May 7, 2019 Bond Proposal - FREQUENTLY ASKED QUESTIONS
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May 7, 2019 Bond Proposal FREQUENTLY ASKED QUESTIONS HISTORY AND FEATURES 1. What is on the May 7, 2019 ballot? On May 7, 2019 voters in East China Schools will be asked to consider a bond proposal to improve District facilities. The improvements would address declining enrollment, safety, security, health, energy efficiency, and technology issues within our facilities, and would update learning environments to meet 21st century curriculum and educational goals. Program highlights would include a new high school, middle school and Riverview East High School on the Meisner campus, remodeling existing school buildings, consolidating our early childhood program at the Pine River Elementary site, and demolition of various buildings. The total program cost is $148,680,000. 2. How was this plan developed? In May 2016, East China Schools approached voters with a ballot initiative to provide much needed upgrades to existing school facilities. After that failed, the district began a process to understand community sentiments. A Strategic Planning effort led by MASB ran from December 2016 through October 2017. One of the goals developed in this process stated “within 2 years create a comprehensive building plan with community input” with first year objectives of: create a consolidation plan-explore options; realign curriculum across all levels and buildings; create enrollment projection reports; and create a long-term program and class offerings plan. In January 2018, the Building Plan Committee was formed. That committee recommended the District pursue a community-driven process to determine the most optimum future bond initiative. Based on enrollment forecasts and facility conditions, administration and the Board felt that the District was headed down a ‘non- sustainable’ path, and a new course of action with regard to facilities was required for the future stability and viability of the District. In the summer of 2018, ECSD partnered with TMP Architecture and Auch Construction to conduct a Facility Assessment to identify building needs across the District.
Bond 2019 – East China Schools Frequently Asked Questions The District formed a Bond Steering Committee in August 2018, comprised of 41 participants, including teachers, principals, parents, community members and administrators. The Committee’s charge was to review, analyze, and provide input into a plan for upgrading and creating operational efficiencies for ECSD’s educational facilities to support a culture of academic excellence, opportunities and success for all students. The Bond Steering Committee held meetings from August 2018 through November 2018, at which time a recommendation was brought to the Board of Education. Early in the process, the Bond Steering Committee listened and learned about the ‘state of ECSD facilities and programs’ and also learned about modern learning environments and what it would take to bring ECSD facilities up to those standards. The committee then prioritized Guiding Principles, which were tenets to guide their thinking as they began the rigorous process of analyzing concepts and ideas to meet those principles. The most daunting task was to ‘right-size’ the district in order to keep the district sustainable for the future and to create more robust opportunities for students in the future. As a final step, a community survey was conducted and two community engagement sessions were held in October 2018 to gain feedback on the direction the committee was considering. There were over 100 community members in attendance at each of the two engagement sessions. On November 12, 2018 the Bond Steering Committee presented its findings and recommendation to the Board and on November 26, 2018, the Board unanimously supported placing a $148,680,000 bond initiative on the May 7, 2019 ballot. 3. Why wouldn’t East China Schools split to form St. Clair and Marine City School Districts? This option is not economically sustainable. Currently East China School District benefits from the shared services between SC and MC. We have a shared stadium, performing arts center, transportation department and all central office services (business, operations, personnel, superintendent and technology) including shared servers and internet services. Decreasing enrollment throughout the district does not support the creation of separate school districts. 4. What are the features of the May 7, 2019 bond proposal? New High School and New Middle School on Meisner Site Safe and Secure Entry Centralized Welcome Ctr. including District Administrative Offices and Counseling Ctr. Two-Story Middle School Classroom Wing Two-Story High School Classroom Wing One-Story Riverview East High School Wing with dedicated Safe and Secure Entrance Dining Hall and Social Commons Outdoor Learning Courtyard celebrating District heritage and traditions 2
