Regions Hospital Presentation

1
Marysville School District
Financial Information for the Bond
Election August 5, 2008
2
Ballot Language

• Shall Unified School District No. 364, Marshall
  County, Kansas (Marysville), issue general
  obligation bonds in an amount not to exceed
  25,000,000, to pay the estimated 25,000,000
  costs to (a) construct, equip and furnish
  additions at Marysville Elementary School,
  Marysville Junior/Senior High School and Homer
  Hansen Stadium and (b) make all other necessary
  improvements related thereto all pursuant to the
  provisions of K.S.A. 10-101 et seq. K.S.A.
  25-2018(f) K.S.A. 72-6761 and K.S.A. 75-2315 et
  seq.?

3
Project Financing

• If approved by the voters, the project will be
  financed through the sale of general obligation
  bonds. It is anticipated that the bonds will be
  structured with a 25-year repayment schedule at
  an average interest rate of approximately 4.65.

4
State Aid for Bond Issues

• Under the current school finance formula, the
  State of Kansas will pay 15 of all annual
  principal and interest payments due on the
  District's bond issues. As a result of annual
  state aid for principal and interest payments,
  the State of Kansas will pay approximately
  10,142,015 of the Districts principal and
  interest payments over the proposed 25-year
  repayment of the bonds.
• The projected mill levy increase takes into
  account the anticipated annual state aid funding
  which is currently equal to 15 for principal and
  interest payments. In addition, the level of
  state aid funding is determined every year based
  on the Districts assessed value per pupil
  compared to the State-wide median.

5
Projected Mill Levy Increase

• The current bond and interest mill levy is 5.18.
  As a result of a successful bond election, the
  average bond and interest mill levy is projected
  to be 20.00 mills which represents an increase of
  14.82 mills.

6
Current Interest Rates

• Interest rates for municipal bonds are currently
  below the average for the past 20 years. In
  fact, according to the Bond Buyer 20 General
  Obligation Bond Index, interest rates on
  municipal bonds have been higher 83.8 of the
  time since 1987.

7
Total Mill Levy for Comparable School Districts

• The total mill levy for school districts in
  Kansas ranges from 21.97 to 76.53 mills. The
  current mill levy for the Marysville Unified
  School District No. 364 of 47.94 mills is very
  near the statewide median mill levy of 47.56
  mills.
• The following is a list of nearby school
  districts and their total mill levy

District Total Mill Levy
Unified School District No. 364 (Marysville) 47.94
Unified School District No. 380 (Vermillion) 42.25
Unified School District No. 488 (Axtell) 50.86
Unified School District No. 498 (Valley Heights) 52.61
Unified School District No. 223 (Barnes) 50.31
8
Cost of the Bond Issue Residential Property
Owner
As a result of a mill levy increase of 14.82
mills, the cost to a taxpayer with a home is set
forth below
RESIDENTIAL PROPERTY
2000 Census Median Home Value in Marshall
County is 46,200. Assessment rate is 11.5
9
Cost of the Bond Issue Commercial Property Owner
As a result of a mill levy increase of 14.82
mills, the cost to a taxpayer with a business is
set forth below
COMMERCIAL PROPERTY
Assessment rate is 25
10
Cost of the Bond Issue Agricultural Property
Owner
As a result of a mill levy increase of 14.82
mills, the cost to a taxpayer with agricultural
land is set forth below
AGRICULTURAL PROPERTY
Assessment rate is 30 Median Use Value of 160
Acres Dry Crop Land is 25,144 (Marshall
County) Median Use Value of 160 Acres Grass Land
is 9,352 (Marshall County)
11
Calendar of Events
DATE EVENT
May 12, 2008 Board of Education Meeting Board adopts Resolution Calling for Bond Election and Authorizing the Filing of an Application with the State Board of Education
May 15,2008 Publish Notice of Intent to File an Application with the State Board of Education Submit Application to State Board of Education Provide Information to County Election Office
June 10-11, 2008 State Board of Education Meeting State Board of Education Approval to Exceed Debt Limit State Board of Education provides Order to Call a Bond Election
June 26, 2008 First Publication of Notice of Bond Election
July 3, 2008 Second Publication of Notice of Bond Election
August 5, 2008 Bond Election