgewood and Lakeview middle schools would be renovated under step 4 for a bond issue of $20 million. Annual debt service would be $1,510,000, with a tax rate to homestead property being 5.35 cents per $100 of assessed valuation. The impact to a $100,000 home would be $2.77 per month, with the impact to farmland being 61 cents per acre per year.
Option B, Step 1 includes adding a sixth-grade addition to both middle schools and renovating both schools. The required bond issue would be $28.75 million. Samuelson said the annual debt payment would be $2,170,000, translating to a tax rate of 8.4 cents per $100 of assessed valuation. The annual impact to farmland would be 96 cents per acre.
Step 2 replaces Leesburg with a new four-section school, and expands and renovates Claypool and Jefferson for a bond issue of $41.25 million. The annual debt service would be $3,114,000, with a tax rate impact of 11.71 cents per $100 of assessed valuation. The impact to farmland would be $1.33 per acre per year.
Step 3 includes replacing Madison with a new four-section school and constructing a new four-section school in the north. Bond issue would be $37.5 million. The annual debt service would be $2,830,000, translating to a tax rate of about 10.33 cents per $100 of assessed valuation. The impact to farmland beginning payable 2011 would be $1.18 per acre per year.
Additions and renovations to Washington, Lincoln, Harrison and Eisenhower would be made under step four for a $8.75 million bond issue. The annual debt service payment would be $660,000, translating to a tax rate for taxes payable 2012 at 2.34 cents per $100 of assessed valuation. To farmland, the impact would be 27 cents per acre a year.
Steps 2-4 for Option C are the same as Option B. The only difference between Option C and B is step 1. Under step 1 of Option C, a sixth-grade academy would be built, and Lakeview and Edgewood middle schools would be renovated. The bond issue would be $40 million. Samuelson said the annual debt service payment would be $3,020,000, with a tax rate impact of 11.7 cents per $100 of assessed valuation. To farmland, the impact would be $1.33 per acre yearly.
All three options would take place over a five-year timeframe, Lake said. Each option has four steps. Without any remonstrance, the earliest the school corporation could take hold of the buildings under step 1 would be August 2009. If there is a remonstrance, for each remonstrance of a step, that would push completion date back a year.
School Board Vice President Dan Robinson asked what the monthly impact would be for all four steps of options A & B.
Samuelson said under Option A for a home valued at $75,000, the impact would be $10.69 per month; an $84,000 home, $13.29 per month; a $100,000 home, $17.92 per month; a $150,000 home, $32.36/month; and a $200,000 home, $46.81/month.
Under Option B, the impact to a $75,000 home would be $10.11 per month; $84,000 home, $12.57/month; $100,000 home, $16.94/month; $150,000 home, $30.59/month; and $200,000 home, $44.27 per month.
At the end of the 2003-04 school year, Atwood, Silver Lake and Claypool elementary schools were closed. Since then, students from the closed schools have been transferred to other schools. The school board has since considered ways to address the overcrowding, including new building projects. Five architectural firms were considered with Kovert Hawkins being chosen. H.J. Umbaugh & Associates was chosen as a financial consultant in January.
Remaining public forums on the options and financing are scheduled for: tonight, 7 p.m., Jefferson; Friday, 7 p.m., Lincoln, in Spanish; Monday, 7 p.m., Leesburg; Tuesday, 7 p.m., Eisenhower; Feb. 16, 7 p.m., Madison, in Spanish. At those meetings, the school corporation will provide child care for those who are attending the meeting.[[In-content Ad]]
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"What you'll see tonight," said Warsaw Community Schools Superintendent Dr. Robert Haworth, "it's going to affect - increase - your taxes."
Todd Samuelson, a partner with H.J. Umbaugh & Associates, Plymouth, presented the potential financial impact of each step of each option. To help determine the impact, he said they looked at what WCS's tax base has been from 1997 to 2006. Samuelson said they used a factor of 3 percent real growth for the corporation based on the history of WCS's growth. The beginning assessed valuation of the WCS district is $2 billion. For the financial projections, he also said they assumed a 5 percent increase to the assessed valuation for taxes payable 2007 as a result of the trending process.
WCS also has two bond issues outstanding, Samuelson said. One is debt service for the existing high school, which will be paid off in 2011. The second, to be retired in 2022, is for the recent construction of a performing arts center, extension of administrative offices and renovation to Lakeview Middle School.
For the interest rate to pay off the bonds for the potential projects, Samuelson said they figured in a rate of 5 percent. The length of the repayment of bonds is assumed at 23 years.
Jamie Lake, with Kovert Hawkins Architects, Jeffersonville, said the options for the building projects revolve around what happens to the sixth grade. "This is a kindergarten through sixth, kindergarten through eighth-grade project," said Lake. Costs for each step of each option include estimated construction, bonding and soft costs.
