001Okay. >> All right. Welcome to our second preliminary determination hearing. We're going to start with the pledge and the prayer. >> I aliance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Let's pray. Good Lord, thank you for the weather you've given us this fall. Um continue to bless the farmers as harvest season is upon us. Keep them safe. Keep their crops bountiful. Lord, continue to bless Adam Central as well with the decisions that we make on behalf of Adam Central. Not only for the students, but for the staff and the community and keeping those in mind. In your name we pray. Amen. [Music] All right, we have one agenda item for the uh board tonight
002and it's to hold our prelim preliminary hearing on the proposed project. If you're interested in speaking at this hearing, please make sure you've signed in the sign-in sheet at the back of the room, which should include your name and address. After the presentation by the administration, there will be an opportunity for the public to make comments about the project. At the hearing, we will ask that each person limit their comments to three minutes and that the topic be limited to the proposed project under consideration. The notice of this prelim preliminary determination hearing was published as legally required. The first preliminary determination hearing was held on September 9th, 2025. At this time, I will ask the interim superintendent, Brent Layman, to explain the purpose of this hearing. >> Thank you, Heather. Pursuant to Indiana Code 6-1.1-20-3.1,
003a school corporation must hold two public hearings and adopt a resolution to preliminarily determine to issue bonds or enter a lease for a project which has a total project cost in excess of a non-controlled project. These public hearings and the adoption of resolutions are the very beginning of the legal process. These resolutions establish the maximum financial terms for the proposed project. >> We will now hear from Mr. Layman about the process of determining and communicating the project to the community and the need of the project. I >> I've talked at several of the board meetings about some of the needs and some of the financial challenges we're facing and there's never a shortage of physical needs in a facility and a corporation of this size. Replacement of equipment, repair of current equipment, and the need
004for new items to address changing needs is never a list that gets completed. The existing tax levies are not sufficient to provide the funds to pay the cost of these needs. This past summer, I shared the changes in our current tax structure enacted by legislature. Those changes will have a negative impact on our tax levies going forward. The action taken at this time will allow us to continue the funding levels at the current levy amount that was used in the previous budget. >> Thank you. We'll now hear about how the proposed project will be financed as well as information about the effect on the typical property taxpayer. >> Of all the things we'll talk about tonight, this is the one that people always want to zero in on. What's it going to cost me? Well,
005this project will be financed by a bond, which means we're going to borrow the money. Some of these terms some of you may not be familiar with. With a maximum maturity date of two years, which means it'll be paid off in no longer than two years. We're going to borrow $695,000 and we anticipate an interest rate of 5%. That would be a total interest cost of potentially $34,825. Obviously, a more favorable interest rate would bring that number down. And in light of what the Feds did and what they may do some more, that may be to our benefit. Our current debt for all these projects that have been done here in recent years is actually $3,170,195. And we have a tax rate on your tax bills that is 0.5139. That's essentially a little over 51.
006This bond will increase our debt by $725,000. In other words, the principal plus the interest. This is an additional tax rate of 0.038. So almost 4 cents. Here's the important piece. With current debt coming off, that will create a lower rate current rate. This new rate will not cause an increase. So when we are done with this, our rate will still be 0.5139. >> Okay. Okay, we will now open the public hearing. Um, I don't think anyone signed in on the sheet in the back and does anyone want to speak at this time? Okay. All right. Um, well, we're we appreciate all of you coming tonight um and being interested in the projects and the future of our community. This is the the leg first legal step in the process. The board will continue to
007work with the administration and its professionals to look for efficiencies to conserve tax dollars while meeting our educational needs. Mr. Layman, could you please summarize the preliminary determination resolution? >> Uh, I can do that. And actually, um, it's it's one page. Uh, well, this one's a little longer, but I'm going to skip parts of it where they have a whole bunch of charts and numbers. But the important part about this is this first piece. We're going to actually have three pieces that the board will approve tonight. The first one simply lays out what we're going to do and how much we're going to spend. Um so it's basically giving the reasons that we're doing this which I've already related to many of those. So uh here's the legal jargon. Whereas the Adam Central Community School
008Corporation published a notice of the preliminary determination hearing on August 27th, 2025 in the Burn Witness and the Decatur Daily Democrat and they mailed to the Adams County Clerk and any organization that requested notices with respect to this project. Whereas the first preliminary determination hearing was held head on held on September 9th back when we had our last regular board meeting, this one is now on the 23rd. Whereas the school corporation has made the following information available to the public. The result of the school corporation's current and projected annual debt divided by the net assets within the school corporation which is 05037%. the result of I the sum of the school corporation's outstanding long-term debt divided by there's a lot of math in here which is 6.8%. Now therefore be it resolved that the board
