Building and Site Sinking Fund Millage Election Date: November 7th 2017
How do Districts Fund Facilities and Technology Needs? General Fund - Use current operating dollars. These are limited to the amount of State and Local funding for all general fund operations. Currently only 1% of the total general fund budget is allotted for annual facility needs, technology and capital improvements. The rest of the maintenance & technology budgets goes to various other categories such as utilities, custodial, salary and benefits.
HOW DO DISTRICTS FUND FACILITY AND TECHNOLOGY NEEDS? Bond Issue - Using a voter-approved bond issue to fund specific facility projects. Bonds are issued to fund the projects, and a separate debt millage is levied to pay back bonds with interest as they come due. The last major bond issue occurred in 2006, which was an extension of the current levy of 7.72 mills for the repayment of outstanding bonds.
HOW DO DISTRICTS FUND FACILITY AND TECHNOLOGY NEEDS? Sinking Fund A sinking fund uses a separate voter-approved millage to fund facility/technology projects. Taxes are collected and used for allowable projects. Unused funds are carried over to future years. No bonds are issued. It is a pay-as-you-go method. Ionia Public Schools currently does not have a sinking fund.
Ionia Public Schools Financial Hurdles The district has struggled to balance the General Fund budget without using its savings since the 2007-2008 school year. Since 2007-2008 the General Fund balance as a percentage of expenditures has decreased from 17.3% to an estimated 8.37%. This has been compounded by an aging infrastructure and state funding that has failed to keep up with inflation. During the past nine years, Ionia Public Schools has realized a modest $206 per student funding increase. This collectively equates to a 2.3% increase in revenue or approximately.25% per annum. I should note this is an issue plaguing many school districts. When you factor in the rising price of utilities, materials, supplies, bus replacement, capital improvement and labor costs, Ionia Public Schools would need to see a 3% per year increase in revenues to break even.
Ionia Public Schools Financial Hurdles Since 2008, the Board of Education has made cuts and used a portion of its savings to balance its budget each year. During the same period, the cost of unfunded mandates have stretched an already untenable budget. In June 2017 we were able to balance our budget however, this required almost $1.2 million in cuts. We were fortunate that the cuts did not result in elimination of programs, but this may not be possible moving forward. As our buildings and technology age the need for funds to maintain and upgrade will exceed lagging per pupil funding. In order to stay competitive in the schools of choice market we must make sure our students have state-of-the-art technology and a learning environment conducive to high achievement.
HOW CAN IONIA PUBLIC SCHOOLS ADDRESS FUTURE FACILITY AND TECHNOLOGY NEEDS? General Fund Not likely as state budget cuts make it nearly impossible to fund major projects out of current operating funds. Bond Issue Due to the long term costs associated with a bond, the District believes this option would not be as cost effective to the voters at this time. Sinking Fund Ask voters to approve a sinking fund millage of 3.0 mills to raise additional dollars for future facility needs. Performance Contracting This is a non-voted bonding process where a school district works with a performance contracting company to identify and make facility improvements that will produce energy savings that will be used to cover the cost of the improvement. This program is Federally regulated and the savings are guaranteed or the contractor has to write a check for the difference. IPS is currently involved in a performance contract with Honeywell. The district will have approximately $3.2 million of work completed and the energy savings will cover the cost of the project.
WHAT IS A BUILDING AND SITE SINKING FUND? State School Code section 380.1212 allows school districts the establishment of a Sinking Fund. A Sinking Fund is created by a local tax millage and must be approved by school electors of the school district. A Sinking Fund millage is levied on all property located in the school district. All funds received through a Sinking Fund millage are restricted and can only be spent for specific purposes. Sinking Funds are audited annually by an independent auditor. Sinking Funds let a district pay as you go for infrastructure needs rather than having to issue bonds and pay interest costs, thus costing taxpayers less dollars.
ALLOWABLE USE OF DISTRICT SINKING FUNDS Construction and additions to school buildings, including parking lots Remodeling existing school buildings Technology and security improvements/upgrades Developing and improving athletic and physical education facilities Energy conservation projects Roofs, boilers and other HVAC mechanical improvements Purchasing land
NON-ALLOWABLE USE OF DISTRICT SINKING FUNDS Wages and benefits Furniture and equipment Textbooks and supplies Buses
WHY IS IONIA PUBLIC SCHOOLS ASKING FOR A SINKING FUND? SAFETY IMPROVEMENTS All of the projects identified have an impact on the safety of our students and community. EDUCATIONAL BENEFIT Classroom technology upgrades and other facility upgrades all provide for a better learning environment for students and our community. Upgrades to our auditorium will also provide much needed enhancements to our Fine Arts programs. FINANCIAL MANAGEMENT In addition to energy savings, we all know that keeping up with a regular replacement program is less expensive than just replacing equipment when it fails completely. RESOURCE MANAGEMENT Spending money to save money protects the investment in our existing facilities.