Bond 2019 – East China Schools Frequently Asked Questions Collaborative Learning Commons and Media Center Innovation Station housing hands on, project-based learning activities with access to Outdoor Learning Courtyard Natatorium (Competition Pool) Competition Arena (3 courts/2000 seats) with 2nd Story Indoor Running Track Practice Gymnasium (1 regulation size court / storage area) Weight Fitness Center New Stadium Accessible Locker Rooms and Public Restrooms Zone for after-hours activities and/or community access Canopied Connection to Existing Performing Arts Center Segregated bus, auto and pedestrian traffic routes Parking Outdoor Athletic Fields including: o Two (2) Competition Baseball Fields o Two (2) Competition Softball Fields o Eight (8) Tennis Courts o Two (2) Natural Turf Multi-Purpose Practice Fields o One (1) Practice Baseball Field and One (1) Practice Softball Field New Elementary School at current St. Clair Middle School New Canopy to Identify Entrance Safe & Secure Entry Vestibule HVAC and Electrical Updates Technology Upgrades Improved area for Kindergarten students (space, restroom, etc.) Flexible/Collaborative Furniture Transform Site from a Middle School to Elementary (addressing vehicular, bus and parent drop off) New age appropriate Playground Equipment Repave all parking lots Belle River Elementary School Safe & Secure Entry Vestibule / Welcome Center Addition and Renovation Renovation of existing building (ceiling and flooring) New Fire Protection for entire school Restrooms added in classrooms HVAC and Electrical Updates Technology Upgrades Flexible/Collaborative Furniture Improved location for coat & boot storage for all students Repave all parking lots Concrete sidewalk replacement 3
Bond 2019 – East China Schools Frequently Asked Questions 4. continued Palms Elementary School Safe & Secure Entry Vestibule / Welcome Center Addition and Renovation Renovation of existing building (ceiling and flooring) Improved spaces for Kindergarten students (larger space with restrooms, etc.) New Fire Protection for entire school HVAC and Electrical Updates (air conditioning) Technology Upgrades Flexible/Collaborative Furniture Repave all parking lots Concrete sidewalk replacement Pine River Elementary and Early Childhood Center Safe & Secure Entry Vestibule / Welcome Center Addition and Renovation Restrooms added in classrooms New Fire Protection System for entire building HVAC and Electrical Updates Technology Upgrades Flexible/Collaborative Furniture Improved location for coat & boot storage for all students Construct Early Childhood Center Addition New age appropriate Early Childhood Playground Equipment 5. How will the bond proposal impact students and the community? It is the District’s goal to provide updated facilities that support 21st century teaching and to advance learning conditions and methods of instruction to better prepare students for meeting the expectations and demands of employers and colleges/universities in the future. Additionally, the Board of Education believes that the upgrades that have been identified in the assessment process, and given high priority by the professional team, support proper stewardship of the community’s investment in our schools. 6. What are the technology features of Bond 2019? Interactive Displays Instructor Devices LCD Displays Student Devices Document Cameras Infrastructure upgrades to support upgraded Instructional Technology 4
Bond 2019 – East China Schools Frequently Asked Questions 7. Can bond dollars be used to purchase band and athletic uniforms? Bond dollars cannot be used to purchase band and or athletic uniforms but the costs of these purchases have been factored into the overall plan for consolidation. 8. What is “collaborative space” and why is it important in schools today? Collaborative space within a school allows students to learn effectively in groups, encouraging each other to ask questions, explain and justify their opinions, articulate their reasoning, and elaborate and reflect upon their knowledge. The teacher acts as a facilitator, helping students with their research and guiding them through the learning process. Many have found this to be beneficial in helping students learn effectively and efficiently versus more traditional independent learning alone. Some positive results from collaborative learning activities have been documented in research and include: students are able to learn more material by engaging with one another and making sure everyone understands students retain more information from thoughtful discussion students have a more positive attitude about learning and about each other by working together In order to create collaborative space, we would need to provide the resources for information processing, collaboration, assistance, and management of the learning activities. These include technology, flexible furniture that allows for different configurations, appropriate lighting, and finishes. 9. Why are the consolidations/building closures needed? East China School District has been experiencing declining enrollment starting in 2001. In 2001 ECSD had a student count of 5766. This school year (2018-2019) our count is 4096. The projected enrollment numbers and our actual student count numbers show a five to six year continued decline in enrollment. 10. What will the consolidated high school and middle school campus be named? The name of the new HS and MS campus will be decided on by a committee comprised of students, community members and school employees, if the bond successfully passes. It has not been discussed as of yet. 5
