BALLOT LANGUAGE

What will this look like on the ballot? 

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I.

PAW PAW PUBLIC SCHOOLS
BONDING PROPOSAL

Shall Paw Paw Public Schools, Van Buren County, Michigan, borrow the sum of not to exceed Forty-Seven Million Five Hundred Thousand Dollars ($47,500,000) and issue its general obligation unlimited tax bonds therefor, in one or more series, for the purpose of:

erecting, furnishing and equipping additions to existing school buildings; remodeling, including security improvements to, furnishing and refurnishing, and equipping and re-equipping existing school buildings; erecting, including security features, furnishing and equipping a new early childhood center and a support building; acquiring and installing instructional technology and instructional technology equipment for new and existing school buildings; purchasing school buses; and developing, equipping and improving playgrounds, athletic fields and facilities, parking areas, driveways and sites?

The following is for informational purposes only:

The estimated millage that will be levied for the proposed bonds in 2022, under current law, is 1.35 mills ($1.35 on each $1,000 of taxable valuation). The maximum number of years the bonds of any series may be outstanding, exclusive of any refunding, is thirty (30) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 3.54 mills ($3.54 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 that borrowing is $9,089,846 and the estimated total interest to be paid thereon is $4,240,774. The estimated duration of the millage levy associated with that borrowing is fourteen (14) years and the estimated computed millage rate for such levy is 8.20 mills. The estimated computed millage rate may change based on changes in certain circumstances.

 

The total amount of qualified bonds currently outstanding is $42,500,000. The total amount of qualified loans currently outstanding is approximately $1,027.

 

(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.)

Proposal 1 Ballot Language Financial Frequently Asked Questions (“FAQ’S”)

In the ballot language, the first paragraph states a not to exceed figure of $47,500,000 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 $47,500,000.

In the ballot language, it states that the estimated millage that will be levied in 2022 to pay the proposed bonds in the first year is 1.35 mills, what does this mean?

This means that the allocated bond millage for this proposal to be levied in the first year (2022) is 1.35 mills. (1.35 mills new bonds + 6.85 mills existing bonds = 8.20 total estimated 2022 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 3 separate series, in 2022, 2024, and 2026. Each bond series would have a length of 30 years or shorter.

 

In the ballot language it states that the estimated simple average annual millage that will be required to retire each bond series is 3.54 mills annually, what does this mean?

This means that over the entire life of the bond proposal (3 bond series) that the average annual bond millage rate is estimated to be 3.54 mills.

 

In the ballot language, it states that the school district does expect to borrow from the State to pay debt service on the bonds.  It also says the estimated total principal amount of the borrowing is $9,089,846 and the estimated interest is $4,240,774.  What does this mean?

To achieve a lower targeted total bond millage rate of 8.20, 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 of property taxes needed to be collected from the community 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 language, it states that the estimated duration of the borrowing is 14 years and that the estimated computed millage rate for such levy is 8.20 mills. What does this mean?

This section means that it is estimated that the school district will participate in the School Loan Revolving Fund ("SLRF") for a 14-year duration and that the presently agreed upon participation bond millage rate is 8.20.

 

In the ballot language, it states that the amount of qualified bonds currently outstanding is $42,500,000 and that the total amount of qualified loans currently outstanding is $1,027.  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 which assists in reducing 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 $42,500,000.

 

To achieve a lower targeted total bond millage rate of 8.20, 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 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 $1,027.

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II.

PAW PAW PUBLIC SCHOOLS
BONDING PROPOSAL

Shall Paw Paw Public Schools, Van Buren County, Michigan, borrow the sum of not to exceed Fifteen Million Five Hundred Thousand Dollars ($15,500,000) and issue its general obligation unlimited tax bonds therefor for the purpose of:

erecting, developing, improving, furnishing and equipping athletic buildings, fields and facilities; and acquiring, developing and improving parking areas, driveways and sites?

The following is for informational purposes only:

The estimated millage that will be levied for the proposed bonds in 2024, under current law, is 0.99 mill ($0.99 on each $1,000 of taxable valuation). The maximum number of years the bonds may be outstanding, exclusive of any refunding, is twenty-eight (28) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 1.14 mills ($1.14 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 that borrowing is $1,290,550 and the estimated total interest to be paid thereon is $351,119. The estimated duration of the millage levy associated with that borrowing is six (6) years and the estimated computed millage rate for such levy is 8.20 mills. The estimated computed millage rate may change based on changes in certain circumstances.

The total amount of qualified bonds currently outstanding is $42,500,000. The total amount of qualified loans currently outstanding is approximately $1,027.

(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.)

 
 

Proposal 2 Ballot Language Financial Frequently Asked Questions (“FAQ’S”)

In the ballot language, the first paragraph states a not-to-exceed figure of $15,500,000 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 $15,500,000.

In the ballot language, it states that the estimated millage that will be levied in 2024 to pay the proposed bonds in the first year is 0.99 mills, what does this mean?

This means that the allocated bond millage for this proposal to be levied in the first year (2024) is 0.99 mills. (0.99 mills new bonds + 7.21 mills existing bonds = 8.20 total estimated 2024 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 28 years, what does this mean?

The school district plans to issue the bonds in 1 separate series, in 2024. Each bond series would have a length of 28 years or shorter. 

 

In the ballot language it states that the estimated simple average annual millage that will be required to retire each bond series is 1.4 mills annually, what does this mean?

This means that over the entire life of the bond proposal (1 bond series) that the average annual bond millage rate is estimated to be 1.14 mills.

 

In the ballot language it states that the school district does expect to borrow from the State to pay debt service on the bonds. It also says the estimated total principal amount of the borrowing is $1,290,550 and estimated interest is $351,119. What does this mean?

To achieve a lower targeted total bond millage rate of 8.20, 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 of property taxes needed to be collected from the community 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 language, it states that the estimated duration of the borrowing is 6 years and that the estimated computed millage rate for such levy is 8.20 mills. What does this mean?

This section means that it is estimated that the school district will participate in the School Loan Revolving Fund ("SLRF") for a 6-year duration and that the presently agreed upon participation bond millage rate is 8.20.

In the ballot language it states that the amount of qualified bonds currently outstanding is $42,500,000 and that the total amount of qualified loans currently outstanding is $1,027. 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 which assists in reducing 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 $42,500,000.

 

To achieve a lower targeted total bond millage rate of 8.20, 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 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 $1,027.

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