Voting and Ballot Information

The language that will appear on the November 3 ballot is as follows:

Shall St. Johns Public Schools, Clinton and Gratiot Counties, Michigan, borrow the sum of not to exceed Forty Million Dollars ($40,000,000) and issue its general obligation unlimited tax bonds therefor for the purpose of:

remodeling, furnishing and refurnishing, and equipping and reequipping school buildings, including for school security; erecting, furnishing, and equipping a new transportation building and additions to school buildings; acquiring and installing instructional technology; erecting, 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 2027, under current law, is 1.94 mills ($1.94 on each $1,000 of taxable valuation) for a 0.00 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 (20) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is 2.25 mills ($2.25 on each $1,000 of taxable valuation). 

The school district expects to borrow from the State School Bond Qualification and Loan Program to pay debt service on these bonds. The estimated total principal amount of that borrowing is $1,608,798 and the estimated total interest to be paid thereon is $387,502. The estimated duration of the millage levy associated with that borrowing is 7 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 $54,310,000. The total amount of qualified loans currently outstanding is $238,751.

(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.)

If this bond proposal is approved by voters, the maximum amount of bonds to be issued can be no greater than

$40,000,000.

This means that the allocated bond millage for this proposal to be levied in the first year (2027) is 1.94 mills.

(1.94 mills new bonds + 5.06 mills existing bonds = 7.00 total estimated 2027 millage rate)

The school district plans to issue the bonds in a single series, in 2027. The bond series would have a length of 20 years or shorter.

This means that over the entire life of the bond proposal that the average annual bond millage rate is estimated to be 2.25 mills.

In order to achieve a lower targeted total bond millage rate of 7.00, the school district is utilizing a State program known as the School Loan Revolving Fund ("SLRF"). The SLRF provides loans to school districts for voted bond issues reducing the amount property taxes needed to be collected from the community in order to fund the annual bond payments during the borrowing period. This paragraph provides the estimated amount of borrowing and interest associated with this bond proposal by participating in the SLRF.

This section means that it is estimated that the school district will participate in the School Loan Revolving Fund ("SLRF") for a 7-year duration and that the presently agreed upon participation bond millage rate is 7.00.

The Michigan School Bond Qualification and Loan Program ("SBQLP") is a state program that assists school districts with voted bond issues by providing a bond rating credit enhancement which assists in reducing borrowing costs. The term "qualified" in this case means that the school district has existing bonds outstanding that are qualified by the SBQLP. At the time of the election the principal amount of qualified bonds is $54,310,000.  Another State program known as the School Loan Revolving Fund ("SLRF") provides loans to school districts to assist with voted bonds annual payments if needed. The term "qualified loans" refers to any SLRF loan balances outstanding. The school district has almost completely repaid its loans from prior bond issues participating in this program and therefore the balance at the time of the election is $238,751.