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Notus School District Special Bond Election November 4, 2014. Bond election to build a new e lementary building on the southeast practice field. Why the November election and why 4.8 million?. - PowerPoint PPT Presentation
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Bond election to build a new elementary building on the southeast practice field.
Notus School District Special Bond Election
November 4, 2014
Why the November election and why 4.8 million?Why the November election and why 4.8 million?
• The Board of Trustees passed a resolution on September 2nd to run a 4.8 million dollar special bond to build a new elementary building.
• A successful election in November will allow for construction of the new building to be completed for the start of the 2016-2017 school year.
• A March election would delay construction completion to Winter of 2016-2017 school year.
• $4.8 million dollars will insure that a new cafeteria and lunchroom can be added to the new building which allows for the construction of the building on the southeast practice field behind the current high school at a lower cost to district patrons.
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Eric HeringerManaging Director
Notus School District No. 135
Bond Update for November 4, 2014 Election
September 2, 2014
Important Disclosures Important Disclosures
The information provided herein is not intended to be and should not be construed as
a “recommendation” or “advice” within the meaning of Section 15B of the Securities
Exchange Act of 1934. Piper Jaffray is providing this information solely in
anticipation of acting as a placement agent or underwriter, is not acting as an advisor
or fiduciary to the recipient of this information and does not owe a fiduciary duty to
the recipient of this information pursuant to Section 15B of the Exchange Act. As an
underwriter or placement agent, the primary role of Piper Jaffray is to purchase
securities for resale to investors or arrange for the placement of securities in an
arm’s-length commercial transaction between you and Piper Jaffray. Piper Jaffray is
acting for its own interests and has financial and other interests that differ from your
interests. Municipal entities and obligors should discuss any information and
material contained in this communication with any and all internal or external
advisors and experts that the municipal entity or obligated person deems appropriate
before acting on this information or material.
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Bond Planning OptionsBond Planning Options
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Piper Jaffray has prepared three different bond options for the District to consider for the November 4, 2014 Election:
•$4,380,000: same amount as August 2014 election
•$4,500,000: increase in debt capacity based on 2014 principal redemption
•$4,800,000: increase in debt capacity based on preliminary 2014 market values
Review of what has changed compared to August 2014 election
•Market Value increase: Preliminary 2014 numbers indicate 12% growth over 2013
Increases debt capacity
Larger tax base will reduce the tax rate projection
•Interest rates: Lower now compared to May 2014 when planning for August election
Historical Tax-Exempt RatesHistorical Tax-Exempt Rates
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Tax Impact SummaryTax Impact Summary
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Notes:$114,000 home value. Taxable value is $57,000 after subtracting homeowners exemption.Homeowners Exemption is 50% of Full Value up to a maximum of $83,920 in tax year 2014 (FY 2015).Levy Equalization is projected at 35% of principal and interest cost of the bonds.
August, 2014 Election
Bond Amount $4,380,000 $4,800,000
Market Value for calculating bond impact $75,558,211 $85,000,000
Anticipated Interest rate 4.05% 3.57%
Amount Rate per
$1,000 Amount Rate per $1,000
FY 2014 Bond Tax (Actual on Existing Bond) 145,000 1.92$ 145,000 1.92
Projected Bond Tax (if Bond passes) 234,230 3.10$ 252,450 2.97
Projected Bond Tax Increase (if Bond passes) 1.18$ 1.05$
Annual Tax Impact on $114,000 home 67.26$ 59.85$
Monthly Tax Impact on $114,000 home 5.61$ 4.99$
Dailey Tax Impact on $114,000 home 0.18$ 0.16$
Interest Cost
Total Bond Cost
Less: Estimated Levy Equalization
Net Bond Cost 4,310,912$ 4,460,350$
November, 2014 Election
6,631,912$ 6,862,350$
(2,321,000)$ (2,402,000)$
2,251,912$ 2,062,350$
Election TimelineElection Timeline
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November 4, 2014 election timeline No later than 9/5: File Election Resolution with County Clerk
September 19: Last day for County Clerk to mail absentee ballots to voters who request them
October 5: Designation of polling places and absentee voting places
October 29: Last day for an application for mail-in absentee ballot
October 31: Last day for in-person absentee voting
November 4: Election
November 14: Last day for Board of County Canvassers to meet and canvass the vote
Sixty One Days Until the November 4th Election
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• 66.6% yes votes are need to secure the building bond• August Election Results:
168 In Favor 63 % 98 Against 37%*738 Total Registered Voters in the Notus School District*266 Total Votes 36 % Voter Turnout*472 Registered Voters did not vote in the August election
*Numbers are based on registered voter list from January 2014
100 No votes require 203 yes votes for passage61 days to communicate to the public the plans for the Notus Elementary61 days to find support for the election61 days to answer the questions our patrons have61 days to invite friends, family, and community members to tour our building61 days to email, knock on doors, speak up at community events61 days to talk to your neighbors and friends61 days to take action and take an active role in the future of Notus schools and
the community of Notus