Edwardsburg Public Schools

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Bond 2024 » 2024 ZERO Mill Bond Proposal

2024 ZERO Mill Bond Proposal


 

 


 

 

 

Edwardsburg Public Schools

May 7, 2024 Bond – FAQs

(Click each question to view answer)

 

 

 

OVERVIEW & FUNDING

Many school districts in the State of Michigan typically seek approval for bond proposals every 5-10 years.  This allows for significant improvements to occur and keep district facilities current.  The last bond proposals brought to the Edwardsburg Schools district voters were a pair of failed elections in August and November of 2022.  Prior to that, the last successful bond proposal was approved by voters in September of 2001.

The Board of Education and district administration would like to keep the momentum going and are hoping to build upon the recent facilities improvements successes that have been supported by the community.  The desire for continuous facilities improvements is driven by the district strategic plan.  Overall, a key goal for the district is to prepare our kids to be successful in life. Upgraded facilities that support education for our current and future students will have a major impact in achieving this goal.

Due to the size and scale of school buildings, maintenance, updates, and replacement of facilities is costly and often not possible through the traditional funding received by school districts.  Our district has a number of growing needs that require large sums of money to undertake.  A bond proposal is the best approach to making the significant updates and improvements needed at EPS.

Schools receive funding from a number of sources.  A simple breakdown of the sources is as follows:

Foundation Per Pupil Allowance*#

The State of Michigan provides a per pupil amount of funding to school districts.  Currently, the amount received per pupil is $9,608.

Operational Millage (Non-Homestead tax levy)*#

This is a voter-approved tax levy that provides operational funding to support the annual school budget.  The current Non-Homestead levy in the Edwardsburg Public Schools district is 18.0 mills.  This funding is included in the Foundation Per Pupil Allowance above.  This is not an additional funding source.

* Staff salaries and benefits account for approximately 80-85% of the use of Foundation and Operational Millage funding.  The remainder of these funds are typically used for costs of educational programs, building operation costs, and supplies.  This leaves very little funding available for facility improvements. 

# In the State of Michigan, school infrastructure is not included in the Foundation Per Pupil Allowance.  Funding for school infrastructure improvements is obtained through local voter support.

Voter-Approved Sinking Funds

Voter-approved sinking funds provide an annual collection of taxes based on property values.  Typically, the collection provides a smaller amount of funding that allows for minor facilities improvements and renovations.  Under new legislation, sinking funds can pay for buses, student technology and safety/security improvements.  Sinking funds cannot be used for the purchase of furniture.  Edwardsburg Public Schools currently does not levy a millage for sinking fund.

Voter-Approved Bond Funds

A bond is a state-approved borrowing process for a set scope of projects.  When voters approve a bond proposal, the school district sells bonds in the authorized amount and uses the proceeds of the sale to pay for those projects identified in the bond proposal.  Bond proposals are most useful when a district needs a large funding source for facility improvement projects.

In many ways, the bonding process is like a homeowner obtaining a mortgage and making payments over a period of years.  The current levy for bond debt in the Edwardsburg Public Schools District is 2.85 mills.  The May 2024 bond proposal would not increase the tax rate.  The levy will stay at 2.85 mills.

One mill equates to 1/1000th ($1 per $1,000 of tax assessed value) of a property’s tax assessed value.  Tax-assessed value is approximately ½ of the market value of a property.  In the case of the current 0.85 mill levy, a sample calculation of the millage impact on a $200,000 market value home is as follows:

                                $200,000 market value home = $100,000 tax assessed value

                                $100,000 x .001 = $100 per year or $8.34 per month / $1.92 per week / $0.28 per day

                Homeowners can refer to their latest tax statement for their home’s tax assessed value.

The current debt millage tax rate of 2.85 mills is estimated to remain the same if the bond proposal is approved by voters on May 7, 2024.  The means the rate would not increase above the current levy. 

The tax rate of 2.85 mills will not change.  There would be no additional increase over this rate to complete the projects.  The maximum number of years the bonds of any series may be outstanding, exclusive of any refunding is 21 years.  The bond would not be responsible for changes in market conditions such as rising property values/assessments.  The amount of tax paid could potentially change due to these variables that are not driven by the bond proposal tax impact.

No, by law, bond proposal funds cannot be used for employee salaries and benefits, athletics, or student programming.  They also cannot be used for repair or maintenance costs or other operating expenses.  Bond proposal funds must be used only for purposes specified in the ballot language, and as required by state law, they must be independently audited.

