NOTICE OF ADOPTION OF PRELIMINARY DETERMINATION Notice is hereby given pursuant to Indiana Code 6-1.1-20-3.5 that the Board of School Trustees of Warsaw Community Schools (the "School Corporation") did, on January 26, 2015, make a preliminary determination to enter into a lease for the construction of a replacement Lincoln Elementary School, and the renovation of and improvements to Washington Elementary School and Edgewood Middle School (collectively, the "Project"). The lease will be for a maximum term of 22 years, with a maximum annual lease rental of $3,415,000. The maximum annual lease rental has been estimated based upon an estimated principal amount of bonds of $39,900,000, estimated interest rates ranging from 3.35% to 5.45%, and total estimated interest costs of $24,348,690. As required by Indiana Code 6-1.1-20-3.5(b)(1), the following information was available to the public at the public hearing 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 0.60%; 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 6.70%. 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 will be replaced. Therefore, the School Corporation estimates that the operating costs for such new facility space will be lower than the operating costs for the current facilities. The School Corporation's current debt service levy is $7,694,587, and the current rate is $0.3578. After the School Corporation enters into the proposed lease and the bonds are issued, the debt service levy will increase by a maximum of $3,415,000 and the debt service rate will increase by a maximum of $0.1380. The purpose of the lease is to provide for the construction of the Project. If a valid petition pursuant to Indiana Code 6-1.1-20-3.5 is received by the School Corporation, 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 January 27, 2015. /s/ Randy Polston, Secretary, Board of School Trustees Warsaw Community Schools 1-27 hspaxlp
