WCS Sets Hearing On $100M Building Proposal
July 28, 2016 at 4:25 p.m.
By David [email protected]
Wednesday afternoon the school board's finance committee met to discuss the refinancing of the school corporation's 2003 bond issue and the 1028 hearing.
A 1028 hearing, as required by the state legislature, is a public meeting where architects, financial consultants and attorneys present the scope of a building project to the community. Warsaw Schools will hold its 1028 hearing on May 21 at 7 p.m. in the training room of the administration building at the start of the school board's regular meeting.[[In-content Ad]]A resolution to approve the refinancing of the school corporation's 2003 bond issue will be discussed at a short special school board meeting Monday at 7 p.m. in the administration building.
At the end of the 2003-04 school year, Atwood, Silver Lake and Claypool elementary schools were closed. Since then, students at those schools have been transported to other schools, causing overcrowding.
The school board interviewed five architectural firms, eventually choosing Kovert Hawkins, Jeffersonville, to oversee a possible building project. Kovert Hawkins developed three options. Option A - which keeps the sixth grades in the elementary schools, expands and renovates several elementary and middle schools, and builds new Madison and Leesburg schools - was chosen.
Cost of Option A is approximately $100 million.
At the April Warsaw School Board meeting, Umbaugh & Associates was directed to prepare the paperwork for the refinancing of the 2003 bond issue.
Todd Samuelson, with Umbaugh & Associates, estimated in March that by refinancing the 2003 bond issue, the school corporation could save up to $2.7 million after costs. As of Wednesday, he said he still believes that number is a safe bet.
Umbaugh & Associates have drawn up the paperwork to proceed with the refinancing and are awaiting the school board's action on Monday.
If everything moves forward on Monday, Samuelson said the refinancing could be completed by the first of June.
Haworth asked if for some reason the school corporation did not proceed with the building project, if that money generated by the refinancing could be captured back into the capital projects fund. Samuelson said it could, but not as easily as a transfer. Haworth asked if that money could be used to pay surveyors, architects and to secure land. Samuelson said yes.
Samuelson then discussed the recent Indiana legislative session and its effect on Warsaw Schools and surrounding taxing entities. "There's a myriad of results," he said. But he said the Circuit Breaker should not have a negative effect on Warsaw Schools.
According to the Indiana Department of Local Government Finance Web site, the Circuit Breaker is aimed at helping Hoosiers by ensuring they don't pay more than 2 percent of their property value in taxes. The goal is to provide predictability in tax bills and equity among Hoosier taxpayers.
The Circuit Breaker is slated to become mandatory statewide for residential property in 2007. Homeowners will not see the potential Circuit Breaker impact until their 2008 tax bill. The Circuit Breaker expands to include all property types in 2009. Taxpayers will not see the impact of the expansion until their 2010 tax bill.
Samuelson said that while they are still "getting their arms around" the law, Warsaw School Corp.'s total assessed valuation has increased by about 16 percent, so the Circuit Breaker is less of a concern for the school corporation and its building project.
He also discussed the control board set up by the legislature. "That is a reality," he said. "It will be a nine-member board." It does not go into effect until 2009 because two of the board members must be elected.
The control board is a tax and capital projects review board in each county. The board has the authority to review, revise and reduce budgets, tax rates and levies of all political subdivisions, including school corporations, unless the county council adopts an ordinance to prevent them from doing so.
It requires political subdivisions that want to undertake controlled projects with a cost greater than $7 million to conduct a public hearing and to adopt a resolution requesting approval of the project from the new board. If the control board does not approve the project, the political subdivision has to conduct a remonstrance to override the board.
For the 1028 hearing May 21, Samuelson recommended a process to be followed. Representatives from Ice Miller, the school corporation, Kovert Hawkins and Umbaugh & Associates will each speak. The public will be given time to speak and ask questions. After the hearing, the school board then must approve two resolutions.
After the finance committee meeting, Haworth provided an estimated timeline of what would have to happen after the 1028 hearing for the building project to occur. Some of the highlights include:
n June 18, building corporation meets to adopt resolution approving form of lease; school board meets to adopt resolution approving preliminary plans, form of lease and authorizing publication of notice of lease hearing, and adopt resolution approving formation of building corporation.
n June 25, period ends for filing petition for application of petition and remonstrance process.
n July 16, school board meets to hold hearing on lease and adopt resolution authorizing execution of lease.
n July 19, hearing before school property tax control board.
n Oct. 18, objecting period ends.
n Feb. 18, 2008, school board meets to approve construction documents.
n April 8, receive construction bids.
n April 21, school board meets to adopt resolution awarding construction bids and assign bids to building corporation.
n April 21, building corporation meets to adopt resolution approving issuance of bonds and Trust Indenture, and deeming official statement nearly final.
n April 23, bond sale.
n May 7, closing; begin construction.
n May, 19, 2008, school board meets to hold additional appropriation hearing and adopt resolution appropriating the proceeds and establishing construction fund.
n June 30, 2009, first interim lease payment.