Option A maintains the current grade level configurations. Option B moves the sixth-grade to the middle schools, while Option C creates an academy just for sixth-graders.
Option A, Step 1 includes replacing Leesburg Elementary with a new four-section school, and expanding Claypool and Jefferson. The bond issue would be $45 million, Lake said. Samuelson said the annual debt payment on that step would be $3,395,000 per year. The tax rate would be 13.15 cents per $100 of assessed valuation. The monthly impact on a homestead property valued at $100,000 would be $6.79. The annual impact on farmground would be $1.50 per acre for taxes payable 2009.
Option A, Step 2 includes replacing Madison with a new four-section school, and constructing a new four-section school in the northern end of the corporation. The bond issue required for the step is estimated at $40 million. Samuelson said the annual debt service payment for step 2 would be $3,020,000. The tax rate impact for payable 2010 for a homestead would be 11.36 cents per $100 of assessed valuation. The impact to a home valued at $100,000 would be $5.87 per month. To farmland, the annual impact would be $1.29 per acre.
Step 3 includes additions and renovations to Washington, Lincoln, Harrison and Eisenhower elementary schools. The bond issue required would be $17.5 million. Samuelson said the annual debt service would be $1,320,000. For taxes payable 2011, the impact to a homestead would be 4.82 cents per $100 of assessed valuation. For a home valued at $100,000, the monthly impact would be $2.49. To farmland, the impact would be 55 cents per acre per year.
Edgewood and Lakeview middle schools would be renovated under step 4 for a bond issue of $20 million. Annual debt service would be $1,510,000, with a tax rate to homestead property being 5.35 cents per $100 of assessed valuation. The impact to a $100,000 home would be $2.77 per month, with the impact to farmland being 61 cents per acre per year.
Option B, Step 1 includes adding a sixth-grade addition to both middle schools and renovating both schools. The required bond issue would be $28.75 million. Samuelson said the annual debt payment would be $2,170,000, translating to a tax rate of 8.4 cents per $100 of assessed valuation. The annual impact to farmland would be 96 cents per acre.
Step 2 replaces Leesburg with a new four-section school, and expands and renovates Claypool and Jefferson for a bond issue of $41.25 million. The annual debt service would be $3,114,000, with a tax rate impact of 11.71 cents per $100 of assessed valuation. The impact to farmland would be $1.33 per acre per year.
Step 3 includes replacing Madison with a new four-section school and constructing a new four-section school in the north. Bond issue would be $37.5 million. The annual debt service would be $2,830,000, translating to a tax rate of about 10.33 cents per $100 of assessed valuation. The impact to farmland beginning payable 2011 would be $1.18 per acre per year.
Additions and renovations to Washington, Lincoln, Harrison and Eisenhower would be made under step four for a $8.75 million bond issue. The annual debt service payment would be $660,000, translating to a tax rate for taxes payable 2012 at 2.34 cents per $100 of assessed valuation. To farmland, the impact would be 27 cents per acre a year.
Steps 2-4 for Option C are the same as Option B. The only difference between Option C and B is step 1. Under step 1 of Option C, a sixth-grade academy would be built, and Lakeview and Edgewood middle schools would be renovated. The bond issue would be $40 million. Samuelson said the annual debt service payment would be $3,020,000, with a tax rate impact of 11.7 cents per $100 of assessed valuation. To farmland, the impact would be $1.33 per acre yearly.
All three options would take place over a five-year timeframe, Lake said. Each option has four steps. Without any remonstrance, the earliest the school corporation could take hold of the buildings under step 1 would be August 2009. If there is a remonstrance, for each remonstrance of a step, that would push completion date back a year.
School Board Vice President Dan Robinson asked what the monthly impact would be for all four steps of options A & B.
Samuelson said under Option A for a home valued at $75,000, the impact would be $10.69 per month; an $84,000 home, $13.29 per month; a $100,000 home, $17.92 per month; a $150,000 home, $32.36/month; and a $200,000 home, $46.81/month.
Under Option B, the impact to a $75,000 home would be $10.11 per month; $84,000 home, $12.57/month; $100,000 home, $16.94/month; $150,000 home, $30.59/month; and $200,000 home, $44.27 per month.
At the end of the 2003-04 school year, Atwood, Silver Lake and Claypool elementary schools were closed. Since then, students from the closed schools have been transferred to other schools. The school board has since considered ways to address the overcrowding, including new building projects. Five architectural firms were considered with Kovert Hawkins being chosen. H.J. Umbaugh & Associates was chosen as a financial consultant in January.
Remaining public forums on the options and financing are scheduled for: tonight, 7 p.m., Jefferson; Friday, 7 p.m., Lincoln, in Spanish; Monday, 7 p.m., Leesburg; Tuesday, 7 p.m., Eisenhower; Feb. 16, 7 p.m., Madison, in Spanish. At those meetings, the school corporation will provide child care for those who are attending the meeting.[[In-content Ad]]
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