Almont Kids First. Almont Community Schools Building and Site Sinking Fund (BSSF) August 5, 2014 School Election FREQUENTLY ASKED QUESTIONS

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1 Almont Kids First Almont Community Schools 2014 Building and Site Sinking Fund (BSSF) August 5, 2014 School Election FREQUENTLY ASKED QUESTIONS HISTORY AND FEATURES 1. What is on the August 5, 2014 ballot? On August 5, 2014, voters in the Almont Community School District will be asked to consider a 1.0 mill Building and Site Sinking Fund (BSSF). The millage will provide approximately $280,809 in 2014 and similar amounts for the next nine (9) years. The goal of the BSSF is to allow the district to fund building and site repairs, including safety and security measures and various infrastructure upgrades, through a fund mechanism outside the general fund. 2. What are the major features of this building and site sinking fund proposal? The BSSF will pay for repairs, replacements and additions and /or remodeling at the majority of our district buildings, including such items as secure front vestibules, roofs, paving of parking drives and lots, boilers, running track, lighting and various other site work that have been prioritized facility upgrades over the next 10 years. The goals for these upgrades are to allow the district to continue to provide students and the community with safe and secure learning environments and to protect taxpayers investment in our schools.

2 3. What study and research went into determining the need for the Building and Site Sinking Fund? In 1988, 1998 and 2004 the Almont School District passed bond issues that built our current High School, Middle School and Orchard Primary. The Board and administration agree that our current buildings have served us very well over the past years, but as our buildings and facilities age, we know that we are moving closer to the end of useful life of our building systems and components. As part of its efforts to provide fiscal management, the district had a facility Assessment report conducted by Hendricks Construction at no cost to the district. The Facility Assessment Report was completed in This report identified over $9 million of facility recommendations. Through the Building and Site Committee of the Board and the BSSF committee they have identified over $3 million dollars in facility repairs needed in the next 10 years. The district has already taken care of the High School roof, but unfortunately does not have the general fund dollars to address the other building issues that are needed to maintain quality facilities. 4. Why do we need a Building and Site Sinking Fund millage NOW? The average age of the district s facilities is 16.6 years, not including Almont Elementary. While we have been fortunate that our community has supported bond issue programs over the years, we have identified ongoing repairs and renovation projects that are over and above what could be accomplished in those programs. As is the case with all buildings, the school district s school buildings will need repairs in the next 10 years to maintain safe and healthy learning environments for our students. With the budget crisis hitting all Michigan districts over the past several years, districts have looked to other funding mechanisms outside of the General Operating Fund to keep buildings safe and in proper working condition, and to preserve more of their shrinking general operating funds for pupil instruction. The district investigated funding mechanisms and determined that a Building and Site Sinking Fund millage was the most appropriate and responsible way for the district to maintain our facilities. As the following chart illustrates, ASD s current funding is less than what we received in 2006 through 2012.

3 Almont School District s Total Revenue $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY What is Almont Community Schools current millage rate? When will our current debt be paid off on our buildings? The District currently levies 8.45 mills for the outstanding voted debt. The following is an allocation of the current debt levy: 2002 School Building and Site Bonds 2004 Refunding Bonds (portion of 1994 voted bonds) 2004 Refunding Bonds (portion of 1996 voted bonds) mills mills mills 2006 Refunding Bonds (refunded voted bonds originally issued in 1986) mills 2012 Refunding Bonds (refunded portion of 2002 voted bonds) mills

4 2013 Refunding Bonds (refunded School Bond Loan Fund Loan) mills 2013 Refunding Bonds, Series B (refunded portions of 2002 voted and 2004 refunding bonds) no mills The last bond payment is May 1, 2032 and is for the 2012 Refunding Bonds. The District borrows from the State s School Bond Loan Fund program in order to make debt service payments that are not covered by a debt levy. The SBLF loan will be gradually repaid as the Taxable Value increases and as the debt payments on the bonds decreases. The District will lower the debt levy in the year of the last SBLF loan repayment. The final repayment of the SBLF loan could occur after the last bond payment, depending on Taxable Value growth. The latest possible date for repayment of the SBLF loan is May 1, However, it is projected that the SBLF loan will be repaid before the last bond payment on May 1, Is the Board of Education behind these proposals? The board unanimously approves the recommendation for the BSSF program. As always, the Board of Education has expressed its commitment to quality programs and facilities for our students and the entire community and has indicated that it is committed to Almont Community Schools building and site sinking fund program proposal. 7. Describe the types of projects that could be addressed at each of our school buildings through the Building and Site Sinking Fund. Orchard Primary Features of Upgrades Install Secured Entry Video Surveillance Infrastructure Install Card Access Reader System Replace Shingled Roof area with Metal Install Drainage to Play Structure Patch and Repair North Parking Lot/Restripe Lower OP Wing Repair Terrazzo Floor Upper OP Wing Repair Terrazzo Floor Replace Carpet in all classrooms