Bond 2019 – East China Schools Frequently Asked Questions 11. Why is the design of the building and layout not complete? Conceptual plans for the projects have been developed in order to estimate construction costs. If approved by the voters, the detailed design of the projects would take place. The detailed design of a building program is costly and will not be completed for practical/financial reasons unless the bond issue is approved by the community. These details will take the architects several months of work with input from staff, community members, and other professionals. 12. How are neighboring districts addressing the aging condition of their school buildings? Neighboring districts have experienced the same issue of aging buildings. Bond programs have been approved and implemented all around us. In neighboring Port Huron Area School District, a $105 million bond program is nearing completion and in other neighboring districts bond programs have been implemented in recent years. In today’s competitive environment, districts seek every advantage. The following chart includes our neighboring districts’ current bond and sinking fund millage rates. Comparison of Total Capital Improvement Millage (ECSD & Surrounding Communities) 6
Bond 2019 – East China Schools Frequently Asked Questions 13. Why is it important to attract and retain students in the district? Public schools in Michigan receive money on a per-pupil basis. That means that attracting and retaining students is critical. The quality of our programs and facilities plays a role in both of these areas. If approved by the voters, the bond program would upgrade facilities to support updated teaching methods, improve operational efficiencies in our facilities, provide progressive learning environments, and protect and maintain the community’s past investment in our school buildings. Parents have choices regarding where their children will receive an education. It is the intent of the District and Board of Education to maintain its reputation for providing quality programs and facilities in order to attract and retain students. 14. What is the plan to keep facility improvement disruptions to a minimum? Work at our school facilities would be scheduled so it does not interfere with day-to-day operations or pedestrian safety. As the program commences, the construction schedule would be reviewed and coordinated, on a regular basis, with the superintendent and key building leaders. While the summer construction season would be utilized for a majority of the work, if work is ongoing during school days, there would be clear separation between construction and ongoing operations through barricades and fencing. Safety is paramount and would be the key factor in determining the construction sequencing. 15. What will happen to each of the school buildings scheduled for closure under this plan? Any remaining buildings that are not sold will be scheduled for demolition after construction of the other facilities are complete in the school year 2023-2024. Money has been allocated in the bond for the demolition. 16. What happens if the bond does not pass? Due to East China School District’s aging building and significant declining enrollment, we would still need to make a consolidation plan. The current number of buildings cannot continue to be supported. This consolidation plan would use our current buildings and the plan would come out of additional committee work. 7
Bond 2019 – East China Schools Frequently Asked Questions FINANCIAL AND ELECTION INFORMATION 17. What is the estimated cost of this bond program? Belle River Elementary School $ 4,783,115 Palms Elementary School $ 5,798,791 Renovation of St. Clair Middle School to Elementary School $ 9,917,762 Pine River Elementary School and Early Childhood Addition $ 10,646,115 New High School and New Middle School on Meisner Site $ 116,197,764 Demolition of Remaining Buildings $ 1,196,669 Plus Election/Issuance Cost $ 3,234,603 Minus Estimated Interest Earnings ($ 3,094,819) Total Bond Program Estimate $148,680,000 18. How much would the proposal cost the average taxpayer? In the first year, the millage rate would increase by 1.7 mills over the 2018 debt levy. A homeowner can use the following calculation to determine their individual tax increase: ½ of Home Market Value traditionally equals its Taxable Value. For instance, for a house market value of $100,000, the tax increase would be calculated on ½ value or $50,000. The calculation: $50,000 X 1.7 / 1,000 = a tax increase of $85.00. A breakdown of tax impact follows: (1.7 mill Increase) Market Value of Taxable Value of Estimated Monthly Annual Increase Your Home Your Home Increase in Taxes $80,000 $40,000 $68.00 $5.67 $100,000 $50,000 $85.00 $7.08 $120,000 $60,000 $102.00 $8.50 $200,000 $100,000 $170.00 $14.17 $300,000 $150,000 $255.00 $21.25 As part of the School District’s upcoming bond election, an online tax calculator has been created that estimates the impact on a taxpayer’s annual tax bill if the election is successful. Follow the link is below: http://www.pfmtaxcalc.com/EastChina 8
