NOTICE OF BOND ELECTION
Notice is given to the qualified electors of the City of Gardner, Kansas (the “City”), that an election has been called and will be held on August 1, 2017, between the hours of 7:00 a.m. and 7:00 p.m. for the purpose of submitting to the electors of the City the following question:
Shall the following be adopted?
Shall the City of Gardner, Kansas, issue general obligation bonds in an amount not to exceed $13,725,000 to pay the costs of constructing and equipping a facility on a site owned by the City to be used as a justice center to house police department headquarters, municipal court and other community purposes, together with all things necessary and incidental thereto, all pursuant to the provisions of K.S.A. 10-101 et seq. and K.S.A. 12-1736 et seq.?
The election will be held by ballot at the following voting places, such voting places to serve the following voting districts or territories:
Pct 1 Gardner Senior Center, 128 E Park St
Pct 2 Grace Baptist Church, 650 E Madison
Pct 3 New Life Community Church, 17935 S Moonlight Rd
Pct 4 Gardner American Legion, 315 S Meadowbrook Cir
Pct 5 No Registered Voters, 2101 E Kansas City Rd
Pct 6 Fellowship Bible Church, 16900 S Waverly
Pct 7 Gardner Senior Center, 128 E Park St
Pct 8 Gardner Church Nazarene, 16640 Moonlight
Pct 9 Gardner Library, 137 E Shawnee St
Pct 10 New Life Community Church, 17935 S Moonlight Rd
Pct 11 No Registered Voters, 2101 E Kansas City Rd
Pct 12 Gardner American Legion, 315 S Meadowbrook Cir
Pct 13 Gardner Church Nazarene, 16640 Moonlight
Pct 14 Grace Baptist Church, 650 E Madison
Pct 15 No Registered Voters, 2101 E Kansas City Rd
Pct 16 No Registered Voters, 2101 E Kansas City Rd
The following information is provided by the City of Gardner, Kansas (the “City”), as required by K.S.A.10-120a and K.S.A. 12-6,122. This information is derived from estimates and projections made by the City and its advisors and is based on information which the City and its advisors believe is reliable. These estimates and projections may not be accurate as of the date of the issuance of the bonds because of changes in the municipal bond market which may affect interest rates, changes in assessed valuation of the City, changes in the financial status of the City, or other matters which may not be predicted or are unknown to the City at this time. The estimated rates of property taxation shown below as necessary to pay the principal and interest on the bonds are based upon the current assessed valuation (for calendar year 2017) of the City and the projected principal repayment schedule and the estimated average interest rate to be paid on the bonds. The estimated interest rate to be paid on the bonds is based on the average interest rates of comparable recent bond issues. Each of the projections and estimates shown below may vary due to factors which the City cannot predict or control. These projections and estimates assume the issuance of $13,725,000 in a single bond issue. The City expects to spread principal payments on the bonds over approximately 20 years with an expected final maturity of October 1, 2037. The estimated average interest rate of 3.40% results in an estimated total interest cost on the bonds of $5,340,655. Based on these figures, the City projects that the average annual principal and interest payment on the bonds will be $950,000. General obligation bonds are, by definition, a pledge of the full faith, credit and resources of the City. Such bonds are payable from property taxes which may be levied without limit within the City in order to pay principal and interest. Amounts paid by taxpayers in the City may increase as a result of the issuance of general obligation bonds to finance the proposed project.
Summary of Estimated Total Project Costs and Sources of Payment
Sources of Funds Uses of Funds
Total amount of bonds $13,725,000 Construction & equipment $12,433,608
Interest earnings1 114,500 Professional fees2 1,037,449
Issuance expenses3 225,000
Capitalized interest4 0
1Estimated interest earnings on the investment of bond proceeds during construction. Such earnings are expected to be applied to project costs, to the payment of principal of and interest on the bonds and to the payment of rebate to the United States Government, if required.
2Includes estimated costs of architectural services, engineering, construction administration and related costs.
3Includes estimated municipal advisory fees, legal fees, underwriting expense, official statement printing, bond rating and related costs.
4Estimated cost of interest to be paid on the bonds during construction.
Estimated Average Annual Property Tax Mill Levy Rate
for Principal and Interest Payments
Total estimated mill levy rate necessary 4.098 mills1
1The principal of and interest on the bonds are anticipated to be paid from (1) a property tax levy at this estimated average mill levy rate and (2) for the first 10 years of payments on the bonds, from the City’s share of Johnson County’s one-fourth (1/4) of one cent public safety sales tax. The average estimated mill levy includes annual mill levy rates in any single year ranging from an estimate of 2.707 mills to 5.492 mills. The mill levy rates reflected in this footnote, and the estimated mill levy rate reflected above, only apply to the proposed $13,725,000 bond issue and do not reflect the existing mill levy supporting the City’s currently outstanding debt. For 2017, the City’s total bond and interest levy to support currently outstanding debt is 7.040 mills. If the justice center bond issue is approved, the City’s 2018 mill levy rate is projected to be 9.761 mills, including 2.721 mills to support the justice center bonds and 7.040 mills to support the rest of the City’s outstanding debt. These mill levy rates have been estimated using the City’s current assessed valuation (for calendar year 2017), and it is assumed that a portion of the debt service for the justice center bonds will be paid from the City’s portion of the Johnson County public safety sales tax. The City estimates it will receive revenues from the Johnson County public safety sales tax of $480,000 per year for 10 years.
The election officer conducting the election will be the Election Commissioner of Johnson County, Kansas, whose address is 2101 E. Kansas City Road, Olathe, Kansas 66061.
Dated June 15, 2017.
/s/ Ronnie Metsker
Election Commissioner of Johnson County, Kansas