NON-HOMESTEAD RENEWAL QUESTIONS

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1 Frankenmuth School District School Election FAQ s What school related questions will be on the ballot in November? There will be three questions regarding the Frankenmuth School District on the November 4, 2014 ballot. The questions include the following: 18 Mill Non-homestead Renewal for 5 years.5 Mill Sinking fund Renewal for 5 years 1.5 Mill Sinking fund Increase for 5 years How are Michigan school districts funded? Districts receive most of their funding on a per-pupil basis. The amount a school district receives per pupil is called the Foundation Allowance. The per-pupil foundation allowance for Frankenmuth is $7,524. This represents the major portion of the Frankenmuth School Districts revenue and is funded from two sources: Local Revenue 18 mills collected on non-homestead property State Revenue Of the $7,524 per pupil in the Frankenmuth School District, approximately $3,587 comes from the State, while the remaining $3,937 is generated from the 18 Mill Non-homestead levy. NON-HOMESTEAD RENEWAL QUESTIONS What does Non-homestead mean? Non-homestead represents a levy on industrial, commercial and second homes. It does not include a family s primary residence. Is this a new tax? No. The 18 Mill Non-homestead millage was approved by the Frankenmuth voters in 1995 and has been renewed every five years since that time. What if the millage is not approved? The revenue generated from the 18 mills totals 42% of the approximately $11,000,000 school budget. By law, to obtain the total Foundation allowance, the Frankenmuth School District must collect the local non-homestead millage. If the millage were to be defeated, the State reduces its obligation to district by this amount and only pays the balance. This would be equivalent to a loss of approximately $4.7 million of the $11 million necessary for operating expenses. 1

2 SINKING FUND QUESTIONS What is a Sinking Fund? The sinking fund millage is a limited property tax, considered a "pay-as-you-go" method, appropriate for addressing building remodeling projects and repair needs. State law allows a district to levy a sinking fund millage of up to five mills and for no longer than 20 years. The tax is levied each year and the revenue generated is used to make the most urgent repairs and improvements identified by the district. The district can access the money on-hand to pay for projects as they are completed, but because the district hasn't borrowed for the projects, the district does not have to pay interest on the money used. A sinking fund allows a district to repair and improve its facilities without impacting dollars that go for students' education. Can the money from a Sinking Fund be used to pay teacher or other employee salaries and benefits? No. By law sinking fund monies can only be used for major repairs, renovations, construction, or purchases of land. Sinking fund monies cannot be used for school operational purposes such as salaries, transportation, or energy costs. Does the Frankenmuth School District currently levy a Sinking Fund? The Frankenmuth School District first approved a 10-year four-mill Sinking Fund levy in When the four-mill levy expired, the voters approved a five year.5 mill Sinking Fund levy which has been renewed every five years since What has the Sinking Fund been used for in Frankenmuth? The.5 Mill Sinking Fund levy generates $220,000 a year. The Sinking Fund levy has paid for many projects over the past nearly 50 years. Some of the more recent projects include: Installation of security systems Light replacement and the addition of energy saving light sensors in all buildings Art room renovation at EFR Replacement of 60 of the 96 original steel doors campus-wide. Replacement of lights and wood poles installed in the 1960 s on the football field Renovation of the EF Rittmueller gymnasium constructed in 1979 Addition of a bus loop in front of EF Rittmueller Replacement of bleachers at the football field, soccer field, and baseball/softball complex New tennis courts replacing the original courts built in 1976 Building and resurfacing of the FHS Track Renovation of EF Rittmueller cafeteria Roof replacements Parking lot upgrades campus-wide Sidewalk installations Carpet Replacement district-wide FHS Concession/Restroom Facility 2

