March 10, 2020 Bond Proposal FREQUENTLY …...2019/12/30 · March 10, 2020 Bond Proposal FREQUENTLY ASKED QUESTIONS History and Features 1. What is on the March 10, 2020 ballot?

March 10, 2020 Bond Proposal FREQUENTLY ASKED QUESTIONS

History and Features 1. What is on the March 10, 2020 ballot?

On March 10, 2020 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, 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 the renovation and upgrading of both Marine City and St. Clair High Schools into separate 6-12 schools, remodeling existing school buildings, and adding flexible learning (Arts, STEM/STEAM, and skilled trades) classrooms and expanding the early childhood education wing at the administration building. Current safety measures at each school will be upgraded and building infrastructure improvements will be addressed. If approved by the voters, projects funded through the bond proposal will positively impact every East China student while addressing the needs of each school building including the Performing Arts Center (PAC) and the East China Stadium. The total program cost is $112.9 million.

2. Why did the Board of Education feel they needed to go back to voters following the recent

May 2019 election?

The issues of declining enrollment, necessary technology upgrades, infrastructure concerns, and the need to put the District on a sustainable budgetary path, creates an imminent need to address our aging facilities. In 2001, ECSD had a student count of 5,766. This school year (2019-2020) our count is 3,982. The projected enrollment numbers and our actual student count numbers show a five to six year continued decline in enrollment. We currently have 100 more seniors graduating each year than we have incoming kindergarten students.

Frequently Asked Questions East China School District – Bond 2020

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3. What steps did the District take to understand the May 7, 2019 ballot defeat when

developing this proposal?

Following the May 2019 bond election, the District took immediate action to understand community sentiments and to lay out a plan for the future. A survey was conducted to gain feedback on the May proposal and to determine the community’s desire to pursue any future initiatives regarding facility, site and technology upgrades.

Results of that survey found an overwhelming discomfort with consolidating both high schools and middle schools on one campus and specific concern with the location of the proposed consolidated building. However, the results also showed that the community agreed and understood the District’s immediate need for infrastructure, technology, and security upgrades.

The District has met with the area business associations in order to cultivate school and community relationships. We have also worked to secure additional grant funding from our local businesses to support opportunities for our students.

In addition we met with PTO and parent groups to understand how they felt the district should address the needs of our school buildings and programming for our students.

4. What are the features of the March 10, 2020 bond proposal?

Bond 2020 proposed upgrades are focused on the following key areas. Details of improvements at each building are included below.


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5. What are the technology features of Bond 2020?

All technology upgrades are designed to support classroom instruction, enhance the learning environment, and ensure student and staff safety. Specifics include:

Electronic, card reader type controlled entrances for enhanced safety

Interactive displays (SmartBoards)

Instructor devices

LCD displays (video announcements)

Student devices (computers, Chromebooks, laptops)

Document cameras

Infrastructure upgrades to support upgraded Instructional Technology

Public announcement and clock systems

Additional security cameras installed at each school building

Marine City 6-12 School/Riverview East High School

Create safe & secure entry vestibule / welcome center Install additional security cameras Remodel athletic entrance Partially demolish Middle School wing Renovate existing building (ceiling and flooring) Replace roof and windows Add windows to existing cafeteria Provide flexible/collaborative furniture for enhanced student learning Update HVAC system – boilers/heating/cooling Update technology Replace public announcement and clock systems Upgrade locker rooms Remodel pool area Relocate JV baseball field Rebuild tennis courts including lighting Replace drives, parking lots and sidewalks

East China Stadium

Renovate team locker rooms Remodel ticket/concession building for increased security Remodel/refresh current bathrooms Create designated entrance area Construct new access road to and from King Road


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St. Clair 6-12 School

Create safe & secure entry vestibule / welcome center Install additional security cameras Remodel athletic entrance Remodel and expand Media Center Construct classroom addition to support middle school Renovate existing building (ceiling and flooring) Replace roof and windows Remodel restroom facilities Install new fire protection system Update HVAC system – boilers/heating/cooling Upgrade electrical system for increased efficiency Provide flexible/collaborative furniture for enhanced student learning Update technology Replace public announcement and clock systems Construct gym and locker rooms Remodel existing locker rooms Remodel pool area Upgrade softball field Install tennis court lights Replace drives, parking lots and sidewalks

Performing Arts Center

Upgrade lighting and rigging systems Upgrade technology infrastructure

Belle River Elementary School

Create safe & secure entry vestibule / welcome center Remodel existing building (ceiling and flooring) Install new fire protection system Update HVAC system – boilers/heating/cooling Upgrade electrical system for increased efficiency Provide flexible/collaborative furniture for enhanced student learning Update technology Replace public announcement and clock systems Replace drives, parking lots and sidewalks


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Pine River Elementary School


St. Clair Elementary School

Create safe & secure entry vestibule / welcome center Transform site from a Middle School to Elementary (addressing vehicular, bus and

parent drop off) Remodel existing building (ceiling and flooring) Install fire protection system Update HVAC system – boilers/heating/cooling Upgrade electrical system for increased efficiency Provide flexible/collaborative furniture for enhanced student learning Update technology Replace public announcement and clock systems Replace drives, parking lots and sidewalks Relocate new age appropriate playground equipment

