FREQUENTLY ASKED QUESTIONS

Many school districts in the State of Michigan typically seek approval for bond proposals every 5-10 years. This allows for significant building improvements to occur and keep district facilities current. The existing bond debt of Springport Public Schools voters includes a non-qualified bond from 2020, a qualified bond from 2015, and a qualified bond from 2015.

The Board of Education and district administration would like to pursue a bond proposal in order to gain momentum on implementing major facilities updates. The desire for continuous facilities improvements is driven by the district strategic plan. Overall, a key goal for the district is to create safe and caring environments that develop the whole child. Upgraded facilities that support education for our current and future students will have a major impact in achieving our dedication to meeting the individual needs of each student as we prepare them to be productive, responsible citizens and lifelong learners.

Due to the size and scale of school buildings, maintenance, updates, and replacement of facilities is costly and often not possible through the traditional funding received by school districts. Our district has a number of growing needs that require large sums of money to undertake. A bond proposal is the best approach to making the significant updates and improvements needed at SPS.

Schools receive funding from a number of sources. A simple breakdown of the sources is as follows:

Foundation Per Pupil Allowance

The State of Michigan provides a per pupil amount of funding to school districts. Currently, the amount received per pupil is $9,608.

Operational Millage (Non-Homestead tax levy)

This is a voter-approved tax levy that provides operational funding to support the annual school budget. The current Non-Homestead levy in the Springport Community Schools District is 18 mills. This funding is included in the Foundation Per Pupil Allowance above. This is not an additional funding source.

* Staff salaries and benefits account for approximately 80-85% of the use of Foundation and Operational Millage funding. The remainder of these funds are typically used for costs of educational programs, building operation costs, and supplies. This leaves very little funding available for facility improvements.

#* In the State of Michigan, school infrastructure is not included in the Foundation Per Pupil Allowance. Funding for school infrastructure improvements is obtained through local voter support.

Voter-Approved Sinking Funds

Voter-approved sinking funds provide an annual collection of taxes based on property values. Typically, the collection provides a smaller amount of funding that allows for minor facilities improvements and renovations. Under new legislation, sinking funds can pay for student technology and safety/security improvements. Sinking funds cannot be used for the purchase of furniture. SPS does not currently have a sinking fund.

Voter-Approved Bond Funds

A bond is a state-approved borrowing process for a set scope of projects. When voters approve a bond proposal, the school district sells bonds in the authorized amount and uses the proceeds of the sale to pay for those projects identified in the bond proposal. Bond proposals are most useful when a district needs a large funding source for facility improvement projects.

In many ways, the bonding process is like a homeowner obtaining a mortgage and making payments over a period of years. The current levy for bond debt in the Springport Public Schools is 6.10 mills. The proposed levy associated with the May 2025 bond would not increase your tax levy.

No, by law, bond proposal funds cannot be used for employee salaries and benefits or student programming. They also cannot be used for repair or maintenance costs or other operating expenses. Bond proposal funds must be used only for purposes specified in the ballot language, and as required by state law, they must be independently audited.

People often wonder why our levy is higher compared to some of the larger surrounding districts. The simple answer is that our tax base is smaller comparatively and requires us to levy a higher millage rate to generate more funding through bonds or sinking funds to support facilities projects.

The graph below highlights the comparison of the funding generated per 1 mill of levy with many of our neighboring and comparable districts.

Your tax levy will not change from the current rate. The millage levy is expected to remain at the 6.10 mill levy.

The millage will impact all real properties you own that are located within the Springport Public Schools district boundary.

The bonds may be sold in series. A series bond means that voters are asked to approve the overall bond amount once at the May 6th, 2025 election. Approval at this election authorizes the district to sell bonds up to the amount of $32.7 million over the next few years. Timing of the sale of bonds is monitored and suggested by the district’s financial manager, PFM Financial Advisors.

Following a successful election, the first series would be sold in 2025 at the amount $10.2 million and the second series is anticipated to be sold up to the amount of $22.5 million in 2026. This approach is an opportunity to save in interest costs, and it also staggers cash flow for the project, so it is received when needed for construction to align with the potential staggered start and completion dates of the proposed projects.