County Commission to Sell Bonds
Because we are selling bonds on Monday, April 22, 2013 to finance the planned improvements to Old Highway 40 on the east and west ends of the County, a special meeting is necessary approve the sale. I am very interested in learning how the sale goes on this issue in terms of the interest rates and how many bids we receive. Justin Avey of Piper Jaffray will be joining us by phone to explain the sale and what the Commission needs to do to accept the sale. Chairman Haselhorst, Mike Graf, and I met with the BG Consultants engineers regarding their reports and recommendations on road and bridge projects in the County. It was a good meeting and the reports provided considerable information that will be useful as we plan future projects and respond to citizen questions and concerns regarding possible projects.
I am enclosing the Summary page of the bond sale documents and letters I received from Standards and Poors that confirm our bond rating of AA‐. This rating is very good for a government of our size.
SUMMARY NOTICE OF BOND SALE
ELLIS COUNTY, KANSAS GENERAL OBLIGATION BONDS, SERIES 2013
(GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES)
Bids. SUBJECT to the Notice of Bond Sale dated April 8, 2013, written and electronic bids will be received on behalf of the County Clerk of Ellis County, Kansas (the “Issuer”) in the case of written bids, at the address set forth below, and in the case of electronic bids, through PARITY® until 11:00 a.m., Central Daylight Time, on APRIL 22, 2013 for the purchase of the above-referenced bonds (the “Bonds”). No bid of less than 100% of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered.
Bond Details. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds will be dated May 8, 2013, and will become due on September 1 in the years as follows:
Year Amount Year
- 2013 $ 30,000 2021
- 2014 450,000 2022
- 2015 460,000 2023
- 2016 470,000 2024
- 2017 480,000 2025
- 2018 490,000 2026
- 2019 500,000 2027
- 2020 505,000 2028
Principal Amount $515,000
530,000 540,000 40,000 40,000 40,000 40,000 45,000
The Bonds will bear interest from the date thereof at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on September 1, 2013.
Book-Entry-Only System. The Bonds shall be registered under a book-entry-only system administered through DTC.
Paying Agent and Bond Registrar. Treasurer of the State of Kansas, Topeka, Kansas.
Good Faith Deposit. Each bid shall be accompanied by a good faith deposit in the form of a cashier’s or certified check drawn on a bank located in the United States of America, a qualified financial surety bond or a wire transfer in Federal Reserve funds immediately available for use by the Issuer in the amount of $103,500.
Delivery. The Issuer will pay for preparation of the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder on or about May 8, 2013, to DTC for the account of the successful bidder.
Assessed Valuation and Indebtedness. The Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations for the year 2012 is $[________]. The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $5,175,000.
Approval of Bonds. The Bonds will be sold subject to the legal opinion of GILMORE & BELL, P.C., WICHITA, KANSAS, Bond Counsel, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds and delivered to the successful bidder as and when the Bonds are delivered.
Additional Information. Additional information regarding the Bonds may be obtained from the undersigned, or from the Financial Advisor at the addresses set forth below:
April 11, 2013
1204 Fort Street
PO Box 720
Hays, KS 67601
Attention: Mr. Greg Sund, Administrator
Dear Mr. Sund:
Pursuant to your request for a Standard & Poor’s Ratings Services (“Ratings Services”) rating on the above-referenced obligations, Ratings Services has assigned a rating of “AA-”. Standard & Poor’s views the outlook for this rating as stable. A copy of the rationale supporting the rating is enclosed.
This letter constitutes Ratings Services’ permission for you to disseminate the above-assigned ratings to interested parties in accordance with applicable laws and regulations. However, permission for such dissemination (other than to professional advisors bound by appropriate confidentiality arrangements) will become effective only after we’ve released the rating on standardandpoors.com. Any dissemination on any Website by you or your agents shall include the full analysis for the rating, including any updates, where applicable.
To maintain the rating, Standard & Poor’s must receive all relevant financial and other information, including notice of material changes to financial and other information provided to us and in relevant documents, as soon as such information is available. You understand that Ratings Services relies on you and your agents and advisors for the accuracy, timeliness and completeness of the information submitted in connection with the rating and the continued flow of material information as part of the surveillance process. Please send all information via electronic delivery to: firstname.lastname@example.org. If SEC rule 17g-5 is applicable, you may post such information on the appropriate website. For any information not available in electronic format or posted on the applicable website,
Please send hard copies to:
Standard & Poor’s Ratings Services
Public Finance Department 55 Water Street
New York, NY 10041-0003.
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The rating is subject to the Terms and Conditions, if any, attached to the Engagement Letter
applicable to the rating. In the absence of such Engagement Letter and Terms and Conditions, the rating is subject to the attached Terms and Conditions. The applicable Terms and Conditions are incorporated herein by reference.
Ratings Services is pleased to have the opportunity to provide its rating opinion. For more information please visit our website at www.standardandpoors.com. If you have any questions, please contact us. Thank you for choosing Ratings Services.
Standard & Poor’s Ratings Services
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Ms. Donna J. Maskus Mr. Dustin J. Avey Mr. Joe L. Norton Ms. Kelli Manson