Wednesday afternoon the school board's finance committee met to discuss the refinancing of the school corporation's 2003 bond issue and the 1028 hearing.
A 1028 hearing, as required by the state legislature, is a public meeting where architects, financial consultants and attorneys present the scope of a building project to the community. Warsaw Schools will hold its 1028 hearing on May 21 at 7 p.m. in the training room of the administration building at the start of the school board's regular meeting.[[In-content Ad]]A resolution to approve the refinancing of the school corporation's 2003 bond issue will be discussed at a short special school board meeting Monday at 7 p.m. in the administration building.
At the end of the 2003-04 school year, Atwood, Silver Lake and Claypool elementary schools were closed. Since then, students at those schools have been transported to other schools, causing overcrowding.
The school board interviewed five architectural firms, eventually choosing Kovert Hawkins, Jeffersonville, to oversee a possible building project. Kovert Hawkins developed three options. Option A - which keeps the sixth grades in the elementary schools, expands and renovates several elementary and middle schools, and builds new Madison and Leesburg schools - was chosen.
Cost of Option A is approximately $100 million.
At the April Warsaw School Board meeting, Umbaugh & Associates was directed to prepare the paperwork for the refinancing of the 2003 bond issue.
Todd Samuelson, with Umbaugh & Associates, estimated in March that by refinancing the 2003 bond issue, the school corporation could save up to $2.7 million after costs. As of Wednesday, he said he still believes that number is a safe bet.
Umbaugh & Associates have drawn up the paperwork to proceed with the refinancing and are awaiting the school board's action on Monday.
If everything moves forward on Monday, Samuelson said the refinancing could be completed by the first of June.
Haworth asked if for some reason the school corporation did not proceed with the building project, if that money generated by the refinancing could be captured back into the capital projects fund. Samuelson said it could, but not as easily as a transfer. Haworth asked if that money could be used to pay surveyors, architects and to secure land. Samuelson said yes.
Samuelson then discussed the recent Indiana legislative session and its effect on Warsaw Schools and surrounding taxing entities. "There's a myriad of results," he said. But he said the Circuit Breaker should not have a negative effect on Warsaw Schools.
According to the Indiana Department of Local Government Finance Web site, the Circuit Breaker is aimed at helping Hoosiers by ensuring they don't pay more than 2 percent of their property value in taxes. The goal is to provide predictability in tax bills and equity among Hoosier taxpayers.
The Circuit Breaker is slated to become mandatory statewide for residential property in 2007. Homeowners will not see the potential Circuit Breaker impact until their 2008 tax bill. The Circuit Breaker expands to include all property types in 2009. Taxpayers will not see the impact of the expansion until their 2010 tax bill.
Samuelson said that while they are still "getting their arms around" the law, Warsaw School Corp.'s total assessed valuation has increased by about 16 percent, so the Circuit Breaker is less of a concern for the school corporation and its building project.
He also discussed the control board set up by the legislature. "That is a reality," he said. "It will be a nine-member board." It does not go into effect until 2009 because two of the board members must be elected.
The control board is a tax and capital projects review board in each county. The board has the authority to review, revise and reduce budgets, tax rates and levies of all political subdivisions, including school corporations, unless the county council adopts an ordinance to prevent them from doing so.
It requires political subdivisions that want to undertake controlled projects with a cost greater than $7 million to conduct a public hearing and to adopt a resolution requesting approval of the project from the new board. If the control board does not approve the project, the political subdivision has to conduct a remonstrance to override the board.
For the 1028 hearing May 21, Samuelson recommended a process to be followed. Representatives from Ice Miller, the school corporation, Kovert Hawkins and Umbaugh & Associates will each speak. The public will be given time to speak and ask questions. After the hearing, the school board then must approve two resolutions.
After the finance committee meeting, Haworth provided an estimated timeline of what would have to happen after the 1028 hearing for the building project to occur. Some of the highlights include:
n June 18, building corporation meets to adopt resolution approving form of lease; school board meets to adopt resolution approving preliminary plans, form of lease and authorizing publication of notice of lease hearing, and adopt resolution approving formation of building corporation.
n June 25, period ends for filing petition for application of petition and remonstrance process.
n July 16, school board meets to hold hearing on lease and adopt resolution authorizing execution of lease.
n July 19, hearing before school property tax control board.
n Oct. 18, objecting period ends.
n Feb. 18, 2008, school board meets to approve construction documents.
n April 8, receive construction bids.
n April 21, school board meets to adopt resolution awarding construction bids and assign bids to building corporation.
n April 21, building corporation meets to adopt resolution approving issuance of bonds and Trust Indenture, and deeming official statement nearly final.
n April 23, bond sale.
n May 7, closing; begin construction.
n May, 19, 2008, school board meets to hold additional appropriation hearing and adopt resolution appropriating the proceeds and establishing construction fund.
n June 30, 2009, first interim lease payment.
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