009of school trustees of the school corporation preliminarily determines to issue bonds. That's the whole point of this first piece. And I've already gone through these numbers. Be it resolved that we're looking at $695,000 with about 34.8,000 34,825 in interest. I've already given you the tax rate and I've already told you that we're going to be paying this off in no more than two years. And the purpose of these bonds is to provide the items we've talked about, buses and renovations and those kinds of things. The key here is the project does not involve opening any new school facilities. This is to maintain what we do currently have. Be it further resolved that all capital improvement projects addressed in the most recent threat assessment and school safety plan have been completed and that the secretary of
010the board is hereby authorized and directed to publish the notice of adoption of this preliminary determination. Be it further resolved that if a petition pursuant to Indiana code is filed, the secretary of the board is hereby authorized to publish a notice in the local papers as has been done in the past pursuant to state law. So that is the first resolution that the board needs to address tonight. Just simply spelling out here's what we're doing. >> Okay. Thank you. Could I have a motion and a second to adopt the preliminary determination resolution? >> I'll make the motion. >> I'll second. >> Uh, is there any discussion or questions? >> All in favor? >> Opposed? Okay, motion carries. U, Mr. Layman, could you please summarize the preliminary bond resolution? >> I can do that. What this
011one does is it tells the public how we're going to pay it off and how those bonds will be sold. And so again, we have the Adam Central Community Schools. We have the board of trustees and they find that the present facilities of the school corporation are not adequate to provide the proper educational environment of the students now attending or who will attend those schools. And when you when we say facilities, we're talking about buses and heating and cooling and and all of those things. And the board again finds that there are insufficient funds uh to do that. So this bond is in the total of $695,000 and that is the maximum. When it's all said and done, it could end up being a smaller number than that. But also be it resolved that these
012bonds shall be in a principal amount not to exceed $695,000 bearing an interest rate not to exceed 5% with interest shall be payable on January 15th and January excuse me January 15th and July 15th in each year beginning July 15 2026. So what that means is one of those payments will be in July of this coming year and the other payment will be in January of the following year. The bond shall be registered in the denominations of $5,000. What that means? Somebody who buys these bonds, they will buy them in $5,000 increments. And in that world, some people want to buy 10, some people want to buy a hundred. Um, and that's how that whole process works. Again, the debt service fund tax rate will be 0.5139, which is where it is today. And then
013again uh the secretary of the board hereby is directed to give notice of the determination to issue these bonds which shall again be printed in the papers and will also be posted in three other public places in our school corporation. And that is how we will sell those bonds. Okay. Thank you. Could I have a motion in a second to adopt the preliminary bond resolution? I'll make a motion. >> I'll second. >> Um, any discussion or questions from the board? >> All in favor? >> I >> opposed. Okay. Motion carries. Mr. Layman, could you please summarize the reimbursement resolution? >> I can do that. And this is the really important one because these people sitting here tonight are agreeing to pay back this mortgage. um which is a pretty important piece whenever we >> well
014I guess some people may not be on the board at that point in time. >> We know your address. Okay. >> Uh allow me to read. Adam Central Community School Corporation intends to finance the renovation and improvements to facilities throughout the school corporation including site improvements in the purchase of buses, equipment and technology. The whereas the school corporation reasonably expects to reimburse certain costs of the project with proceeds of obligations to be incurred by or on behalf of the school corporation in an amount not to exceed $695,000. So if you haven't learned anything else tonight, you've learned it's not going over that number. Whereas the school corporation expects to issue obligations for the project and to use the proceeds to reimburse or pay the cost of the project. Now therefore, be it resolved that the
015school corporation declares its official intent to fund the project with proceeds of obligations incurred by the school corporation in an amount not to exceed $695,000. Be it further resolved that the school corporation reasonably expects to reimburse itself from the proceeds of obligations issued by the school corporation for costs of the project paid prior to the issuance of the bonds. >> All right. Thank you. Could I have a motion and a second to adopt the reimbursement resolution? >> Motion. >> I'll second. >> All right. Any discussion or questions? All in favor? >> I >> opposed. All right. Motion carries. That closes the public hearing on the second preliminary determination. All right. We're going to move on uh to update a little bit about our superintendent search. Um our process is close to finished. Uh it was
016our plan to officially have a public meeting and approval of our new superintendent this Friday. Unfortunately, there was a problem with the official notice not being published correctly by our local newspapers, which caused us to not meet the timeline requirements for meeting notification to the public. So, we will have our official public meeting and superintendent approval at our regular October 14th meeting and it will begin at 6 p.m. instead of 7 p.m. Um, however, tonight we are happy to announce that Mr. Aaron Mccclure. He is our top candidate for superintendent. His dedication to student success, proven leadership skills, and deep appre appreciation of our school's culture has led us to this decision. And we are confident that he will guide Adam Central in a positive direction. And with that, that is the end of our
017meeting. So, please join us on October 14th um where we will make things official. And we're looking forward to that. Board, is there anything else you had? I'm sorry. Before we we end. Okay. >> All right. >> Yep. We need a motion to adjourn. >> I'll make the motion. >> I'll second. >> All in favor? >> Opposed? Motion carries. eggs are coming.