$5,900,000 Bond Issue to pay estimated $5,659,000 Project Costs plus Costs of Issuance and interest during construction (Capitalized Interest).
Interest rates, estimated at 2.5%, are near historically low levels.
Under current state law, USD 240 is eligible for state aid at a 2% sharing ratio to help pay both principal and interest on the bonds. The percentage of state aid is based on the District’s wealth per pupil compared to all other Kansas districts and can change. To be conservative in our Plan of Finance, we have assumed no bond and interest state aid.
Twin Valley USD 240 has a growing tax base as the District’s assessed valuation has grown by more than $12.5 million (44.76%) in the last decade. To be conservative, we have assumed growth of only 1.5% through 2031 and only 1% thereafter.
Twin Valley USD 240 issued bonds in 2006 and these bonds will be retired next year in 2022.
These existing bonds required a levy of approximately 11.69 mills in the 20-21 budget.
The proposed 2021 bonds are estimated to require a levy of 7.82 mills beginning after the old bonds are retired (fall
of 2022 for 2023).
With voter approval, the bond and interest levy is estimated to be reduced by 3.87 mills as compared to the 20-21 levy.
A reduction of 3.87 mills represents reduced taxes on a $100,000 home by $44.51 per year.