Facilities Sinking Fund Projects Project Est Cost Flooring/Interiors, $1,317,000 ie,replace carpet District wide installed 1989-2001, Boyce ACM tile gym floor, EC rubber flooring replacement, upgrade restrooms Boyce, MS, Jefferson, TR, Rather, Replace multiple damaged exterior doors district wide, Mechanical- ie.convert remaining steam boilers to more efficient hot water, Fire Alarm Panel upgrade at EC, Boyce $3,371,400
Facilities Sinking Fund Projects Project Grounds- ie, MS M-21, Twin Rivers west, EC west Parking lot replacements, Tennis Courts replacement, Playground upgrades/repairs, Sidewalk replacements, repairs to Stadium running track & re-line, MS S/W exterior step replacement, Jefferson playground access steps and retaining wall, renovate Est Cost $1,914,500
Facilities Sinking Fund Projects Project Est Cost Building Structure$1,395,000 Upgraded Windows to higher security more energy efficient units TR, Rather, Boyce, Roof Replacements Twin Rivers, EC, Boyce, Emerson, TMDC, Tuck pointing, Block Sealing etc. Safety,Security- Replace $621,000 many rusted damaged exterior doors EC, Jefferson, Electronic Card Access additions District wide,
5 Year Technology Needs Assessment Classroom Estimated Price Quantity Cisco Spark Board System $14,427 162 $2,337,174 Spark Board Onboarding & Installation 800 160 $128,000 Audio Enhancement $1,000 162 $162,000 Document Cameras $550 162 $89,100 Student Chromebooks $207 2500 $517,500 Teacher Computers $900 162 $145,800 Office Computers $900 32 $28,800 Program Computer Lab Upgrades $10,000 4 $40,000 Video Production Class Upgrades $15,000 1 $15,000 Total
5 Year Technology Needs Assessment Building Needs Estimated Price Quantity Security Camera Systems $200,000 1 $200,000 Digital Signage Projects $2000 8 $16,000 Additional Wireless $800 60 $48,000 Outdoor Digital Signs $12000 6 $72,000 Gym Audio System Repairs $6000 7 $42,000 Watt Auditorium Audio system Replacement. $36000 1 $36,000 Pool Sound System $2500 1 $2,500 Board of Education Meeting Room Tech $5000 1 $5,000 Upgrade Cisco Phone Sets. $90000 1 $90,000 Media Center Computers $350 210 $73,500 Technology Total Total $4,048,374
HOW MUCH WILL THE NEW SINKING FUND GENERATE AND WHAT WILL IT COST TAXPAYERS? Ionia Public Schools would be asking for a new sinking fund millage of 3.0 mills for a period of 10 years. The 3.0 mills will generate about $1,167,732.00 per year. An average property owner with a taxable value of $50,000 will see an increase in property taxes of $150 per year or $12.50 per month.
Estimated Cost to Homeowners Home Market Value Home Taxable Value Annual 3.0 Mill Increase Approximate Monthly Impact $50,000 $25,000 $75.00 $6.25 $75,000 $37,500 $112.50 $9.38 $100,000 $50,000 $150.00 $12.50 $125,000 $62,500 $187.50 $15.63 $150,000 $75,000 $225.00 $18.75 $175,000 $87,500 $262.50 $21.88 $200,000 $100,000 $300.00 $25.00
Tennis Courts Constructed in 1989
Original Carpet 1989
Middle School M-21 Parking Lot Emerson East Side foundation
Middle School 1st and 2nd Floor Main Restrooms
Middle School 1st and 2nd Floor Main Restrooms
Emerson/Jefferson Brick and Block Tuck Pointing/Stone Work
Middle School South Steps/ Jefferson Retaining wall
Twin Rivers Boiler/ ACM Pipe Insulation in Tunnels
Emerson/Twin Rivers Roofs
TMDC Parking Lot and Driveway
Boyce Well, Controls and supply pipe
Most Teacher & Lab Computers Purchased in 2006 (11 Years Old)
Outdated Audio/Visual in the classroom
Outdated Audio Equipment/Theater Lighting
21st Century Classroom Configuration
Spark Collaboration
QUESTIONS? For more information please contact Ionia Public Schools Superintendent Ron Wilson at rwilson@ioniaschools.org or call 616-527-9280.