The Independent-News, Volume 111, Number 9, Walkerton, St. Joseph County, 1 August 1985 — Page 8

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- THE INDEPENDENT NEWS - AUGUST 1, 1985

REPORT TO J.G. SCHOOL CORP. (Continued From Page 5) the General Fund or CBF. The amount of this flat grant is now fixed at S4O per pupil in average daily attendance (1-12) and has a significant impact on the finance programs of local school districts. For 1985. approximately $57,000 should be received and the amount will vary slightly each near future year in accordance with the enrollment change. The 1985 grant is equivalent to the proceeds of a local tax rate of 12 cents, based on assessed valuation of $46.8 million. While not direct aid to schools, the Property Tax Replacement program of the 1973 Indiana Tax Package does provide tax relief to taxpayers who must ultimately pay for school buildings. Credit of at least 20 percent of tax liability is

Year Assessed Debt TransporPavable Valuation General Service CBF tation Total 1982 $41,240,432 $2.86 $1.34 $ .10 $ .38 $4.68 1983 $43,475,900 2.26 1.84 .10 .35 4.55 1984 $44,774,610 1.38 2.08 .10 .22 3.78 1985 $46,769,030 1.57 1.82 .25 .47 4.11 • Tax rates for the General Fund are slightly lower in Marshall County due to local option income tax. Annual Debt Service Requirements High Private South School Common School Corp. Bend Budget Building School Lease- Lease- Schools Year Bonds Loans Rental* Rental Lease Total 1986 $57,470 $99,679 $86,200 $805,578 $42,832 $1,088,759 1987 55,850 97,149 86,200 811,628 42,834 1,093,661 1988 54,230 94,617 86,200 815,303 42,949 1,093,299 1989 57,340 54,902 86.200 809,703 42,958 1,051,103 1990 55,180 53,637 86,200 813,303 42,958 1,051,278 1991 59,100 52,371 86,200 805,931 42,940 1,046,542 1992 56,350 51,105 86,200 810,241 42,955 1,046,851 1993 58,600 49,840 86,200 87,453 42,824 324,917 1994 55,300 48,574 87,453 42,728 234,055 1995 57,000 47,309 87,453 42,772 234,534 1996 53,150 46,043 87,453 186,646 1997 54,300 44,777 99 077 1998 54,900 43,512 98 412 1999 49,950 42,246 92*196 2000 40,980 40*980 2001 39,715 39 715 2002 38,449 38,449 • This bond issue will be retired prior to its scheduled maturity on 1/1/94. That fact is ignored in this table. it COUPON ROOKS ON SALE AT WALKERTON FORD-MERCURY HOOK DRUGS ALLEN’S FURNITURE RAY’S SUPER VALU KEEPSAKE KOTTAGE AMERICAN STATE BANK KABELIN TRUE VALUE HARDWARE LAKESIDE REALTY KOONTZ LAKE SUPERMARKET KARN’S TV & APPLIANCE TEACHERS CREDIT UNION HER PLACE MAHONEY CHEVROLET-OLDS THE BRASS LION FARMERS STATE BANK WALKERTON LICENSE BRANCH JACOB DRUGS Ist SOURCE BANK WILCOX SUPERMARKET M. J. PACKAGE STORE sgoo

provided by the state for debt service tax rates for debt incurred prior to 1983. Other lakml Taxes Local tax receipts provide all construction/debt service funds other than the S4O flat grant and the indirect aid from the Property Tax Replacement Fund. Previously discussed was the Cumulative Building Fund tax and its potential for raising construction money. In addition, a local debt service tax rate has been needed. Rates for this fund have been as follows: Year Debt Service Payable Tax Rate 1982 $1.34 1983 1.84 1984 2.08 1985 1.82 The tax rate for debt service is somewhat above average for Indiana school corporations, but relief will come soon as existing debt is retired. The table showing annual