5 Repair/Repaint the walls in the gymnasium Repair Gym Floor Almont Middle School Install Secured Entry Video Surveillance Infrastructure Install Card Access Reader System Install French drain around east side of school Replace the Lighting in Gym and Cafeteria Add Motion Sensors to All Classroom Lighting and other areas Replace Front Entry Walk Remove/Replace Carpet Flooring due to water issue Address Drainage Issue at Front of Building Install Ice Guards to Roof Almont High School Install Secured Entry Repair Main Entry and Crossover Drive Remove and Replace East Parking Lot and Drive Video Surveillance Infrastructure Install Card Access Reader System Resurface the running track (8 lane)-return to Competitive Use Reconstruct the Tennis Courts Resurface both Gym Floors Rework South end of parking lot near Tennis Courts Patch and Repair North Parking Lot Drive/Restripe Replace Existing Boilers High School Install New DDC Controls and Universal Control System This list is not all inclusive and could possibly be adjusted as issues arise through the years, to accommodate any building issues that we may encounter. 8. Will the energy efficiency of our buildings be improved with these projects? Yes. One of the goals in implementing the BSSF projects is to improve energy efficiency of our buildings in order to reduce our operational expenses and the pressure of the district s general fund. Improvements such as roofing, mechanical and electrical system upgrades are all expected to have a positive impact on reducing our operational expenses in the future.

6 9. Can Building and Site Sinking Fund dollars be used for building security measures? Yes. For example, sinking fund dollars can be used for building entrance modification, keyless entry systems, and video surveillance infrastructure. 10. How will safety and security be enhanced through this program? Safety and security will be addressed in the Building and Site Sinking Fund (BSSF) through a combination of upgrades. The main entry door will have an intercom system, cameras and electronic latching devices. This system allows main office personnel to view and communicate with students, staff and visitors and grant access remotely. A secure vestibule/lobby will be incorporated into the entry sequence that prohibits direct access into the main building. From the vestibule, visitors enter the main office to check in before they can enter the main building. 11. How will passage of the Building and Site Sinking Fund millage benefit students and the community? If approved, the money raised through the Building and Site Sinking Fund millage will: Maintain learning facilities that represent one part of the district s (and the community s) effort to keep and attract residents. Protect the community s investment in the school district s buildings and facilities. Enable Almont Community School students to learn and grow in a safe, secure and healthy environment. Reduce pressure on the general fund so that more of the schools district s limited educational operating funds are available to support student learning. 12. Why is it important to attract and retain students in the district? Almont Community Schools receives operational funding from the State of Michigan for every student attending ACS. The quality of the school district s program and the condition of its facilities are two factors that parents use when

7 deciding where to send their children to school and for both families and adults without children, where to purchase a home. The goal of the Building and Site Sinking Fund millage is to maintain our facilities over the next 10 years to support updated teaching methods (using General Fund dollars) and to continue to provide appropriate and comfortable learning environments for our children. Parents have many choices as to where their children will receive their education. ACS wants to maintain its reputation as a leader in this area and provide the types of facilities and programs that will attract and retain students. 13. How does this Sinking Fund proposal compare with other Sinking Funds in Michigan? A 147 districts in Michigan collect millage dollars for Building and Site Sinking Funds. The average millage collected by the 147 school districts equals 1.35 mills. 14. What are the benefits of the Building and Site Sinking Fund proposal for residents who don t have students in the district? There are several benefits for residents without school-age children. First, updated and improved schools can enhance the property values of all residents. Second, protect the community s investment in the school district s buildings and facilities, which are used by both our students and the community. 15. How much will the 2013 Building and Site Sinking Fund millage cost a homeowner? The cost to individual homeowners will vary depending upon the taxable value of the property. The chart below gives the estimated increase for the Building and Site Sinking Fund millage.

