MARSHALL COUNTY U.S.D.

364
MARYSVILLE SCHOOLS
2015 BOND ISSUE PLAN OF FINANCE
PROPOSED BOND ISSUE BUDGET:
Additions and Improvements at Marysville Elementary
Additions and Improvements at Marysville Junior-Senior High
Bond Issuance Costs
Capitalized Interest/Cash Basis Reserve
TOTAL BOND ISSUE AMOUNT

$3,940,000
$21,300,000
$184,800
$975,200
$26,400,000

Todays interest rates (estimated at 4.25%) are near their lowest levels of the past 50 years. Low
interest rates make the cost of repayment of a bond issue more affordable. Similar bond issues
have sold recently at average rates below 4%.

Marysville U.S.D. 364 has no existing bonded indebtedness. The last significant capital
improvement bond issue was approved by voters in 1988 for construction of the Elementary
School. These bonds were retired in 2008. A small bond issue (approximately $1 million) was
approved in 1998 and was retired prior to 2008.

More than 2/3rds of all other Kansas school districts have approved bond issues in recent years
to replace, expand, and/or improve their schools for quality education.

Unified School District No. 364 has a growing tax base. In the last decade (2004-2014) the
assessed valuation has grown from $48,059,211 to $74,677,797an increase of more than
$26 million or 55.32%. County officials estimate an increase this year of more than $7 million to
an estimated $81,830,654 for budget planning. This represents an estimated increase of 9.5%
this year alone.

Although the assessed valuation has grown by more than 5% per year in past years, to be
conservative in our Plan of Finance, we have assumed growth of only 2% through 2025 and only
1% thereafter. Additional growth at the higher percentage would result in reduced required mill
levies in the future.

Proposed bonds will require a levy estimated at 14.84 mills.

14.84 mills -- added taxes on a $100,000 home of $170.66 per year or $14.22 per month.

14.84 mills -- added taxes on 160 Acres of Dryland Farm of $149.59 per year (93 cents per Acre).

With approval, the tax increase would not appear on local tax statements until the fall of 2016.

With todays low interest rates

and inflation increasing the costs of improvements with delay,
the cost of upgrading facilities and education in Marysville U.S.D. 364
may never be more affordable!

Marysville U.S.D. No. 364

$26,400,000 Bond Issue Tax Effect
Type of Property

Estimated
Assessed
Valuation

$50,000 Home*

$75,000 Home*

$100,000 Home*

Estimated Bond Tax Increase at 14.84 Mills

Yearly

Monthly

5,750

$ 85.33

$ 7.11

8,625

$ 128.00

$ 10.67

11,500

$ 170.66

$ 14.22

160 Acres Dryland Farm**

10,080

$ 149.59

Yearly Cost/Acre $ 0.93

160 Acres Pasture**

3,456

$ 51.29

Yearly Cost/Acre $ 0.32

$50,000 Commercial Prop.***

12,500

$ 185.50

$ 15.46

$100,000 Commercial Prop.*** $

25,000

$ 371.00

$ 30.92

For taxing purposes, residences are assessed at 11.5% of their fair market value.

** For taxing purposes, agricultural property is assessed at 30% of use or productivity

value and not as a percentage of fair market value.

*** For taxing purposes, commercial property is assessed at 25% of fair market value.
YOU ARE ENCOURAGED TO DETERMINE THE ESTIMATED TAX IMPACT ON YOUR
PROPERTY BY FINDING THE ASSESSED VALUATION ON YOUR TAX STATEMENT
AND MULTIPLYING THE ASSESSED VALUATION TIMES .01484 (14.84 MILLS).

Tax-Exempt Interest Rate Market Trends

Rate

30-Year Historical
Bond Buyer 20-Bond Index
July 1985 - July 30, 2015

11.00%
10.00%
9.00%
8.00%
7.00%

6.00%
5.00%
4.00%
3.00%

24-Month Historical