FINANCEAN ADVANTAGEOUS TIME

NOW is considered an advantageous time for the bond issue

because:
1.

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 the bond more affordable. Similar
bond issues have sold at rates below 4% recently.

2.

Marysville U.S.D. No. 364 has no existing bonded indebtedness. The last major capital improvement bond issue
was approved by voters in 1988 for construction of the
Elementary School and was retired in 2008.

3.

4.

5.

B O N D I S S U E T O A D D R E S S E D U C AT I O N ,
SAFETY & SECURITY CHALLENGES

More than 2/3 of all other Kansas school districts have

approved bond issues in recent years to replace, expand,
and/or improve their schools for quality education.

On November 3rd, voters in Marshall County USD 364 will go to

U.S.D. 364 has a growing tax base. The districts assessed

valuation in 2004 was $48,059,211. The Countys estimate
for 2015 is $81,830,654. This increase of more than $33
million represents average annual growth of more than 6%.
To be conservative in our Plan of Finance, we have assumed growth of only 2% for the next decade and only 1%
thereafter. Continued growth at a higher level would reduce the mill rate in future years.

the polls to determine if this is the right time to make improvements to

the educational and support facilities in Marysville Schools. In August,
the USD 364 Board of Education approved a resolution scheduling the
special election requesting the authority to issue $26.4 million in general
obligation bonds to finance the proposed improvements.

The school buildings in USD 364 have served this area well for many decades, but they have challenges that must be addressed to continue as
quality educational assets. The Senior High, Junior High, and Elementary
Schools are 77, 52, and 26 years old, respectively. Teaching and learning
methods have changed dramatically since these buildings were designed
and constructed. Todays education requires more and specialized spaces to allow our young people to reach their potential. Because of their
continuous service to hundreds of active students each year, the buildings as well as their infrastructure systems need upgrades and replacements in order to provide positive learning environments for students.
The environment in our schools truly make a difference in both teaching
and learning.

Proposed bonds will require a bond & interest levy of an

estimated 14.84 mills. A mill is $1 of tax for each $1,000 of
assessed valuation of property in the District.

6. With bond approval, the tax increase would not appear on

tax statements until the fall of 2016.

The Estimated Tax Impact of the Bond Issue

on various types of property is indicated on the chart to
the right .

ELECTION INFORMATION

DID YOU KNOW?

Election Day is Tuesday, November 3rd, 2015

The only polling place is the Marysville American Legion

th

Last day to register to vote is Tuesday, October 13

Advance voting begins Wednesday, October 14th

Last day to mail advance ballots is Friday, October 30th

Advance voting in person closes at noon on Monday,

November 2nd

All other school districts in the NCKL have approved

and issued bonds in recent years to improve their
schools. Marysville USD 364 has no existing bonded
indebtedness.

Interest rates are near 50-year lows, making the cost

of repayment more affordable.

Estimated taxes on a $100,000 home is $14.22 per

monthabout one large pizza.

THE NOVEMBER 3RD BALLOT QUESTION

Shall the following be adopted?
Shall Unified School District No. 364, Marshall County, Kansas (Marysville), issue general obligation bonds in an amount not to exceed $26,400,000 to pay the costs to: (a) construct,
equip and furnish additions and make renovations to the existing Marysville Elementary
School within the District for educational purposed, for compliance upgrades, to enhance the
buildings safety and security, to improve building infrastructure, and to improve the learning
and teaching environment; (b) construct, equip and furnish additions and make renovations
to the existing Marysville Junior-Senior School within the District for educational purposes, for
compliance upgrades, to enhance the buildings safety and security, to improve building infrastructure, and to improve the learning and teaching environment; (c) raze portions of the
existing Junior-Senior High building to accommodate new improvements; (d) make all other
necessary improvement appurtenant thereto; (e) pay costs of issuance and interest on said
general obligation bonds of the District during construction; and (f) if bond proceeds remain
after accomplishment of the foregoing, acquire energy conservation and roof improvements
at various District facilities currently financed with lease-purchase agreements (collectively,
the Project); 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.?

Q. Why is now considered an advantageous time

for school improvements?

The bond issue proposal was developed with the input of many people
who are concerned about both our childrens and our communitys future. Early in 2015, the Board formed a Facilities Committee to evaluate
educational programs and facilities for both today and the future. The
Committee, consisting of parents, patrons, teachers, staff and others
looked at needs and improvements in excess of $50 million. They prioritized and pared down the needs to the proposed $26.4 million proposal
on the ballot. The Committee determined that all USD 364 schools are
in need of updates for safety, security and the quality education of our
children.

