001Call this meeting to order. Please stand for the pledge of allegiance. 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. Thank you. Please you seated? I heard you talking. Sorry, I didn't see you. She had camo on. I didn't see her. She's camouflage. Um before we get started, I I would like to uh just pause for a moment um with all the tragedy in in Texas. Um so many young school age kids have have passed and so we just take a couple seconds Okay. Um, so I'd like to welcome all of you from the public um to to the meeting. Um the this is our preliminary determination meeting and so hopefully get we got
002cats here so this is being live streamed and we are holding this preliminary hearing on a proposed project. Um if any do come and want to speak they'll need to sign in. Um, I do want to make note that the notice of this preliminary determination hearing was published as legally required. And at this time, I will ask that Colin Cochran from Bose McKenna and Evans explain the purpose of this hearing. Uh, good evening members of the board. Colin Cochran, Bose Mckin and Evans. I am filling in for my colleague Jake Mcclullen. Uh but if there's anything I'm not able to answer tonight, uh Jake will be back here at the next Tuesday meeting. Um Jacob probably did not mention that he was sending someone that graduated from the rival Owen Valley a couple decades ago.
003So please don't uh I thought I know your mom and dad. You probably do know my mom and dad. I thought that little knuckle recently recently retired Dr. Cochran. That's right. Yeah. Right on. Well, uh, pursuant to Indiana Code 6-1.1-20-3.5, a school corporation must hold two public hearings and adopt a resolution preliminary determining to issue bonds or enter into a lease for a project that has a total of project costs in excess of the non-controlled project threshold of $1 million. Uh, these public hearings and the adoption of the resolution that'll be considered at the next meeting um are the very beginning of this entire legal process for this project. Uh the resolutions themselves establish the maximum financial terms for the proposed project. Uh for the record, all the statutoily required information is located on that
004table at the entrance of the meeting as required by statute. Uh if proceeding forward, this project will be financed by an issuance of bonds uh pursuant to the school's uh building corporation's existing indenture and lease. There will be a a supplement to the indenture and amendment to the lease. Those will be drafted and circulated and approved as part of the overall authorization process. Uh our current timeline has us working through all of the legal processes through uh mid-occtober, anticipating selling the bonds in early November and then closing on the bonds in late November. Um as mentioned, this is the very first step in the overall legal process. Uh there is no action required by the board tonight. Uh only just to hold this public hearing. And if there are any questions or comments, please hesitate
005to ask. Thank you very much. And we will now hear from Dr. Sanders about the process of determining the scope of the project and the need for this project. Yes, certainly. So, the scope of the project developed out of a comprehensive effort to determine the most prioritized needs across the Edgewood School's campus. Uh we used uh the following sources. Uh in 2022, we had a facility assessment done by uh Lancer Architect Firm. In 2024, just last fall, we uh also had a demographic study uh done by uh McKimman's uh demographic and research. And then uh most recently we've had a number of work sessions uh where we've as you know we invited uh uh teachers, administrators u uh we had our athletic director here uh teachers and coaches from the performing arts uh maintenance uh
006uh we met with skillman construction manager managers and Lancer architecture to determine what our needs would Uh the project will serve uh to provide a better educational opportunity for Edgewood students across the campus uh by uh providing elements of effective and positive educational environment which includes students and staff uh must feel safe. Students and staff must feel positive about their learning environment. students uh and staff must or students must be actively engaged in the educational process. As a result, the project uh consists of uh the construction and equipping of renovations, improvements, and additions to Edgewood High School, including but not limited to uh roof replacement uh repair and renovations and solar installation. B. Band choir expansion upgrades, improvements, and renovations. C. Constructing and equipping additional classrooms. D. Constructing and equipping uh biomed training classrooms. E.