District

Bond Millage Rate (2023)

Sinking Fund Millage Rate (2023)

Combined Millage Rate (2023)

Plainwell

10.55

0.00

10.55

Sturgis

7.00

1.72

8.72

Allegan

7.55

0.98

8.53

Otsego

8.49

0.00

8.49

Paw Paw

8.20

0.00

8.20

Mattawan

7.00

0.00

7.00

Vicksburg

6.60

0.00

6.60

Dowagiac

5.10

0.00

5.10

Three Rivers

4.90

0.00

4.90

St. Joseph

3.70

0.99

4.69

Niles

3.40

0.99

4.39

Lakeshore

2.80

1.47

4.27

Berrien Springs

3.00

0.00

3.00

Edwardsburg

2.85

0.00

2.85

 

We appreciate the continued investment the community has made in our school district and have been mindful of our impact to taxpayers by not asking for a tax rate increase over the current levy. 

The millage will impact all real properties that you own that are located within the Edwardsburg Public Schools District boundary.  This applies to businesses, primary (homestead) and secondary homes (non-homestead).  All properties are assessed for debt millage based on their taxable value.

Research shows that real estate values tend to be higher in communities with school district that offer quality educational programming and have up to date school facilities. 

No. The bonds would be sold in series.  A series bond means that voters are asked to approve the overall bond amount once at the May 7, 2024 election.  Approval at this election authorizes the district to sell bonds up to the amount of $24.40 million over the next few years.  Timing of the sale of bonds is monitored and suggested by the district’s financial manager, PFM Financial Advisors. Following a successful election, the first series would be sold in August of 2024.  The second series is anticipated to be sold in August of 2027.  This approach is an opportunity to save in interest costs, and it also staggers cash flow for the project, so it is received when needed for construction to align with the potential staggered start and completion dates of the proposed projects.  This strategy also allows the district to keep the millage impact to a 0-mill increase over the current levy of 2.85 mills.

School buildings are constantly in need of facility updates.  As we move into the future, the district will monitor opportunities for generating funding for necessary facility improvements.  There is no specific timing that has been identified, however we would anticipate a future opportunity to exist in 5-10 years to seek voter approval of another bond.  The timing will be dependent upon property value changes and other variables.  As these future opportunities arise, the district intends to continue to be transparent with the community and will seek feedback on potential approaches.

The District will be sharing information through community meetings, direct mailings, social media, the EPS website, local news media and e-mail.
 
 
 
BOND SCOPE & SCHEDULE

Edwardsburg Public Schools is committed to a process of creating and maintaining a proactive approach to updating facilities.  Continually evaluating and monitoring school facilities helps to protect the community’s investment in its schools.  A comprehensive effort has been made early in the process to identify current facility needs while also identifying and anticipating future needs through the creation of a long-term facilities plan.  We appreciate the previous community investments and want to continue to build upon the success of past projects.  Facilities are a major component in creating environments that support our vision of providing innovative, diverse, and inspiring learning opportunities for our students. 

During the summer and fall of 2021, working with architectural, engineering and construction specialists, the school district completed an in-depth facility study.  The study identified districtwide facility needs and has helped inform the proposed direction of the bond proposal.  Overall, there were approximately $68.3 million dollars of total facilities recommendations indicated in the report for our educational facilities.  A summary by building is as follows:

                Edwardsburg Primary School

                                Top Priority Recommendations                                                                                                 $4,875,068

                                Total All Recommendations                                                                                                    $11,772,816

                                Estimated Building Replacement Cost (36,181 sf)                                                           $18,090,500

                                FCI Index                                                                                                                                                      65.1%

 

                Eagle Lake Elementary School

                                Top Priority Recommendations                                                                                                 $5,606,725

                                Total All Recommendations                                                                                                    $14,179,500

                                Estimated Building Replacement Cost (54,056 sf)                                                           $27,028,000

                                FCI Index                                                                                                                                                      52.5%

 

                Edwardsburg Intermediate School

                                Top Priority Recommendations                                                                                                    $745,333

                                Total All Recommendations                                                                                                      $5,674,088

                                Estimated Building Replacement Cost (73,344 sf)                                                           $36,672,000

                                FCI Index                                                                                                                                                      15.5%

 

                Edwardsburg Middle School

                                Top Priority Recommendations                                                                                                 $6,009,078

                                Total All Recommendations                                                                                                    $15,806,126

                                Estimated Building Replacement Cost (92,263 sf)                                                           $46,131,500

                                FCI Index                                                                                                                                                      34.3%

 