The Facilities Committee, after meetings, tours, and input from many
sources, identified 3 main areas for needed improvement: (1) Safety
and security for our children and staff; (2) Improved learning and teaching environments; and (3) Improvement to our schools infrastructure
and systems.

Bond Issue Information

PRSRT STD
ECRWSS
U.S. POSTAGE
PAID
EDDM RETAIL

U.S.D. No. 364

211 S. 10th
Marysville, Kansas 66508

POSTAL CUSTOMER

Our district is not unique in having and identifying facility and educational challenges. We have simply waited longer than many other districts
to address such. Approximately 2/3rds of all Kansas school districts have
approved bond issues to expand and/or improve their buildings in recent years. One of our rival districts, Abilene Schools USD 435, has approved and issued more than $29 million in bonds for facility improvements. At present, our district is the only one in the NCKL that has not
approved an improvement bond issue recently for their schools. Our
last bond issue was issued in 1988.

INSIDE

Now is a good time for school capital improvements for three reasons:

Financing conditions
Building costs
Current debt

Interest rates, estimated at 4.25% for the bonds, are near their lowest levels for the
past 50 years. Low interest rates make the cost of repayment more affordable than
in previous years. On a loan of this size, a change in interest rate of only one-half of
1% adds or subtracts more than $2.6 million to the cost.
Inflation has been relatively mild since the recession began in 2008; however, many
anticipate that when the economy picks up, construction costs will increase significantly. The Federal Reserve Board indicates the economy heating up and therefore
driving higher costs for goods and services - perhaps as early as next year. Because
USD 364 has no existing bonded indebtedness (the last major bond issue was for the
Elementary School and was retired in 2008) and the interest rates are near an alltime low, we feel this is the best possible time to make these improvements.

Our Children Our Future Our Responsibility!

The USD 364 Board of Education has made facilities and educational
opportunities a priority. They have carefully studied existing structures,
current and future needs, and options and available resources to give
the districts children the best opportunity to grow and reach their potential. The proposed bond issue is considered more than just an educational issue. Communities are known to a great degree by their schools
and to what extent education is a priority. Families and businesses considering relocation nearly always look at schools before making that decision. The Board of Education believes that the proposed bond issue is
also an economic development issue for Marysville and Marshall County.
This informational brochure will hopefully provide Questions and Answers to explain the November 3rd Bond Election proposal. Additional
Bond Issue information can be found on the Districts website:
www.usd364.org

Bond Issue Questions & Answers

Proposed Bond Issue Improvements
Site and Floor Plans
Finance-An Advantageous Time
The November 3rd Ballot Language

Our Children Our Future Our Responsibility!

This informational brochure produced and distributed by the KIDS Committee

rd

Vote November 3 , 2015

CHALLENGES

SOLUTIONS

Safe & secure buildings & grounds

Safe & secure buildings & grounds

Elementary school

Elementary school

Storm shelter area only holds 1/3 of students and staff

3 multipurpose instructional spaces/storm shelters added to accommodate all

Junior/Senior high school

students and staff

Storm shelter space in high school is adjacent to toxic chemical storage

Junior/Senior high school

Auditorium stage riggings are original to building (1938) and pose significant danger

Storm shelter space included in new Activity Center space, and existing high school
boys locker rooms renovated into storm shelters

to those on stage
Size/design of science classrooms do not meet national recommended specifications

Auditorium rigging & curtains replaced

Safety features in labs not functional for use

Six new science classrooms/labs built to meet specifications, with properly installed
safety functions

High school gymnasium space unsafe for patrons & students

New Activity Center built to larger specifications

Learning environments that meet today's needs

Learning environments that meet today's needs

Elementary school

Elementary school

Special education students are receiving some services in hallways & the cafeteria,
which are not conducive to learning

Multipurpose spaces and additional classrooms created to allow space for individual
sized and small group instruction/testing

Library space is limited by computers

New computer classroom will allow library space to expand

Music classroom causes & experiences noise problems

Music room renovations to improve

acoustics from inside and out

Junior/Senior high school

Outdated & undersized science classrooms

Junior/Senior high school

General classrooms are overcrowded due to more students per teacher/classroom &
ever-increasing use of technology

Modern, larger & updated class

rooms

Small, cramped art classroom space with poor heating and cooling located outside
the building

New & larger classrooms to

support increased technology

Preserve, maintain & improve infrastructure

Art classroom double in size &

Elementary school

located safely inside the school

Upgrades needed to meet building codes

KEY

General repairs to prevent damage

TToilet Rooms

Electrical & wireless structure does not support technology initiatives

TchrTeachers Lounge

Junior/Senior high school

High school plumbing system almost 80 years old
Junior high plumbing system over 50 years old
Restrooms insufficient for public events
Windows not energy efficient