3 What is the Frankenmuth School District asking for in November in terms of a sinking fund? The FSD is asking voters to approve a renewal of the.5 mill levy and it is asking for an additional 1.5 mills. Why are there two questions on the ballot rather than one which combines the.5 and 1.5 mills? Section f (5) of The General Property Tax Act requires a separate ballot question if the additional millage is greater than 0.5 mill. Why do we need an additional Sinking Fund levy? Since the first.5 Mill Sinking Fund levy in 1975, there have been many changes to the District. The red boxes on the picture below show how the campus has expanded since that time. For example, the EF Rittmueller Middle School was built in We take great pride in the outstanding maintenance and upkeep of our entire infrastructure. However, things get old and they need to be replaced and updated. We ve worked with our architectural consultants and heating, venting, and air conditioning (HVAC) experts in order to develop a comprehensive and efficient way to update and maintain our district in to the Future. They have recommended the following needed repairs and updates: 1. The HVAC equipment and temperature controls at EF Rittmueller Middle School are all original equipment that is now 35 years old. The Frankenmuth High School equipment is in excess of twentyfive years. These projects are of high priority. The estimated cost to upgrade the HVAC equipment at EF Rittmueller and Frankenmuth High School is $1.6 million. 3

4 2. Needed repairs and updates: Renovation of the original common area restrooms at all three schools $500,000 Renovation of the 1972 FHS Gymnasium/Balcony/Locker rooms constructed in 1973 $540,000 Renovation of the FHS Media Center constructed in 1972 $400,000 Renovation of the EFR Media Center constructed in 1979 $225,000 Replacement of Classroom Cabinetry in the 1961 section of List Elementary $100,000 Installation of Lockers in the 5 th /6 th grade hall at EF Rittmueller $40,000 Upgrade of the FHS Cafeteria/Stage Area to expand the seating area for students $200,000 Renovation of the original FHS Wood/Metal Shop built in 1953 Additional Security upgrades 3. Routine maintenance and preservation: Roof replacements $140,000 Tennis court resurfacing -$50,000 Parking lot resurfacing How much will the sinking funds generate per year? The combined sinking funds would generate approximately $880,000 per year How will the District prioritize projects? If both Sinking Fund requests are passed by voters, they will generate approximately $880,000 annually for five years. We estimate the cost of all projects to be $4.5 million dollars over five years. Passage of both sinking fund requests would allow the district to accomplish the recommended repairs, updates and maintenance projects. The additional 1.5 Mills will be assessed for the first time in December of The District will tackle the most urgent projects first. The HVAC systems at EF Ritmueller and FHS are a priority as they are considered directly related to health and safety. After those needs are addressed, the District will address the remaining projects based on the urgency of the project and funds available. If approved, what will be the impact on my taxes of the 1.5 mill increase? The median home value in Frankenmuth is $150,000. The 1.5 Mill increase will cost the median home owner $2.17 per week or about the cost of a cup of coffee OR ABOUT.31 CENTS A DAY. If you are interested in calculating your exact cost, your assessed value is available through an online search at Enter your property information and then multiply your assessed value by 1.5 and divide by 1000 to determine the tentative cost of the new 1.5 mill request. What is a mill? A mill is equivalent to a $1 tax on a $1000 of property valuation. A 1.5 mill levy would be equivalent to a $1.50 tax on every $1000 of property valuation. 4

5 When will the additional 1.5 mill Sinking fund be levied? The additional 1.5 mill Sinking fund tax will be levied for the first time in December of Because the proposal is a 5 year request, the 1.5 mill would be levied again in 2016, 2017, 2018, and After that, the District would need to go back to the voters with another sinking funding proposal. How much does the Frankenmuth School District levy compared to neighboring Districts? District Debt Levy Sinking Fund Total Frankenmuth Millington Freeland Reese Birch Run Chesaning Bridgeport Swan Valley Adding 1.5 mil to the existing Sinking Fund levy would put Frankenmuth at 4.6 mil still one of the lowest in the area. What is the debt levy in Frankenmuth and when will it expire? In 1999, Frankenmuth voters approved a 3.95 mill levy for a major building project across the district. It included the Bronner Performing Arts Center, new classrooms in all three buildings, and a new gymnasium at List Elementary. Currently, the district levies only 2.6 mills on this debt and it will be paid off in ELECTION AND VOTING QUESTIONS How do I register to vote? You can register to vote: By mail. To get the form, go to Michigan.gov/sos and look for elections in Michigan and then information for voters At your county, city, or township clerk's office; Or by visiting any Secretary of State branch office. What is the process for voting by absentee ballot? Absentee ballots are available from the Township or City Clerk in your community Where and when do we vote? The fall general election will be held on November 4. Please vote at the regular polling place in the community where you reside. The polls are open from 7 a.m. to 8 p.m. 5