Climax Scotts Community Schools May 2018 Bond Election Frequently Asked Questions

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1 Climax Scotts Community Schools 1. BOND PROPOSAL What is the District asking for as part of this Bond Proposal? The Bond Proposals request funds to: Proposal 1 WILL: Raise $9.40 Million for projects at ALL SCHOOLS with a 0.75 Mil increase over the current millage. Proposal 1+2 WILL: Raise $11.57 Million for projects at ALL SCHOOLS with a 0.85 Mil increase over the current millage. 1 P a g e

2 How much will the Bond Proposal cost? Bond Proposals 1+2 = $11.57 Million for 0.85 Mill increase over the current millage levy. Explain how the Bond Proposal was determined? During the summer months of 2017, architects and engineers from Kingscott and estimators from Triangle Associates, assessed the facilities of the district. They identified components and systems of the existing buildings that would need to be replaced or improved over the next five years along with an estimate of the cost to make the improvements. In the fall of 2017, the district convened a Facility Needs Committee tasked with developing a recommendation to the Board of Education that would address those needs. The committee began by developing the following guiding principles that would help them prioritize the needs: 1. Protect longevity and efficiency of the facilities/ improve the life cycle of the facilities/ protect the General Fund from big economic hits 2. Directly impact student learning, including technology 3. Improve student/staff safety & security in an efficient manner 4. Create a competitive edge with adjacent districts, provides programs others don t offer, create curb appeal, refresh educational spaces Using these principles, the committee reviewed the facilities assessment and costs and honed the list down to the highest priorities for recommendation. During this effort, additional needs were identified including replacement of technology and student furniture. A new auxiliary gymnasium was also identified to meet the high demand on existing district gymnasium space. These additional needs were also included in the recommendation that was presented to and accepted by the Board of Education on December 18, FUNDING / TAXES How much will it cost me? About $4.43/month for a home with a taxable value of $62,500 (approx. market value of $125,000). Taxpayers may see additional tax credits to reduce this amount based on their individual circumstances. What interest rate can the District expect to pay if the Bond passes? Proposals 1+2 = 4.25% for 19 years and 9 months. When do we start paying on the Bonds? Bonds are expected to be issued by August 2018 and will be reflected in the winter 2018 debt levy. What can the Bond funds be used for? What can the Bond funds NOT be used for? Allowed expenses include major remodeling, new construction, technology, busses and furniture. Bond funds cannot be used for building repairs/maintenance, instructional materials, and teacher or administrative salaries. Will the Bond dollars be spent on staff salaries or expenses? No. Money can only be spent on what is identified in the Bond application. By law, Bond dollars cannot fund employee salaries or District operational costs. Bond funds can only be used for the identified scope approved by the taxpayers. The state requires bond funding expenditures to be audited to ensure compliance with spending requirements. 2 P age

3 What is the School Bond Loan Fund and how will it help me as a taxpayer of the District? The School Bond Loan Fund (SBLF) is a self-sustaining funding program controlled by the Michigan Department of Treasury that makes loans to school districts to assist with making debt service payments on state qualified bonds issued under the School Bond Qualification and Loan Program. Any money repaid by school districts on loans made by the SBLF are deposited back into the fund for future use. The school district received a wonderful opportunity to utilize a State of Michigan funded program called "The School Bond Loan Fund (SBLF)" for a portion of the funding on this project. The minimum millage amount required before a District can participate in this program is 7.0 mils. When Proposal 1+ Proposal 2 pass, the current millage (6.45 mils) will be increased by mils utilizing this program (for a total millage of 7.30 mils). Without utilizing this program, the same amount of bond funding ($11.57 million) would require a millage increase of 1.39 mils (for a total millage of 7.84 mils). For a homeowner with a market value of $125,000 the millage increase WITH the SBLF Program would be $4.43 monthly. WITHOUT the program, the millage increase would be $7.24 monthly, a tax payer savings of $33.75 annually. Will the Community have an opportunity to give input into what will be built? Yes, the community will be invited to provide input on the bond projects during the design phase. The bond scope that will be completed must align with the ballot language by law and those items must be completed before other ideas can be considered with any residual bond funding. 3. ELECTION INFORMATION When is the Bond Election? Tuesday May 8th, Polls are open from 7:00 AM until 8:00 PM. Where do I vote? Visit to locate your polling place or to register to vote. How do I become a registered voter? To vote in this election you must be registered to vote 4. WHY A BOND ELECTION? Why is the District pursuing a Bond now? The items included in the Facilities Study have all been identified as needs but aren t affordable with the District s operating budget. With improvements, are we considering energy efficiency and long-term maintenance? YES, building roofing, electrical systems and mechanical systems will be designed to high energy efficiency standards. 3 P age

4 Why haven t the buildings been maintained throughout the years? The District has funded ongoing cleaning and maintenance of the major systems for our facilities. Our schools are all safe, warm and dry. However, our schools are becoming increasingly more challenging to maintain due to the aging of building systems and the high costs for replacement. Why do we need to make so many major improvements at this time? The only way for a school District to make significant facility improvements in Michigan is through a Bond issue. The life expectancy of most building systems ranges from 40 to 50 years. Just like your home, there is a time when major improvements must be made to protect your investment. It s much easier and more cost effective to perform major improvements at one time rather than spread them out into several separate, smaller projects. Why is the new gym in Proposal 2 needed? As a community, we discussed demand and usage on current available space within the district. 3rd graders for instance are practicing until 8:30 at night. The only competitive gym is at the HS and it is difficult to schedule practices when there is a high demand. The Intermediate gym isn t sized to competitive regulations, so it can only be used for community and youth purposes. Will the community be able to utilize the new gymnasium? Community usage of CSCS facilities has always been welcomed by the District. Things will not change with the new addition. With adding the new gymnasium square footage, how will you continue to maintain cost and energy efficiency within the district? Whenever additional square footage is added there will need to be funds budgeted for general maintenance of the area. The new addition will have a high efficiency design to minimize the additional required utility costs. Remodeling items in the bond will generate operation cost savings (LED light fixtures and high efficiency mechanical systems) which will offset some of the additional costs. Will we be able to hold competitive events in the new gymnasium (providing some amount of bleacher seating)? The new auxiliary gym will allow the District to expand areas where it can host competitive sporting events. Bleacher seating will certainly be considered in the design of the new facility. What is being addressed in the buildings to improve security for our students? We discussed additional security and video systems as well as minor needed improvements to all facilities. The Elementary main office area will be remodeled to create a secure entry for all building visitors. Improving student and staff safety in an efficient manner was a guiding principle developed by the Facility Needs Committee. 4 P age

5 As part of the bond program, will you be tearing down (demolishing) any existing facilities in the district? No! Existing facilities will be remodeled which may require some minor interior demolition, but no sections of existing buildings are planned to be demolished with this bond. Will the water drainage from the High School, Intermediate School, and football field be addressed with the bond issue? Yes, creating storm water drainage solutions for runoff from the School s facilities and parking lots has been budgeted in the bond amount. The storm water designs will be reviewed and approved by the County Drain Commissioner and the State of Michigan before being constructed. 5. CONSTRUCTION Would local workers have an opportunity to assist with the projects should the Bonds pass? Local contractors are encouraged to bid on our projects. Many will be the successful, qualified, low bidder. Remember- Passing a Bond helps keep tax dollars in our community and strengthens our local workforce (i.e. on-site workers buy gas, eat and shop in our area). If the Bond passes on May 8 th, when will construction begin? Remodeling of the existing buildings would occur over the summer of P age