Bond 2019 – East China Schools Frequently Asked Questions 19. Can I deduct these property taxes on my income tax return? Property taxes may be deductible as itemized deductions on your federal income tax return if you itemize. You may also be eligible for the Michigan Homestead Property Tax Credit on your Michigan income tax return. Please consult with your tax preparer. 20. What exactly is the Michigan Homestead Property Tax Credit? The Michigan homestead property tax credit is a method through which some taxpayers can receive a tax credit for an amount of their property tax that exceeds a certain percentage of their household income. This program establishes categories under which homeowners or renters are eligible for a homestead property tax credit. Please consult with your tax preparer to determine if you are eligible for this important and valuable tax credit. 21. Can the Michigan Homestead Property Tax Credit affect the tax impact of this millage increase? Yes, the increase in taxes could potentially be offset by the Michigan Homestead Property Tax Credit. Below is a summary of the revised Michigan Homestead Property Tax Credit: Households that pay homestead property taxes greater than 3.2% of their annual income may also be eligible for the Michigan’s Homestead Property Tax Credit. Eligible households may deduct up to 60% (up to 100% for senior citizens, please see the senior credit table below) of the millage increase cost up to a $1,500 Homestead Tax Credit limit. The eligibility for the credit begins to decrease after household income exceeds $51,001 and ends completely after the household income exceeds $60,001. Please see below the general reduction table and senior credit table below: General Credit Reduction Senior Credit Resources % of credit Resources % Credit $51,000 100.00% $21,000 100% $51,001 90.00% $21,001 96% $52,001 80.00% $22,001 92% $53,001 70.00% $23,001 88% $54,001 60.00% $24,001 84% $55,001 50.00% $25,001 80% $56,001 40.00% $26,001 76% $57,001 30.00% $27,001 72% $58,001 20.00% $28,001 68% $59,001 10.00% $29,001 64% $60,001 0.00% $30,001 60% 9
Bond 2019 – East China Schools Frequently Asked Questions 22. Economically, is this a good time for a bond proposal? Assessment items at the facilities that would remain in operation were prioritized due to their age and end of useful life. These items will not disappear; they will only worsen with age. In addition, construction costs recently have been rising after hitting very low points a few years ago. Delaying these improvements may result in higher construction costs in the future. Current interest rates on school bonds are near historic lows. If approved by the voters, the district would have to pay a smaller amount of interest to bond holders for the bonds than it would at another time should rates hold, thus maximizing taxpayer dollars. The value and vitality of a community often rests on the quality and marketability of its schools. A bond program can provide opportunities for local contractors and businesses to participate in the economic benefits of a construction program, thus providing economic stimulus to a community. The District’s current debt levy of 2.84 mills is projected to progressively diminish by 2024, thus giving the District the opportunity to fund these projects with less impact to the millage rate. 23. Please explain the millage amounts as they appear on the actual ballot language. Ballot language is on page 14 of this document. 2.7 mills is the levied amount for this bond. This would be a 1.7 mill increase from the current levy due to the fact that the district is retiring 1.0 mills of debt this year. (see chart below) 3.86 mills is the estimated simple average annual millage anticipated to be required to retire this bond debt. (see chart below) 10
