NOTICE OF ADOPTION OF PRELIMINARY DETERMINATION
Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.1 that the Board of Education (the “Board”) of Bluffton-Harrison Metropolitan School District (the “School Corporation”) did, on April 21, 2025, make a preliminary determination to issue one or more series of bonds and enter into a lease agreement (the “Lease”) for the renovation of and improvements to school facilities, including (i) HVAC improvements, mechanical improvements, and site improvements at Bluffton High School, (ii) HVAC and mechanical improvements at Bluffton-Harrison Middle School and Bluffton-Harrison Elementary School, and (iii) the purchase of equipment, vehicles and technology (collectively, the “Project”). The Lease will be for a maximum term of 22 years with a maximum annual Lease rental of $2,400,000. The maximum annual Lease rental has been estimated based upon an estimated aggregate principal amount of bonds of $10,000,000, estimated interest rates ranging from 2.00% to 6.00%, and total estimated interest costs of $5,780,000.
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 0.5687%; 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 6.06%.
The School Corporation’s current debt service fund levy is $3,279,267 and the current debt service fund tax rate is $0.4879. After the School Corporation enters into the proposed Lease and the bonds are issued, the gross debt service fund levy will increase by a maximum of $2,400,000 and the gross debt service fund tax rate will increase by a maximum of $0.3571. However, as existing obligations mature, the anticipated net increase to the debt service fund tax rate is expected to be $0.00 above the current rate.
The estimated amount of the School Corporation’s debt service fund levy and debt service fund tax rate that will result during the following ten years if the School Corporation enters into the lease and issues the bonds, after considering any changes that will occur to the debt service fund levy and debt service fund tax rate during that period on account of any outstanding bonds or lease obligations that will mature or terminate during that period, is as follows:
Estimated Total Estimated Total
Year Debt Service Levy Debt Service Tax Rate
2025 $3,279,267 $0.4879
2026 3,344,914 0.4879
2027 3,411,669 0.4879
2028 3,032,348 0.4251
2029 2,751,355 0.3857
2030 2,423,543 0.3398
2031 2,439,120 0.3420
2032 2,440,070 0.3421
2033 2,437,298 0.3417
2034 2,439,682 0.3420
2035 2,438,501 0.3419
2036 2,437,365 0.3417
2037 2,439,240 0.3420
The purpose of the Lease is to provide for the Project.
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 April 22, 2025.
/s/ Secretary, Board of Education
Bluffton-Harrison Metropolitan School District
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