Edwardsburg school board authorizes bond proposal, seeks renewal of non-homestead millage
Published 4:43 pm Friday, February 16, 2024
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EDWARDSBURG — The Edwardsburg Public Schools Board of Education has approved the ballot language for the upcoming May 7 election where district residents will be asked to approve a bond issue proposal the district has been working on for the last several months.
The bond would allow the district to sell bonds and generate approximately $24.4 million with a zero-mill net increase over the current tax rate of 2.85 mills. As the name suggests, the 21-year bond would not raise taxes.
The safety of children in district buildings and classrooms is a key component of the bond process. Secure vestibules, office renovations and campus traffic pattern and circulation upgrades were among the proposed measures to ensure safety. Some of the other projects included in the potential bond proposal are as follows:
- Furnishing, refurnishing, equipping and re-equipping school buildings
- Acquiring and installing instructional technology and equipment for school buildings
- Climate control improvements to all facilities
- Developing and improving playgrounds
In other business, the board discussed its upcoming non-homestead millage renewal vote. Scheduled for Feb. 27, voters will be asked to renew a non-homestead millage that provides the district with a significant portion of its operating budget.
Non-Homestead represents industrial, commercial and some agricultural property and “second homes” and does not include a family’s primary home. The State of Michigan requires Michigan district’s to levy this 18 mill tax on non-homestead property in order for the district to receive the full per-pupil foundation allowance, which amounts to approximately $2.7 million annually for Edwardsburg Public Schools (approximately $1,000 per pupil).
An unsuccessful renewal of this tax would mean the loss of $2.7 million annually in operational funding used to educate students and would impact the programs and services currently offered to students.
Superintendent Dr. Courtney Szucs emphasized that the non-homestead millage is not a new tax and that it is the same 18 mills that voters have been asked to vote on since Proposal A was passed back in 1994. District residents do not pay this tax on their primary residence because of the principal residence exemption.
Historically, the district has asked voters to vote on the operating millage each year in May. By holding the election in May of each year the district has to pay for election costs associated with holding a special election. This year, the district is asking for a three-year renewal on the February ballot so that future requests can happen on election cycles where the district does not have to pay for special election costs in an effort to save both the district and community money.
The difference in the non-homestead ballot language was also discussed, with the ballot listing 19 mills instead of 18. In all Michigan school districts, the 18 mill non-homestead levy is subject to rollbacks per the Headlee Amendment to the Michigan Constitution. While school districts cannot levy more than 18 mills on non-homestead property, Dr. Szucs said Edwardsburg Public Schools is requesting voters consider a 19-mill non-homestead levy to protect against future rollbacks if and when they should happen during the three year renewal.
“If we were to have a rollback during those three years, it’s basically putting that extra mill in a savings account ,” Dr. Szucs said. “If the millage rate goes below that 18 mill we’re able to take from that extra mill to bring it back up to the 18 mill… The 19 mil is never assessed on the non-homestead.”
Previously EPS voters did not have to consider additional mills for a possible rollback because the renewal was only for one year.