debt service requirements reveals this, since after 1992 debt service needs drop by more than $700,000. Assessed valuation has been increasing each recent year, and total tax rates have dropped until the current year. Valuations and tax rates for the school corporation for the last four years have been: Tax Rates* (Tax Rates Listed Elsewhere) Projected Financial Capacity ASSESSED VALUATION school corporation for the last four years have been: Tax Rates* Projected Financial Capacity ASSESSED VALUATION Taxable wealth of the John Glenn Community Schools has increased significantly in the past few years. Following are projected figures for 1986-1990: Year Taxes Assessed Payable Valuation 1986 $48.6 million 1987 $50.4 million 1988 $52.2 million 1989 $54.0 million 1990 $55.8 million Annual Debt Service Requirements (Listed Elsewhere) These projections assume continuation of the trend line existing from 1982 through 1985. Borrowing Potential Total principal debt of John Glenn Community Schools is as follows: A. General Obligation Bonds, $410,000; B. School Building Corporations (approximate), $5,010,000; C. Common School Loans, $787,500; d. South Bend School Corporation (approximate), $300,000; Total Debt $6,507,500 Total debt is 13.9 percent of assessed valuation. A debt ratio of 25 percent of valuation would be feasible if construction needs of that magnitude were identified. Application of that guideline would permit total debt of $11.7 million or about $5.2 million more than now exists. Tax Rate Implications Let us examine the possible impact on the tax rate of borrowing various amounts of funds. For this purpose, projected assessed valuation in 1987 of $50.4 million will be used since it is probable that any planned facilities could not be completed before 1986 and full payment would not begin until 1987. Approximate Increase Annual Annual In Debt Payment Payment Service Rate 1 million $119,0U0 $ .24 2 million $234,000 $ .46 3 million $348,000 $ .69 4 million $462,000 $ .92 5.2 million $599,000 $1.19 Assumptions used were that a repayment schedule of 22 years would be used with an interest rate of 10 percent and that assessed valuation would be $50.4 million in 1987. The estimated tax rate increases would be somewhat lower than shown here since an increasing amount of License Excise and Bank/Building Loan taxes would flow tp the school corporation if the debt service tax rate increases. Let’s Play BINGO At The GROVERTOWN CONSERVATION CLUB ’A Mile East On 500 N TWO JACKPOTS $200.00 And Over And Large Payback EVERY MONDAY NIGHT 6:30 p.m.

Financing Any Recommended Construction The existing debt service schedule requires heavy annual payments for outstanding indebtedness until 1992. If possible, any construction project requiring much indebtedness should be delayed so that new debt service would begin at the time that large drops in existing debt service occurs. There is little probability that anything other than major maintenance or minor renovations can be done with the 25 cent cumulative building fund rate. Dependent upon the amount of construction needs identified in this study and adopted by the Board, it may be desireable to increase the cumulative fund rate so that funds could accumulate toward qualifying for another Common School Loan. To quality, two percent of assessed valuation must be raised from CBF monies or General Obligation Bonds. Since no more than S6OO.(XX) could be raised from bonds in the near future, about $400,000 in CBF monies would be needed with the bonds to quality. Conclusions There are several conclusions that can be drawn from this study. We believe that the evidence gathered and presented will support the following: 1. Attendance in the John Glenn School Corporation, over the next five years, will decrease. 2. Attendance boundaries will have to be adjusted, possibly several times, in the next few years. 3. The instructional space, in all four schools, is being utilized at or near capacity. The athletic facilities at North Liberty are being utilized inefficiently. 4. The current grade organization pattern of K-5, 6-8, 9-12 may

• White • River • Park • STATE GAMES Indianapolis welcomes the finalists for The 3rd Annual White River Park State Games Indiana athletes who have triumphed in sectional and regional competitions are here in Indianapolis, August 2-4, for this, the last leg of Indiana s largest multi-sport event. Advance sale discount tickets for Finals will be available at all Hook’s Drug Stores until August 1. Advance At the Door Single Session SI.OO $2.00 All Events Pass $5.00 SB.OO For More Information Call: /■J-800-85-GAMES OFFICIAL CORPORATE SPONSORS Methodist Hospital

need to be changed to one that will permit the school corporation to better meet the needs of all students. 5. The current central administration facility needs to be relocated with an expanded facility. 6. The current debt does not permit the school corporation to undertake a large capital development program. CAPTAIN STUBBY TO APPEAR AT ARGOS AUG. 1 Humorist, entertainer and columnist Captain Stubby will be the main attraction at the Marshall County 4-H Fair, in the arena of the Argos Fairgrounds, on Thursday, August 1, at 9:00 p.m. Captain Stubby is best known in the farming community for his column in one of America’s oldest farm papers, “Prairie Farmer”. In private life, Captain Stubby is Tom Fouts and lives on his farm near Galveston, Indiana, where he raises corn and soybeans. Listed elsewhere in this issure is the schedule of events planned a the fair beginning on Saturday, July 27 through Saturday, August 3. jl Dr. Elliott Frash ; l; Optometrist > ? 413 Michigan St., Walkerton J j 9:00 am. - 5:00 p.m. Thursdays / j[ Call SB6-3722 For Appointment '