Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
On Monday, November 10th, the Board of Education of the Essexville-Hampton Public Schools
called for a bond and sinking fund to be voted on by you on February 24, 2015. We wanted
you to be the first to know and hope that this information helps to define our plan of ‘Forging
a New Foundation’ for the Essexville-Hampton Public Schools. Please look through the
information and if you should have any questions, comments, concerns or ideas, we welcome
your input.
Students
Saf
ety
& S
ecu
rity
Par
ents
& F
amily
Tec
hn
olo
gy
Fac
iliti
es
Bo
ard
& S
taff
Co
mm
un
ity
Education & Learning
Forging a New Foundation
November 12, 2014
Dear Essexville-Hampton Public Schools Community,
I am Matthew Cortez, your new Superintendent, and I would like you to read this important information.
Our district sought a bond issue this past August for $41.5 million, which was not successful. I have
learned that one needs to be quick to listen and slow to speak, so I decided to listen.
The proposal that is now in front of you is the first step toward a vision of leadership for our district and
our students into the future. This first stage has been called “Forging a New Foundation,” because that
is precisely what this bond and sinking fund will allow us to accomplish. We need to upgrade and stabilize the foundational structure within our district. We also have to create a sustainable plan for
continued maintenance for our facilities.
The bond allows for our immediate needs to be met, and establishes a strong technological foundation
from which we can develop in the 21st century. However, the bond is substantially smaller and for a
few reasons. Our tax base has decreased with the closing of the Weadock plant and will decrease
further in the next two years with the devaluation of the Karn facilities. This means that our bond will
not produce the same amount of money per mill that it did with our last attempt. So, we had to
downsize the scope and the intensity of the repairs and break them into stages, which gives us the
time to further stabilize our economy.
Due to the smaller bond size we decided that we need to bring forth a sinking fund. This is a measure
to help address the various needs of our facilities over the next five years. The sinking fund has an
advantage of no interest and no cost to set up. Another difference is that the sinking fund is not
obligated to a set scope of projects and can be adjusted as the district’s needs change during the five
year period. All of this allows for the sinking fund to be a better bang for the buck. A sinking fund is
dedicated monies raised to upgrade or replace infrastructural buildings in accordance with the state
law and cannot be spent on certain items, like technology. So, we have to pair the bond and sinking
fund together in "Forging a New Foundation". The sinking fund is a different approach that has not
been used before in our district and we truthfully feel it is the right answer at this time.
Both the sinking fund and bond are regulated by the State of Michigan and cannot be used for salaries,
routine maintenance, or other restricted items. Both funds are audited yearly, and independent of the
general fund audit that is performed annually. The bond monies are for use immediately, and the
sinking fund monies will be distributed over five years. This allows for work to occur in phases, which
will cause less disruption to the school day for students. This first stage of work will allow us to illustrate
the tremendous ideas and vision we have for our district. We have enclosed a great deal of information
within this brochure and ask that you please review it. If you have any questions, please come and
share them with us at our scheduled meetings listed on the back of this flier. We have designated some
district-wide town hall meetings and building level meetings already, but know that my door and ears
are always open for any community member. We hope this information helps to outline our efforts in
“Forging a New Foundation” for our district and our community.
Educationally yours,
Matthew T. Cortez
Superintendent
Bush Elementary School
Bond/Sinking Fund Proposed Projects
State-Approved Bond Projects:
Replace leaking roof
Improve exterior wall
Remove existing masonry chimney
Replace existing lockers
Upgrade main entrance for security
Upgrade mechanical equipment (boilers)
Improve parking lot and site work
Upgrade wireless connectivity
Purchase and install technology units (projectors, computers, carts,
cameras, printers, classroom sound systems, etc.)
Upgrade phones/communication
Purchase and install security cameras
Proposed Uses of Sinking Fund Monies:
Upgrade terrazzo flooring
Provide toilet room exhaust fans
Upgrade toilet room partitions
Upgrade various mechanical units as needed (heaters, chillers, water
heater, etc.)
*A sinking fund is a flexible account used to address the most pressing and emergency needs
of a district for upgrading and replacing infrastructure pieces, not for maintenance items.
Cramer Junior High School
Bond/Sinking Fund Proposed Projects
State-Approved Bond Projects:
Upgrade wireless connectivity
Purchase and install technology units (projectors, computers, carts,
cameras, printers, classroom sound systems, etc.)