Bond 2019 – East China Schools Frequently Asked Questions 24. What is the Sinking Fund Debt? The East China School District sinking fund (.4000 mills) was renewed for 10 years in 2013. The sinking fund has very specific guidelines on how the money can be used because it was approved prior to 2017 when guidelines were changed. East China can use sinking fund for the purchase of real estate and for the construction or repair of school buildings. It cannot be used for general maintenance, equipment, furnishing or technology upgrades. 25. Can money from the bond program be used to pay for salaries and benefits? No, that is against state law. Bond dollars cannot be used for operation expenses such as employee salaries, repairs, maintenance, or energy costs. Bond program funds must be accounted for separately from general operating funds. Bond funds are also subject to audit. 26. Please explain what bond program money can cover and what it can’t. Bond proceeds can be used for the following items: 1. Construction and remodeling of facilities 2. Purchase of technology equipment 3. Equipment and furniture 4. Site improvements 5. Bus purchases 11
Bond 2019 – East China Schools Frequently Asked Questions Bond proceeds cannot be used for the following items: 6. Salaries and wages 7. General operating expenses and maintenance 8. Classroom supplies and textbooks 27. What are the key dates leading up to the May 7, 2019 bond election? Voter registration procedures have changed since the last election. April 22, 2019 – Last day to register in any manner other than in person with the local clerk for the May election. April 23 – May 7th at 8pm – In-person registration with local clerk with proof of residency. May 3, 2019 at 5pm – Deadline for electors to obtain an absent voter ballot via First Class mail. May 6, 2019 at 4pm – Deadline for electors to obtain an absent voter ballot in person in clerk’s office. May 7, 2019 – Election Day registrants may obtain and vote an absent voter ballot in person in clerk’s office or vote in person in the proper precinct. Election Day is Tuesday, May 7, 2019. 28. Where do I register to vote? To vote in the May 7, 2019 bond election, you must be a U.S. citizen, at least 18 years of age by Election Day, a resident of Michigan and of East China School District. Please visit your Local Township or city clerk to register to vote or visit any Secretary of State office. 29. If I cannot make it to the polls on May 7, 2019 what are my options for absentee voting? Applications for Absentee Ballots are available: 1. On-line at www.michigan.gov/vote 2. In your school building offices 3. At your City Clerk’s office Note: Once election ballots are available in the clerk’s office, you can walk into your clerk’s office, receive an absentee application, fill it out, and immediately be given your ballot to cast your vote. 12
Bond 2019 – East China Schools Frequently Asked Questions 30. Where do I vote? A list of precincts is outlined below. Polls will be open on May 7, 2019 from 7am until 8pm. St. Clair Ward 1 City Hall 547 N. Carney Drive Ward 2 Immanuel Lutheran Church 415 N. Ninth Street Ward 3 Golf Course Club House 515 Fred Moore Highway Cottrellville Township Hall 7008 Marsh Road, Cottrellville China Township Hall 4560 Indian Trail, China Township East China Township Hall 5111 River Road, East China St. Clair Township Township Hall 1539 S. Bartlett, St. Clair Marine City Fire Hall 200 S. Parker, Marine City Casco Township Hall 1285 Meldrum Rd., Casco Ira Township Hall 7085 Meldrum Rd., Casco Columbus 1732 Bauman Rd., Columbus 31. Who may I contact if I have additional questions? You are welcome to call or email: Suzanne Cybulla, Superintendent scybulla@ecsd.us Phone: (810.676.1017) For more information you can also visit the District Website at: https://eastchinaschools.org/ 13
Bond 2019 – East China Schools Frequently Asked Questions 32. How will the bond proposal appear on the ballot? EAST CHINA SCHOOL DISTRICT BONDING PROPOSAL Shall East China School District, St. Clair County, Michigan, borrow the sum of not to exceed One Hundred Forty-Eight Million Six Hundred Eighty Thousand Dollars ($148,680,000) and issue its general obligation unlimited tax bonds therefor, in one or more series, for the purpose of: erecting, furnishing, and equipping a new school building; remodeling, erecting additions to, furnishing and refurnishing, and equipping and re-equipping existing school buildings; acquiring and installing instructional technology and instructional technology equipment for school buildings; equipping, developing, and improving playgrounds, play fields, athletic fields, and athletic facilities; and developing and improving driveways, parking areas, and sites? The following is for informational purposes only: The estimated millage that will be levied for the proposed bonds in 2019, under current law, is 2.70 mills ($2.70 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 twenty- eight (28) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 3.86 mills ($3.86 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 $0.00. The total amount of qualified loans currently outstanding is $0.00. The estimated computed millage rate may change based on changes in certain circumstances. The total amount of qualified bonds currently outstanding is $3,695,000. The total amount of qualified loans currently outstanding is $0.00. (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.) 33. What are the projects that are included in this bond proposal? 14
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