skip to main content

Ballot Language Breakdown

What is the ballot language?

 
CEDAR SPRINGS PUBLIC SCHOOLS
BONDING PROPOSAL
 
Shall Cedar Springs Public Schools, Counties of Kent and Newaygo, State of Michigan, borrow the sum of not to exceed Sixty-Eight Million  Dollars ($68,000,000) and issue its general obligation unlimited tax bonds therefor, in one or more series, for the purpose of:
erecting, completing, removdeling, or equipping or reequipping school buildings or other facilities, or parts of or additions to those facilities; furnishing or refurnishing school buildings; acquiring, preparing, developing, improving, or equipping structures, athletic fields, playgrounds or sites, or parts of or additions to sites, for school buildings or other facilities; and acquiring, installing, or equipping or reequipping school buildings for instructional technology?
 
The following is for informational purposes only:
 
The estimated millage that will be levied to pay the proposed bonds in 2021, under current law, is 1.18 mills ($1.18 on each $1,000 of taxable valuatino) for a 0.00 mill net increase over the prior years' levy of 7.00 mills.  The maximum number of years the bonds of any series may be outstanding, exclusive of any refudning, is thirty (30) years.  The estimated simple average annual millage anticipated to be required to retire this bond debt is 4.04 mills ($4.04 on each $1,000 of taxable valuation).
 
The school district expects to borrow from the State School Bond Qualification and Loan Program to pay debt service on these bonds.  The estimated total principal amount of additional borrowing is $6,499,371 and the estimated total interest to be paid thereon is $6,824,042. The estimated duration of the millage levy associated with that borrowing is 18 years and the estimated computed millage rate for such levy is 7.00 mills. The estimated computed millage rate may change based on changes in circumstances.
 
The total amount of qualified bonds currently outstanding is $32,140,000.  The total amount of qualified loans currently outstanding is approximately $1,601,284.
 
(Pursuant to State law, expenditure of bond proceeds must be audited, and bond proceeds cannot be used for repair or maintenance costs, teacher or administrator or employee salaries, or other operating expenses.)
 
 

In the ballot language, the first paragraph states a not to exceed figure of $68,000,000 of general obligation unlimited tax bonds, what does this mean?

 
If this bond proposal is approved by voters, the maximum amount of bonds to be issued can be no greater than $68,000,000.  

In the ballot language, it states that the estimated millage that will be levied in 2021 to pay the proposed bonds in the first year is 1.18 mills, what does this mean?

 
This means that the total estimated bond millage rate to be levied in the first year (2021) for this proposal is 1.18 mills. (1.18 mills new bonds + 5.82 mills existing bonds = 7.00 total estimated 2021 millage rate)

In the ballot language it states that the maximum number of years any series of bonds may be outstanding, exclusive of refunding, is not more than 30 years, what does this mean?

 
The school district plans to issue the bonds in 2 separate series, in 2021 and 2023. Each bond series would have a length of 30 years or shorter.

In the ballot language it states that estimated simple average annual millage that will be required to retire each bond series is 4.04 mills annually, what does this mean?

 
This means that over the entire life of the bond proposal (2 bond series) that the average annual bond millage rate related to this proposal is estimated to be 4.04 mills.
 

In the ballot language it states that the school district expects to borrow from the State to pay debt service on the bonds. It also says the estimated total principal amount of the borrowing is $6,499,371 and estimated interest is $6,824,042. What does this mean?

 
In order to achieve a lower targeted total bond millage rate of 7.00 mills, the school district is utilizing a State program known as the School Loan Revolving Fund ("SLRF"). The SLRF provides loans to school districts for voted bond issues reducing the amount property taxes needed to be collected from the community in order to fund the annual bond payments during the borrowing period. This paragraph provides the estimated amount of borrowing and interest associated with this bond proposal by participating in the SLRF.
 

In the ballot it states that the estimated duration of the borrowing is 18 years and that the estimated computed millage rate for such levy is 7.00 mills. What does this mean?

 
This section means that it is estimated that the school district will participate in the SLRF for an 18 year duration and that the presently agreed upon participation bond millage rate is 7.00 mills.
 

In the ballot language it states that the amount of qualified bonds currently outstanding is $32,140,000 and that the total amount of qualified loans currently outstanding is $1,601,284. What does this mean?

 
The Michigan School Bond Qualification and Loan Program ("SBQLP") is a state program that assists school districts with voted bond issues by providing a bond rating credit enhancement that reduces borrowing costs. The term "qualified" in this case means that the school district has existing bonds outstanding that are qualified by the SBQLP. At the time of the election the principal amount of qualified bonds is $32,140,000.
 
In order to achieve a lower targeted total bond millage rate of 7.00 mills, the school district has utilized a State program known as the School Loan Revolving Fund ("SLRF"). The SLRF provides loans to school districts for voted bond issues reducing the amount property taxes needed to be collected from the community in order to fund the annual bond payments during the borrowing period. In this case the term "qualified loans" is referring to the school district's present estimated principal and interest SLRF balance of $1,601,284.