                Edwardsburg High School

                                Top Priority Recommendations                                                                                                 $8,514,551

                                Total All Recommendations                                                                                                    $20,835,248

                                Estimated Building Replacement Cost (182,721 sf)                                                        $91,360,500

                                FCI Index                                                                                                                                                      22.8%

                                TOTAL ALL RECOMMENDATIONS                                                                                                          $68,267,778

 

In fall of 2021, conversations with staff and the Board of Education identified additional thoughts for advancing the facility offerings as they relate to the educational needs and goals of the district.  An all-staff survey was conducted in addition to these conversations to allow for input from all roles within the district.  Many of the items that were shared were beyond the maintenance and upkeep needs identified in the facility study and were focused on projects that help support educational programming needs.

As ideas and scenarios were studied for a potential bond proposal, additional input was provided by a community-based steering committee during the late summer and fall of 2021 and early during 2022.  Input received was critical in testing potential scope ideas for a bond proposal along with gaining feedback on the financial impact to the community of a prospective bond.

Following the failed bond attempts in August and November of 2022, additional conversations were conducted with the board and community and arrived at the current plan.  The feedback received during the conversations suggested focusing on project initiatives that supported ‘comfortable, safe and dry environments for students.  Another key point of feedback received during the recent planning process was to propose bond financial scenarios that do not increase the millage rate over the current levy.

Key Priorities of the Established Bond Scope Include:

Safety and Security Upgrades – The safety and security of our students and staff is the highest priority.  Peace of mind in the classroom allows for a more comfortable learning experience. 

Improved Office Presence/Visitor Flow – Renovations at the main entries and office areas at all buildings will allow for improvements of visitor flow to be sent directly into the office from the secure vestibule.  This will improve the ability for staff to monitor every visitor that enters the buildings. Interior doors will also be replaced at the Middle School.

Door Hardware and Access Control Upgrades – Rekeying of all doors throughout the district will provide easier access for staff to all spaces in the event of an emergency.  The current number of keys required to access doors takes a great deal of time to determine the appropriate key.  New access control points will be added to doors so that entry to the building is controlled and allowed to only those that are programmed in the system.

Fire Alarm System Replacement – The current fire alarm systems at Eagle Lake, Intermediate School and Middle School are out of date and difficult to service.  The proposed fire alarm system will provide enhanced emergency communication with students and staff that meets today’s code requirements.  A new system will be installed at the church building to allow for it to be used for educational purposes.

Fire Suppression System Installation – The church building requires the installation of an automatic sprinkler system to allow for the facility to be used for educational purposes.

Site Upgrades

Driveways and Drop-Off Loops– Updates to the driveways and drop-off/pick-up loops at the Primary School and Intermediate School are included in the bond scope.  A final solution hasn’t been fully designed but we anticipate the possibility of combining these into a larger drop-off loop that is convenient for parents with students at both buildings.

Educational Environment Improvements – As educational trends continue to change and evolve, our facilities need to be flexible and relevant in ways that best support best practices in teaching and learning.  State-of-the-art educational environments that are comfortable will help our students to be prepared for careers of the future.  The bond scope seeks to provide a combination of new amenities to support student performance.  

Classroom Environment Improvements – Classroom and corridor flooring will be replaced at Eagle Lake Elementary.  The High School Cafeteria renovation will allow for a better controlled environment that isn’t open to the main entry.  The renovated space will provide an opportunity for a space to support large group instruction.  The church building is planned to receive renovations to support its use for educational purposes.  The renovation will include updates to room sizes to support classroom uses and will also include the separation of the main and lower levels to provide separation for a variety of uses by different age groups.

Thermal Comfort and Air Quality Improvements - Mechanical systems will be upgraded to provide air conditioning at the Middle School and High School, creating year-round comfort for students and staff.  New temperature control systems will be installed to provide greater monitoring and adjustment of the mechanical systems.  The new mechanical systems will improve ventilation in our buildings providing better air quality throughout for healthier environments for our students and staff.

Educational Technology Upgrades – The rapidly changing world of educational technology is difficult for districts to keep up with utilizing only general funds.  As such, the bond proposes a modest allocation for the replacement of student devices and classroom technology devices such as projectors.

Classroom Furniture Upgrades – As our classroom furniture continually ages, we are in need of periodic replacement of our student desks and chairs.  As we look at replacement of furniture, we hope to update furniture with new options that are flexible and promote an agile classroom environment designed to support several modes of teaching and learning.