Palms Elementary School



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STEAM/STEM and Early Childhood Center Classrooms (Meisner site)

Create safe & secure entry vestibule / welcome center Construct STEM/STEAM classrooms/flexible learning spaces Construct two additional Early Childhood classrooms Replace roof and windows Install new fire protection system Update HVAC system – boilers/heating/cooling Upgrade electrical system for increased efficiency Provide flexible/collaborative furniture for enhanced student learning Update technology Replace drives, parking lots and sidewalks

6. How does the bond proposal impact students and the community?

It is the District’s goal to continue to provide facilities that support modern 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.

7. 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.

Studies have shown that collaborative learning is beneficial in helping students learn

effectively and efficiently versus more traditional independent learning alone. Positive results from collaborative learning activities 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, furniture that allows for different configurations, appropriate lighting, and finishes.


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8. Why is the design of this building program not complete?

Conceptual plans for the projects have been developed in order to estimate construction costs. The detailed design of a building program is an in-depth, comprehensive process 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. The cost of this work is included in the bond estimate.

9. What is the plan to keep facility improvement disruptions to a minimum?

Construction 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 done during the school day, there would be clear separation between construction and ongoing operations through barricades and fencing. Safety is paramount and would be the key factor in determine the construction sequencing.

10. 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 November 2019, voters in the Richmond School District approved a bond proposal to upgrade and update existing facilities in their community. Also, in neighboring Port Huron Area School District, a $105 million bond program has just been completed. In today’s competitive environment, districts seek every advantage. The chart on the next page includes our neighboring districts’ current bond and sinking fund millage rates.

11. What happens if the bond does not pass?

Due to East China School District’s aging facilities and significant declining enrollment, we would need to assess our school buildings each year to determine if changes need to be made either due to declining enrollment and/or the condition of the buildings. The building infrastructure will only worsen as time goes on. 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.


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Comparison of Total Capital Improvement Millage (ECSD & Surrounding Communities)

12. Why is it important to attract and retain students in the district?

Attracting and retaining students is critical as public schools in Michigan receive money on a per-pupil basis. The quality of our programs and facilities plays a significant role in maintaining and increasing our student enrollment. If approved by the voters, the bond program would upgrade facilities to support updated teaching methods, improve operational efficiencies in our facilities, provide modern learning environments, and protect and maintain the community’s past investment in our school buildings. Parents have choices regarding where their children 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. This bond proposal includes the necessary features that will create East China School District as a destination district for parents looking for a high quality education for their children.


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FINANCIAL AND ELECTION INFORMATION 13. What is the estimated cost of this bond program?

Belle River Elementary School $ 5,023,589 St. Clair Elementary School $ 7,898,457 Pine River Elementary School $ 5,264,482 Palms Elementary School $ 4,359,170 Marine City 6-12 School $ 34,816,573 St. Clair 6-12 School $ 36,801,653 New Innovation Center / Early Childhood Center $ 18,431,383 Performing Arts Center $ 222,592 Stadium $ 1,503,455 Maintenance Building $ 16,042 Transportation Building $ 16,133 Minus Estimated Interest Earnings ($ 1,453,529) Total Bond Program Estimate $ 112,900,000

14. How much would the proposal cost the average taxpayer?

In the first year, the millage rate would increase by 1.5 mills over the 2019 debt levy. Homeowners 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 1.5 / 1,000 = a tax increase of $75.00.


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A breakdown of tax impact follows:

Market Value of Your Home

Taxable Value of Your Home

(1.5 mill Increase) Annual Increase in

Taxes

Estimated Monthly Increase

$80,000 $40,000 $60.00 $5.00

$100,000 $50,000 $75.00 $6.25

$120,000 $60,000 $90.00 $7.50

$200,000 $100,000 $150.00 $12.50

$300,000 $150,000 $225.00 $18.75

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 bill if the election is successful. Click on the link: http://www.pfmtaxcalc.com/EastChina Local realtors have stated real estate values tend to be higher in communities with school districts that are perceived to offer a quality educational program and have up-to-date facilities. All bond proposal projects are designed to reflect positively on homeowner property values and the School District’s reputation for effectiveness and efficiency.

15. 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, within certain limits. You may also be eligible for the Michigan Homestead Property Tax Credit on your Michigan income tax return. Please consult with your tax preparer.

16. 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.

http://www.pfmtaxcalc.com/EastChina


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17. 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 you will find the general reduction table and senior credit table and a summary of the revised Michigan Homestead Property Tax Credit.

General Credit Reduction Senior Credit

Resources % of Credit Resources % Credit

$51,000 100.00% $21,000 100%

96% $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%

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 incomes exceeds $51,001 and ends completely after the household income exceeds $60,001.

18. Economically, is this a good time for a bond proposal?

The District’s significant building infrastructure and technology needs will not disappear; they will only worsen as time goes on. 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.


