Notice of Adoption of Preliminary Determination
Notice is hereby given pursuant to Indiana Code 6‑1.1‑20‑3.1 that the Board of Trustees of New Castle-Henry County Public Library (the “Library”) did, on November 29, 2021, make a preliminary determination to issue bonds and enter into a lease agreement (the “Lease”) for the renovation of and improvements to the New Castle-Henry County Public Library, including site improvements and the purchase of equipment and technology (the “Project”).
The Lease will be for a maximum term of 23 years with a maximum annual Lease rental of $850,000. The maximum Lease rental has been estimated based upon an estimated principal amount of bonds, to be issued in one or more series, of $10,600,000 and estimated interest rates of 1.00% to 4.00% and total estimated interest costs of $5,272,933.
As required by Indiana Code 6-1.1-20-3.1(b)(1), the following information was available to the public at the public hearing on the preliminary determination: (i) the Library’s current and projected annual debt service payments divided by the net assessed value of taxable property within the library district, which is 0.07%; and (ii) the sum of the Library’s outstanding long term debt plus the outstanding long term debt of other taxing units that include any other territory of the library district divided by the net assessed value of taxable property within the Library district, which is 7.61%.
The Library’s current debt service levy is $770,746 and the current rate is $0.0623. After the bonds are issued, the debt service levy will increase by a maximum of $850,000 and the debt service rate will increase by a maximum of $0.0623. However, as existing obligations mature, the anticipated increase to the Debt Service Fund tax rate is expected to be $0.00.
If it is financially beneficial, the Library may fund a portion of the Project by the issuance of general obligation bonds. The general obligation bonds may be issued in a maximum principal amount of $8,295,000 with a maximum term of repayment of twenty (20) years. The general obligation bonds would have estimated interest rates ranging from 1.00% to 4.00% and total estimated interest costs of $4,392,900. If the Library issues general obligation bonds, the principal amount of the bonds associated with the Lease, as described above, would be reduced by the principal amount of the general obligation bonds issued, such that the total principal amount of bonds issued to finance the Project would not exceed the aggregate estimated principal amount of $10,600,000.
The estimated amount of the Library’s debt service levy and rate that will result during the following 10 years if the Library enters into the lease and issues the bonds, after considering any changes that will occur to the debt service levy and rate during that period on account of any outstanding bonds or lease obligations that will mature or terminate during that period:
|Year||Estimated Total Debt Service Levy||Estimated Total Debt Service Rate|
The Project involves the opening of new facility space; however, the new facility space will be more efficient than the facility space which shall be replaced. Therefore, the Library does not expect to annually incur an increase to operate such new facility space.
Any owners of real property within the Library district or registered voters residing within the Library district who want to initiate a petition and remonstrance process against the proposed lease payments must file a petition that complies with IC 6‑1.1‑20‑3.1 subdivisions (4) and (5) not later than 30 days after the first publication of this notice.
Dated November 30, 2021.
Secretary, Board of Trustees
New Castle-Henry County Public Library