Notice of Adoption of Preliminary Determination

Notice of Adoption of Preliminary Determination Notice is hereby given pursuant to Indiana Code § 6-1.1-20-3.5 that the Board of School Trustees (the "Board") of Penn-Harris-Madison School Corporation (the "School Corporation") did, on March 16, 2026, make a preliminary determination to issue one or more series of bonds and enter into one or more lease agreements (the "Lease") for the renovation of and improvements to school facilities throughout the school corporation, including the building envelopes, mechanical systems, energy efficiency, safety and security systems, site condition and circulation, exterior grounds and amenities, the maintenance and refurbishment of learning spaces, and the purchase of technology, service vehicles, buses and equipment (collectively, the "Project"). Each Lease will be for a maximum term of 20 years with a maximum annual Lease rental of $12,000,000. The maximum annual Lease rental has been estimated based upon an estimated aggregate principal amount of bonds of $50,000,000, estimated interest rates ranging from 3.00% to 7.00%, and total estimated interest costs of $42,452,900. The School Corporation may issue one or more series of general obligation bonds to fund the Project, and if such bonds are issued, they will fit into the parameters listed in this notice. If the School Corporation 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 bond issued to finance the Project would not exceed the aggregate estimated principal amount of $50,000,000. As required by Indiana Code § 6-1.1-20-3.5(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 4.91%; 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 4.05%. The School Corporation's current Debt Service Fund levy is $16,550,857 and the current Debt Service Fund tax rate is $0.3824. 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 $2,200,960 and the gross Debt Service Fund tax rate will increase by a maximum of $0.2773. However, as existing obligations mature, the anticipated maximum net increase to the Debt Service Fund tax rate is estimated to be $0.0917 above the current rate in 2028, and then is expected to decrease in subsequent years. 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 one or more leases and/or 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: Year Estimated Total Estimated Total Debt Service Fund Levy Debt Service Fund Tax Rate 2027 $18,384,933 $0.4496 2028 $18,751,817 $0.4741 2029 $13,028,150 $0.3391 2030 $12,608,516 $0.3396 2031 $12,423,275 $0.3475 2032 $12,441,530 $0.3336 2033 $12,259,917 $0.3172 2034 $11,066,147 $0.2760 2035 $ 9,275,695 $0.2230 2036 $ 7,169,836 $0.1724 The purpose of the Lease and bonds is to provide for the Project. If a valid petition pursuant to Indiana Code § 6-1.1-20-3.5 is received within 30 days from the publication of this notice, the proposed debt service or Lease payments must be approved in an election on a local public question held under Indiana Code § 6-1.1-20-3.6. Dated: March 19, 2026. Dana Sullivan, Secretary Penn-Harris-Madison School Corporation March 19 2026 LSBN0472542