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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 the community.

The District’s millage rate was recently reduced to 1.68 mills (2.08 mills with the sinking fund) and is projected to continue to progressively diminish, providing the District the opportunity to fund these projects with less impact to the millage rate.

19. What is the Sinking Fund Millage?

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. East China can use sinking funds for the construction or repair of school buildings. It cannot be used for general maintenance, equipment, furnishing or technology upgrades.

20. 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.

21. Please explain what bond program money can cover and what it can’t.

Bond proceeds cannot be used for the following items:

Salaries and wages

General operating expenses, repairs, and maintenance

Classroom supplies and textbooks Bond proceeds can be used for the following items:

Construction and remodeling of facilities

Purchase of technology equipment

Equipment and furniture

Site improvements

Bus purchases


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22. Why wouldn’t East China Schools split to form St. Clair and Marine City School Districts?

This option is not economically sustainable. Currently ECSD benefits from the shared services between St. Clair and Marine City. 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. Declining enrollment in the district does not support the creation of separate school districts.

23. What is the total cost of this bond?

After completing a comprehensive needs assessment on all District facilities, the total cost to make the necessary improvements, including the immediate facility and technology needs, is $112.9 million. In order to raise these funds, the District’s financial advisor calculated that 1.5 mills would be needed to be levied by the community.

Residents may review the specific improvements and the projected cost for each those improvements in the State Treasury-approved Application for Preliminary Qualification of Bonds located on the District’s website under the 2020 Bond tab.

24. Doesn’t the State lottery money fund schools in Michigan?

With how heavily the lottery advertises its school contributions, it’s easy to assume the lottery is a major player in the state’s education funding. In reality, according to the House Fiscal Agency, only 7.5 percent of state funding for K-12 education came from the lottery in the 2018-2019 budget year. The state sales tax is by far the largest funding source for education, constituting nearly 47 percent of the $12.9 billion the state puts into the education budget. The state’s school aid money is then largely distributed to local school districts on a per-pupil basis – districts with more students get more money, and those with fewer get less (some districts get more per pupil than others) and state law limits the amount of those state school aid dollars that can be used for capital improvements. Although 7.5 percent is not inconsequential, it muddies the popular perception that the lottery is a prime driver of Michigan’s education budget.


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25. What are the key dates leading up to the March 10, 2020 bond election?

Voter registration procedures have changed in recent years.

February 24, 2020 – Last day to register in any manner other than in person with the local clerk for the March election.

March 6, 2020 up to 5pm – Deadline for electors to obtain an absent voter ballot via First Class mail.

March 9, 2020 up to 4pm – Deadline for electors to obtain an absent voter ballot in person in clerk’s office.

March 10, 2020 at 8pm – Deadline for in-person registration with local clerk with proof of residency.

March 10, 2020 – 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.

26. Where do I register to vote?

To vote in the March 10, 2020 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 township or city clerk to register to vote or visit any Secretary of State office.

27. If I cannot make it to the polls on March 10, 2020 what are my options for absentee voting?

Due to the passage of the statewide ballot proposal in November 2018, all eligible and registered voters in the State of Michigan may now request an absent voter ballot without providing a reason. Applications for Absentee Ballots are available:

On-line at www.michigan.gov/vote

In your school building offices

At your City/Township 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.

http://www.michigan.gov/vote


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28. Where do I vote?

A list of precincts is outlined below. Polls will be open on March 10, 2020 from 7:00 am until 8:00 pm.

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

China Township Hall 4560 Indian Trail

East China Township Hall 5111 River Road

St. Clair Township Township Hall 1539 S. Bartlett

Marine City Fire Hall 200 S. Parker

Casco Township Hall 1285 Meldrum Rd.

Ira Township Hall 7085 Meldrum Rd.

Columbus 1732 Bauman Rd.

29. How do I get more information about the bond election and who may I contact if I have additional questions?

Go to www.eastchinaschools.org and click on Bond 2020 Information

Check the ECSD Bond 2020 Just the Facts Facebook page

Email Superintendent of Schools, Suzanne Cybulla, at [email protected] or call (810) 676-1017.

http://www.eastchinaschools.org/

mailto:[email protected]


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30. 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 Twelve Million Nine Hundred Thousand Dollars ($112,900,000) and issue its general obligation unlimited tax bonds therefor, in one or more series, for the purpose of:

remodeling, including security improvements to, 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 2020, under current law, is 1.50 mills ($1.50 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 2.84 mills ($2.84 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 $3,695,000. The total amount of qualified loans currently outstanding is $0.00. The estimated computed millage rate may change based on changes in certain circumstances.

(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.)

31. The following documents were included in the application for preliminary qualification of bonds as submitted to State of Michigan Department of Treasury.

Documents

March 10, 2020 Bond Proposal FREQUENTLY …...2019/12/30 · March 10, 2020 Bond Proposal FREQUENTLY ASKED QUESTIONS History and Features 1. What is on the March 10, 2020 ballot?