Building and Site Sinking Fund Millage
Election Date: May 8th, 2018
How do Districts Fund Facilities and Technology Needs?
General Fund - Use current operating dollars. These are limited to the amount of State and Local funding for all general fund operations.
HOW DO DISTRICTS FUND FACILITY AND TECHNOLOGY NEEDS?
Bond Issue - Using a voter-approved bond issue to fund specific facility projects. Bonds are issued to fund the projects, and a separate debt millage is levied to pay back bonds with interest as they come due.
The last major bond issue occurred in 2006, which was an extension of the current levy of 7.72 mills for the repayment of outstanding bonds.
HOW DO DISTRICTS FUND FACILITY AND TECHNOLOGY NEEDS?
Sinking Fund – A sinking fund uses a separate voter-approved millage to fund facility/technology projects. Taxes are collected and used for allowable projects. Unused funds are carried over to future years. No bonds are issued. It is a pay-as-you-go method.
Ionia Public Schools currently does not have a sinking fund.
Ionia Public Schools Financial Hurdles
The district has struggled to balance the General Fund budget without using its savings since the 2007-2008 school year. Since 2007-2008 the General Fund balance as a percentage of expenditures has decreased from 17.3% to an estimated 8.37%. This has been compounded by an aging infrastructure and state funding that has failed to keep up with inflation. During the past nine years, Ionia Public Schools has realized a modest $206 per student funding increase. This collectively equates to a 2.3% increase in revenue or approximately .25% per annum. I should note this is an issue plaguing many school districts. When you factor in the rising price of utilities, materials, supplies, bus replacement, capital improvement and labor costs, Ionia Public Schools would need to see a 3% per year increase in revenues to break even.
Ionia Public Schools Financial Hurdles
Since 2008, the Board of Education has made cuts and used a portion of its savings to balance its budget each year. During the same period, the cost of unfunded mandates have stretched an already untenable budget.
In June 2017 we were able to balance our budget however, this required almost $1.2 million in cuts. We were fortunate that the cuts did not result in elimination of programs, but this may not be possible moving forward. As our buildings and technology age the need for funds to maintain and upgrade will exceed lagging per pupil funding. In order to stay competitive in the schools of choice market we must make sure our students have state-of-the-art technology and a learning environment conducive to high achievement.
HOW CAN IONIA PUBLIC SCHOOLS ADDRESS FUTURE FACILITY AND TECHNOLOGY NEEDS?
General Fund – Not likely as state budget cuts make it nearly impossible to fund major projects out of current operating funds.
Bond Issue – Due to the long term costs associated with a bond, the District believes this option would not be as cost effective to the voters at this time.
Sinking Fund – Ask voters to approve a sinking fund millage of 3.0 mills to raise additional dollars for future facility needs.�
Performance Contracting – This is a non-voted bonding process where a school district works with a performance contracting company to identify and make facility improvements that will produce energy savings that will be used to cover the cost of the improvement. This program is Federally regulated and the savings are guaranteed or the contractor has to write a check for the difference. IPS is currently involved in a performance contract with Honeywell. The district will have approximately $3.2 million of work completed and the energy savings will cover the cost of the project.
WHAT IS A BUILDING AND SITE SINKING FUND?
ALLOWABLE USE OF DISTRICT SINKING FUNDS
NON-ALLOWABLE USE OF DISTRICT SINKING FUNDS
WHY IS IONIA PUBLIC SCHOOLS ASKING FOR A SINKING FUND?
