No Tax-Rate Increase Facilities Bond Proposal
UTICA COMMUNITY SCHOOLS
COUNTY OF MACOMB, MI
SCHOOL IMPROVEMENT BOND PROPOSAL
Shall the Utica Community Schools, County of Macomb, State of Michigan, borrow the principal sum of not to exceed Five Hundred Fifty Million Dollars ($550,000,000) and issue its general obligation unlimited tax bonds, in one or more series, for the purpose of defraying the cost of:
- Rebuilding and constructing additions to School District buildings creating a safe and secure modern learning environment for students;
- Constructing replacement elementary school buildings and other facilities, remodeling School District buildings, structures and other facilities, and equipping, furnishing, reequipping and refurnishing School District buildings, athletic fields, playgrounds and other facilities;
- Acquiring and installing technology equipment and technology infrastructure in School District buildings and other facilities, including for health, safety and security;
- Acquiring, preparing, developing, or improving sites for School District buildings, structures, athletic fields, playgrounds, or other facilities and purchasing school buses?
The debt millage required to retire all bonds of the School District currently outstanding and proposed pursuant to this ballot is expected to remain at or below 3.50 mills. The estimated millage that will be levied to pay the proposed bonds in the first year is 1.52 mills (which is equal to $1.52 per $1,000 of taxable value) for a -0- mill net increase over the annual debt millage levied in 2022, and the estimated simple average annual millage rate required to retire each series of bonds is 2.08 mills ($2.08 per $1,000 of taxable value), and the maximum number of years any series of bonds may be outstanding, exclusive of refunding, is not more than 20 years.
If approved by the voters, the repayment of the bonds will be guaranteed by the State under the School Bond Qualification and Loan Program (the “Program”). The School District currently has approximately $162,410,000 of qualified bonds outstanding and approximately $0 of qualified loans outstanding under the Program. The School District does not expect to borrow from the Program to pay debt service on these bonds. The estimated computed millage rate required to be levied to pay the proposed bonds may change in the future based on changes in certain circumstances.
(Under State law, expenditure of bond proceeds must be audited and bond proceeds may not be used to pay teacher or administrator salaries, repair or maintenance costs, or other School District operating expenses.)
Non-Homestead Millage Proposal
UTICA COMMUNITY SCHOOLS
COUNTY OF MACOMB
STATE OF MICHIGAN
REPLACEMENT OPERATING MILLAGE PROPOSAL
This proposal would, replace, restore and extend the authority of the School District to levy the statutory limit of 18 mills on all property, except principal residences and other property exempt by law, which currently expires with the School District’s 2024 tax levy and allow the School District to levy the statutory limit of 18 mills on all property, except principal residences and other property exempt by law, in the event of future Headlee rollbacks under the Michigan Constitution of up to 2 mills. The authorization will allow the School District to receive revenues at the full per pupil foundation allowance permitted by the State.
Shall the limitation on the amount of taxes which may be assessed against all property, except principal residences and other property exempted by law, in the Utica Community Schools, County of Macomb, State of Michigan, be increased to 20 mills with 18 mills being the maximum allowable levy ($18.00 on each $1,000 of taxable valuation), for a period of twenty (20) years, 2023 to 2042, inclusive, as a replacement of the current operating millage which will otherwise expire on December 31, 2024 and a restoration of the portion of the previously authorized millage rolled back as a result of reductions required by the Headlee Amendments to the Michigan Constitution? This millage if approved and levied, would provide estimated operating revenues to the School District of $41,229,000 during the 2023 calendar year.
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