007Installation of turf to the baseball field. F. Installation of turf and other improvements and upgrades to the softball field. G. Technology office storage and workspace upgrades. replacements and equipping. H parking and asphalt repair uh upgrades and replacements. I tennis courts uh tennis court repairs and renovations and J other related renovations, improvements and upgrades to permit such buildings to be utilized for school purposes. Uh, also the construction of equipping of renovations, improvements, and additions to Edgewood Junior High School, including but not limited to roof replacement, repair, and uh renovations and solar installation. B. Band choir expansion upgrades, improvements, and renovations. C, constructing and equipping additional classrooms. D, replacement of bleachers. E, parking and asphalt repair upgrades and replacements. F tennis court repairs and renovations and G other related renovations improvements upgrades to permit such buildings to
008be utilized for school purposes. Also, the construction and equipping of renovations, improvements, and additions to Edgewood Primary School and Edgewood Inter intermediate school, including but not limited to A, roof replacement, repair and renovations, and solar installation. B, playground expansion, improvements, and renovations. C, asphalt patching, resurfacing, and additional parking. D, other related renovations, improvements, and upgrades to permit such buildings to be utilized for school purposes. And uh four, other related renovations, upgrades, improvements, repairs, replacements, and equipping by the school corporation at its facilities. And uh as you know, we often put there are more needs than there is money. Uh so we obviously will not be able to do all these projects but these are just kind of represent the most important needs across our campus. Thank you. Um now we will hear hear from Stifel
009and they are our underwriter and they're going to explain how the proposed project will be financed as well as information about the effect on the typical property taxpayer. Mr. Chad Lacqu is with us. Good evening everybody. Um, thanks for having us here. Um, so yeah, you guys I think have in front of you a hard copy. I'll just kind of walk through the different slides. Feel free to ask me questions. Um, so on the first slide, uh, this represents all of your current outstanding debt. Um, and the annual payments for each one of the individual, four, six bond issues that you guys currently have outstanding. Uh on the second page in orange, we have layered in the proposed $40 million uh project um as a potential 2025 approval. And so you can see after layering
010those in uh what the annual proposed annual payments uh would potentially look like. Um you know, more than likely with a with a project this big, you're we're probably going to do it in multiple issues. um you know and and that does help some of this picture as we move forward. Um and the plan is as of right now to keep your tax rate or your tax levy flat throughout the project. Um so then that would not be an increase to the taxpayer uh from this particular project. Okay. And if we go to the last slide, I'm just going to read through some of what we call the legal parameters. Um I'll just kind of gloss look look at some of these. So the max par amount of the bonds being the $40 million um
011it will go out with a maturity of 20 years. Uh maximum interest rate right now and what we're running is around 7%. Um I can tell you today municipal bonds issued today are probably in the 4.5 to 4.3% range. Uh but we do use a conservative 7% in running your numbers. Um so estimated interest expense at the 7% would be the 47 million52,000. the max annual payment um that we have in the parameters would be $7 million. Um so that would bring the maximum total payments uh to just over 87 million. Uh the 2024 pay 25 debt service levy is 9.8 million and the 24 pay 25 debt service tax rate is 65. That's just your current levy and 25 for debt and your current tax rate in the debt service fund. Um so as
012you can see our plan is to keep the pay 26 levy uh around the the same 9.8 million tax rate itself could go up a little bit if assessed value drops but the levy is what reflects what the taxpayer is actually paying on not the rate. Okay. So the plan is to keep that uh flat. Um max annual payments as a percent of NAV are 6.43% and your direct and overlapping debt as a percent of NAV is 8.02%. 02%. So, any questions with any of that? Once again, net assessed value. Thank you. Yep. I always forget that one. And the and the debt service rate, we can't go over 70 cents is the new starting win. Uh that starts in 2026. Okay. Next year. When uh Matt was here, shoemaker, he was going to run
013one of these in 30 million also just for us to look at. So at 30 at 30 we can get that to Jerry. Agreed. We're going to look at one just for comparison just to see what it look like. Okay. I would like to see that too. Okay. Okay. But this is I know this is just a starting point. Yeah. Yeah. I'll remind of that and we'll get that to you. Okay. Yeah. Cuz you know you can see there you're probably looking at you were approaching the 70 at the 68 cents. Yeah. At 40 million. Yeah. 40, right? And at And at 7%. I mean, so at the 7% Y, that'll all bring it down. Um, also doing it in multiple issuances, if we do it in two or three, that also makes that tax
014rate come down. Corre correct. Y the Absolutely. the goal would be to keep you guys under the 70s. No referendum. Got it. All right. We're good. approve. All right. Um, now is the time that we would open the this hearing up for public comment. Um, doesn't look like we have anybody uh that commenting. Um, so therefore uh I will close the public hearing and we appreciate everyone for your time and and coming this evening. Um, thank you to to Cats for for keeping us going. Were you able to pick us up okay with all the drums? Awesome. Awesome. I just want to hear I thought I thought I better check on that. Okay, so this meeting is adjourned. So, thank you all very much. Heat. [Music]