Facilities Sinking Fund Projects
Project | Est Cost | | | |
Flooring/Interiors, ie,Replace carpet District wide installed 1989-2001, Boyce ACM tile gym floor, EC rubber flooring replacement, upgrade restrooms Boyce, MS, Jefferson, TR, Rather, Replace multiple damaged exterior doors district wide, | $1,317,000 | | | |
Mechanical- ie.Convert remaining steam boilers to more efficient hot water, Fire Alarm Panel upgrade at EC, Boyce water well/supply line/well controls replacement, Electrical Upgrades to support increased electrical needs, Asbestos removal several buildings, Boyce, Rather classroom sinks and countertops, Emerson HVAC insulation, rebuild aged fire suppression risers, swimming pool re-grouting. | $3,371,400 | | | |
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Facilities Sinking Fund Projects
Project | Est Cost | | | |
| | | | |
Grounds- ie, MS M-21, Twin Rivers west, EC west Parking lot replacements, Tennis Courts replacement, Playground upgrades/repairs , Sidewalk replacements, repairs to Stadium running track & re-line, MS S/W exterior step replacement, Jefferson playground access steps and retaining wall, renovate baseball/softball fields, | $1,914,500 | | | |
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Facilities Sinking Fund Projects
Project | Est Cost | | | |
Building Structure- Upgraded Windows to higher security more energy efficient units TR, Rather, Boyce, Roof Replacements Twin Rivers, EC, Boyce, Emerson, TMDC, Tuck pointing, Block Sealing etc. | $1,395,000 | | | |
Safety,Security- Replace many rusted damaged exterior doors EC, Jefferson, Electronic Card Access additions District wide, Classroom Door Security Devices, Replace underwater pool lights, safety stops for all overhead doors, | $621,000 | | | |
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Total | $8,717,900 | | | |
5 Year Technology Needs Assessment
Classroom | Estimated Price | Quantity | Total |
Cisco Spark Board System | $14,427 | 162 | $2,337,174 |
Spark Board Onboarding & Installation | 800 | 160 | $128,000 |
Audio Enhancement | $1,000 | 162 | $162,000 |
Document Cameras | $550 | 162 | $89,100 |
Student Chromebooks | $207 | 2500 | $517,500 |
Teacher Computers | $900 | 162 | $145,800 |
Office Computers | $900 | 32 | $28,800 |
Program Computer Lab Upgrades | $10,000 | 4 | $40,000 |
Video Production Class Upgrades | $15,000 | 1 | $15,000 |
5 Year Technology Needs Assessment
Building Needs | Estimated Price | Quantity | Total |
Security Camera Systems | $200,000 | 1 | $200,000 |
Digital Signage Projects | $2000 | 8 | $16,000 |
Additional Wireless | $800 | 60 | $48,000 |
Outdoor Digital Signs | $12000 | 6 | $72,000 |
Gym Audio System Repairs | $6000 | 7 | $42,000 |
Watt Auditorium Audio system Replacement. | $36000 | 1 | $36,000 |
Pool Sound System | $2500 | 1 | $2,500 |
Board of Education Meeting Room Tech | $5000 | 1 | $5,000 |
Upgrade Cisco Phone Sets. | $90000 | 1 | $90,000 |
Media Center Computers | $350 | 210 | $73,500 |
Technology Total | | | $4,048,374 |
HOW MUCH WILL THE NEW SINKING FUND GENERATE AND WHAT WILL IT COST TAXPAYERS?
Estimated Cost to Homeowners�
Home Market Value | Home Taxable Value | Annual 3.0 Mill Increase | Approximate Monthly Impact |
$50,000 | $25,000 | $75.00 | $6.25 |
$75,000 | $37,500 | $112.50 | $9.38 |
$100,000 | $50,000 | $150.00 | $12.50 |
$125,000 | $62,500 | $187.50 | $15.63 |
$150,000 | $75,000 | $225.00 | $18.75 |
$175,000 | $87,500 | $262.50 | $21.88 |
$200,000 | $100,000 | $300.00 | $25.00 |
Tennis Courts Constructed in 1989
Original Carpet 1989
Middle School M-21 Parking Lot
Emerson East Side foundation
Middle School 1st and 2nd Floor Main Restrooms
Middle School 1st and 2nd Floor Main Restrooms
Emerson/Jefferson Brick and Block Tuck Pointing/Stone Work
Middle School South Steps/ Jefferson Retaining wall
Twin Rivers Boiler/ ACM Pipe Insulation in Tunnels
Emerson/Twin Rivers Roofs
TMDC Parking Lot and Driveway
Boyce Well and Controls
Replacement
Boyce Well, Controls and supply pipe
Most Teacher & Lab Computers Purchased in 2006 (11 Years Old)
Outdated Audio/Visual in the classroom
Outdated Audio Equipment/Theater Lighting
21st Century Classroom Configuration
Spark Collaboration
QUESTIONS?