HVAC and Temperature Controls Upgrades

Mechanical Systems Replacement – Classroom units will be replaced at the Middle School and High School with new units that will be designed to provide consistent heating and air conditioning.  As part of the mechanical systems replacement, we will look at installing higher-efficiency equipment.  Upgrades to our mechanical systems will include updated building controls that will allow for greater monitoring and control over energy use.

Additional Infrastructure Upgrades - Energy savings improvements allow the district to divert funding from operational costs toward items that will directly affect education and have student impact.  The proposed bond scope includes a number of infrastructure and energy efficiency upgrades.

Roof Replacement – Replacement of roofing at the Middle School and High School will provide assurance for maintaining dry interior environments for our students and staff.  The district has been in the process of systematically replacing the poorest areas of building roof using general fund.  The roofing needs are too great to fund strictly with general funds.

Restroom Renovations – Restrooms at Eagle Lake will be updated with new fixtures and finishes.  New layouts for the spaces will also be designed so that the restrooms meet current ADA clearance requirements.

Additional Infrastructure Upgrades – Replacement of domestic water lines (drinking/handwashing water) at Eagle Lake and EHS is proposed so that the current galvanized lines that are original to the buildings are removed and replaced with new copper water lines.  The new lines will help promote better water quality and will replace lines that are old and problematic for district maintenance staff.

                                                                                                                        Estimated Investment                                   Percentage of Bond Fund Distribution

Total For All Bond Projects                                                                                      $23,924,244                                                          

                                Safety and Security Upgrades                                                                                     $4,331,693                                                                        18.11%

                                Site Upgrades                                                                                                                    $2,109,800                                                                           8.82%

Educational Environment Upgrades                                                                         $4,382,020                                                                        18.32%

                                HVAC and Temperature Upgrades                                                                            $6,171,705                                                                        25.80%

                                Additional Infrastructure Upgrades                                                                          $6,929,026                                                                        28.96%

While funding from this bond proposal is independent of the district’s general fund operating budget, the bond would likely have a positive impact on the district’s general fund by allowing the district to reallocate operating funds that are currently being spent on aging facilities, mechanical systems, safety and technology.  The operational savings generated from renovated and cost-efficient facilities could be redirected to student programs and resources.

While funding from this bond proposal is independent of the district’s general fund operating budget, the bond would likely have a positive impact on the district’s general fund by allowing the district to reallocate operating funds that are currently being spent on aging facilities, mechanical systems, safety and technology.  The operational savings generated from renovated and cost-efficient facilities could be redirected to student programs and resources.

The bond proceeds can only be spent for purposes approved by the voters.  Michigan Law requires that the spending of the funds be audited by an independent auditing firm.

If approved by voters, the District’s architect/engineer would design the proposed projects and prepare construction documents and specifications for the projects.  Following the design process, the District’s construction manager will assemble bid packages and publicly advertise the projects to solicit competitive bids.  This bidding process is required by law as outlined in the Revised School Code.  This process ensures that the District selects the lowest responsive and responsible bidder.  All qualified contractors will have an opportunity to attend a pre-bid meeting to obtain additional information and project clarifications.  All qualified contractors will have the opportunity to participate in the competitive bid process.

The budgeting that has been provided for the proposed bond scope is based on current market conditions.  Going forward, the costs include typical yearly escalation factors and construction contingency funds for unforeseen conditions that are encountered during construction.  The district will work to preserve the projects as originally presented to the community during the pre-bond planning phase.  In the event unexpected market conditions arise, the district intends to implement projects in order of highest priority to lowest priority and will be fully transparent about any change in plans that may be necessary due to elements outside of their control. 

The budgeting that has been provided for the proposed bond scope is based on current market conditions.  Going forward, the costs include typical yearly escalation factors and construction contingency funds for unforeseen conditions that are encountered during construction.  The district will work to preserve the projects as originally presented to the community during the pre-bond planning phase.  In the event unexpected market conditions arise, the district intends to implement projects in order of highest priority to lowest priority and will be fully transparent about any change in plans that may be necessary due to elements outside of their control. 

 
 
 

VOTING INFORMATION

Election day is Tuesday, May 7, 2024.  Polls are open from 7:00 a.m. – 8:00 p.m.  You will vote at your usual polling location for local, state and national elections. 

Residents within the Edwardsburg Public Schools district who will be 18 years of age or older on Election Day and are registered to vote.  Additional requirements are as follows:

  • You must be a Michigan resident at the time you register and must be a resident of your city or township for at least 30 days when you cast your vote.
  • Must be a United States citizen.
  • Not currently serving a sentence in jail or prison.

