Bond Updates

After the Bond passage on May 16, 2023, we have been busy preparing and marketing the Bonds our community successfully approved this spring. The bond election was a testament to the power of collaboration and teamwork, and Eudora Schools are honored to have been a part of such an incredible effort.

The Bonds were successfully sold on July 11, 2023, for a lower interest rate than initially planned. Due to this lower interest rate, the total debt service should decrease by approximately 9 Million Dollars! Eudora Schools has held focus groups with staff stakeholders, including teachers, administrators, coaches, and paras, who meet with the architecture team. During these meetings with HTK Architects, all groups were given the opportunity to provide input and ideas for the preliminary designs of each project. The architects will continue to refine the designs alongside the Eudora Schools team and aim to finalize the drawings by winter break. 

In January 2024, Construction Management partner Newkirk-Novak solicited competitive bids for a majority of the projects. Some of the construction is anticipated to begin in February 2024, with most of the projects starting in May 2024. Many projects and improvements will need to occur throughout the summer when students and staff are not in the building, such as the Eudora Elementary School playground and Eudora Middle School secure entrance.  

Although walls and construction work aren’t visible yet, rest assured we are busy planning and preparing for the projects to take off soon. We want to continue to extend our deepest gratitude to everyone who supported this initiative. Thank you to our passionate volunteers, dedicated staff members, and every community member who has had an amazing impact on the process so far. Moving forward, we are confident that we will continue to work together to create an even stronger school district for our students, families, and community.

As we gear up for the remainder of the school year, we wanted to take a moment to share some exciting news about the bond. Construction is scheduled to start over spring break and will continue through the rest of the school year. The construction team is prepping the areas this week, and you may notice temporary fences going up in work zones. After Spring Break, there will be changes in how each school can be accessed. Please see the Construction Maps tab for a detailed ​map of each building and its changes.

This Bond will impact every building in the district, student, staff, and faculty member!

In November 2022, a committee representing a broad range of Eudora patrons was formed to evaluate the needs and concerns of district facilities. This committee created a recommendation that was presented to the USD #491 Board of Education in January 2023. The Board then used this feedback to help ensure that the Bond project list was informed by the needs and concerns of multiple stakeholder groups.

• Needed expansion, renovation and upgrades to our schools without increasing the mill rate.
   
• Proposed $39,950,000 Bond Issue to pay Project Costs, Finance Costs of Issuance and Capitalized Interest to control the mill rate during project construction.
   
• Interest rates, estimated at 4.5%, are relatively low as compared to average rates of past decades. Similar length and quality of bond issues have sold at rates below 4.0% recently.
   
• Proposed bonds to be retired in 2043 (20 years).
   
• Eudora USD 491 has a growing tax base. In the last 5 years the district’s assessed valuation (not including motor vehicles) has increased from $63,318,616 in 2018 to $93,935,390 in 2022—an increase of more than $30.6 million (48%). This represents average annual tax base growth of 9.67%. The District’ Equalized Assessed Valuation (including motor vehicles) is $104,401,138.
   
• To be conservative in our Plan of Finance, we have assumed growth of only 4% through 2033 and 3% thereafter. Continued growth at more than 4% would result in lower budgeted mill rate required to retire the bonds.
   
• Under current law, USD 491 is receiving additional state aid for bond payments. Our bonds approved by election in 2007 are eligible for 67% state aid for both principal and interest. State aid percentages for new issues were reduced in 2015. Under current law, this issue is eligible for state aid at a 28% sharing ratio. The percentage of state aid is based our district’s wealth per pupil as compared to other Kansas districts. With significant tax base growth, we are assuming that our state aid percentage on these bonds will reduce by 3% per year and reduce to 0% by 2033.
   
• Eudora USD 491 has existing bonds approved by voters in the past that are scheduled to be retired in 2034 and require a tax rate of 28.086 mills in the current budget.
   
• The 2023 Plan of Finance is called a "wrap structure". The Plan is to structure the new proposed 2023 bonds to "wrap" around the existing outstanding bonds and create a structure where one consistent mill rate will retire all bonds (both existing and proposed). With tax base growth, a conservative estimate as to state aid for existing and the proposed bonds, and a finance rate of 4.5%, the existing mill rate is adequate to amortize all bonds.
   
• The District’s ability to make major capital improvements and improve our schools without an increase in the mill rate is important to know.
   
• WITH TODAY’S LOW INTEREST RATES, BOND & INTEREST STATE AID, AND A GROWING TAX BASE, THE COST OF IMPROVING FACILITIES AND EDUCATION IN EUDORA SCHOOLS MAY NEVER BE MORE AFFORDABLE!