Bond Proposal Information & Ballot Language
The $39.6 million bond proposal is designed to update school facilities, enhance and expand safety and security measures, increase operating efficiencies, and provide learning spaces to enhance the educational program for all Pre-kindergarten-12th grade students.
What is a bond?
A bond is a state-approved funding process for an identified list of projects. When voters approve a bond proposal, the school district sells bonds in the authorized amount and uses the bond sale proceeds to pay for the bond proposal projects. Bonds are typically paid back in 20- 30 years.
In many ways, the bonding process is like a homeowner refinancing their home and making payments over a period of years. The Caro Community Schools bond proposal length is 28 years.
What will appear on the May 7th ballot regarding the bond proposal?
Here is the exact ballot wording:
Caro Community Schools Bond Proposal
Shall Caro Community Schools, Tuscola County, Michigan, borrow the sum of not to exceed Thirty-Nine Million Six Hundred Thousand Dollars ($39,600,000) and issue its general obligation unlimited tax bonds therefor for the purpose of:
- remodeling, furnishing and refurnishing, and equipping and re-equipping school buildings and facilities, including for school security;
- erecting, furnishing, and equipping a new bus garage and additions to school buildings;
- acquiring and installing instructional technology;
- equipping, preparing, developing, and improving athletic fields and facilities, playgrounds, and sites; and
- purchasing school buses?
The following is for informational purposes only:
The estimated millage that will be levied for the proposed bonds in 2024, under current law, is 3.10 mills ($3.10 on each $1,000 of taxable valuation) for a 1.4 mill net increase over the prior year's levy. 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 4.80 mills ($4.80 on each $1,000 of taxable valuation).
The school district expects to borrow from the State School Bond Qualification and Lon Program to pay debt service on these bonds. The estimated total principal amount of that borrowing is $8,548,759 and the estimated total interest to be paid thereon is $10,255,998. The estimated duration of the millage levy associated with that borrowing is 28 years and the estimated computed millage rate for such levy is 7.00 mills. The estimated computed millage rate may change based on changes in certain circumstances.
The total amount of qualified bonds currently outstanding is $10,765,000. The total amount of qualified loans currently outstanding is $0.
(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.)