Now is an advantageous time
Voters in Marion-Florence USD 408 will go to the polls to decide if this is the right time to make an investment to construct a new performing arts complex and physical education/sports and wellness complex in Marion.
The April 4 election requests the authority to issue $8 million in general obligation bonds to finance the majority of the proposed improvements. The balance of the approximately $9.1 million project will be paid from existing capital outlay funds of the district and from interest on the reinvestment of bond proceeds.
The board of education feels that now is an advantageous time to consider these district improvements. A bond issue is a borrowing of funds by the district and the best time to borrow money is when interest rates are low. The long-term interest rates are near 40-year low levels, making the cost of repayment more affordable than in many past years.
Low interest rates aren't the only factor at this time. In order to assist local school districts to upgrade or expand their school facilities, the Kansas Legislature in 1992 enacted a law to provide additional state aid to help retire a voted bond issue. Under this law, USD 408 is eligible for state aid which will pay 32 percent of both the principal and interest on the bonds. The state aid benefit is an estimated $3.95 million.
The City of Marion also has made a financial commitment to the school system and the proposed project. In support of the project, and with an understanding that the proposed facilities would be available for public use, the City of Marion has entered into an inter-local cooperation agreement and will provide $100,000 annually to help retire the proposed bonds.
USD 408 has existing bonds outstanding that are scheduled to be retired in 2007. These bonds required a mill levy of approximately 10.44 mills this year. The plan of finance is to structure the required payments on the new bonds to dove-tail around the existing bonds, so that the proposed project does not result in any increase in present property tax rates.
With today's lower interest rates, the 32 percent state aid program, and the agreement by the City of Marion to help retire the bonds, USD 408 believes the cost of improving schools and education may never be more affordable than now.
Registered voters in USD 408 are encouraged to vote April 4 or to consider voting by absentee ballot at the Marion County Courthouse.
For more information, or for any questions regarding the proposed facilities that have not yet been addressed, contact USD 408 superintendent Lee Leiker at 382-2117 or stop by the district office at 101 N. Thorp, Marion.