8 Home Market Value Home Taxable Value Annual Increase (1.00 Mill) Approximate Monthly Impact $75,000 $37,500 $37.50 $3.12 $100,000 $50,000 $50.00 $4.17 $150,000 $75,000 $75.00 $6.25 $200,000 $100,000 $ $8.33 The average medium home market value for a homeowner in Almont School District is approximately $164,900, equating to $6.85 monthly impact by this millage increase. 16. What is a mill? A mill represents $1.00 for every $1,000 of taxable value of your property. The taxable value of your property is the same or lower than the state equalized value and substantially lower (50 percent or more) than the market value. Also, it is important to remember that property taxes, including increases, can be deductible on your federal income tax returns and may count as a credit on your state returns. 17. What is the difference between a bond and a sinking fund millage? A bond is a lump-sum dollar amount that school district borrows through the sale of bonds in order to fund capital projects. Taxpayers pay the bond money back over a period of years, with interest, similar to a home mortgage. A sinking fund millage is a limited property tax considered a pay-as-you-go method, for addressing building repairs and improvements. No debt or interest payments are incurred with a Sinking Fund. A district can levy a sinking fund millage for up to 20 years, providing that district with a designated building repair and upgrade fund that is not part of the General Fund, thus reducing pressure on the district s general fund and limiting the time for repairs to be done.

9 18. Is the school district required to spend the entire $280,809 in the year it is received or can the funds accumulate? The district is not required to spend the entire $280,809 during the year it is received. The district is required to track the millage revenues and expenditures separately in a Building and Site Sinking Fund, and is allowed to maintain a positive fund balance in this fund at year-end. The district is not required to spend money within a specified time period. (Note: The Michigan Department of Treasury requires that the fund be audited each year.) 19. How can I be assured the money will be spent as promised? Building and Site Sinking Fund proceeds can only be used to repair, remodel or construct building and sites. BSSF, proceeds cannot be used for teacher, administrator or employee salaries. By law, BSSF expenditures must be audited yearly for compliance according to the Michigan Department of Treasury guidelines. 20. Will money from the sinking fund millage be used to pay teachers salaries and benefits? NO. School districts are not allowed to use funds from building and site sinking fund proceeds for operating expenses such as teachers, administrators, or employee salaries. By law, sinking fund millage proceeds must be kept separate from general operating funds. 21. What are the key dates leading up to the August 5 th vote? Final day to register to vote is Monday, July 7, Absentee ballots must be available by Tuesday, June 24, Final day to vote absentee is Tuesday, August 5, Election Day is Tuesday, August 5, How will the proposal appear on the ballot? Shall the limitation on the amount of taxes which may be assessed against all property in Almont Community Schools, Counties of Lapeer, St. Clair, Macomb

10 and Oakland, Michigan, be increased by and the board of education be authorized to levy not to exceed 1 mill ($1.00 on each$1,000 of taxable valuation) for a period of 10 years, 2014 to 2023, inclusive, to create a sinking fund for the purchase of real estate for sites, and the construction or repair of, school buildings and all other purposes authorized by law; the estimate of the revenue the school district will collect if the millage is approved and levied in 2014 is approximately $280,809 in the first year that it is levied. 23. Where and when do I register to vote? Voter registration must be completed by Monday, July 7 th 2014, in order to vote in the August 5, 2014 election. You can register at your Township Clerk s office or at the following places: At the Secretary of State Branch Office when you update your driver s license to reflect a name and /or address changes, including Renewal by Mail program. Your voter registration will be updated automatically. You may obtain voter registration forms from the state website at What is the procedure for absentee voting? Applications for Absentee Ballots are available: Clerk s Office On-line at Where do I vote? The Almont Community School District voting precincts polls will be open from 7:00 a.m. - 8:00 p.m. The voting places and locations are as follows: Almont Community Schools Polling Locations Locations Address Almont Township Office 819 North Main Street Berlin Township Office 740 Capac Road

11 Dryden Township Office Imlay Township Office 4849 Dryden Road 682 North Fairgrounds Road Please note: Residents that are part of Almont Community Schools will vote at their polling location, the Building and Site Fund language will be on the ballot. 26. If I have further questions, where can I get additional information? Please call or visit