Proof of Residency is required.  You must show proof of where you live.  Documents must have your name and current address.  You can show a digital copy of documents to satisfy this requirement.  Acceptable documents include:

  • Michigan driver’s license or state ID
  • Current utility bill.
  • Bank statement.
  • Paycheck or government check.
  • Other government issued document.

College and university students have the option to register at their home address or campus.  Students can vote in person at their polling place or with an absentee ballot. Regardless of which option they choose, as a college student, it is vital that they register and vote as early as possible.  You may find additional information at www.michigan.gov/vote

Yes, if you rent a house or apartment, you can still vote.  You must be a registered voter in the city or township you are living in and live within the school district’s boundaries.

Owners of property are only eligible to vote if they reside in the school district boundaries.

Go to the Michigan Voter Information website www.michigan.gov/vote or call the Clerk’s Office where you reside.

You need to update your voter registration if you have changed your name or address since the last time you voted.  You can do this at any Secretary of State Office or at the Clerk’s Office where you reside.

You can register any time up to 8:00 p.m. on Election Day at your city or township clerk’s office.  If you are registering another way, your voter registration application must be received or postmarked at least 15 days before the election.

Yes. Since voter approval of Proposal 3 in November 2018, registered voters do not need a reason to vote by absentee ballot. You can request an absentee ballot application from your Clerk’s Office or by going online to www.michigan.gov/vote and clicking on Apply for an Absentee Ballot Online in the left column.

Absentee ballots should be available to voters no later than March 28, 2024, and may be cast through Election Day.

Below is what voters can expect to see on the ballot related to this bond proposal.  The ballot language is written by the school’s bond counsel and is written to comply with legal requirements of state statutes.

EDWARDSBURG PUBLIC SCHOOLS

BOND PROPOSAL

Shall Edwardsburg Public Schools, Cass County, Michigan, borrow the sum of not to exceed Twenty-Four Million Four Hundred Thousand Dollars ($24,400,000) and issue its general obligation unlimited tax bonds therefor, in one or more series, for the purpose of:

remodeling, including security improvements to, climate control systems for, and roof improvements to, furnishing and refurnishing, and equipping and re-equipping school buildings; acquiring and installing instructional technology and instructional technology equipment for school buildings; and developing and improving playgrounds, driveways, and sites?

The following is for informational purposes only:

The estimated millage that will be levied for the proposed bonds in 2024 is 1.60 mills ($1.60 on each $1,000 of taxable valuation) for a 0 mill net increase over the prior year’s levy. The maximum number of years the bonds of any series may be outstanding, exclusive of any refunding, is twenty-one (21) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 2.19 mills ($2.19 on each $1,000 of taxable valuation).

(Pursuant to State law, expenditure of bond proceeds must be audited and the proceeds cannot be used for repair or maintenance costs, teacher, administrator or employee salaries, or other operating expenses.)

 

 

 


 

 

EDWARDSBURG

V     O     I     C     E

SERVING EDWARDSBURG, UNION & SURROUNDING COMMUNITIES

MARCH 2024

 

Dear Edwardsburg Community,

 

Thank you for your continued support of Edwardsburg Public Schools! Once an Eddie, Always an Eddie continues to define who we are. Without the continued support and involvement of our staff, families, and community, we would not be able to improve and grow for our students. This year, the district is asking voters to consider a 0 mill safety, security, and infrastructure bond proposal on May 7, 2024.

 

Edwardsburg Public Schools and the Board of Education have spent the first part of the school year gathering input from staff, families, and the community to prioritize the facility needs of our district. We have listened to the community and taken to heart the request to have the school district remain fiscally responsible. To do so, we have worked to create a proposal that addresses as many needs as possible without increasing the tax rate. The 0 mill bond proposal is another way of saying an expected continuation of the current millage rate. At this point in time, a NO tax rate increase proposal would allow the district to sell bonds and generate approximately $24.4 million. Some voters have reached out to the district feeling that a 0 mill bond is too good to be true. We want to make sure that voters understand that the proposed $24.4 million is generated by keeping the current millage rate the same but extending the length of time taxpayers will pay. If the bond does not pass, the district will need to prioritize the repairs and updates to determine how much money will be pulled from the general fund, ultimately reducing programming and student opportunities.

 

EPS is excited at the possibility of addressing many of the infrastructure and security needs we have in our current buildings without raising millage rates. Please visit our website and social media pages for additional information, or reach out by phone or email as we want to make sure all of our voters have their questions answered and are informed before heading to the polls on May 7, 2024.