Improvement Breakdown

Special education classrooms adjoined as suite to expand services

Preserve, maintain & improve infrastructure

Elementary school

SESpecial Education Suite

OActivities Office

Groundwater control & drainage

CConcessions Area

Windows & masonry

ClClassrooms

Additional electrical capacity

W/F/SSWeight Room/Fitness

Improved wireless internet

Area/Storm Shelter

Wireless infrastructure does not support technology initiatives

TrTraining Room

Lack of adequate drainage in basement

OLOfficials Locker Room

General updates throughout

Junior/Senior high school
Plumbing replaced
Restrooms updated throughout
New larger restrooms added for use by Homer Hanson Stadium & Activity Center
events

Q. How can USD 364 afford a bond issue when its budget is already stressed?

Q. Im on a fixed income - how can I afford this?

This is a difficult time for schools all across the state and every school district is fighting different battles based on their circumstances, but every battle comes back to the same thing: state funding for operational expenses has been cut over the past few
years. However, operation expenses and bonded school improvements are two completely separate budgets that are exclusive
of each other. Some difficult decisions over the past few months were made so that the long-term financial health of the district
is solid, and we will continue to examine day-to-day operations in an effort to be efficient, as the maximum amount of money for
operations and capital outlay is limited by the state of Kansas. As a district, there are not other ways to get more money for operations without making cuts or finding efficiencies in other areas.

The Kansas Homestead Refund Program is available and may offer assistance to some in this regard. Under this program, a
homeowner with a household income of less than $33,401 per year, may qualify for a refund on a percentage of property taxes
paid on their home. In addition to the income qualification, one of the following criterions must also be met: (a) be 55 years of
age or older, or (b) are blind or totally and permanently disabled all of the tax year, or (c) have a dependent child under the age
of 18 who lived with you during the entire tax year. *IMPORTANT: The percentage of tax refund varies based on the household
income.

Additionally, one of the three focus areas for this bond issue is to preserve, maintain, and improve the infrastructure and building
systems throughout the district. By focusing on these areas, expenses related to building repairs will decrease. Proposed improvements will allow us to conserve energy and water in a variety of ways, providing additional savings in our operating expenses which will balance out the increased operational costs of expanding.

If you would like additional information about the Homestead Refund Program, the District's Financial Advisor has prepared a
handout to explain. Please request one by contacting the District Office. (785) 562-5308

JUNIOR HIGH ACTIVITY CENTER - MAIN LEVEL

JUNIOR HIGH ACTIVITY CENTER - LOWER LEVEL

Q. What is the driving force behind the bond issue?

Q. If the bond passes, when will construction begin / end?

Last year, USD 364 formed a facilities committee who determined that all schools within the district were in dire need of updates
for reasons including safety, security, and quality of education.

Construction would potentially begin in the summer of 2016 with a tentative completion date of summer 2018. The discussions
have not yet begun regarding how each individual project would be staged, therefore specific timelines have not yet been determined. There is still a substantial amount of architectural, engineering, and design work that must be completed before construction can begin.

Educational requirements are continuously evolving. To date, very few changes have occurred to our current facilities. The proposed upgrades are needed for many reasons, but the most important ones are so that our schools can provide a high quality
educational environment to our students.

There are possibilities to see a second phase to this project. It is our intention to complete the additional work without an additional tax increase. Some of the items to be considered for Phase II include: relocating the Agriculture Education Department to

Special education and technology were not part of the curriculum when the junior/senior high buildings were designed and constructed; today, they are imperative. In addition, recent events throughout America have solidified that building safety and security must be priorities. Improved classrooms and support spaces are necessary to prepare our young people for a competitive
and changing world; lets face it these kids will be in direct competition with others across the globe. Converting the old gymnasium into classrooms will singlehandedly address many of these issues. The overall safety, well-being, and educational opportunities of our students is the primary driving force behind this bond issue. These improvements will affect the district as a
whole. This bond issue provides an affordable financing tool to make the much needed improvements that both our children and
community need.

the main building, renovating the Auditorium, and making improvements to the HVAC systems, parking areas, and track.

Q. Wouldnt it be better to charge a sales tax rather than burden property owners?
School districts do not have the authority to levy any taxes other than property taxes. That is why school districts across the
state rely on property taxes for their local option budgets, capital outlay budgets, and projects that require the selling of bonds.
The only entities that can levy a sales tax are city, county, and state governments.

VOTE NOVEMBER 3, 2015