Upgrade phones/communication
Replace locker room lockers
Add lockers for 5TH grade wing
Purchase and install security cameras
Replace damaged section of gym floor
Renovate gym wall
Proposed Uses of Sinking Fund Monies:
Renovate leaking roof
Provide toilet room exhaust fans
Replace selected interior doors/hardware
Provide cross corridor door assemblies for security
Upgrade various mechanical units as needed (heaters, chillers, water
heater, etc.)
*A sinking fund is a flexible account used to address the most pressing and emergency needs
of a district for upgrading and replacing infrastructure pieces, not for maintenance items.
Garber High School
Bond/Sinking Fund Proposed Projects
State-Approved Bond Projects:
Replace leaking roof
Improve exterior walls
Refurbish exterior doors and sidelights
Replace student lockers
Replace pool roof and roof floor deck
Purchase and install wireless connectivity
Purchase and install technology units (projectors, computers, carts, cameras,
printers, classroom sound systems, etc.)
Upgrade phones/communication
Purchase and install security cameras
Proposed Uses of Sinking Fund Monies:
Upgrade entrances/exits for safety (including band room)
Upgrade lighting, sound, and technology in auditorium
Abate and replace main hallway ceiling
Install safety lights in auditorium
Upgrade heating pipe insulation
Replace selective interior doors/hardware
Install emergency gas shut-offs
Refurbish electrical panel in pool area
Upgrade outside air louvers
Upgrade existing tennis courts
Upgrade existing outdoor bleacher boards
Upgrade various mechanical units as needed (heaters, chillers, water heater,
etc.)
*A sinking fund is a flexible account used to address the most pressing and emergency needs
of a district for upgrading and replacing infrastructure pieces, not for maintenance items.
Estimated Taxes Based On SEV Values This is the proposed Bond and Sinking Fund. This chart is the Mill rate through the years.
Home SEV Value $25,000 $35,000 $50,000 $65,000 $80,000 $125,000 $175,000
Home Retail Value $50,000 $70,000 $100,000 $130,000 $160,000 $250,000 $350,000
Year New Mill New Current New Current New Current New Current New Current New Current New Current
2015 6.68 $167 $79 $234 $110 $334 $158 $434 $205 $534 $252 $835 $394 $1,169 $551
2016 6.68 $167 $79 $234 $110 $334 $158 $434 $205 $534 $252 $835 $394 $1,169 $551
2017 4.37 $109 $79 $153 $110 $219 $158 $284 $205 $350 $252 $546 $394 $765 $551
2018 4.37 $109 $79 $153 $110 $219 $158 $284 $205 $350 $252 $546 $394 $765 $551
2019 4.37 $109 $79 $153 $110 $219 $158 $284 $205 $350 $252 $546 $394 $765 $551
5yr Comparison $662 $394 $926 $551 $1,324 $788 $1,721 $1,024 $2,118 $1,260 $3,309 $1,969 $4,632 $2,756
2020 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2021 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2022 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2023 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2024 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2025 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2026 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2027 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2028 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
2029 1.37 $34 $79 $48 $110 $69 $158 $89 $205 $110 $252 $171 $394 $240 $551
10yr Comparison $343 $788 $480 $1,103 $685 $1,575 $891 $2,048 $1,096 $2,520 $1,713 $3,938 $2,398 $5,513
15yr Comparison $1,004 $1,181 $1,406 $1,654 $2,009 $2,363 $2,611 $3,071 $3,214 $3,780 $5,021 $5,906 $7,030 $8,269
Difference $177 $248 $354 $460 $566 $885 $1,239 * Savings is based on the current tax rate of 3.15 mills for the next 15 years versus the proposed new Bond and Sinking Fund Plan for the next 15 years.
Bond
Proposed Millage Amount $ Years Est. Mill Rate Tax Year
1.37 $ 4,970,000.00 2 0.53 2015-2016
13 1.37 2017-2030
Sinking Fund
Proposed Millage Amount $ Years Est. Mill rate Tax Year
3 $ 5,575,964.00 5 3 2015-2019
Year Current Mill New Mill Total Mill Funding
2015 3.15 3.53 6.68 $ 6,083,170
2016 3.15 3.53 6.68 $ 1,090,907
2017 0 4.37 4.37 $ 1,107,270
2018 0 4.37 4.37 $ 1,123,879
2019 0 4.37 4.37 $ 1,140,738
2020-30 0 1.37 1.37 N/A
The chart below estimates taxes compared to the current rate:
1. Find your home’s SEV Value or Taxable Value.
(Please visit https://www.bit.ly/BayCountySEV for your SEV Value)
2. Notice that the first five years the taxes will fluctuate.
3. In the last ten years the taxes are stable at 1.37 mills.
4. Results are a tax savings* over the 15 year period.
Mark Jaffe Building/District
Bond/Sinking Fund Proposed Projects
State-Approved Bond Projects:
Purchase buses
Upgrade phones/communication
Purchase and install security cameras
Purchase and install sound presentation system for
conference room
Proposed Uses of Sinking Fund Monies:
Upgrade exterior lighting
Upgrade various mechanical units as needed (heaters,
chillers, water heater, etc.)
*A sinking fund is a flexible account used to address the most pressing and
emergency needs of a district for upgrading and replacing infrastructure pieces,
not for maintenance items.
Verellen Elementary School
Bond/Sinking Fund Proposed Projects
State-Approved Bond Projects:
Construct new cafeteria/multi-purpose room
Improve exterior walls
Replace existing lockers
Add additional lockers
Renovate main lobby and corridors
Improve parking lot and site work
Upgrade wireless connectivity
Purchase and install technology units (projectors, computers, carts,
cameras, printers, classroom sound systems, etc.)
Upgrade phones/communication
Purchase and install security cameras
Proposed Uses of Sinking Fund Monies:
Upgrade exterior doors and sidelights
Provide toilet room exhaust fans
Upgrade air supply to ventilators
Upgrade mechanical units as needed (heaters, chillers, water heater, etc.)
*A sinking fund is a flexible account used to address the most pressing and emergency needs
of a district for upgrading and replacing infrastructure pieces, not for maintenance items.
Language for Ballot ProposalsBonding Proposal
I. Shall Essexville-Hampton Public Schools, Bay County, Michigan, borrow the sum of not to exceed Four Million Nine Hundred Seventy Thousand Dollars ($4,970,000) and issue its general obligation unlimited tax bonds therefor, for the purpose of:
The following is for informational purposes only:The estimated millage that will be levied for the proposed bonds in 2015 is .53 mill ($.53 on each $1,000 of taxable valuation). The maximum number of years the bonds may be outstanding, exclusive of any refunding, is fifteen (15) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 1.37 mills ($1.37 on each $1,000 of taxable valuation). The school district does not expect to borrow from the State to pay debt service on the bonds. The total amount of qualified bonds currently outstanding is $3,420,000. The total amount of qualified loans currently outstanding is $-0-. The estimated computed millage rate may change based on changes in certain circumstances. (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.)
Millage Proposal, Building and Site Sinking Fund Tax LevyII. Shall the limitation on the amount of taxes which may be assessed against all property in Essexville-Hampton Public Schools, Bay County, Michigan, be increased by and the board of education be authorized to levy not to exceed 3 mills ($3.00 on each $1,000 of taxable valuation) for a period of 5 years, 2015 to 2019, inclusive, to create a sinking fund for 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 2015 is approximately $1,113,170?
FREQUENTLY ASKED QUESTIONSQ- What is the difference between a bond and a sinking fund?
A-The bond is a State-approved funding process that has a set scope of projects and cannot be expanded without communicating to the State – it is set in stone. A sinking fund is a funding initiative to give a district flexibility in meeting its individual needs. The project list is not set in stone and the district can add and subtract projects as needs arise or go
away. Both of these initiatives are heavily watched and audited separately from the general budget to account for every
dollar spent.
Q- Why are we seeking both a bond and sinking fund?
A-The economy and taxes recently took a downward turn in our district, due to the closing of power plants and
scheduled de-taxation of other plants. This means that the bond (being a long-term investment) is negatively impacted, whereas a sinking fund is a short-term investment that is not as affected. By combining both we are overcoming the limitations of both while listening to our community. The community wanted to see us work in stages and “Forging a
New Foundation” is the first stage of improvement for EHPS.
Q- Why do we need a bond issue?
A-Time has caught up with our four buildings and they need significant updating. Our kids deserve to have places to learn that are safe, secure and up-to-date. For instance, Verellen Elementary needs a cafeteria/multi-purpose room
because gym use is affecting core instructional time, so lunches must be shoe-horned in the schedule. We need to
eliminate gym time conflicts with core instructional time. Every school building has drawbacks that needs addressing as soon as possible. (Please see the listing of proposed improvements.) Q-Why another bond election now?
A-We were able to get a proposal on the Michigan Loan Bond Fund (MLBF) just in time. Otherwise we would not be able
to address infrastructure and technology problems until the MLBF opens again in 2016. Costs would be much higher if
we had to use private bond markets. Passage of a bond and sinking fund now will save money.
erecting, furnishing and equipping a cafeteria/multi-purpose room addition to Verellen Elementary School; remodeling, furnishing and refurnishing, and equipping and re-equipping, other school buildings and facilities; acquiring and installing instructional technology in school buildings; purchasing school buses; and preparing, developing, and improving sites?
Q-What do better school buildings mean to a community?
A-Essexville-Hampton always has been considered the best place to live in Bay County because of its outstanding school system. Many people have moved to this community mainly because of the good schools. Without modern infrastructure and technology in our schools, property values would not be as solid as they have been for years. Homes would be worth less. We need to continue to attract new families and keep a solid tax base for the schools. Our Essexville and Hampton Township communities need the stronger tax base as well.
Q-Why weren’t the buildings maintained as the years passed?
A-We have made continual repairs and patchwork upgrades wherever possible with our custodial/maintenance staff.For instance, the boilers at Bush Elementary are old and could go any day. The cost of replacement is about $150,000. Every homeowner knows roofs need replacement after 20 years or so and all our school roofs need to be repaired or replaced.
Q-Why are two questions going to be on the ballot February 24?
A-We determined that a sinking fund would give more flexibility in dealing with infrastructure problems; the bond issue can only be spent on specific improvements, nothing else. All the improvements will be listed on signs at each school for you to review, which are also in this brochure. Passage of both issues is vital to catch up on needs of all schools that were built in the 1960s.
Q-How much will the sinking fund and bond cost?
A-In 2015 and 2016, the old bond of 3.15 mills and an increase of 3.53 mills (for bond and sinking fund) willcombine for 6.68 mills total. The debt will then reduce to 4.37 mills until 2019. From 2020-2030 the debt millagewill be 1.37 mills. See center chart for details.
Q-Will any of the bond money go to pay teachers and staff?
A-No, there are strict restrictions that all the funds raised under these issues must be used ONLY for buildings and equipment necessary to support the outstanding student achievement in which this community is known. Bond fundscannot be used for administrative salaries or general operating expenses either.
Q-Are we paying for kids from other districts under Schools of Choice?
A-No, students from outside the E-H district bring with them the state aid of $7,000+ per student per year (depending on the state formula), and they are accommodated for learning in the classrooms and with the equipment we have forin-district students. There is no need for any extra spending for SOC students. Actually, the additional revenue they bring in helps us maintain programs for our kids.
Q-What about achievement? Are EHPS kids keeping up in academics as has always been the case?
A-The graduates of Garber are among the highest achieving students in Bay County. Our graduation rate is the highest in the area. Many students receive college scholarships that help parents offset today’s high cost of college. We need toshore up the environment with buildings and technology to meet the needs of today and tomorrow so high student achievement can continue to be an E-H hallmark.
Q-This election is in February and many people will be out of town; how can they support the schools?
A-The parents and community supporters on the committee are making an effort to get the information on the questions and make absentee ballots available to all who wish to vote. If you know a neighbor who needs information and/or an absentee ballot, please let us know by calling 894-9700.
IN SUMMARY, this revised program of improvement of the Essexville-Hampton Schools on the ballot February 24 will
make us stronger and more closely tied to the community. We urge all voters to consider it carefully as our future,
and that of the kids and the community, depends on its success.
Please join us for any of these informational meetings:
District Level Q & A
Wednesday 11/19/2014
6pm at Garber High
School
Wednesday 12/10/2014
6pm at Cramer Junior High School
Wednesday 2/11/2015
6pm at Bush
Elementary
Wednesday 1/21/2015
6pm at Verellen
Elementary
PRSRT STD
ECRWSS
U.S. POSTAGE
PAID
EDDM RETAIL
Local
Postal Customer
Verellen Elementary School
January 19, 2015 at
5 p.m.
Bush
Elementary School
January 19, 2015 at 6 p.m.
Garber
High School
Parent-Teacher Conferences
December 3, 2014 at 4 - 6:30 p.m.
Cramer Junior High School
Parent-Teacher Conferences
Nov. 11, 12, 24, 25 Building
Specific Q & A
Hosted By
Building
Principals and
Staff